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Terracotta, Inc. reported the following accounts and amounts (in millions) in its financial statements for the...

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Accounting

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

  Accounts Payable$750
  Accounts Receivable670
  Accumulated Amortization480
  Accumulated Depreciation820
  Allowance for Doubtful Accounts40
  Cash and Cash Equivalents860
  Equipment5,255
  Income Taxes Payable40
  Notes Payable (long-term)1,800
  Notes Payable (short-term)30
  Notes Receivable (long-term)240
  Prepaid Rent300
  Retained Earnings7,230
  Service Revenue480
  Short-term Investments2,640
  Software635
  Unearned Revenue810

Prepare the current assets section of its balance sheet. TheAllowance for Doubtful Accounts relates entirely to AccountsReceivable. (Enter your answers in millions (i.e.,10,000,000 should be entered as 10).)

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Ans:

TERRACOTTA, INC.
Partial Balance Sheet

As of November 30, 2013
(in millions of dollars)

Statement showing computations

Particulars

Amount $

Amount $

Current Assets:

Cash and Cash Equivalents

                     860.00

                        860.00

Short-term Investments

                 2,640.00

                     2,640.00

Accounts Receivable

                     670.00

Allowance for Doubtful Accounts

                       (40.00)

Accounts Receivable, net of Allowance = 670 - 40

                        630.00

Prepaid Rent

                     300.00

                        300.00

Total Current Assets

                     4,430.00

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