Question

Terracotta Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended December 2, 2016.

Accounts Payable	$	840
Accounts Receivable		880
Accumulated Amortization		500
Accumulated Depreciation		1,130
Allowance for Doubtful Accounts		30
Cash and Cash Equivalents		1,030
Common Stock		470
Deferred Revenue		1,980
Equipment		7,530
Income Taxes Payable		30
Notes Payable (long-term)		2,670
Notes Receivable (long-term)		250
Prepaid Rent		270
Retained Earnings		7,170
Service Revenue		490
Short-Term Investments		3,950
Software		910

Prepare a classified balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Answer 1

	Terracotta Incorporated
	Balance Sheet ( in millions of dollars )
	As on December 2,2016
	Assets
		$	$
	Current Assets:
	Cash and Cash Equivalents		1,030
	Short Term Investment		3,950
	Prepaid Rent		270
	Accounts Receivable	880
	Less : Allowance for Doubtful Debts	-                       30
	Accounts Receivable( net )		850
	Total Current Assets		6,100
	Non Current Assets:
	Equipment	7,530
	Less : Accumulated Depreciation	-                 1,130
	Equipment ( net of depreciation )		6,400
	Notes Receivable ( Long Term )		250
	Other Assets:
	Software	910
	Less : Accumulated Amortization	-                     500
	Software ( net of amortization )		410
	Total assets		13,160
	Liabilities
	Current Liabilities :
	Accounts Payable		840
	Income Tax Payable		30
	Deferred Revenue		1,980
	Total Current Liabilities		2,850
	Long Term Liabilities :
	Notes Payable		2,670
	Total Liabilities		5,520
	Equity Capital
	Common Stock		470
	Retained Earnings		7,170
	Total Shareholders Equity		7,640
	Total Liabilities and Equity		13,160