The following information is provided for Atlas Corporation and Zephyr Limited:(in $ millions)Atlas Corporation Zephyr LimitedNet income 2019$300$550Net sales 20192,5006,000Total assets 12/31/17 1,8003,500Total assets 12/31/18 2,0004,100Total assets 12/31/19 2,2004,700Debt outstanding$200$400What is Zephyr Limited's return on assets (rounded) for 2019?

Computation of return on assets of Zephyr Limited by using the following formula:Resultant values:

Answered: The following information is provided…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as follows: BALANCE SHEETS December 31, 2020 Patrick Sean Cash $ 74,000 $ 76,000 Accounts receivable (net) 130,000 38,000 Inventories 86,000 54,000 Plant and equipment (net) 626,000 274,000 Investment in Sean 456,000 - Total assets $ 1,372,000 $ 442,000 Accounts payable 178,000 80,000 Long-term debt 110,000 26,000 Common stock ($10 par) 322,000 46,000 Additional paid-in capital 12,000 Retained earnings 762,000 278,000 Total liabilities and shareholders' equity $ 1,372,000 $ 442,000 Additional Information: On December 31, 2020, Patrick acquired 100 percent of Sean’s voting stock in exchange for $456,000. At the acquisition date, the fair values of Sean’s assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean’s inventory were…
The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as follows: BALANCE SHEETS December 31, 2020 Patrick Sean Cash $ 80,000 $ 42,000 Accounts receivable (net) 140,000 28,000 Inventories 86,000 60,000 Plant and equipment (net) 640,000 278,000 Investment in Sean 454,000 - Total assets $ 1,400,000 $ 408,000 Accounts payable 172,000 86,000 Long-term debt 100,000 26,000 Common stock ($10 par) 306,000 70,000 Additional paid-in capital 14,000 Retained earnings 822,000 212,000 Total liabilities and shareholders' equity $ 1,400,000 $ 408,000 Additional Information: On December 31, 2020, Patrick acquired 100 percent of Sean’s voting stock in exchange for $454,000. At the acquisition date, the fair values of Sean’s assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean’s inventory were…
Alford Company and its 80 percent-owned subsidiary, Knight, have the following income statements for 2021: Knight $ (230,000) Alford $ (500,000) 300,000 40,000 140,000 10,000 20,000 20,000 (30,000) (36,200) $ (206, 200) Revenues Cost of goods sold Depreciation and amortization Other expenses Gain on sale of equipment Equity in earnings of Knight Net income 0 0 $ (60,000) Additional Information for 2021 • Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight. • Intra-entity gross profits in inventory at January 1 were $6,000, but at December 31, they are $9,000. • Annual excess amortization expense resulting from the acquisition is $11,000. • Knight paid dividends totaling $20,000. • The noncontrolling interest's share of the subsidiary's income is $9,800. . During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively. Net…
PayNet Inc. (PayNet) and Shale Ltd. (Shale) had the following balance sheets on July 31, 2022:
Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,840,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,260,000 including retained earnings of $3,405,000. At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary: $ 9,840,000 7,260,000 $ 2,580,000 Consideration transferred Eddy's stockholder's equity Excess fair over book value to patented technology (5-year remaining life) to trade names (indefinite remaining life) to equipment (8-year remaining life) $177,000 534,500 88,000 799,500 Goodwill $ 1,780,500 At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance. Sales Cost of goods sold Depr Amortization expense Angela $ (7,942,500) 3,998, 250…
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Accounts Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (700,000) 250,000 150,000 Not given 80,000 (600,000) 400,000 Investment in Stanza Liabilities Common stock Additional paid-in capital Stanza $ (400,000) 100,000 200,000 Ө 60,000 (200,000) 500,000 400,000 900,000 600,000 1,000,000 Not given (500,000) Ө (1,380,000) (600,000) ($20 par) (150,000) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000. Required: a. As of December 31, 2024, what is…
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Accounts Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (742,000) 264,700 187,000 Not given. 80,000 (788,000) 498,000 990,000 Investment in Stanza Liabilities Common stock Additional paid-in capital 772,000 Not given (600,000) (600,000) ($20 par) (150,000) Stanza $ (652,000) 163,000 224,000 0 60,000 (330,000) 598,000 384,000 1,190,000 0 (1,357,088) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $829,000 fair value in cash and common stock. Penske also paid $10,000 in stock Issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $456,000 book value but a fair value of $660,000. Required: a. As of December 31, 2024, what is…
The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as follows: Cash Accounts receivable (net) Inventories BALANCE SHEETS December 31, 2020 Plant and equipment (net) Investment in Sean Total assets Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings Total liabilities and shareholders' equity Additional Information: Patrick 76,000 148,000 96,000 632,000 462,000 $1,414,000 $ Sean $ 56,000 24,000 80,000 270,000 $430,000 98,000 22,000 66,000 8,000 832,000 236,000 $1,414,000 $ 430,000 142,000 110,000 330,000 • On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $462,000. • At the acquisition date, the fair values of Sean's assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean's inventory were $20,000 more than their carrying amounts. In the December 31, 2020, consolidated…
Perena Corporation A. 272,500B. 280,000C. 275,000D. 277,500
The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 138,880 $ 118,000 Accounts receivable 74,000 90,000 Inventory 93,000 78,000 Investments 3,800 1,800 Long-term assets: Land 460,000 460,000 Equipment 770,000 650,000 Less: Accumulated depreciation (408,000 ) (248,000 ) Total assets $ 1,131,680 $ 1,149,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 97,600 $ 83,000 Interest payable 5,500 11,800 Income tax payable 7,500 4,800 Long-term liabilities: Notes payable 100,000 200,000 Stockholders' equity: Common stock…
the balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 242,000 $ 130,000 Accounts receivable 98,000 102,000 Inventory 105,000 90,000 Investments 5,000 3,000 Long-term assets: Land 580,000 580,000 Equipment 890,000 770,000 Less: Accumulated depreciation (528,000 ) (368,000 ) Total assets $ 1,392,000 $ 1,307,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 109,000 $ 95,000 Interest payable 7,000 13,000 Income tax payable 9,000 6,000 Long-term liabilities: Notes payable 110,000 220,000 Stockholders' equity: Common stock…

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