Question

Suppose the following items were taken from the 2022 financial statements of Texas Instruments, Inc. (All dollars are in millions.)

Common stock		$2,210		Accumulated depreciation—equipment		$3,200
Prepaid rent		150		Accounts payable		1,510
Equipment		6,170		Patents		2,210
Stock investments (long-term)		700		Notes payable (long-term)		870
Debt investments (short-term)		1,770		Retained earnings		7,120
Income taxes payable		180		Accounts receivable		1,880
Cash		1,120		Inventory		1,090

Prepare a classified balance sheet in good form as of December 31, 2022. (List Current Assets in order of liquidity.)

Answer 1

Assets
Current assets
... Prepaid rent		$150
... Accounts receivables		$1,880
... Cash		$1,120
... Inventory		$1,090
... Debt investment (short term)		$1,770
Non current assets
... Stock Investment		$700
... Patents		$2,210
Plant, property and equipment
... Equipment	$6,170
... (-) Accumulated depreciation	$3,200	$2,970
Total assets		$11,890
Liabilities and shareholder equity
Current liabilities
... Accounts payable		$1,510
... Income tax payable		$180
Long term liabilities
... Notes payable		$870
Shareholder equity
... Common stock		$2,210
... Retained earnings		$7,120
Total liabilities and shareholder equity		$11,890