Balance Sheet

How are the assets financed in each year? How much (in terms of percentages) by equity and how much by debt (total liabilities)? Hint: Create a subtotal for total liabilities on the balance sheet. After reviewing the percentages, do you think they are moving in a good direction? You may refer to page 797 in your textbook for the Equity ratio and Debt ratio. What are some of the major changes (in terms of assets, liabilities and equity) in 2015 and 2016? In your answer, name at least 3 accounts with the largest % and dollar changes. Be specific in your answer. Quote the actual dollar change amount and percentage change amount and the period affected.

CONSOLIDATED BALANCE SHEETS Per share amounts are in millions Numbers are also presented in millions (add 6 zeros after each number) December 31, common-size %'s 2015 2016 $ Change % Chang 2015 2016 ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders equity: Preferred stock, $0.01 par value: Authorized shares 500 Issued and outstanding shares none Common stock, $0.01 par value: Authorized shares 5,000 Issued shares 494 and 500 Outstanding shares 471 and 477 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders equity Total liabilities and stockholders equity $15,890 $19,334 $3, 444 22% 25% 23% 6,647 11,461 8,339 45,781 29,114 3,784 4,723 $64,747 $83,402 3,918 10,243 5, 654 35, 705 21,838 3,759 3,445 $20,397 10,372 3,118 33, 887 8,227 9,249 $25,309 13,739 4,768 43, 816 7,694 12, 607 (1,837) (1, 837) 17,186 (985) 4,916 19,285 $64,747 $83,402 13,394 (723) 2,545 13,384