Preparing and Interpreting a Classified Balance Sheet with Discussion of Terminology

(Challenging)

Lance, Inc., manufactures, markets, and distributes a variety of snack foods. Product categories include sandwich crackers, cookies, restaurant crackers and bread basket items, candy, chips, meat snacks, nuts, and cake items. These items are sold under trade names including Lance, Toastchee, Toasty, Choc-OLunch, Captain's Wafers, and Cape Cod. Presented here are the items listed on its recent balance sheet (dollars in millions) in alphabetical order:

Required:
1. Prepare a classified consolidated balance sheet for Lance, Inc., for the current year (ended December 31) using the categories presented in the chapter.
2. Three of the items end in the term net. Explain what this term means in each case.

Other assets (noncurrent) Other current assets Other intangible assets, net Other long-term liabilities Other payables and accrued liabilities Prepaid expenses and other Property, plant, and equipment, net Retained earnings Short-term debt Accounts payable Accounts receivable, net Accrued compensation Additional paid-in capital Cash and cash equivalents Common stock, 28,947,222 shares outstanding Goodwill Inventories Long-term debt $25,939 $ 4,949 9.778 23,966 48,070 74,406 26,312 49,138 807 32,318 12,933 216,085 160,101 7,000 26,268 80,110 43,112 91,000