Insight on Liabilities and Shareholders’ Equity
The December 31, 1998 and 1997 liabilities and stockholders’ equity of Motorola follow:
CONSOLIDATED BALANCE SHEETS (In Part)
|
(In millions, except per share amounts) |
Motorola, Inc. and Subsidiaries |
|
|
December 31 |
1998 |
1997 |
|
Liabilities and Stockholders’ Equity |
||
|
Current liabilities |
||
|
Notes payable and current portion of long term debt |
$ 2,909 |
$ 1,282 |
|
Accounts payable |
2,305 |
2,297 |
|
Accrued liabilities |
6,226 |
5,476 |
|
Total current liabilities |
11,440 |
9,055 |
|
Long term debt |
2,633 |
2,144 |
|
Deferred income taxes |
1,188 |
1,522 |
|
Other liabilities |
1,245 |
1,285 |
|
Stockholders’ equity |
||
|
Preferred stock, $100 par value issuable in series |
||
|
Authorized shares: 0.5 (none issued) |
||
|
Common stock, $3 par value |
||
|
Authorized shares: 1998 and 1997, 1,400 |
||
|
Issued and outstanding: 1998, 601.1; 1997, 597.4 |
1,804 |
1,793 |
|
Additional paid in capital |
1,894 |
1,720 |
|
Retained earnings |
8,254 |
9,504 |
|
Non owner changes to equity |
270 |
255 |
|
Total stockholders’ equity |
12,222 |
13,272 |
|
Total liabilities and stockholders’ equity |
$28,728 |
$27,278 |
Required
a 1. The statement is entitled “Consolidated Balance Sheets.” What does it mean to have a consolidated balance sheet?
2. Does it appear that the subsidiaries are wholly owned? Explain.
b. Describe deferred income taxes.
c. 1. Describe long term debt.
2. Why is the current part of long term debt disclosed under current liabilities?
d. Describe retained earnings.
e. 1. How many shares of common stock have been issued at December 31, 1998?
2. How many shares of common stock have been authorized at December 31, 1998?
f. 1. What are the total liabilities at December 31, 1998?
2. What is the total stockholders’ equity at December 31, 1998?
3. What is the total asset amount at December 31, 1998?