Balance Sheet at February 3 2012 dollars in millions ASSETS

Balance Sheet at February 3, 2012 (dollars in millions) ASSETS Current assets: Cash Short-term investments Receivables and other assets Inventories Other $ 8,492 770 6,583 867 3,829 20,541 2,317 474 3,628 Total current assets Property, plant, and equipment Long-term investments Other noncurrent assets Total assets $26,960 LIABILITIES AND STOCKHOLDERS\' EQUITY Current Liabilities Accounts payable Other short-term obligations $ 8,289 6,620 14,909 7,400 Total current liablities Long-term liabilities Total liabilities Stockholders\' equity 22,309 Common stock ($0.01 per value) Additional paid-in capital Retained earnings Other stockholders\' equity items 34 11,195 21,156 (27,734) lotal stockholders equity 4,651 Total stockholders\' equity and liabilities $26,960

Solution

Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Cash            40.00 Long term Liabilities            40.00 (record the amount borrowed from bank) b. Receivables & Other Assets          220.00 Cash          220.00 (record the note receeived) c. Short Term Investments      9,680.00 Long Term Investments      2,420.00 Cash    12,100.00 (record the purchase of investments) d. Property, Plant & Equipment      2,165.00 Cash          835.00 Long term Liabilities      1,330.00 (record the purchased of Plant, Property & Equip.) e. Cash          240.00 Common Stock            11.00 Additional Paid in Capital          229.00 (record the issue of common stock) f. Cash      9,300.00 Short Term Investments      9,300.00 (record the sale of short term invetsments) g. Retained Earnings            44.00 Cash            44.00 (record the dividends paid) Answer b. Cash Short-Term Investments Receivables and Other Assets Beg. Bal.        8,492.00            220.00 b. Beg. Bal.            770.00      9,300.00 f. Beg. Bal.      6,583.00 a.              40.00      12,100.00 c. c.        9,680.00 b.          220.00 e.            240.00            835.00 d. f.        9,300.00              44.00 g. End. Bal.        4,873.00 End. Bal.        1,150.00 End. Bal.      6,803.00 Inventories Other Current Assets Property, Plant & Equipment Beg. Bal.            867.00 Beg. Bal.        3,829.00 Beg. Bal.      2,317.00 d.      2,165.00 End. Bal.            867.00 End. Bal.        3,829.00 End. Bal.      4,482.00 Long Term Investments Other Noncurrent Assets Accounts Payable Beg. Bal.            474.00 Beg. Bal.        3,628.00 Beg. Bal.        8,289.00 c.        2,420.00 End. Bal.        2,894.00 End. Bal.        3,628.00 End. Bal.        8,289.00 Other Short Term Obligations Long Term Liabilities Common Stock Beg. Bal.        6,620.00 Beg. Bal.      7,400.00 Beg. Bal.              34.00            40.00 a.              11.00 e.      1,330.00 d. End. Bal.        6,620.00 End. Bal.      8,770.00 End. Bal.              45.00 Additional Paid-in Capital Retained Earnings Other Stockholders\' Equity Items Beg. Bal.      11,195.00 Beg. Bal.    21,156.00 Beg. Bal.    27,734.00            229.00 e. g.              44.00 End. Bal.      11,424.00 End. Bal.    21,112.00 End. Bal.    27,734.00 Balance Sheet At Dec 31, 2012 Assets Current Assets Cash        4,873.00 Short-Term Investments        1,150.00 Receivables and Other Assets        6,803.00 Inventories            867.00 Other Current Assets        3,829.00 Total Current Assets      17,522.00 Property, Plant & Equipment        4,482.00 Long Term Investments        2,894.00 Other Noncurrent Assets        3,628.00 Total Assets      28,526.00 Liabilities & Stockholders\' Equity Liabilities Current Liabilities Accounts Payable        8,289.00 Other Short Term Obligations        6,620.00 Total Current Liabilities      14,909.00 Long-Term Liabilities        8,770.00 Total Liabilities      23,679.00 Stockholders\' Equity Common Stock              45.00 Additional Paid-in Capital      11,424.00 Total Paid in Capital      11,469.00 Retained Earnings      21,112.00 Sub-Total      32,581.00 Other Stockholders\' Equity Items    (27,734.00) Total Stockholders\' Equity        4,847.00 Total Liabilities & Stockholders\' Equity      28,526.00 Current Ratio = Current Assets / Current Liabilities Current Ratio = $17,522 / $14,909 Current Ratio = 1.18 : 1 (Approx.)