ACTG 1P91 Lecture Notes - Lecture 2: Retained Earnings, Current Liability, Deferral

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ACTG 1P91 Lecture Notes - Lecture 1: Sole Proprietorship, Golden Goal, Double Taxation

ACTG 1P91 Lecture Notes - Lecture 2: Retained Earnings, Current Liability, Deferral

ACTG 1P91 Lecture Notes - Lecture 3: Cash Cash, Accrual, Income Statement

Document Summary

Both: order of liquidity or reverse liquidity can be followed under the ifrs. Current assets: benefits will be realized within one year. E. g. cash, accounts receivable (a/r), inventory, supplies, prepaid expense. Long-term assets: benefits will be realized over more than one year. E. g. property, plant and equipment (aka pp&e) assets used in the operation of a business. Current liability: obligations that are to be paid and settled within one year. Accounts payable (a/p) liability created by buying products or services. E. g. unearned revenue cash received in advance from a customer. Non-current liability: obligation that are expected to be paid and settled after one year from balance sheet date. E. g. note payable a liability expressed by a written promise to make a future payment at a specific time. Shareholder"s equity: assets that remain after subtracting liabilities aka net assets. Share capital: amount of cash received for issued shares. E. g. a donation of a piece of land from the owners.

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Below you will find selected information (in millions) fromCoca-Cola Co.âs 2012 Annual Report.

Income Taxes Payable	$471
Short-term Investments and Marketable Securities	8,109
Cash	8,442
Other non-current Liabilities	10,449
Common Stock	1,760
Receivables	4,812
Other Current Assets	2,973
Long-term Investments	10,448
Other Non-current Assets	3,585
Property, Plant and Equipment	23,486
Trademarks	6,527
Other Intangible Assets	20,810
Allowance for Doubtful Accounts	53
Accumulated Depreciation	9,010
Accounts Payable	8,680
Short Term Notes Payable	17,874
Prepaid Expenses	2,781
Other Current Liabilities	796
Long-Term Liabilities	14,736
Paid-in-Capital in Excess of Par Value	11,379
Retained Earnings	55,038
Inventories	3,264
Treasury Stock	35,009

Other information taken from the Annual Report.

Sales Revenue for 2012	$48,017
Cost of Goods Sold for 2012	19,053
Net Income for 2012	9,019
Inventory Balance on 12/31/11	3,092
Net Accounts Receivable Balance on 12/31/11	4,920
Total Assets on 12/31/11	79,974
Equity Balance on 12/31/11	31,921

lavendergrasshopper535

Below you will find selected information (in millions) fromCoca-Cola Co.âs 2012 Annual Report.

Income Taxes Payable	$471
Short-term Investments and Marketable Securities	8,109
Cash	8,442
Other non-current Liabilities	10,449
Common Stock	1,760
Receivables	4,812
Other Current Assets	2,973
Long-term Investments	10,448
Other Non-current Assets	3,585
Property, Plant and Equipment	23,486
Trademarks	6,527
Other Intangible Assets	20,810
Allowance for Doubtful Accounts	53
Accumulated Depreciation	9,010
Accounts Payable	8,680
Short Term Notes Payable	17,874
Prepaid Expenses	2,781
Other Current Liabilities	796
Long-Term Liabilities	14,736
Paid-in-Capital in Excess of Par Value	11,379
Retained Earnings	55,038
Inventories	3,264
Treasury Stock	35,009

Other information taken from the Annual Report.

Sales Revenue for 2012	$48,017
Cost of Goods Sold for 2012	19,053
Net Income for 2012	9,019
Inventory Balance on 12/31/11	3,092
Net Accounts Receivable Balance on 12/31/11	4,920
Total Assets on 12/31/11	79,974
Equity Balance on 12/31/11	31,921

Required: 1: Using the information provided prepare a BalanceSheet. Separate the current assets from non-current assets andprovide a total for each. Also, separate the current liabilitiesfrom the non-current liabilities and provide a total foreach.
2: Using the Balance Sheet from your answer above, calculate theCurrent Ratio and Return on common stockholdersâ equity.

scarlettermite353

Consolidated Balance SheetsUSD ($) in Millions	June 30, 2015	June 30,2014
Current Assets
Cash and Cash Equivelents	$6,845	$8,558
Available-for-SaleSecurities	4,767	2,128
Accounts Receivable	4,861	6,386
INVENTORIES
Materials and Suppliers	1,392	1,742
Work in Progress	550	684
Finished Goods	3,512	4,333
Total Inventories	5,454	6,759
Deferred Income Taxes	1,356	1,092
Prepaid Expenses and OtherCurrent Assets	2,853	3,845
Assets Held for Sale	3,510	2,849
Assets, Current	29,646	31,617
Property, Plant and Equipment,Net	20,268	22,304
Goodwill, Net	47,316	53,704
Trademarks and otherIntangible Assets, Net	26,829	30,843
Other Assets, Noncurrent	5,436	5,798
Assets	129,495	144,266
CURRENT LIABILITIES
Accounts Payable	8,257	8,461
Accrued and OtherLiabilities	8,325	8,999
Liabilities Held for Sale	1,187	660
Debt Due Within One Year	12,021	15,606
Liabilities, Current	29,790	33,726
Long-term Debt, ExcludingCurrent Maturities	18,329	19,811
Deferred Tax Liabilities, NetNoncurrent	9,531	10,218
Other Liabilities,Noncurrent	8,795	10,535
Liabilities	66,445	74,290
SHAREHOLDERS' EQUITY
Commonstock, stated value $1per share (10,000 shares authorized; shared issued: 2015 - 4,009.2;2014 - 4009.2)	4,009	4,009
Additional Paid-InCapital	63,852	63,911
Reserve for ESOP DebtRetirement	(1,320)	(1,320)
Accumulated OtherComprehensive Income (loss)	(12,780)	(7,662)
Treasury Stock, Value	(77,226)	(75,805)
Retained Earnings	84,807	84,990
Noncontrolling Interest	631	762
TOTAL SHAREHOLDERS'EQUITY	63,050	69,976
TOTAL LIABILITIES ANDSHAREHOLDERS' EQUITY	129,495	144,266
Preferred Class A[Member]
SHAREHOLDERS' EQUITY
Preferred Stock, Value,Issued	1,077	1,111
Preferred Class B[Member]
SHAREHOLDERS' EQUITY
Preferred Stock, Value,Issued	$0	$0

Using the information above, please answer the followingquestions:

1. Explain why the amount reported for Treasury Stock as of June30, 2015, is subtracted for stockholdersâ equity.
2. The company is authorized to issue 200,000,000 shares ofNon-Voting Class B preferred stock. As of June 30, 2015, what isthe outstanding amount received from the issuance of the Non-VotingClass B preferred stock?
3. The company has issued Convertible Class A preferred stock. Wasany of the Convertible Class A stock converted during the fiscalyear ended June 30, 2015? If so, what was it convertedinto?

ACTG 1P91 Lecture Notes - Lecture 2: Retained Earnings, Current Liability, Deferral

ACTG 1P91 Lecture Notes - Lecture 1: Sole Proprietorship, Golden Goal, Double Taxation

ACTG 1P91 Lecture Notes - Lecture 2: Retained Earnings, Current Liability, Deferral

ACTG 1P91 Lecture Notes - Lecture 3: Cash Cash, Accrual, Income Statement

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