Question

*Exercise 1-15 Suppose the following items were taken from the balance sheet of Nike, Inc. All dollars are in millions.) 1. Cash 2. Accounts receivable 3. Common stock 4. Notes payable 5. Buildings 6. Mortgage payable $2,291.1 2,883. 9 2,874.2 342.9 3.759.9 1,311.5 7. 8. 9. 10. 11. Inventory Income taxes payable Equipment Retained earnings Accounts payable $2,357 853 1.9522 5.818.9 2.815.3 Perform each of the following. Classify each of these items as an asset, liability, or stockholders' equity, and determine the total dollar amount for each classification. (Enter amounts in millions up to 1 decimal place, e.g. 45.5 million.) Cash Accounts receivable Common stock Notes payable Buildings Mortonge payable Inventory Income taxes payable Equipment Retained earnings Accounts payable Assets Liability Stockholders' equity Determine Nike's accounting equation by calculating the value of total assets, total liabilities, and total stockholders' equity. (Enter amounts in millions up to 1 decimal place, e.g. 45.5 million.) Total assets - Total liabilities + Total stockholders' equity Question Attempts: 0 of 3 used

Answer 1

Note: Amounts are in millions:

Assets			=	Total Liabilities			+	Total Stockholders' Equity
1. Cash	Asset	$2,291.1	=	4. Notes Payable	Liability	$342.9	+	3. Common Stock	Stockholders' Equity	$2,874.2
2. Accounts Receivable	Asset	$2,883.9	=	6. Mortgage Payable	Liability	$1,311.5	+	10. Retained Earnings	Stockholders' Equity	$5,818.9
5. Buildings	Asset	$3,759.9	=	8. Income Taxes Payable	Liability	$86.3	+
7. Inventory	Asset	$2,357.0	=	10. Accounts Payable	Liability	$2,815.8	+
9. Equipment	Asset	$1,957.7	=				+
		$13,249.6	=			$4,556.5	+			$8,693.1

Asset	$13,249.6	million
Liability	$4,556.5	million
Stockholders' Equity	$8,693.1	million

Accounting Equation
Total Assets	=	Total Liabilities	+	Total Stockholders' Equity
$13,249.6	=	$4,556.5	+	$8,693.1