Ai don't 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?

Step 1: Compute the average total assets for 2019.Average total assets = (Total assets (beg),…

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 following information is provided for Cullumber Company and Bramble Corporation. (in $ millions) Cullumber Company Bramble Corporation Net income 2022 $125 $370 Net sales 2022 1310 4520 Total assets 12/31/20 1070 2040 Total assets 12/31/21 1055 3150 Total assets 12/31/22 1170 4100 What is Cullumber's asset turnover for 2022?
The following information is provided for Sunland Company and Culver Corporation. (in $ millions) Sunland Company Culver Corporation Net income 2022 $155 $405 Net sales 2022 1595 4530 Total assets 12/31/20 1040 2130 Total assets 12/31/21 1260 3020 Total assets 12/31/22 1165 4100 What is Sunland's asset turnover for 2022? (Round answer to 2 decimal places, e.g. 15.20.) 0.68 times 1.32 times 0.25 times 3.94 times
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…
Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): Sales Cost of sales Gross profit Operating expenses Net income 2019 $22,000 10,600 11400 5.700 $ 5700 2020 $18,500 9,900 8600 5.500 $3100 2021 $19,250 10,100 9150 6.000 $3150 ADDITIONAL INFORMATION 1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019-2021 period. Pub's separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017. 2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half the merchandise, remained in Sub's inventory at December 31, 2019. Total sales by Pub to Sub in 2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020. 3. Pub's inventory at December 31, 2020, included items acquired from Sub on which…
Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): Sales Cost of sales Gross profit Operating expenses Net income 2019 $22,000 10,600 11400 5,700 $5700 2020 $18,500 9,900 8600 5,500 $3100 2021 $19,250 10,100 9150 6.000 $3150 ADDITIONAL INFORMATION 1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019-2021 period. Pub's separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017. 2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half the merchandise remained in Sub's inventory at December 31, 2019. Total sales by Pub to Sub in 2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020. 3. Pub's inventory at December 31, 2020, included items acquired from Sub on which Sub…
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 financial statements of Parent and Subsidiary are found in the table below. Assuming that Parent Inc acquires 90% of Sub Inc on August 1, 2019 for cash of $180,000. Cash Parent Parent Sub Sub (carrying value) (fair value) (carrying value) (fair value) 180,000 180,000 36,000 36,000 Accounts Receivable 100,000 95,000 40,000 40,000 Inventory 60,000 68,000 24,000 27,000 Plant and Equipment (net) 200,000 270,000 80,000 93,000 Goodwill 0 8,000 Trademark 0 12,000 15,000 Total Assets 540,000 200,000 Current Liabilities 80,000 81,000 50,000 50,000 Bonds Payable 320,000 350,000 20,000 24,000 Common Shares 90,000 80,000 Retained Earnings 50,000 50,000 Total Equity 540,000 200,000 Required: Prepare the Consolidated Balance Sheet on the date of acquisition if the identifiable net assets (INA) method were used?
1- The following information relates to Panorama Corporation and its 70 percent-owned subsidiary, Scan, for the year 2022 is as follows (in thousands): Sales Income from Scan Cost of sales Depreciation expense Other expenses Panorama Scan $2,000 $800 98 (1,200) (400) (100) (80) (398) (180) I Required: a. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022. (Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan at book value on January 1, 2021, when the fair value of Scan'assets and liabilities were equal to recorded book values. There were no intercompany transactions during 2021 and 2022.
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Revenues Accounts Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (812,000) 289,200 223,000 Not given 80,000 (708,000) 448,000. 978,000 626,000 Stanza $ (680,000) 170,000 204,000 0 60,000 (270,000) 632,000 378,500 Investment in Stanza Liabilities Common stock Additional paid-in capital 1,048,000 Not given (506,000) 0 (1,262,500) (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 $762,000 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 $466,000 book value but a fair value of $622,000. Required: a. As of December 31, 2024, what is…
1. Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The followinginformation is from the condensed 20x2 income statements of Pirn and Scroll:Pirn ScrollSales P500,000 P300,000Cost of goods sold (350,000) (270,000)Gross profit P150,000 P30,000Depreciation (40,000) (10,000)Other expenses (60,000) (15,000)Income from operations 50,000 P 5,000Gain on sale of equipment to Scroll 12,000Income before taxes P62,000 P 5,000Equipment purchased by Scroll from Pirn for P36,000 on January 1, 20x2, is depreciated using the straightlinemethod over four years. What amount should be reported as depreciation expense in Pirn’sconsolidated income statements?A. 50,000 C. 44,000B. 47,000 D. 41,000 2. Upper Company holds 60 percent of Lower Company’s voting shares. During the preparation ofconsolidated financial statements for 20x4, the following eliminating entry was made:Retained earnings, January 1 10,000Land 10,000Which of the following statements is correct?A.…
E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Problem Company $ 130,000 210,000 70,000 390,000 Solution Dairy $ 70,000 90,000 40,000 220,000 270,000 Total Assets $1,070,000 $420,000 Current Payables Long-Term Liabilities Common Stock $ 80,000 $ 40,000 200,000 100,000 400,000 60,000 Retained Earnings 390,000 220,000 Total Liabilities & Stockholders' Equity $1,070,000 $420,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required Prepare and complete a…
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