Powder Company spent $240,000 to acquire all of Sawmill Corporation's stock on January 1, 20X2. The balance sheets of the twocompanies on December 31, 20X3, showed the following amounts:CashAccounts ReceivableLandBuildings and EquipmentLess: Accumulated DepreciationInvestment in Sawmill CorporationAccounts PayableTaxes PayableNotes PayableCommon StockRetained EarningsPowderCompany$ 30,000100,00060,000500,000(230,000)252,000$ 712,000$ 80,00040,000100,000200,000292,000$ 712,000SawmillCorporation$ 20,00040,00050,000350,000(75,000)$385,000$ 10,00070,00085,000100,000120,000$385,000Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlyingbook value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. AssumeSawmill's accumulated depreciation on the acquisition date was $25,000.Required:Prepare a consolidated balance sheet worksheet as of December 31, 20X3.

Consolidation is a financial process wherein the financial statements of a parent company and its…

Cash Accounts Receivable Land Buildings and Equipment Less: Accumulated Depreciation Investment in Sawmill Corporation Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings Company $ 30,000 100,000 60,000 500,000 (230,000) 252,000 $ 712,000 $80,000 40,000 100,000 200,000 292,000 $ 712,000 Corporation $ 20,000 40,000 50,000 350,000 (75,000) $385,000 $10,000 70,000 85,000 100,000 120,000 $385,000 Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume Sawmill's accumulated depreciation on the acquisition date was $25,000. Required: Prepare a consolidated balance sheet worksheet as of December 31, 20X3.

Cash Accounts Receivable Land Buildings and Equipment Less: Accumulated Depreciation Investment in Sawmill Corporation Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings Company $ 30,000 100,000 60,000 500,000 (230,000) 252,000 $ 712,000 $80,000 40,000 100,000 200,000 292,000 $ 712,000 Corporation $ 20,000 40,000 50,000 350,000 (75,000) $385,000 $10,000 70,000 85,000 100,000 120,000 $385,000 Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume Sawmill's accumulated depreciation on the acquisition date was $25,000. Required: Prepare a consolidated balance sheet worksheet as of December 31, 20X3.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Given the following information, construct the firm’s balance sheet: Cash and cash equivalents $ 400,000 Accumulated depreciation on plant and equipment 660,000 Plant and equipment 5,400,000 Accrued wages 260,000 Long-term debt 4,210,000 Inventory 7,080,000 Accounts receivable 5,430,000 Preferred stock 550,000 Retained earnings 8,680,000 Land 1,070,000 Accounts payable 2,030,000 Taxes due 170,000 Common stock $ 10 par Common shares outstanding 238,000 Current portion of long-term debt $ 440,000 Round your answers to the nearest dollar. Corporation X Balance Sheet as of XX/XX/XX Assets Liabilities and Owners' Equity Cash and cash equivalents $ Accounts payable $ Accounts receivable Taxes due Inventory Accrued wages Total current assets $ Current portion of long-term debt $ Land Total current liabilities Plant and equipment Long-term debt…
Calculate the comprehensive income for the Staffordshire Products Company given the information below. Positive amounts are unrealized gains and negative amounts are unrealized losses: Net Income $64,500Dividends $5,600Pension liability adjustment $9,000Foreign currency translation ($5,050)Gain discontinued operations $3,200Available-for sale investments declined from $39,000 to $37,150
Based upon the information below, what is the company's Free Cash Flow Operating Income: 2,000,000 Statutory Tax Rate 25% Taxes (from income statement) $410,000 Amortization $35,000 Capex $275,000 Depreciation $185,000 Non Cash Expenses $240,000 Change in required cash -$15,000 Change in NWC $25,000
TJ Industries has revenue of $400,000 and expenses of $250,000. The depreciation cost is $80,000 and marginal tax rate is 35%. Calculate cash flow from operation. Group of answer choices a.$150,000 b.$45,500 c.$125, 500 d.$135,000
Subject: accounting
The following information is available for Felix Company: Net income $300 Decrease in plant and equip. $40 Depreciation expense $20 Increase in deferred tax asset $5 Gain on sale of assets $35 Decrease in long-term debt $50 Increase in inventories Decrease in accounts payable $15 $25 What is cash flow from operating activities for Felix Company? Select one O A. $240 O B. $70 O C. $320 O D. $250
Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 15,000 937,000 Net income $13,000 Additional information about the company includes: End of Beginning Year of Year Accounts receivable $64,000 $59,000 Inventory 60,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 6,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. $
None
Decrease in plant and equipment $ Decrease in deferred tax asset $ Increase in accounts receivable $ Net Loss $ 122,865 587,458 15,487 65,892 109,520 215,877 Increase in inventory $ Decrease in short-term debt $ Net cash from financing activities Net cash from investing activities Net cash from operating activities
Interest expense Paid-in capital Accumulated depreciation Notes payable (long-term) Rent expense Merchandise inventory Accounts receivable Depreciation expense Land Retained earnings Cash Cost of goods sold Equipment Income tax expense Accounts payable Net sales $ 5,400 17,200 4,800 53,000 11,700 124,000 41,500 2,400 37,000 152,500 28,000 238,000 28,000 57,000 31,000 400,000 Required: a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2022. b. Calculate the total assets at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022. e. What was the average income tax rate for Gary's TV for 2022? f. If $27,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings?