Required information P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 [The following information applies to the questions displayed below.] Mango Inc., headquartered in Cupertino, California, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software and services. The following is Mango's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). ASSETS Current assets: Cash MANGO INC. CONSOLIDATED BALANCE SHEET September 30, 2017 (dollars in millions) Short-term investments Accounts receivable Inventories $ 13,954 11,321) 17,595 2,125 Other current assets 24,040 69,035 Long-term investments 131,120 Property, plant, and equipment, net 20,776 12,616 $233,547 Total current assets Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued expenses Unearned revenue Short-term notes payable Total current liabilities Long-term debt Other noncurrent liabilities Total Liabilities Stockholders' equity: Common stock (50.00001 per value) Additional paid-in capital Retained earnings Total starkhaldare anitu $ 30,420 18,591 8,557 6,355 63,923 29,205 28,064 121,192 1 24,412 87,942 112 355 Other current assets Inventories Total current assets 2,125 24,040 69,035 Long-term investments 131,120 Property, plant, and equipment, net 20,776 Other noncurrent assets 12,616 Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $233,547 $ 30,420 Accrued expenses 18,591 8,557 6,355 63,923 Unearned revenue Short-term notes payable Total current Liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock (s0.00001 per value) Additional paid-in capital 29,205 28,064 121,192 1 24,412 Retained earnings 87,942 112,355 Total liabilities and shareholders' equity $233,547 Total stockholders' equity Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): a. Borrowed $18,287 from banks due in two years. b. Purchased additional investments for $23,000 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,591 in cash and signed a short-term note for $1,430. d. Issued additional shares of common stock for $1,489 in cash; total par value was $1 and the rest was in excess of par value. e. Sold short-term investments costing $19,028 for $19.028 cash. f. Declared $11.146 in dividends to be paid at the beginning of the next fiscal year.