Question

The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance Green Caterpillar Garden Supplies Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Green Caterpillar Garden Supplies Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Current assets Liabilities and equity Current liabilities: Cash and equivalents Accounts receivable Inventories $4,612 Accounts payable $0 293 1,660 $0 2,109 6,187 $14,062 Accruals 1,688 4,950 $11,250 Notes payable 1,562 $1,562 4,688 $6,250 Total current assets Total current liabilities Net fixed assets Long-term debt 5,859 Net plant and equipment $13,750 Total debt $7,812 Common equity: Common stock 12,188 6,562 $18,750 $25,000 15,235 Retained earnings Total common equity Total liabilities and equity $23,438 $31,250 Total assets $31,250 $25,000

Answer 1

As per rules I am answering the first 4 subparts of the question

1 : Cash and cash equivalents = Total current assets- Receivables- Inventory

= 14062-2109-6187

= 5766

2: Net Plant and equipment = Total assets- current assets

= 31250-14062

=17188

3: Total current liabilities = Accounts payables + Accruals+ Notes payable

= 0+ 293+ 1660

=1953

4: Retained earnings = Total common equity – common stock

= 23438-15235

=8203