3. Prepare a trial balance for the period ended September 29, 2018. (Enter your answers in millions.) Cash Short-term investments Accounts receivable Inventories Other current assets Long-term investments Property, plant and equipment Other noncurrent assets Accounts payable Accrued expenses Unearned revenue Short-term notes payable Long-term debt Other noncurrent liabilities Dividends payable Common stock Additional paid-in capital Retained earnings Totals MANGO, INC. Trial Balance (in millions) $ Debit 0 $ Credit 0
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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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
[The following information applies to the questions displayed below.]
Mango Inc., headquartered in Cupertino, California, designs, manufactures, and markets mobile communication and media
devices, personal computers, and portable digital music players and sells a variety of related software and services. The
following is Mango's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September).
ASSETS
Current assets:
Cash
DE D
MANGO INC.
CONSOLIDATED BALANCE SHEET
September 30, 2017
(dollars in millions)
Short-term investments
Accounts receivable
Inventories
Other current assets
Total current assets
Long-term investments
Property, plant, and equipment, net
Other noncurrent assets
Total assets
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable
Accrued expenses
Unearned revenue
Short-term notes payable
Total current liabilities
Long-term debt
Other noncurrent liabilities
Total liabilities
Stockholders' equity:
Common stock (se.ee001 per value)
Additional paid-in capital
Retained earnings
Total stockholders' equity
Total liabilities and shareholders' equity
$ 13,904
11,281
17,534
2,119
23,973
68,811
130,694
20,708
12,574
$ 232,787
$ 30,320
18,529
8,527
6,334
63,710
29,107
27,971
120,788
1
23,812
88, 186
111,999
$232,787
Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018):
a. Borrowed $18,277 from banks due in two years.
b. Purchased additional investments for $21,900 cash; one-fifth were long term and the rest were short term.
c. Purchased property, plant, and equipment; paid $9,581 in cash and signed a short-term note for $1,420.
d. Issued additional shares of common stock for $1,479 in cash; total par value was $1 and the rest was in excess of par
value.
e. Sold short-term investments costing $19,019 for $19.019 cash.
f. Declared $11,135 in dividends to be paid at the beginning of the next fiscal year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3335015c-3cad-409f-a971-27780fef05c7%2Fd5e8ad67-1f4e-4e2e-96cc-9424067b25ec%2Fk94mwc_processed.jpeg&w=3840&q=75)
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