Question

Suppose the following items are taken from the 2017 balance sheet of Yahoo! Inc. (All dollars are in millions.)

Goodwill ............................................................. $3,927
Common stock ........................................................ 6,283
Equipment .............................................................. 1,737
Accounts payable ...................................................... 152
Patents ................................................................... 234
Stock investments (long-term) ...................................... 3,247
Accounts receivable .................................................. 1,061
Prepaid rent .............................................................. 233
Debt investments (short-term) ...................................... 1,160
Retained earnings .................................................... 6,108
Cash ................................................................... 2,292
Notes payable (long-term) ............................................ 734
Unearned sales revenue ............................................... 413
Accumulated depreciation-equipment 201
Instructions
Prepare a classified balance sheet for Yahoo! Inc. as of December 31, 2017.

Answer 1

Yahoo! Inc.

Classified balance sheet as of December 31, 2017:

Assets: ($ million)

Current Assets:

Cash $2,292

Accounts receivable 1,061

Prepaid rent 233

Debt investments (short-term) 1,160

Total Current Assets $4,746

Non-current Assets:

Stock investments (long-term) 3,247

Equipment 1,737

Accumulated depreciation 201 1,536

Patents 234

Goodwill 3,927

Total non-current assets $8,924

Total Assets $13,690

Current Liabilities:

Unearned sales revenue 413

Accounts payable 152 $565

Non-current Liabilities:

Notes payable (long-term) 734

Total Liabilities $1,299

Stockholders' Equity:

Common stock 6,283

Retained earnings 6,108 12,391

Total liabilities + equity $13,690

Step-by-step explanation:

a) This Yahoo!'s 2017 classified balance sheet shows the current assets, current liabilities, non-current assets, non-current liabilities, and the stockholders' equity with their separate totals. It helps in calculating important financial ratios and in making comparisons in absolute dollar terms from one period to the other or from one company to another entity.