P$2-5($Algo$)$ Recording Transactions, Preparing Journal Entries, Posting to T$-$Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO$2-2,2-4,2-5$

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Orange Incorporated, headquartered in Cupertino, California, designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services. The following is Orange's $($simplified$)$ balance sheet from a recent year $($fiscal year ending on the last Saturday of September$).$

ORANGE INCORPORATED

CONSOLIDATED BALANCE SHEET

September $28,2019$

$($dollars in millions$)$

ASSETS

Current assets:

Cash $$13,994$

Short$-$term investments $11,353$

Accounts receivable $17,644$

Inventories $2,130$

Other current assets $24,096$

Total current assets $69,217$

Long$-$term investments $131,466$

Property, plant, and equipment, net $20,831$

Other noncurrent assets $12,650$

Total assets $$234,164$

LIABILITIES AND STOCKHOLDERS$$ EQUITY

Current Liabilities:

Accounts payable $$30,501$

Accrued expenses $18,641$

Unearned revenue $8,581$

Short$-$term debt $6,372$

Total current liabilities $64,095$

Long$-$term debt $29,284$

Other noncurrent liabilities $28,139$

Total liabilities $121,518$

Stockholders$$ equity:

Common stock $($$$0\mathrm{.}00001$ par value$)1$

Additional paid$-$in capital $24,912$

Retained earnings $87,733$

Total stockholders$$ equity $112,646$

Total liabilities and shareholders' equity $$234,164$

Assume that the following transactions $($in millions$)$ occurred during the next fiscal year $($ending on September $26,2020)$:

Borrowed $$18,293$ from banks due in two years.

Purchased additional investments for $$23,600$ cash; one$-$fifth were long term and the rest were short term.

Purchased property, plant, and equipment; paid $$9,600$ in cash and signed a short$-$term note for $$1,438.$

Issued additional shares of common stock for $$1,498$ in cash; total par value was $$1$ and the rest was in excess of par value.

Sold short$-$term investments costing $$19,035$ for $$19,035$ cash.

Declared $$11,154$ in dividends to be paid at the beginning of the next fiscal year.

P$2-5$ Part $4$

Required:

$4.$ Prepare a classified balance sheet for Orange at September $26,2020,$ based on these transactions.

Note: Enter your answers in millions.