Consolidated Statements of Financial Position 6 (millions of dollars) Adjusted 7 Assets 8 Cash and cash equivalents 9 Inventory 10 Other current assets Total current assets \begin{tabular}{rrr} $8,511 & $ & 7,872 \\ 11,383 & 13,902 \\ 1,592 & 1,760 \\ \hline 21,486 & 23,534 \end{tabular} $,87213,9021,76023,534 Property and equipment Land Buildings and improvements Fixtures and equipment Accumulated depreciation and amortization on fixtures and equipment financed through leases (20,278) (21,137) C82Xfx Total noncurrent liabilities D Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' investment Total liabilities and shareholders' investment \begin{tabular}{rrr} 42 & & 39 \\ 6,329 & & 6,421 \\ 6,825 & & 7,081 \\ (756) \\ \cline { 3 - 3 } & & (553) \\ & 12,440 \\ & 51,978 \\ \hline \end{tabular} Consolidated Statements of Operations (millions) Years Ending December 31 , 2021 2022 Sales $93,561$106,005 Cost of sales Selling, general and administrative expenses Depreciation and amortization * Operating income \begin{tabular}{rr} 66,177 & 74,963 \\ 18,615 & 19,752 \\ 2,230 \\ \hline 6,539 & 2,344 \\ \hline \end{tabular} Net interest expense 421 Net other (income) / expense 421 (382) intructions and Measurement Recording Big BoX (382) Ready Pe Accessibing investigate 32F 89 Depreciation and amortization (exclusive of depreciation included in cost of sales) 70 71 72 73 74 Instructions: Big Box Retailer (BBR) is preparing the final adjustments to its financial statements to comply with GAAP in revenue recognition and federal income taxes. The following matters require adjusting entries. Post the adjustment in the appropriate column to the financial statments. Amounts are in millions, except for customers described in \#4. Put each adjustment in a separate column. The worksheet contains formulas. However, formulas can become corrupted. You may wish to check your final work by re-computing the balances. 1) BBR analyzed its sales history and determined that its estimates for sales returns were too low. It requires an increase in estimated return inventory of $225 and a liability related to returns of $300. 2) Due to inflation, fewer customers are losing their gift cards. As a result the estimate for the gift card liability is $50 higher. 3) BBR's accrued warranty expense account shows a debit balance. To correct the account and show the appropriate liability an increase in accrued warranty expense of $120 is required. 4) BBR ran a special sale in December 2023 which gave customers who purchased $1,000 of merchandise, in one day, a $150 coupon to use in 2024 . The cash receipt and relief of inventory for the sold merchandise has been recorded. However, the coupon has not been. A total of 500,000 customers took advantage of the offer. The coupon is a second performance obligation. As a result, sales are overstated by $65 million. 5) After taking into account the unadjusted earnings and the adjustments above, the tax accountants provide the following 5) After taking into account the unadjusted earnings and the adjustments above, the tax accountants provide the following information. Tax Expense =$2,143 Taxes already paid and expensed during the year =$1,800 Additional Tax Liability Currently Due =$200 Additional Deterred Tax Liability =$143