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:

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
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 1 year ago

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