When you hear the name Rolls-Royce Holdings plc you probably think of luxury automobiles. However, today the company is mainly in aerospace, marine, and energy fields. The company€™s condensed December 31, 2011, balance sheet follows (in millions of British pounds):

1. Prepare a balance sheet equation for Rolls-Royce Holdings in a format that supports the statement of cash flows.
2. Suppose that during the next month trade and other receivables increased by £500, other assets increased by £300, trade and other payables decreased by £150, other liabilities decreased by £50, and stockholders€™ equity was unchanged. What would be the balance in cash and cash equivalents at the end of themonth?

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Assets Liablilties and Stockholders' Equity Cash and cash equivalents Trade and other receivables Other assets Total assets £ 1,310 Trade and other payables £ 6,236 5,668 4,519 16,423 4,009 Other liabilities 11,104 Stockholders' equity £ 16,423 Total liabilities and stockholders' equity