Nestls financial statements are presented in Appendix B. Financial statements for Delfi Limited are presented in Appendix

Nestlé’s financial statements are presented in Appendix B. Financial statements for Delfi Limited are presented in Appendix C.

Instructions

a. Based on the information contained in the financial statements, determine the normal balance of the
listed accounts for each company.

Nestlé	Delfi Limited
1. Inventory	1. Accounts (Trade) Receivable
2. Property, Plant, and Equipment	2. Cash and Cash Equivalents
3. Accounts (Trade) Payable	3. Cost of Sales (expense)
4. Interest Expense (finance cost)	4. Sales (revenue)

b. Identify the other account ordinarily involved when:

1. Accounts (Trade) Receivable is increased.

2. Salaries and Wages Payable is decreased.

3. Property, Plant, and Equipment is increased.

4. Interest Expense is increased.