Condensed financial statements for Wm. J. Wrigley Jr. Company for 2001 and 2000 are shown in. Based upon these financial statements, answer the following questions:

1. Using the accounting equation, Assets = Liabilities + Stockholders’ Equity, fill in the amounts for 2000. Express the amounts in thousands.

2. If during 2001, assets increased by $190,908 and liabilities increased by $47,608, determine the increase or decrease in stockholders’ equity during 2001.

3. Based upon your answers to (1) and (2), determine the total stockholders’ equity as of December 31, 2001. Does this amount agree with Wrigley’s balance sheet shown in Exhibit 7?

4. Based upon , what percent of Wrigley’s total assets was financed by debt during 2001? Assuming you are a long-term creditor of Wrigley, interpret this percent in terms of the chances that you will be repaid by Wrigley.

5. Assuming that in (4) you are a short-term creditor of Wrigley, would your interpretation and analysis of your chances of being repaid change?