On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 37,000 44,500 $ 81,500 $ 31,500 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Items Current assets b. Noncurrent assets c. Current liabilities Park $ 118,250 98,500 $216,750 $ 50,250 74,500 92,000 $ 216,750 On January 2, Park borrowed $65,200 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 $65,200 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). d. Noncurrent liabilities e. Stockholders' equity 50,000 $ 81,500 Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following:
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 37,000 44,500 $ 81,500 $ 31,500 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Items Current assets b. Noncurrent assets c. Current liabilities Park $ 118,250 98,500 $216,750 $ 50,250 74,500 92,000 $ 216,750 On January 2, Park borrowed $65,200 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 $65,200 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). d. Noncurrent liabilities e. Stockholders' equity 50,000 $ 81,500 Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following:
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...
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![On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:
Current assets
Noncurrent assets
Total assets
Current liabilities
Long-term debt
Stockholders' equity
Total liabilities and equities
Items
a. Current assets
b. Noncurrent assets
Park
c. Current liabilities
d. Noncurrent liabilities
e. Stockholders' equity
Strand
$ 118,250
$ 37,000
98,500
***
$ 216,750
$ 81,500
$ 50,250
$ 31,500
74,500
92,000
$ 216,750
44,500
On January 2, Park borrowed $65,200 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 $65,200 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).
50,000
$ 81,500
Required:
On a consolidated balance sheet as of January 2, calculate the amounts for each of the following:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75970fc3-7b68-456d-85d7-65fe6d1e055f%2Fbaedf0a0-c92e-4399-9222-ce445266fbf1%2Fjjn0w8_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:
Current assets
Noncurrent assets
Total assets
Current liabilities
Long-term debt
Stockholders' equity
Total liabilities and equities
Items
a. Current assets
b. Noncurrent assets
Park
c. Current liabilities
d. Noncurrent liabilities
e. Stockholders' equity
Strand
$ 118,250
$ 37,000
98,500
***
$ 216,750
$ 81,500
$ 50,250
$ 31,500
74,500
92,000
$ 216,750
44,500
On January 2, Park borrowed $65,200 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 $65,200 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).
50,000
$ 81,500
Required:
On a consolidated balance sheet as of January 2, calculate the amounts for each of the following:
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