Case 2: Sherwin-Williams Company Sherwin-Williams, based in Cleveland, Ohio, manufactures a wide variety of paint and other coatings, which are marketed through its specialty stores and in other retail outlets. The company also manufactures paint for automobiles. The Automotive Division has had financial difficulty. During a recent year, five branch locations of the Automotive Division were closed, and new management was put in place for the remaining branches.
The following titles were shown on Sherwin-Williams’s balance sheet for that year.
Account payable | Machinery and Equipment |
Accounts receivable, less allowance | Other accruals |
Accrued taxes | Other capital |
Building | Other current assets |
Cash and Cash equivalents | Other long term liabilities |
Common stock | Postretirement obligation other than pension |
Employee compensation payable | Retained earnings |
Finished good inventories | Short-term investment |
Intangible and other assets | Taxes payable |
Land | Work in process and raw material inventories. |
Long-term debt | |
Instructions
(a) Organize the accounts in the general order in which they would have been presented in a classified balance sheet.
(b) When several of the branch locations of the Automotive Division were closed, what balance sheet accounts were most likely affected? Did the balance in those accounts decrease or increase?
