Accounting

(a) The liabilities of Jantz Company are $98,720 and the stockholders’ equity is $239,900. What is the amount of Jantz Company’s total assets?

Total assets

$

(b) The total assets of Foley Company are $186,500 and its stockholders’ equity is $81,000. What is the amount of its total liabilities?

Total liabilities

$

(c) The total assets of Sundberg Co. are $877,400 and its liabilities are equal to one-fourth of its total assets. What is the amount of Sundberg Co.’s stockholders’ equity?

Stockholders’ equity

$

Exercise 1-5 Suppose the following information was taken from the 2014 financial statements of pharmaceutical giant Merck and Co. (All dollar amounts are in millions.) Retained earnings, January 1, 2014 $46,995.5 Cost of goods sold 8,518.0 Selling and administrative expenses 8,803.6 Dividends 3,269.2 Sales revenue 39,160 Research and development expense 6,410 Income tax expense 3,109.0

After analyzing the data, prepare an income statement for the year ending December 31, 2014.  (Enter amounts in millions upto 1 decimal place, e.g. 45.5 million.)

MERCK AND CO. Income Statement For the Year Ended December 31, 2014 (in millions)
		$
	$
		$

Exercise 1-8

The following items and amounts were taken from Motte Inc.’s 2014 income statement and balance sheet. In each case, identify on the item is an asset, liability, stockholders' equity, revenue, or expense item.

		Cash		$ 85,622
		Retained earnings		121,030
		Cost of goods sold		436,464
		Salaries and wages expense		119,652
		Prepaid insurance		7,888
		Inventory		64,062
		Accounts receivable		87,691
		Sales revenue		588,339
		Notes payable		6,244
		Accounts payable		49,506
		Service revenue		5,256
		Interest expense		1,770

Prepare an income statement for Motte Inc. for the year ended December 31, 2014.

MOTTE INC. Income Statement For the Year Ended December 31, 2014
	$
		$
		$

Brief Exercise 2-2

A list of financial statement items for Morales Company includes the following: accounts receivable $20,667; prepaid insurance $3,838; cash $15,352; supplies $5,610; and debt investments (short-term) $12,105. Prepare the current assets section of the balance sheet listing the items in the proper sequence.  (List current assets in order of liquidity.)

MORALES COMPANY Partial Balance Sheet
			$
			$

Brief Exercise 2-5

These selected condensed data are taken from a recent balance sheet of Bob Evans Farms (in millions of dollars).

Cash		$ 29.3
Accounts receivable		20.5
Inventory		28.7
Other current assets		24.0
Total current assets		$102.5
Total current liabilities		$201.2

Compute working capital and the current ratio.  (If answer is negative enter it with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000). Round Current Ratio to 2 decimal places, e.g. 0.78 : 1.)

Working capital (in millions)		$
Current ratio			:1

Exercise 2-1

Classify each of the following financial statement items taken from Mordica Corporation’s balance sheet.

		Accounts payable
		Accounts receivable
		Accumulated depreciation—equipment
		Buildings
		Cash
		Interest payable
		Goodwill
		Income taxes payable
		Inventory
		Stock investments (to be sold in 7 months)
		Land (in use)
		Mortgage payable
		Supplies
		Equipment
		Prepaid rent

Exercise 2-6

Suppose the following items were taken from the 2014 financial statements of Texas Instruments, Inc. (All dollars are in millions.)

Common stock		$3,033		Accumulated depreciation—equipment		$2,458
Prepaid rent		153		Accounts payable		1,773
Equipment		6,029		Patents		2,145
Stock investments (long-term)		691		Notes payable (long-term)		830
Debt investments (short-term)		1,631		Retained earnings		6,664
Income taxes payable		143		Accounts receivable		1,851
Cash		1,111		Inventory		1,290

Prepare a classified balance sheet in good form as of December 31, 2014.  (List current assets in order of liquidity.)

TEXAS INSTRUMENTS, INC. Balance Sheet December 31, 2014 (in millions)
Assets
			$
					$
:
					$
Liabilities and Stockholders' Equity
			$
					$
					$