Question
Green Caterpillar Garden Supplies Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year
Green Caterpillar Garden Supplies Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet.
Green Caterpillar Garden Supplies Inc.Balance Sheet for Year Ending December 31 (Millions of Dollars) | |||||
---|---|---|---|---|---|
Year 2 | Year 1 | Year 2 | Year 1 | ||
Assets | Liabilities and equity | ||||
Current assets: | Current liabilities: | ||||
Cash and equivalents | $6,457 | Accounts payable | $0 | $0 | |
Accounts receivable | 2,953 | 2,363 | Accruals | 410 | 0 |
Inventories | 8,662 | 6,930 | Notes payable | 2,324 | 2,187 |
Total current assets | $19,687 | $15,750 | Total current liabilities | $2,187 | |
Net fixed assets: | Long-term debt | 8,203 | 6,563 | ||
Net plant and equipment | $19,250 | Total debt | $10,937 | $8,750 | |
Common equity: | |||||
Common stock | 21,328 | 17,063 | |||
Retained earnings | 9,187 | ||||
Total common equity | $32,813 | $26,250 | |||
Total assets | $43,750 | $35,000 | Total liabilities and equity | $43,750 | $35,000 |
Given the information in the preceding balance sheetand assuming that Green Caterpillar Garden Supplies Inc. has 50 million shares of common stock outstandingread each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.
I am looking to find the cash and equivalents for year 2, the net plant and equipment for year 2, the total current liabilities for year 2, and the retained earnings for year 2.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started