Question
P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 Skip to question
P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5
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[The following information applies to the questions displayed below.]
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 | $13,964 |
Short-term investments | 11,329 |
Accounts receivable | 17,607 |
Inventories | 2,126 |
Other current assets | 24,051 |
Total current assets | 69,077 |
Long-term investments | 131,200 |
Property, plant, and equipment, net | 20,789 |
Other noncurrent assets | 12,624 |
Total assets | $233,690 |
LIABILITIES AND STOCKHOLDERS EQUITY | |
Current Liabilities: | |
Accounts payable | $30,439 |
Accrued expenses | 18,603 |
Unearned revenue | 8,563 |
Short-term debt | 6,359 |
Total current liabilities | 63,964 |
Long-term debt | 29,224 |
Other noncurrent liabilities | 28,082 |
Total liabilities | 121,270 |
Stockholders equity: | |
Common stock ($0.00001 par value) | 1 |
Additional paid-in capital | 24,612 |
Retained earnings | 87,807 |
Total stockholders equity | 112,420 |
Total liabilities and shareholders' equity | $233,690 |
Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 26, 2020):
Borrowed $18,289 from banks due in two years.
Purchased additional investments for $23,200 cash; one-fifth were long term and the rest were short term.
Purchased property, plant, and equipment; paid $9,594 in cash and signed a short-term note for $1,433.
Issued additional shares of common stock for $1,492 in cash; total par value was $1 and the rest was in excess of par value.
Sold short-term investments costing $19,030 for $19,030 cash.
Declared $11,148 in dividends to be paid at the beginning of the next fiscal year.
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