In: Accounting
Ronaldo Company has not yet prepared the statement of cash flows. The Balance sheet as of December 31, 2018 and January 1, 2018 and the additional information regarding the statement of income and retained earnings for the year are presented below.
Ronaldo Company
Comparative Balance Sheet
(Dollars in Millions)
Assets 12/31/2018 1/1/2018
Current Assets:
Cash $ 98 $ 158
Account Receivables 1,290 1,160
Inventory 1,320 1,230
Total Current Assets 2,708 2,548
Property, Plant, and Equipment 3,030 2,932
Less Accumulated Depreciation 1,530 1,282
Net Property, Plant, and Equipment 1,500 1,650
Total Assets $4,208 $4,198
Liability and Equity
Current Liability:
Account payable $500 $310
Accrued Liability 380 330
Income tax payable 152 140
Total current Liability $1,032 $780
Bonds payable 900 1,240
Total Liability 1,932 2,020
Stockholders’ Equity:
Common Stock 322 322
Retained earnings 1,954 1,856
Total Stockholders’ Equity 2,276 2,178
Total Liability and Stockholders’ Equity $4,208 $4,208
Ronaldo Income statement ((Dollars in Millions)
Net Income $7,200
Cost of goods sold 5,100
Gross Margin 2,100
Selling and administrative Expenses 1,750
Net Operating Income 350
Nonoperation items:
Gain on sale of Equipment 6
Income before Taxes 356
Income tax 126
Net Income $ 230
Ronaldo also provided the following information:
Required: