DIRECTIONS: For exercise, simply click ONCE on the cell and then type in new number WITH comma.

Click anywhere else to enter new number. Totals will add automatically. FOLLOWING IS AN ACTUAL BALANCE SHEET FOR GANNETT NEWSPAPERS ASSETS Current Assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses TOTAL CURRENT ASSETS Property, Plant and Equip. Land Buildings and improvements Equipment, fixtures Construction in progress TOTAL Less accum. depreciation NET PROPERTY Intangible/Other Assets Intangible and inc. of value goodwill Investments and other TOTAL INTANGIBLES LIABILITIES/SHAREHOLDERS' EQUITY Current Liabilities Accounts payable 354,622 Accrued liabilities 235,093 Dividend payable 60,947 Income taxes 323,481 Deferred income 153,594 TOTAL CURRENT LIABILITIES $1,127,737 Long-Term Liabilities Deferred income taxes Long-term debt Postretirement liabilities Other TOTAL LONG-TERM TOTAL LIABILITIES Shareholders' Equity Common stock Less treasury stock Additional paid-in capital Retained earnings Accum. Loss, deferred ESOP TOTAL EQUITY LIABILITIES + EQUITY

73,905 66,724 871,669 104,848 61,052 $1,178,198

237,485 1,243,363 2,609,706 116,520 4,207,074 -1,741,604 $2,465,470

503,397 5,080,025 409,052 239,968 $6,232,442 $7,360,179

8,684,359 768,074 9,452,433

324,421 -2,275,737 210,256 7,589,069 -112,087 $5,735,922 $13,096,101

TOTAL ASSETS

$13,096,101

(The actual balance sheet numbers are expressed here in millions. For purposes of the exercise, treat numbers as they appear that is, pretend the figure of 73,905 for cash really is just $73,905.) EXERCISES: (1) Spend $10,000 of cash to buy some new equipment --$13,096,101 in each column (2) Take $10,000 out of cash and pay off some long-term debt. --$13,086,101 in each column (3) Accountant learned that $16,000 worth of construction in progress was actually completed, and therefore the totals for that and for buildings must be adjusted. --$13,086,101 in each column (4) Just before the books were closed, Gannett paid off $1,000 owed to someone (your accounts payable). Reduce the debt by using funds from cash. --$13,085,101 in each column (5) A customer paid $100,000 of the amount that was owed to you (your accounts receivable). Your accountant does not want to hold that much money in cash. So instead you use the money to buy an attractive investment. Make the transaction on the balance sheet. --$13,085,101 in each column Each column now equals $13,085,101