Refer to Exhibit 1.9, which contains balance sheet information from the financial report of Palmer Coldgate, a

Question:

Refer to Exhibit 1.9, which contains information from the financial report of Palmer Coldgate, a U.S. consumer products manufacturer.
This firm reports all amounts in millions of U.S. dollars ($). Answer the following questions that pertain to the information in this exhibit.
a. What is the firm’s largest asset, and what is the asset’s carrying value on the What is the total amount of the firm’s noncurrent assets?
c. What is the firm’s largest liability, and what is the liability’s carrying value on the By how much do the firm’s current assets differ from its current liabilities?
e. Has the firm been profitable since its inception? How do you know?
f. What fraction of its assets does the firm finance with liabilities?
g. Verify that the firm’s assets equal the sum of liabilities plus shareholders’ equity.

Exhibit 1.9
Current Assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 428.7
Receivables (net of allowances of $50.6 and $46.4, respectively) . . . 1,680.7
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,171.0
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338.1
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,618.5
Property, plant, and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . 3,015.2
Goodwill, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,272.0
Other , net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844.8
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361.5
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,112.0
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Notes and loans payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 155.9
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138.1
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,066.8
Accrued income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262.7
Other accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,539.2
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,162.7
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,221.9
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264.1
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,177.1
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,825.8
Commitments and . . . . . . . . . . . . . . . . . . . . . . . . —
Shareholders’ Equity
Preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197.5
Common stock, $1 (1,000,000,000 shares authorized,
732,853,180 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732.9
Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,517.7
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,627.5
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . (1,666.8)
.......... 11,408.8
Unearned compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (218.9)
Treasury stock, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,903.7)
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,286.2
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . . . $10,112.0

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a... Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...