The Volvo Group headquartered in Gothenburg Sweden is one of
The Volvo Group, headquartered in Gothenburg, Sweden, is one of the world’s leading manufacturers of trucks, buses, and construction equipment, in addition to autos. Volvo’s actual condensed balance sheet data for January 1, 2012, follows (in millions of Swedish kroner, SEK):

Suppose the following summarizes some major transactions of the truck division of Volvo during January, 2012 (in millions):
a. Sold trucks for cash of SEK 190 and on open account of SEK 460 for a grand total of SEK 650.
Volvo carried the trucks in inventory for SEK 390.
b. Acquired inventory on account, SEK 500.
c. Collected receivables, SEK 300.
d. On January 2, used SEK 250 cash to prepay some rent and insurance for 2012.
e. Payments on accounts payable (for inventories), SEK 450.
f. Paid selling and administrative expenses in cash, SEK 110.
g. A total of SEK 90 of prepaid expenses for rent and insurance expired in January 2012.
h. Recognized depreciation expense of SEK 20 for January.
1. Prepare an analysis of these truck transactions on the balance sheet of Volvo, employing the equation approach demonstrated in Exhibit 15-1 on page 621. Show all amounts in millions of SEK. (For simplicity, only a few major transactions are illustrated here.)
2. Prepare an income statement for these transactions for the month ended January 31, 2012, and a balance sheet as of January 31, 2012, that incorporates these transactions. Ignore incometaxes.
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