Question

Use table below:

1. Was amount owed to suppliers decreased in 2013 and was credit extended to customers?

2. did they buy back any previously issued stock and have a positive income in 2013?

December 31,
(Dollars in millions)

ASSETS	2013	2012
CURRENT ASSETS	2013	2012
Cash and cash equivalents	$1,238	$1,639
Receivables, less allowance for doubtful accounts	1,313	1,126
Inventories	2,565	1,338
Prepayments and other current assets	210	196
Current assets related to discontinued operations	—	337
Total Current Assets	5,326	4,636
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, at cost	9,123	7,206
Less accumulated depreciation and amortization	(2,248)	(1,974)
Net Property, Plant and Equipment	6,875	5,232
OTHER NONCURRENT ASSETS
Acquired intangibles, net	263	214
Other, net	925	602
Noncurrent assets related to discontinued operations	—	18
Total Other Noncurrent Assets	1,188	834
Total Assets	$13,389	$10,702

LIABILITIES AND EQUITY	2013	2012
CURRENT LIABILITIES	2013	2012
Accounts payable	$2,596	$2,196
Current maturities of debt	6	3
Other current liabilities	806	622
Current liabilities related to discontinued operations	—	60
Total Current Liabilities	3,408	2,881
DEFERRED INCOME TAXES	1,018	850
OTHER NONCURRENT LIABILITIES	655	644
BANK DEBT	2,823	1,585
EQUITY	2013	2012
Common stock, 154,712,627 shares issued (152,579,955 in 2012)	26	25
Additional paid-in capital	1,186	1,070
Retained earnings	3,940	3,649
Treasury stock, 22,907,890 (14,417,533 in 2012)	(798)	(356)
Accumulated other comprehensive loss	(52)	(137)
Total Tesoro Corporation Stockholders’ Equity	4,302	4,251
NONCONTROLLING INTEREST	1,183	486
Total Equity	5,485	4,737
Total Liabilities and Equity	$13,389	$10,702

Answer 1

1. No, amount owed to suppliers was not decreased in 2013 because Accounts payable in 2012 was $2,196 and $2,596 in 2013. so, it has increased by $2,596 - $2,196 = $400 in 2013. Accounts payable is the money company owes to its suppliers.

Yes, credit was extended to customers because Accounts receivable in 2012 was $1,126 and $1,313 in 2013. so it has increased by $1,313 - $1,126 = $187‬ in 2013. Accounts receivable is the money given as credit to the customers by the company.

2. Yes, they bought back any previously issued stock because treasury stock in 2012 was 14,417,533 and 22,907,890 in 2013. so they bought back 22,907,890 - 14,417,533 = 8,490,357 stock in 2013. stock repurchased or bought back by a company is shown as treasury stock in balance sheet.

Yes, they have a positive income in 2013 because retained earnings in 2012 was $3,649 and $3,940 in 2013. so it has increased by $3,940 - $3,649 = $291‬ in 2013. the amount left over after paying dividends from positive Net income is added to retained earnings. so if retained earnings in 2013 has increased then they have positive income in 2013.