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Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $33,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value $ 12,800, 000 26, 800, e00 4, 400, 000 8, 800, 000 16, 200, 000 Fair Value $ 15, 800, 000 32, 800, e00 5, 400, 000 8, 800, 000 15, 200, 000 Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwilI. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $33,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value $ 12,800, 000 26, 800, e00 4, 400, 000 8, 800, 000 16, 200, 000 Fair Value $ 15, 800, 000 32, 800, e00 5, 400, 000 8, 800, 000 15, 200, 000 Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwilI. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million

FINANCIAL ACCOUNTING
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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Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $33,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Fair Value $ 15,800, 000 32, 800, еее 5, 400, 000 8, 800, 000 15, 200, e00 Book Value $ 12, 800, 000 26, 800, 000 4,400, в00 8, 800, 000 16, 200, 000 Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million
Transcribed Image Text:Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $33,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Fair Value $ 15,800, 000 32, 800, еее 5, 400, 000 8, 800, 000 15, 200, e00 Book Value $ 12, 800, 000 26, 800, 000 4,400, в00 8, 800, 000 16, 200, 000 Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million
Billy's BBQ reported sales of $795,000 and net income of $34,000. Billy's also reported ending total assets of $500,000 and beginning total assets of $393,00o. Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for Billy's BBQ. Return on Assets Choose Numerator Choose Denominator Return on Assets Return on Assets Profit Margin Choose Numerator Choose Denominator Profit Margin Profit Margin %3D Asset Turnover Ratio Choose Numerator Choose Denominator Asset Turnover Asset Turnover o times
Transcribed Image Text:Billy's BBQ reported sales of $795,000 and net income of $34,000. Billy's also reported ending total assets of $500,000 and beginning total assets of $393,00o. Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for Billy's BBQ. Return on Assets Choose Numerator Choose Denominator Return on Assets Return on Assets Profit Margin Choose Numerator Choose Denominator Profit Margin Profit Margin %3D Asset Turnover Ratio Choose Numerator Choose Denominator Asset Turnover Asset Turnover o times
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