ABSTRACT
Current assets Cash and cash equivalents 1 180 039 Receivables (net of allowances: $21 313) 1 093 155 Inventories:
Finished goods and work-in-process 890 813 Packaging material and ingredients 266 119 Total inventories 1 156 932
Prepaid expenses 165 177 Other current assets 15 493 Total current assets 3 610 796
Property, plant and equipment: Land 65 836 Buildings and leasehold improvements 796 966 Equipment, furniture and other 2 864 422
3 727 224 Less accumulated depreciation 1 669 938 Total property, plant and equipment, net 2 057 286
Other non-current assets: Goodwill 1 959 914 Trademarks, net 643 901 Other intangibles, net 149 920 Other non-current assets 1 455 372 Total other non-current assets 4 209 107
Total assets 9 877 189
Liabilities and Shareholders’ Equity (dollars in thousands)
Current Liabilities: Short-term debt 11 434 Portion of long-term debt due within one year 425 016 Accounts payable 1 063 113 Salaries and wages 50 101 Accrued marketing 230 495 Other accrued liabilities 361 596 Income taxes 327 313 Total current liabilities 2 469 068 Long-term debt and other liabilities: Long-term debt 4 537 980 Deferred income taxes 313 343 Non-pension postretirement benefits 192 599 Minority interest 104 645 Other 365 365 Total long-term debt and other liabilities 5 513 932 Shareholders’ equity: Capital stock:
Third cumulative preferred, $1.70 first series, $10 par value 94 Common stock, 431 096 485 shares issued, $.25 par value 107 774
107 868 Additional capital 403 043 Retained earnings 4 856 918
5 367 829 Less:
Treasury shares, at cost (79 139 249 shares) 2 927 839 Unearned compensation 32 275 Accumulated other comprehensive loss 513 526
Total shareholders’ equity 1 894 189 Total liabilities and shareholders’ equity 9 877 189
Solution
H. J. HEINZ COMPANY Consolidated Balance Sheet at 28 April 2004
$ million Fixed assets Tangible fixed assets Note 1 2 057 Intangibles Note 2 2 754 Other non-current assets 1 455
6 266
Current assets Stocks Note 3 1157 Debtors Note 4 1 274 Cash etc. 1 180
3 611
Less: Creditors due within one year Short-term borrowings Note 5 (437) Other creditors Note 6 (2 032)
(2 469) Net working capital 1 142
Total assets less current liabilities 7 408 Creditors due after one year Long-term borrowings (4 538) Provisions for liabilities and charges Note 7 (871) Minority interest (105)
1 894 Capital and reserves Called up share capital 108 Share premium account 403 Retained profits 4 857 Other reserves (546)
4 822 Less: Treasury shares at cost (67.7m shares) (2 928)
1 894
$ million Land and buildings, at cost 863 Equipment and furniture, etc., at cost 2 864
3 727 Less: accumulated depreciation 1 670 Net book value 2 057 Note 2. Intangibles Goodwill 1 960 Other intangibles net 794
2 754
Note 3. Stocks Packaging material and ingredients 266 Finished goods and work-in-progress 891
1 157
Note 4. Debtors Trade debtors (net of provisions 21) 1 093 Prepayments, etc. 181
1 274
Note 5. Short-term borrowings Short-term borrowings 12 Long-term borrowings, due within one year 425
437 Note 6. Other creditors (current) Trade creditors 1 063 Accrued liabilities 642 Taxation 327
2 032 Note 7. Provisions for liabilities and charges Deferred taxation 313 Non-pension post-retirement benefits 193 Other 365
Can you identify the UK equivalents for each of the following US accounting terms? Answers are shown overleaf. (a) Net sales (b) Common stock (c) Inventories (d) Income statement (e) Inc. (f) Current liabilities (g) Long-term debt (h) Accounts payable
12.4 Vice versa Can you identify the US equivalents for each of the following UK accounting terms? Answers are shown overleaf. (a) Gearing (b) Capital and reserves (c) Balance sheet (d) Merger (e) Tangible fixed assets (f) Share premium (g) Profit after tax (h) Debtors
12.5 Diageo plc (B): Restating a UK balance sheet You will find the 2003 group balance sheet of Diageo plc set out on page 173. Please attempt, on a separate sheet of paper, to restate this UK group’s balance sheet into the horizontal US format, using US terminology.
