The following balances were taken from the December 31, 2008, balance sheet of Time Warner (dollars in
Question:
The following balances were taken from the December 31, 2008, balance sheet of Time Warner (dollars in millions):
Current assets ? ? ? ? ? ? ? ? ? ? ? ? ?$16,602
Long-term assets? ? ? ? ? ? ? ? ? ? ?? 97,294
Current liabilities? ? ? ? ? ? ? ? ? ? ? 13,976
Long-term liabilities? ? ? ? ? ? ? ?? 57,632
Shareholders? equity ? ? ? ? ? ? ? ?42,288
Early in 2009, Time Warner considered the financial effect of several events.
REQUIRED:
For each of the five events listed here, indicate how they would affect the financial ratio listed by completing the following chart. Assume that financial statements are prepared immediately after each event. Treat each event independently, and use the following key: Increase (+) Decrease (???), and No Effect(NE)
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Return on Current Assets Ratio 1 Purchase equipment in exchange for a note ...View the full answer
