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Mango Inc., headquartered in Cupertino, California, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells
Mango Inc., headquartered in Cupertino, California, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software and services. The following is Mango's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). MANGO INC. CONSOLIDATED BALANCE SHEET September 30, 2017 (dollars in millions) ASSETS Current assets: Cash Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments $ 13,974 11,337 17,619 2,127 24,062 69,119 131,280 Property, plant, and equipment, net 20,802 Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable 12,632 $233,833 Accrued expenses Unearned revenue Short-term notes payable Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 per value) Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity $ 30,458 18,615 8,569 6,363 64,005 29,243 28,100 121,348 1 24,812 87,672 112,485 $233,833 Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): a. Borrowed $18,291 from banks due in two years. b. Purchased additional Investments for $23,400 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,597 in cash and signed a short-term note for $1,435. d. Issued additional shares of common stock for $1,495 in cash; total par value was $1 and the rest was in excess of par value. e. Sold short-term investments costing $19,032 for $19,032 cash. f. Declared $11,151 in dividends to be paid at the beginning of the next fiscal year.
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