Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter 2, Problem 2.6E
To determine
Classified balance sheet: The main elements of balance sheet assets, liabilities, and stockholders’ equity are categorized or classified further into sections in a classified balance sheet. Assets are further classified as current assets, long-term investments, property, plant, and equipment (PPE), and intangible assets. Liabilities are classified into two sections current and long-term. Stockholders’ equity comprises of common stock and
To prepare: Classified balance sheet for Incorporation TI as at December 31, 2017
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Suppose the following items were taken from the 2025 financial statements of Texas Instruments, Inc. (All dollars are in millions.)
Common stock
Prepaid rent
Equipment
Stock investments (long-term)
Debt investments (short-term) 1,620
Income taxes payable
Cash
Current Assets
$2,100
150
6,070
Cash
700
140
1,200
Accumulated depreciation-equipment $2,890
Accounts payable
1,770
2,160
Patents
Notes payable (long-term)
Retained earnings
Accounts receivable
Inventory
Prepare a classified balance sheet in good form as of December 31, 2025. (List Current Assets in order of liquidity. Enter amounts
in millions.)
TEXAS INSTRUMENTS, INC.
Balance Sheet
December 31, 2025
710
(in millions)
Assets
7.260
1,900
1,070
1200
Suppose the 2017 adidas financial statements contain the following selected data (in millions).
Current assets
$4,340
Interest expense
$170
Total assets
8,630
Income taxes
120
Current liabilities
2,730
Net income
270
Total liabilities
4,854
Cash
790
Compute the following values.
(a) Working capital.
millions
(b) Current ratio. (Round to 2 decimal places, e.g. 6.25:1.)
:1
(c) Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.)
(d) Times interest earned. (Round to 2 decimal places, e.g. 6.25.)
times
Suppose the following items were taken from the 2025 financial statements of Texas Instruments, Inc. (All dollars are in millions.)
Accumulated depreciation-equipment
170
Accounts payable
6,720
Patents
690 Notes payable (long-term)
Retained earnings
Accounts receivable
Inventory
Common stock
Prepaid rent
Equipment
Stock investments (long-term)
Debt investments (short-term)
Income taxes payable
Cash
$3,500
1,710
130
1,090
$3,120
1,680
2,190
860
6,200
1,810
1,110
Prepare a classified balance sheet in good form as of December 31, 2025. (List Current Assets in order of liquidity. Enter amounts in
Chapter 2 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. 2 - What is meant by the term operating cycle?Ch. 2 - Define current assets. What basis is used for...Ch. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - What do these classes of ratios measure? (a)...Ch. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - (a) What is the primary objective of financial...Ch. 2 - Merle Hawkins, the president of Pathway Company,...Ch. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - What is the economic entity assumption? Give an...Ch. 2 - Prob. 20QCh. 2 - The following are the major balance sheet...Ch. 2 - Prob. 2.2BECh. 2 - Prob. 2.3BECh. 2 - Prob. 2.4BECh. 2 - Prob. 2.5BECh. 2 - Prob. 2.6BECh. 2 - Prob. 2.7BECh. 2 - Prob. 2.8BECh. 2 - Here are some qualitative characteristics of...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.1ADIECh. 2 - Prob. 2.1BDIECh. 2 - Prob. 2.2DIECh. 2 - The following characteristics, assumptions,...Ch. 2 - Prob. 2.1ECh. 2 - The major balance sheet classifications are listed...Ch. 2 - Prob. 2.3ECh. 2 - Prob. 2.4ECh. 2 - Prob. 2.5ECh. 2 - Prob. 2.6ECh. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Nordstrom, Inc. operates department stores in...Ch. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12ECh. 2 - Prob. 2.13ECh. 2 - Prob. 2.1APCh. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Prob. 2.5APCh. 2 - Prob. 2.6APCh. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.1EYCTCh. 2 - Prob. 2.2EYCTCh. 2 - Prob. 2.3EYCTCh. 2 - Prob. 2.4EYCTCh. 2 - Prob. 2.7EYCTCh. 2 - Prob. 2.8EYCTCh. 2 - Prob. 2.9EYCTCh. 2 - ETHICS CASE At one time, Boeing closed a giant...Ch. 2 - In what ways does the format of a statement of...Ch. 2 - Prob. 2.2IFRSCh. 2 - Prob. 2.3IFRSCh. 2 - Prob. 2.4IFRSCh. 2 - Prob. 2.5IFRS
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License