On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 31,050 49,700 $ 80,750 $ 30,750 0 50,000 $ 80,750 Current assets Noncurrent assets Total assets Current liabilities. Long-term debt Stockholders' equity Total liabilities and equities Items On January 2, Park borrowed $58,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. T acquisition price was considered proportionate to Strand's total fair value. The $58,400 debt is payable in 10 equal annual principali 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). a. Current assets b. Noncurrent assets c. Current liabilities Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: d. Noncurrent liabilities e. Stockholders' equity Answer is complete but not entirely correct. Park $ 92,500 114,500 $ 207,000 $ $ $ 44,000 64,000 99,000 $ 207,000 $ $ $ 124,250 198,540 74,750 122,400 162,360

On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 31,050 49,700 $ 80,750 $ 30,750 0 50,000 $ 80,750 Current assets Noncurrent assets Total assets Current liabilities. Long-term debt Stockholders' equity Total liabilities and equities Items On January 2, Park borrowed $58,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. T acquisition price was considered proportionate to Strand's total fair value. The $58,400 debt is payable in 10 equal annual principali 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). a. Current assets b. Noncurrent assets c. Current liabilities Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: d. Noncurrent liabilities e. Stockholders' equity Answer is complete but not entirely correct. Park $ 92,500 114,500 $ 207,000 $ $ $ 44,000 64,000 99,000 $ 207,000 $ $ $ 124,250 198,540 74,750 122,400 162,360

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 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...

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Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of 75,000,000, and total assets of 169,000,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
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…
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…
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