Chapter 1, Problem 1.4E

Preparing a Balance Sheet

Honda Motor Corporation of Japan is a leading international manufacturer of automobiles, motorcycles, all-terrain vehicles, and personal watercraft. As a Japanese company, it follows Japanese GAAP and reports its financial statements in billions of yen (the sign for yen is ¥). Its recent balance sheet contained the following items (in billions). Prepare a balance sheet as of March 31, current year, solving for the missing amount. (Hint: Exhibit 1.2 in the chapter provides a good model for completing this exercise.)

Cash and cash equivalents	¥ 1,279
Common stock	259
Accounts payable and other current liabilities	3,568
Inventories	900
Investments	640
long-term debt	2,043
Net property, plant, and equipment	1,939
Other assets	6,025
Other liabilities	1,377
Retained earnings	4,324
Total assets	11,571
Total liabilities and stockholders’ equity	?
Trade accounts, notes, and other receivables	788