The following information is based on the balance sheet of Aracel, a Brazilian manufacturer of paper pulp,
Question:
The following information is based on the balance sheet of Aracel, a Brazilian manufacturer of paper pulp, for Year 6. Aracel applies U.S. GAAP and reports its results in thousands of U.S. dollars. (Adapted from the financial statements of Aracruz Celulose.)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 202,704
Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . .132,782
Other Long-Term Liabilities. . . . . . . . . . . . . . . . . . . 350,761
Property, Plant, and Equipment, net . . . . . . . . . . . . 2,151,212
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,293,301
Cash and Short-Term Investments. . . . . . . . . . . . . . 579,643
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192,035
Common Stock (no par). . . . . . . . . . . . . . . . . . . . . . 295,501
Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614,496
Other Noncurrent Assets . . . . . . . . . . . . . . . . . . . . . 451,757
Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 286,819
Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,155,050
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . 285,795
a. Prepare a balance sheet for Aracel for Year 6 assuming the firm follows U.S. GAAP.
b. Prepare a balance sheet for Aracel for Year 6 assuming the firm follows IFRS.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... 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...
Step by Step Answer:
a US GAAP Balance Sheet Assets and liabilities are listed on the balance sheet in order of decreasing liquidity so the most liquid assets liabilities ...View the full answer
Financial Accounting An Introduction to Concepts, Methods and Uses
ISBN: 978-1133591023
14th edition
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
