Chapter Two - Wiley

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84 CHAPTER 2 A Further Look at Financial Statements
Exercises
Classify items as current or
noncurrent, and prepare
assets section of balance
sheet.
(SO 4)
E2-1 The following items were taken from the December 31, 2001, assets section of the
Boeing Company balance sheet. (All dollars are in millions.)
Inventories $ 6,920 Other current assets $ 2,444
Notes receivable—due after
Property, plant, and
December 31, 2002 9,345 equipment 20,828
Notes receivable—due before Cash and cash equivalents 633
December 31, 2002 1,053 Accounts receivable 5,156
Accumulated depreciation 12,369 Other noncurrent assets 7,890
Intangible assets 6,443
Instructions
Prepare the assets section of a classified balance sheet, listing the current assets in order
of their liquidity.
Prepare assets section of a
classified balance sheet.
(SO 4)
E2-2 The following information (in thousands of dollars) is available for H.J. Heinz
Company—famous for ketchup and other fine food products—for the year ended May
2, 2001.
Prepaid expenses $ 157,801 Short-term investments $ 5,371
Land 54,774 Buildings and equipment 3,826,006
Other current assets 23,282 Cash and cash equivalents 138,849
Intangible assets 2,765,892 Receivables 1,383,550
Other noncurrent assets 984,064 Accumulated depreciation 1,712,400
Instructions
Prepare the assets section of a classified balance sheet, listing the items in proper sequence
and including a statement heading.
Prepare a classified balance
sheet.
(SO 4)
E2-3 These items are taken from the financial statements of Megan Co. at December
31, 2005.
Building $105,800
Accounts receivable 12,600
Prepaid insurance 4,680
Cash 20,840
Equipment 82,400
Land 61,200
Insurance expense 780
Depreciation expense 6,300
Interest expense 2,600
Common stock 66,000
Retained earnings (January 1, 2005) 40,000
Accumulated depreciation—building 45,600
Accounts payable 11,500
Mortgage payable 93,600
Accumulated depreciation—equipment 18,720
Interest payable 3,600
Bowling revenues 18,180
Instructions
Prepare a classified balance sheet; assume that $13,600 of the mortgage payable will be
paid in 2006.