Retained earnings 183 total shareholders equity 668

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Retained earnings 18,3
Total shareholders' equity $ 66,8 Total liabilities and shareholders' equity $ 118
Feedback Check My Work 1. Current assets are cash and other assets that a company expects to convert into cash, sell, or consume within one year or the normal operating cycle, whichever is longer. An operating cycle is the average length of time taken by a company to spend cash to purchase or produce inventory, sell the inventory, and collect the receivables, converting them back into cash. Companies commonly report the following types of current assets: a. Cash and Cash Equivalents b. Short-Term Investments c. Receivables d. Inventories e. Other Current Assets: Prepaid items such as insurance, rent, office supplies, and taxes will not be converted into cash but will be consumed. 2. Long-term investments include: a. investments in available-for-sale debt and equity securities that the company does not intend to convert into cash within one year or the operating cycle b. investments in debt securities (e.g., bonds) expected to be held to maturity when maturity is beyond one year c. investments in affiliated companies notes receivable, advances to customers or suppliers, and other financial instruments that are noncurrent d. property being held for investment purposes (such as a building held for rental activities rather than operating activities) or future operations (such as land being held for a future building site) e. special funds established to retire bonds payable or preferred stock (often called sinking funds) or to acquire future facilities f. miscellaneous long-term investments (such as the cash surrender value of life insurance policies) 3. The property, plant, and equipment section of a company's balance sheet includes the long-lived tangible assets used in its operations. Often these are called fixed assets because of their relative permanency in the company's operations. Long-lived assets that have a physical existence, such as land, buildings, equipment, machinery, furniture, and natural resources are listed in this category. Property, plant, and equipment held under certain long-term lease contracts also are included in this

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