Listed below are year-end account balances (in $millions) taken from the records

Question

Listed below are year-end account balances (in $millions) taken from the records of Symphony Stores. Debit Credit Accounts receivable-trade 683 Building and equipment 928 Cash-checking 42 Interest receivable 33 Inventory 28 Land 168 Notes receivable (long-term) 481 Petty cash fund 10 Prepaid rent 31 Supplies 11 Trademark 45 Accounts payable-trade 683 Accumulated depreciation 73 Additional paid-in capital 478 Allowance for uncollectible accounts 18 Cash dividends payable 22 Common stock, at par 14 Income tax payable 51 Notes payable (long-term) 795 Retained earnings 296 Deferred revenues 30 TOTALS 2,460 2,460 What would Symphony report as total assets? What would Symphony report as total shareholders' equity? What is the amount of working capital for Symphony?

Explanation / Answer

Assets Amt Amt $ Current Assets Cash-Checking 52 Accounts Receivable-Trade 683 Less: allowance for uncollectible accounts 18 665 Interest Receivable 33 Inventory 28 Supplies 11 Prepaid Rent 31 Total Current assets 820 Long Term asset Notes Receivable 481 Fixed assets Land 168 Building and Equipment 928 Less:Accumulated Depreciation 73 855 Total fixed assets 1023 Intangible Assets Trademark 45 Total assets 2369 ans a Liabilities Cuurent liabilities Accounts Payable 683 Income Tax Payable 51 Deferred revenue 30 Cash Dividend Payable 22 Total Current Liabilities 786 Long term Liabilities Notes Payable 795 Total Liabilities 1581 Shareholder equity Common Stock 14 Additional Paid in capital 478 Retained Earnings 296 Total shareholder Equity 788 Total Liabilities & Shareholder equity 2369 Ans b Working Capital current assets-Current Liabilities 820-786 34 Ans c

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