1A. You’re the chief financial officer (CFO) of Worldwide Widget Manufacturing,

Question

1A. You’re the chief financial officer (CFO) of Worldwide Widget Manufacturing, Inc. The company manufactures and sells widgets at factories in the United States and internationally. Listed below are partial financial statements for Worldwide Widget Manufacturing, Inc. Fill in the missing information in each of the following financial statements. Answer spaces are given below.

a. Accounts receivable for 2015_______

b. Accounts payable for 2014_______

c. Long-term debt for 2014_______

d. Gross plant and equipment for 2015_______

e. Common stock and paid-in surplus (250 million shares) for 2014_______

f. Total FA for 2015_______

Please show work if possible, Thank you!

Worldwide Widget Manufacturing, Inc. Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) 2015 2014 2015 2014 Liabilities and Equity Current liabilities: Assets Current assets: $ 427$ 322 Accrued wages and $ 309 257 Cash and marketable securities Accounts receivable taxes 259Accounts payable 381 b.? Inventory 815 797 Notes payable $ 492$ 421 $1,542 $1,378 Total $1,182 1,934 3,116 Total $997 Fixed assets. Long-term debt: $2,817 Total 2,956 Gross plant and equipment Less: Depreciation d.? 368 254Stockholders' equity: $2,872$2,563 Preferred stock $ 30$30 Net plant and equipment Other long-term assets (30 million shares) 521 487 Common stock 300 and paid-in surplus (250 million shares) Retained earnings 1,489 1,142 Total FA f.? $3,050Total Equity $1,819$1,472 Total assets $4.935$4.428 Total liabilities $4,935$4.428 and equity

Explanation / Answer

This is more a mathematical problem then a financial problem,

a. Accounts receivable for 2015:

Cash & Marketable securities + Account Receivable + Inventory = Total (Current Assets)

427 + a + 815 = 1542

a = 300 (Answer)

b. Accounts payable for 2014

Accrued wage and liabilities + Accounts payable + Notes payable = Current liabilities

257 + b + 421 = 997

b = 319 (Answer)

c. Long term debt for 2014

Total Current Liabilities + Long term debt = Total Liabilities

997 + c = 2,956

c = 1,959

d. Gross plant and equipment for 2015

Gross plan and Equipment - Depreciation = Net plant and equipment

d - 368 = 2,872

d = 3,240 (Answer)

e. Common stock and paid in surplus (250 mil shares) for 2014

Preferred stock + Common stock and paid in surplus + retained earnings = Total equity

30 + e + 1,142 = 1,472

e = 300 (Answer)

f. Total fixed assets for 2015

Total Fixed assets = Net plant & equipment + Other long term assets

f = 2872 + 521 = 3,393

f = 3,393. (Answer)

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