C. Adidas Inc. had the following balance sheet onSeptember 30, 2019 (in thousands):
Assets | Liabilities and Stockholders’ Equity |
Cash | 445,421 | Accounts Payable | 687,121 |
Accounts Receivable | 1,754,137 | Notes Payable | 553,153 |
Inventories | 1,338,640 | Other Liabilities | 965,095 |
Equipment and | | Total Liabilities | 2,205,369 |
Other Assets | 1,823,009 | Stockholders’ Equity | 3,155,838 |
Total Assets | 5,361,207 | Total Liabilities and Stockholders’ Equity | 5,361,207 |
Consider the following transactions that occurred duringthe first half of October 2019 (in thousands):
1. Inventories were acquired for cash,P160.
2. Inventories were acquired on open account,P190.
3. Unsatisfactory shoes acquired on open account in Junewere returned for full credit, P40.
4. Equipment of P120 was acquired for a cash downpaymentof P30 plus a 6-month promissory note of P90.
5. To encourage wider displays, special store equipmentwas sold on account to Makati area stores for P400. The equipmenthad cost P400 in the preceding month.
6. Sarah G. starred in a movie and as a favor to anAdidas executive, she agreed to display Adidas shoes in abasketball scene. No fee was paid by Adidas.
7. Cash was disbursed to reduce accounts payable,P170.
8. Collected cash on account, P180.
9. Borrowed cash from a bank, P500.
10. Sold additional common stock for cash to newinvestors, P900.
Prepare an analysis showing the effects of the Octobertransactions on the financial position of Adidas.
Prepare a balance sheet as of October 15,2019.
