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General Accounting Discussions: Equation does not match?

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    • CommentAuthorsnowblack
    • CommentTimeSep 21st 2009
     
    I was given this information...

    The following items (in U.S. millions) were taken from a recent balance sheet of NIKE, Inc.
    Accts Payable: $843.9
    Accts Receivable: 2,262.1
    Cash: 1,388.1
    Inventories: 1,811.1
    Land/Bldg/Eq: 1,605.8
    Notes Payable: 763.3
    Other Assets: 1,289.9
    Other Liabilities: 1,542.2
    Retained Earnings: 4,396.5
    Share capital: 1,247.7

    Show the amounts in NIKE's accounting equation by calculating the value of NIKE's total assets, total liabilities and total shareholder's equity

    My total comes to:
    Assets (accts receivable, cash, inventories, land/bldg/eq & other assets): 8,357
    Liabilities (note payable, accts payable & other liabilities): 3,149.4
    Shareholders' Equity (Investments, retained earnings and share capital): 6,080.8

    Using the accounting equation: Assets = Liablities + Shareholders equity. The calculation does not match. What am I missing here? Or did I misunderstand the question?
    • CommentAuthorsnowblack
    • CommentTimeSep 21st 2009
     
    Oh I forgot to add investments in my list it's
    investments: 436.6
    • CommentAuthororangutan
    • CommentTimeOct 1st 2009
     
    Shouldn't investments come under assets?
    • CommentAuthorJinLu
    • CommentTimeOct 11th 2009
     
    WHAT DOES IT MEAN BY INVESTMENTS?

    Eg:IF SOMEONE DEPOSIT 100 AS INVESTMENT IN A COMPANY
    SO SHOULD BE
    DR. CASH 100
    CR. CAPITAL 100
    So WHAT DO U MEAN THIS INVESTMENT , WE GOT INVESTMENT, OR WE DID INVEST?
    I REALLY CAN'T UNDERSTAND IT, SO IF U HAVE FINALLY ANSWER PLZ ALSO TELL ME HOW TO GET THE RIGHT ANSWER

    THANK U VERY MUCH

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