Session 8: Financial Reporting and Analysis: The Income Statement, Balance Sheet, and Cash Flow Statement
Reading 33: Understanding the Balance Sheet
LOS a: Illustrate and interpret the components of the balance sheet and discuss the uses of the balance sheet in financial analysis.
Duster Company reported the following financial information at the end of 2007:
|
in millions |
| Unearned revenue |
$240 |
| Common stock at par |
30 |
| Capital in excess of par |
440 |
| Accounts payable |
1,150 |
| Treasury stock |
2,000 |
| Retained earnings |
5,160 |
| Accrued expenses |
830 |
| Accumulated other comprehensive loss |
210 |
| Long-term debt |
1,570 |
Calculate Duster’s liabilities and stockholders’ equity as of December 31, 2007.
|
Liabilities |
Stockholders' equity |
|
A) |
| $3,790 million |
$3,420 million | | |
|
B) |
| $3,790 million |
$7,420 million | | |
|
C) |
| $3,550 million |
$7,840 million | | |
Liabilities are equal to $3,790 million ($240 million unearned revenue + $1,570 long-term debt + $1,150 accounts payable + $830 accrued expenses). Stockholders’ equity is equal to $3,420 million ($30 common stock at par + $440 capital in excess of par – $2,000 treasury stock + $5,160 retained earnings – $210 accumulated other comprehensive loss).
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发表于 2011-3-16 11:17
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