Assume that market and book values are equal for current assets, current liabilities, and debt and other long-term liabilities. SIMPLIFIED BALANCE SHEET OF GOOD
FORTUNES, INC. FOR MAY 31, 2010 (Millions of dollars) Current assets $ 7,291 Current liabilities $ 4,652 Plant, equipment and other long-term assets 17,632 Debt
and other long-term liabilities 6,453 Shareholders equity 13,818 ——————————————————————————–
——————————————————————————– ——————————————————————————–
——————————————————————————– Total assets $ 24,923 Total liabilities and equity $ 24,923
——————————————————————————– ——————————————————————————–
——————————————————————————– ——————————————————————————–
——————————————————————————– ——————————————————————————–
——————————————————————————– ——————————————————————————–
Note: Shares of stock outstanding: 321 million. Book value of equity (per share): 13,818/321 = $43.05. The stock price is $77.75. a. Construct a market-value
balance sheet from the above data. (Be sure to list the assets and liabilities in order of their liquidity. Enter your answers in millions rounded to 2 decimal
places.) SIMPLIFIED BALANCE SHEET OF GOOD FORTUNES, INC. FOR MAY 31, 2010 (Millions of dollars) (Click to select)Growth opportunitiesCurrent liabilitiesCurrent
assetsPlant, equipment and other long-term assetsShareholders’ equityDebt and other long-term liabilities $ (Click to select)Current assetsGrowth
opportunitiesCurrent liabilitiesDebt and other long-term liabilitiesPlant, equipment and other long-term assetsShareholders’ equity $ (Click to select)Debt and
other long-term liabilitiesShareholders’ equityCurrent liabilitiesCurrent assetsGrowth opportunitiesPlant, equipment and other long-term assets (Click to
select)Debt and other long-term liabilitiesCurrent liabilitiesCurrent assetsGrowth opportunitiesShareholders’ equityPlant, equipment and other long-term assets
(Click to select)Current liabilitiesDebt and other long-term liabilitiesShareholders’ equityCurrent assetsPlant, equipment and other long-term assetsGrowth
opportunities (Click to select)Current liabilitiesShareholders’ equityPlant, equipment and other long-term assetsGrowth opportunitiesDebt and other long-term
liabilitiesCurrent assets ——————————————————————————–
——————————————————————————– Total assets $ Total liabilities and equity $
——————————————————————————– ——————————————————————————–
——————————————————————————– ——————————————————————————–
——————————————————————————– b. How much extra value shows up on the asset side of the balance sheet? (Enter
your answer in millions rounded to 2 decimal places.) Extra value on the asset side $ million check my workreferencesebook & resources eBook: Market Values,
Book Values, and Liquidation Values Worksheet Difficulty: Intermediate Learning Objective: 07-01 Understand the stock trading reports on the Internet or in the
financial pages of the newspaper.
FORTUNES, INC. FOR MAY 31, 2010 (Millions of dollars) Current assets $ 7,291 Current liabilities $ 4,652 Plant, equipment and other long-term assets 17,632 Debt
and other long-term liabilities 6,453 Shareholders equity 13,818 ——————————————————————————–
——————————————————————————– ——————————————————————————–
——————————————————————————– Total assets $ 24,923 Total liabilities and equity $ 24,923
——————————————————————————– ——————————————————————————–
——————————————————————————– ——————————————————————————–
——————————————————————————– ——————————————————————————–
——————————————————————————– ——————————————————————————–
Note: Shares of stock outstanding: 321 million. Book value of equity (per share): 13,818/321 = $43.05. The stock price is $77.75. a. Construct a market-value
balance sheet from the above data. (Be sure to list the assets and liabilities in order of their liquidity. Enter your answers in millions rounded to 2 decimal
places.) SIMPLIFIED BALANCE SHEET OF GOOD FORTUNES, INC. FOR MAY 31, 2010 (Millions of dollars) (Click to select)Growth opportunitiesCurrent liabilitiesCurrent
assetsPlant, equipment and other long-term assetsShareholders’ equityDebt and other long-term liabilities $ (Click to select)Current assetsGrowth
opportunitiesCurrent liabilitiesDebt and other long-term liabilitiesPlant, equipment and other long-term assetsShareholders’ equity $ (Click to select)Debt and
other long-term liabilitiesShareholders’ equityCurrent liabilitiesCurrent assetsGrowth opportunitiesPlant, equipment and other long-term assets (Click to
select)Debt and other long-term liabilitiesCurrent liabilitiesCurrent assetsGrowth opportunitiesShareholders’ equityPlant, equipment and other long-term assets
(Click to select)Current liabilitiesDebt and other long-term liabilitiesShareholders’ equityCurrent assetsPlant, equipment and other long-term assetsGrowth
opportunities (Click to select)Current liabilitiesShareholders’ equityPlant, equipment and other long-term assetsGrowth opportunitiesDebt and other long-term
liabilitiesCurrent assets ——————————————————————————–
——————————————————————————– Total assets $ Total liabilities and equity $
——————————————————————————– ——————————————————————————–
——————————————————————————– ——————————————————————————–
——————————————————————————– b. How much extra value shows up on the asset side of the balance sheet? (Enter
your answer in millions rounded to 2 decimal places.) Extra value on the asset side $ million check my workreferencesebook & resources eBook: Market Values,
Book Values, and Liquidation Values Worksheet Difficulty: Intermediate Learning Objective: 07-01 Understand the stock trading reports on the Internet or in the
financial pages of the newspaper.
