1. The statement is entitled ‘‘Consolidated Balance Sheet.

’’ What does it mean to have

a consolidated balance sheet?

Present all assets, equity and liabilities of present companies (including all subsidiary companies
assets, equity and liabilities) within single documents with no distinctions on which items belong
to which companies.

2. What current liability decreased the most?

a. Current portion of short term borrowing decrease in 2006 also amount of income taxes
payable decrease in 2007.
3. What current liability increased the most?
a. Short term borrowing increase in 2006

14000000

12000000

10000000

8000000

6000000

2008
4000000 2007
2006

2000000

0
4. How many common shares had been issued as of December 31, 2008?
a. 20.73 million number of shares issues
5. How many shares were held in the treasury at December 31, 2008?
a. Common shares held in treasury, at cost – Shares: 2008: 49,147,968
6. How many shares were outstanding at December 31, 2008?
a. Number of share held by share holder 1,601,580,899
7. What is the treasury stock method?
8. 1. Abbott Laboratories discloses the account ‘‘Earnings employed in the business.’’ What is
this account usually called?
a. Most of companies usually use retained earnings account (earnings employed in the
business)