Canon is a manufacturer of copy machines and other electronic equipment. Abbreviated balance sheets as of 31 December 2004 and 2005 are presented below.

Using Equation 1a , address the following:

1. Determine the amount of stockholders’ equity as of 31 December 2005.

2. 

A. Calculate and contrast the absolute change in total assets in 2005 with the absolute change in total stockholders’ equity in 2005.

B. Based on your answer to 2A, state and justify the relative importance of growth in stockholders’ equity and growth in liabilities in financing the growth of assets over the two years.

Data from Equation 1a

Transcribed Image Text:

Canon and Subsidiaries Consolidated Balance Sheets (Millions of Yen) 31 Dec 2005 Assets Total assets Liabilities and stockholders' equity Total liabilities Total stockholders' equity Total liabilities and stockholders' equity 4,043,553 1,238,535 ? 4,043,553 31 Dec 2004 3,587,021 1,190,331 2,396,690 3,587,021