Question

Terracotta, Inc. reported the following accounts and amounts (inmillions) in its financial statements for the year ended November30, 2013.

 

 

  Accounts Payable

$

730

 

  Accounts Receivable

 

630

 

  Accumulated Amortization

 

460

 

  Accumulated Depreciation

 

800

 

  Allowance for Doubtful Accounts

 

20

 

  Cash and Cash Equivalents

 

840

 

  Equipment

 

5,055

 

  Income Taxes Payable

 

20

 

  Notes Payable (long-term)

 

1,600

 

  Notes Payable (short-term)

 

20

 

  Notes Receivable (long-term)

 

220

 

  Prepaid Rent

 

280

 

  Retained Earnings

 

7,030

 

  Service Revenue

 

460

 

  Short-term Investments

 

2,440

 

  Software

 

615

 

  Unearned Revenue

 

790

 

       

Prepare the current assets section of its balance sheet. TheAllowance for Doubtful Accounts relates entirely to AccountsReceivable.

TERRACOTTA, INC.

Partial Balance Sheet

As of November 30, 2013

(in millions of dollars)

Assets

CurrentAssets:

 

 

Cash and CashEquivalents

 

 

Short-termInvestments

 

 

AccountsReceivable

 

 

Allowance forDoubtful Accounts

 

 

AccountsReceivable, net of Allowance

 

 

Prepaid Rent

 

 

Total CurrentAssets

 

 

     

 



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