On January 1, 2024 Palk Corp. and Spraz Corp. had condensed balance sheets as follows:Current assetsPalk Corp. Spraz Corp.$ 99,000 $28,000125,000 56,000Noncurrent assetsTotal assetsCurrent liabilitiesLong-term debt224,000 84,00042,000 14,00070,00070,000Time left 3:54:49Stockholders' equity112,000Total liabilities and stockholders' equity $224,000 $ 84,000On January 1, 2024, Palk borrowed the entire $72,000 it needed to acquire 80% of the outstanding commonshares of Spraz. Sha4res of Spraz are not actively traded on the market. The loan is to be paid in ten equalannual principal payments, plus interest, beginning December 31, 2024. The excess consideration transferredover the underlying book value of the acquired net assets was allocated 35% to inventory and 65% to goodwill.What is the amount attributable to consolidated noncurrent assets at January 1, 2024?O a. $196,000O b. $181,000Oc $223,000Od. $218,500O e. $194,000

Detailed explanation: The amount attributable to consolidated noncurrent assets at January 1, 2024…

Answered: On January 1, 2024 Palk Corp. and Spraz…

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 data for the King Company: How would common stock appear on a common size balance sheet? Curment labites $ 400 Long term debt 480 Common stack 700 Retained eanings Total iabities & sochdders equty $2,500 920 Enlarged View 20% 70% 28% 30%
What would be the classified Balance Sheet for Sandpiper as of December 31, 2020? After calculations, does the ASSETS sheet and Liabilities and Stockholders' Equity balance? Accounts Payable $34,600 Accounts Receivable $35,100 Accrued Liabilities $11,500 Accumulated Depreciation $35,600 Allowance for Doubtful Accounts $900 Bonds Payable[Long-term] $80,000 Cash and Cash Equivalents $33,600 Common Stock at par $1.50 (authorized 200,000 shares, issued xxxxx? shares, and XXXX? outstanding)-CALCULATE $75,000 Cost of goods sold $204,800 Current Portion of Long-Term Debt $5,600 Discounts on Bonds Payable $2,300 Equipment and vehicles $89,100 General and administrative expenses $92,100 Intangilbles - Net $14,300 Investments in Equity Securities[long-term] $5,000 Land[not used in operations] $25,600 Land and Building $145,300 Long-Term Debt Payable [not including current portion] $40,200 Merchandise Inventory (FIFO, Lower of Cost or Market) $28,700 Notes Payable[short-term] $6,500 Notes…
The balance sheet for Shankland Corporation follows: 000'009 $ 000006 Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings 000 0000 000 00 000 009' 000 006 Total liabilities and stockholders' equity 000'00s Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio
As of December 31, 2021, Halaga Corporation reported the following items in its balance sheet: Cash- P520,000 Receivables- P240,000 Inventory- P350,000 Equipment- P850,000 Accounts payable- P325,650 Short-term notes payable- P524,500 Long-term debt- P1,049,850 Weighted average of outstanding shares in 2021- P250,000 Halaga Corporation contracted a third-party appraiser which has determined that the replacement value of its assets. This resulted to P14.22 calculation as its replacement value per share of the company.Based on the report of the appraiser, the property and plant have replacement cost of 125% of its reported value. On the other hand, the equipment only commands replacement cost of 70% of its value. According to the appraiser, the equipment was designed using an old technology, thus, the lower replacement cost. Other assets and liabilities are valued fairly.How much is the book value per share of Halaga Corporation as of December 31, 2021? a. Php 0.24 b. Php 14.22 c.…
(Figures in $ millions) Assets 2021 2022 Liabilities and Shareholders' Equity 2021 2022 Current assets $ 310 $ 420 Current liabilities $ 210 $ 240 Net fixed assets 1,200 1,420 Long-term debt 830 920 Required: a&b. What was shareholders’ equity at the end of 2021 and 2022? c. If Newble paid dividends of $100 million in 2022 and made no stock issues, what must have been net income during the year? d. If Newble purchased $300 million in fixed assets during 2022, what must have been the depreciation charge on the income statement? e. What was the change in net working capital between 2021 and 2022? f. If Newble issued $200 million of new long-term debt, how much debt must have been paid off during the year
The balance sheet for Campbell Corporation follows: Current assets $233,000 763,000 $996, 000 $141,000 456,000 597,000 399,000 $996,000 Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity
Stark Company's most recent balance sheet reported total assets of $1,840,000, total liabilities of $830,000, and total equity of $1,010,000. Its debt-to-equity ratio is: 1.00 0.82 0.55 1.22 0.45
Wichita, Inc. reported the following amounts on its financial statements prepared as of the end of the current accounting period: Revenues Expenses Net income Current assets; Long-term assets Total assets Current liabilities Long-term liabilities Total liabilities. Common stock Retained earnings Total equity Total liabilities and equity What is the company's debt-to-assets ratio? $200,000 180,000 $50,000 150,000 $ 20,000 80,000 $ 40,000 60,000 $ 20,000 $200,000 100,000 100,000 $200,000
WD Corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals: Cash $ 42,000 Current liabilities $ 77,000 Accounts receivable 57,000 Long-term liabilities 28,000 Inventory 62,000 Common stock 102,000 Equipment 147,000 Retained earnings 101,000 Total assets $ 308,000 Total liabilities and equity $ 308,000
Prince Corp. and Sprite Corp. reported the following balance sheets at January 1, 20X1: Prince Sprite Current assets $ 30,000 $ 15,000 Noncurrent assets 55,000 25,000 Total assets $ 85,000 $ 40,000 Current liabilities $ 20,000 $ 10,000 Long-term debt 20,000 5,000 Stockholders’ equity 45,000 25,000 Total liabilities and stockholders’ equity $ 85,000 $ 40,000 On January 2, 20X1, Prince issued $36,000 of stock and used the proceeds to purchase 90% of Sprite’s common stock. The excess of the purchase price over Sprite’s book value of net assets was allocated 60% to inventory and 40% to goodwill. Required: Show the amounts that Prince will report on its January 2, 20X1, consolidated balance sheet for the following items under (a) the acquisition method and (b) the purchase method if the acquisition had taken place when that method was required under U.S. GAAP.
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Current assets Items Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Park $ 92,500 114,500 $ 207,000 $ 44,000 64,000 99,000 Strand $ 31,050 49,700 $ 80,750 $ 30,750 0 50,000 $ 207,000 $ 80,750 On January 2, Park borrowed $58,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $58,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: a. Current assets b. Noncurrent assets c. Current…
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Items Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Park $ 74,500 92,250 $ 166,750 $ 32,000 51,750 83,000 $166,750 Strand $ 16,050 46,200 $ 62,250 $ 12,250 0 50,000 $ 62,250 On January 2, Park borrowed $66,000 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $66,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: a. Current assets b. Noncurrent assets c. Current…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS