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?

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