Digman Co. had retained earnings of $400,000 and $50,000 in cash on January 1st. It made a net income of $300,000 in the year. The amortization expense was $250,000. Digman Co. issued additional common shares for $500,000 and borrowed $600,000 from the Bank of Toyland. Cash from financing activities was: Select one: $1,100,000 none of the above $ 600,000 $ 900,000

Digman Co. had retained earnings of $400,000 and $50,000 in cash on January 1st. It made a net income of $300,000 in the year. The amortization expense was $250,000. Digman Co. issued additional common shares for $500,000 and borrowed $600,000 from the Bank of Toyland. Cash from financing activities was: Select one: $1,100,000 none of the above $ 600,000 $ 900,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Stancil Corporation provided the following current information: Proceeds from long-term borrowing $ 13,800 Proceeds from the sale of common stock 5,000 Purchases of fixed assets 27,500 Purchases of inventories 2,600 Payment of dividends 13,800 Determine the total cash flows spent on fixed assets and NWC, and determine the cash flows to investors of the firm. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)
8
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Arizona Corp. had the following account balances at 12/1/19: Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: Land — $480,000; Building — $720,000; Inventory — $336,000; and Liabilities — $396,000. Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. Imagine you are the decision maker at Inglewood Inc. Prepare a fair value allocation and goodwill schedule at the date of the acquisition. Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationa
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