Question

Jelly Jelly Go is one of the most relevant players in the Italian jelly market, specialized in high quality products for premium buyers. Here there is the balance sheet, adapted from Jelly Jelly Go's annual report: Jelly Jelly Go Balance Sheet as of December 2018 (5, in Millions) 3,501 892 Accounts payable Other liabilities Short term debt 750 8,338 3,220 94 Cash Notes receivable Inventories Prepaid expenses Equipment Accumulated depreciation 714 34,440 (15,994) Paid-in capital Retained Earnings 6,559 4,780 Total Assets 23,647 Total Liab + Owner's Equity 23,647 Consider the following transactions for the year 2019 ($ in millions): 1. On January 1, Jelly Jelly Go has a cash collection on receivables, for $200. 2. On March 1st, the company receives a loan of $300 from a bank, which will be paid back in 1 year. The annual interest required by the bank is 5%. 3. On April 6th, Jelly Jelly Go paid the rent of their facilities in Rome in cash, for $150. From this value, $90 is corresponding to the 2019 year rent, while the rest is for the next year, and due in June 2020. 4. On May 25th, Jelly Jelly Go bought some inventory to Lauren Inc., a French supplier. By means of their agreement, Lauren Inc delivers Inventories to Jelly Jelly Go on the same day, for $950. Lauren Inc is selling on credit, with the condition 2/10, n/30 (it means discount of 2% if paid by to Jelly Jelly Go before 10 days after delivery, otherwise entirely if paid in 30 days after delivery). 5. On June 1, the company makes the corresponding cash payment to Lauren Inc. 6. On July 1st, the company decided to pay pending "Other liabilities" in cash, for $250. 1