Question

Following are account balances (in millions of dollars) from a recent State annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year):
Property and equipment (net) $ 18,294
Receivables $ 2,649
Retained earnings 14,006
Other current assets 1,099
Accounts payable 1,697
Cash 1,324
Prepaid expenses 328
Spare parts, supplies, and fuel 836
Accrued expenses payable 2,510
Other noncurrent liabilities 3,950
Long-term notes payable 1,930
Other current liabilities 2,379
Other noncurrent assets 3,212
Additional Paid-in Capital 1,267
Common stock ($0.10 par value) 3

These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning June 1 (the current year):

(A) Provided delivery service to customers, who paid $12,390 in cash and owed $39,904 on account.
(B) Purchased new equipment costing $3,874; signed a long-term note.
(C) Paid $12,264 cash to rent equipment and aircraft, with $6,436 for rent this year and the rest for rent next year.
(D) Spent $1,304 cash to repair facilities and equipment during the year.
(E) Collected $37,485 from customers on account.(F) Repaid $370 on a long-term note (ignore interest).

Answer 1

I think you should divide first before multiplying