Question

Suppose the following items were taken from the balance sheet of Nike, Inc. (All dollars are in millions.)

1. Cash $2,100.0 7. Inventory $2,300.0
2. Accounts receivable 2,600.0 8. Income taxes payable 70.0
3. Common stock 2,830. 0 9. Equipment 2,000.0
4. Notes payable 310.0 10. Retained earnings 4,850.0
5. Buildings 3,800.0 11. Accounts payable 3,400.0
6. Mortgage payable 1,340.0
Classify each of these items as an asset, liability, or stockholders' equity, and determine the total dollar amount for each classification. (Enter amounts in millions to 1 decimal place, e.g. 45.5 million.)
Stockholders' Equity - Cash
Stockholders' Equity Accounts receivable
Liability Common stock
Stockholders' Equity Mortgage payable
Liability Inventory
Liability Income taxes payable
Assets $ 2000
Liability $
Stockholders' Equity $

Answer 1

Assets

1. Cash 2,100

2. Accounts receivable 2,600

7. Inventory $2,300

5. Buildings 3,800

9. Equipment 2,000

Total: 12,800

Liabilities

11. Accounts payable 3,400

8. Income taxes payable 70

4. Notes payable 310

6. Mortgage payable 1,340

Total: 5,120

Equity

3. Common stock 2,830

10. Retained earnings 4,850

Total 7,680

Liabilities + Equity = 12,800

Step-by-step explanation:

Assets= represent all the property and rights owned by the company that will be used to produce a positive cashflow in the business activity.

Liabilites= this represents the obligation against third parties wheter they are to do or to pay something

Equity = represents the stockholders rights. They are composed by their contribution and the retained earnigns which represent the accumulated income and losses of the business.