2. Balance-sheet M ha a Several types of balance sheet accounts are described below. Choose the correct account for each description. Account Account Description I v I Money that customers owe the Firm due to sales made on credit. v All of the rm's liabilities expected to be due in the next ll year. Money the firm owes to its suppliers due to purchases I:l mm on credit A hybrid security ti'iat has the charactenstics of bod-i debt V _ and common equrty. Includes trademarks, patents, and goodwill from preyipus acq LIISItIOr'IS. Which of the following statements accurately describes the balance sheet? Check all statements that apply. I: Allows assets to exceed liabilities plus equity if the company's stock price has grown rapidly I: Shows operating perfonnance on a specic date I: Allows the book yalue and market value of equity to be different I: Shows operating perfon'nance over a period of time Complete the following statement: Depreciation represents the loss In a lled asset's value due to aging. 7 appears on the Income statement and represents the reduction In xed assets' values over the previous accounting period. v appeals on the balance sheet and represents the cumulative value reduction In the n'n's present xed asset holdings since their acquisition. Complete the missing balance sheet entries for Travers 0 Co.'s balance sheets for the years ending 2004 and 2005 based on the followan statements: - Travers Issued $25 million of new common stock. 0 Travers had net Income available to common shareholders of $17 million during 2005. At the end of 2005, Travers paid out $51 million In common dividends. . Travers neither issued nor retired long-term debt during 2005. o In 2005, Travers had cash ows from operating activities of $14? million, cash ow h'om investing activities of -$00 million, and cash ow from nancing activities of -$21 million. BALANCE SHEET (Millions of dollars} Yr 2 Yr 1 'rr 2 Yr 1 Cash 7 5 10 Accounts payable 5 118 $ 100 Accounts receivable 17!) 140 Notes payable 53" 52 Inventories 190 210 Accrued liabilities 62 50 'Ibtal current assets 7 $ 360 Total cun'ent liabilities $ 24? $ 202 Long-term debt V 150 Total liabilities I: s 352 Preferred stock ' ' Common stock I: 50 l: Retained earnings 7 Net fixed assets S 280 $ 25!} Total common equity 7 $ 258 Total assets |:| s 610 Totalllabilities and equity v $ 610