Question

Suppose the following information was taken from the 2025 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) Accounts receivable (gross) Accounts receivable (net) Allowance for doubtful accounts Sales revenue Total current assets 2025 $3,810 3,400 410 34,265 7,200 2024 $ 4,680 4,300 380 36,765 7,272

Answer 1

A balance sheet is a statement showing a company's assets, liabilities, and shareholders' equity. To set up a T-account balance sheet, we categorize the bank's assets and liabilities. The net worth is calculated by subtracting liabilities from assets.

Step-by-step explanation:

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time. It provides a snapshot of a company's financial position. To set up a T-account balance sheet for the bank in question, we can categorize the assets and liabilities as follows:

• Assets: Deposits ($400) + Reserves ($50) + Government bonds ($70) + Loans ($500) = $1,020
• Liabilities: Deposits ($400)
• Net Worth: Assets - Liabilities = $1,020 - $400 = $620

Therefore, the bank's net worth is $620.