Problem 21A Suppose the following items are taken from the 2

Problem 2-1A Suppose the following items are taken from the 2017 balance sheet of Windsor, Inc. (All dollars are in millions.) Goodwill Common stock Equipment Accounts payable Patents Stock investments (long-term) Accounts receivable Prepaid rent Debt investments (short-term) Retained earnings Cash Notes payable (long-term) Unearned sales revenue Accumulated depreciation-equipment $4,060 6,060 1,560 150 210 3,230 1,200 230 1,300 6,580 2,330 720 410 200 Prepare a classified balance sheet for Windsor, Inc. as of December 31, 2017. (List current assets in order of liquidity.)

Solution

Balance sheet :

Assets
Current assets
Cash	2330
Account receivable	1200
Prepaid rent	230
Debt investment (short term)	1300
Total current assets		5060
Long term investment
Stock investment (long term)		3230
Property,plant and equipment
Equipment	1560
Less: Accumlated depreciation	-200	1360
Other assets
Goodwill	4060
Patents	210	4270
Total Assets		13920
Liabilities & Stockholder\'s equity
Current liabilities
Account payable	150
Unearned sales revenue	410
Total current liabilities		560
Long term liabilities
Notes payable		720
Total liabilities		1280
Stockholder\'s equity
Common Stock	6060
Retained earnings	6580
Total Stockholder\'s equity		12640
Total liabilities & Stockholder\'s equity		13920