Question

In: Accounting

The asset section of Fullerton Corporation’s 2019 balance sheet follows: January 30, January 31, (millions, except...

The asset section of Fullerton Corporation’s 2019 balance sheet follows:

January 30,

January 31,

(millions, except footnotes)

2019

2018

Cash and cash equivalents

$ 6,600

$ 2,592

Credit card receivables, net of allowance

24,497

28,294

Inventory

25,127

23,468

Other current assets

    9,356

   8,258

Total current assets

65,580

62,612

Property and equipment

66,360

67,610

Other noncurrent assets

   3,731   

    3,879

Total assets

$135,671

$134,101

a. Prepare a common-size statement for the asset section of Belmont’s balance sheet for 2019 and 2018. Round to one decimal place.

b. Comment on the most significant changes.

Solutions

Expert Solution

Answer:

2019 2018 2019 % 2018 %
Cash and cash equivalents $     6,600 $     2,592 4.86% 1.93%
Credit card receivables, net of allowance $   24,497 $   28,294 18.06% 21.10%
Inventory $   25,127 $   23,468 18.52% 17.50%
Other current assets $     9,356 $     8,258 6.90% 6.16%
Total current assets $   65,580 $   62,612 48.34% 46.69%
Property and equipment $   66,360 $   67,610 48.91% 50.42%
Other noncurrent assets $     3,731 $     3,879 2.75% 2.89%
Total assets $ 135,671 $ 134,101 100.00% 100.00%

Notes:

  1. Cash and cash equivalents have increased in 2019, from 1.93% to 4.86%. It means that company has received cash or maturities during 2019; and
  2. The major investment is in property, plant and equipment as they cover around 50% of the total assets.

In case of any doubt or clarification, feel free to come back via comments.

ekkarill92 answered 2 years ago
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