Problem #6. (10 Points)

The fiscal year for Johnson Company ends on May 31. Results for the year ended May 31, 20X1,

included the following (in $ millions except for number of shares outstanding):

Cash and cash equivalents 45,000

Cost of goods sold 195,000

Inventories 29,000

Other current assets 6,000

Fixed assets, net 217,000

Net sales 422,000

Receivables 22,000

Debentures 77,000

Research and development expenses 42,000

Administrative and general expenses 65,000

Other income (expenses), net (12,000)

Capital construction fund* 28,000

Selling and distribution expenses 41,000

Other current liabilities 9,000

Treasury stock (13,000)

Accounts payable 24,000

Mortgage bonds payable 84,000

Deferred income tax liability 12,000

Redeemable preferred stock 15,000

Common stock, at par (50,000 shares outstanding) 5,000

Paid-in capital in excess of par 102,000

Income tax expense 51,000

Accrued expenses payable 20,000

Retained income 48,000

Intangible assets 21,000

Long-term investments ?

* A noncurrent asset

Prepare in proper form the balance sheet as of May 31, 20X1, and the income statement for the

year ended May 31, 20X1. Include the proper amount for long-term investments.