Truman Atlanta (762,300) $(522,000) 332,000 Revenues Operating expenses Income of subsidiary 2$ 494,000 (56,700) Net income 2$ (325,000) 2$ (190,000) (853,000) (325,000) 160,000 (587,000) Retained earnings, 1/1/21 Net income (above) $ 2$ (190,000) Dividends declared 70,000 Retained earnings, 12/31/21 $(1,018,000) $ (707,000) 305,525 867,475 456,000 796,000 Current assets 2$ 2$ 453,000 Investment in Atlanta Land 276,000 702,000 Buildings $ 2,425,000 $ (907,000) (95,000) (405,000) (1,018,000) $ 1,431,000 $ (404,000) (300,000) (20,000) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 (707,000) $(1,431,000) Total liabilities and stockholders' equity $(2,425,000) .What is the excess fair-value assigned to patent and goodwill? .How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? .How did Truman derive the Investment in Atlanta account balance at the end of 2021? . Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables.

Truman Atlanta (762,300) $(522,000) 332,000 Revenues Operating expenses Income of subsidiary 2$ 494,000 (56,700) Net income 2$ (325,000) 2$ (190,000) (853,000) (325,000) 160,000 (587,000) Retained earnings, 1/1/21 Net income (above) $ 2$ (190,000) Dividends declared 70,000 Retained earnings, 12/31/21 $(1,018,000) $ (707,000) 305,525 867,475 456,000 796,000 Current assets 2$ 2$ 453,000 Investment in Atlanta Land 276,000 702,000 Buildings $ 2,425,000 $ (907,000) (95,000) (405,000) (1,018,000) $ 1,431,000 $ (404,000) (300,000) (20,000) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 (707,000) $(1,431,000) Total liabilities and stockholders' equity $(2,425,000) .What is the excess fair-value assigned to patent and goodwill? .How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? .How did Truman derive the Investment in Atlanta account balance at the end of 2021? . Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables.

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

D) On January 1, P-Corporation and S-Corporation had condensed balance sheets as follows: Park Strand Current assets $ 70,000 $20,000 40,000 $60,000 $10,000 Noncurrent assets 90,000 $160,000 $ 30,000 Total assets . Current liabilities Long-term debt . Stockholders' equity . 50,000 80,000 50,000 Total liabilities and equities.. $160,000 $60,000 On January 2, P-co borrowed $60,000 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to S-co's total fair value. The $60,000 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: Calculate the amount of the following consolidated balance sheet items as of January 2, i. Current assets and Noncurrent assets, separately: ii. Current liabilities,…
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Joel de Paris, Incorporated Income Statement $ 386,000 978,000 1,192,000 Total liabilities and stockholders' equity $ 2,556,000 Sales Operating expenses Net operating income. Interest and taxes: Interest expense Tax expense Net income Beginning Balance. $ 112,000 197,000 $ 130,000 346,000 563,000 871,000 400,000 246,000 $ 2,556,000 $ 3,860,000 3,242,400 617,600 309,000 $ 308,600 $ Ending Balance $ 139,000 477,000 486,000 848,000 431,000 253,000 2,634,000 $ 341,000 978,000 1,315,000 $ 2,634,000 The company paid dividends of $185,600 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…
BBP, Inc., with sales of $600,000, has the following balance sheet: BBP, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Cash $ 30,000 Accounts payable $ 18,000 Accounts receivable 90,000 Accruals 36,000 Inventory 108,000 Notes payable 70,000 Current assets 228,000 Current liabilities 124,000 Fixed assets 180,000 Common stock 120,000 Retained earnings 164,000 Total assets $ 408,000 Total liabilities and equity $ 408,000 The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, determine whether the firm will need external funds and forecast the new balance sheet for sales of $780,000 assuming that cash changes with sales and that the firm is not operating at capacity. Use newly issued short-term debt to cover any needs for additional finance. If the firm has excess funds, add them to cash. Round your answers to the nearest dollar. Enter your…
The balance sheet for Fanning Corporation follows: $ 246,000 764,000 Current assets Long-term assets (net) Total assets $1,010,000 $ 149,000 452,000 601,000 409,000 Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity $1,010,000 Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio % Debt-to-equity ratio < Prev 5 of 6 MacE
Breanna Inc. Accounts receivable$10,700Accumulated depreciation 50,800Cost of goods sold 123,000Income tax expense 8,000Cash 62,000Net sales 201,000Equipment 128,000Selling, general, and administrative expenses 32,000Common stock (8,700 shares) 90,000Accounts payable 14,300Retained earnings, 1/1/19 30,000Interest expense 5,600Merchandise inventory 38,600Long-term debt 38,000Dividends declared and paid during 2019 16,200 Item1 Time Remaining 2 hours 32 minutes 36 seconds 02:32:36 Item 1 Time Remaining 2 hours 32 minutes 36 seconds 02:32:36 The information on the following page was obtained from the records of Breanna Inc.: Accounts receivable $ 10,700 Accumulated depreciation 50,800 Cost of goods sold 123,000 Income tax expense 8,000 Cash 62,000 Net sales 201,000 Equipment 128,000 Selling, general, and administrative expenses 32,000 Common stock (8,700 shares) 90,000 Accounts payable 14,300 Retained earnings, 1/1/19…
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATIONIncome Statement Sales $ 42,900 Costs 33,900 Taxable income $ 9,000 Taxes (21%) 1,890 Net income $ 7,110 Dividends $ 2,509 Addition to retained earnings 4,601 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATIONBalance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,250 Accounts payable $ 4,000 Accounts receivable 5,100 Notes payable 8,000 Inventory 8,000 Total $ 12,000 Total $ 15,350 Long-term debt $ 22,000 Owners’ equity Fixed assets Common stock and…
Multiple-step income statement for Miner Company. Cash dividends declared on common stock $ 250,000 Cost of goods sold 16,000,000 Gain on discontinued operations (pre-tax) 390,000 Other revenue 70,000 Other expenses 90,000 Retained earnings, December 31, 20XSX 980,000 Sales revenue 25,000,000 Selling and administrative expenses 4,700,000 Understatement of sales on account from 20XX (pre-tax) 420,000 Instructions - Prepare a multiple-step income statement for the year 2018 on scrap paper. Assume a 40% tax rate and that 600,000 shares of common stock were outstanding during the year. Not all items are relevant. Enter your amounts for the following items. (a) The amount reported as gross profit is (a)____________ (b) The amount reported as income from operations is (b)____________ (c) The amount reported as income…
Consolidated Statements of Earnings For the Years Ended December 31, (in thousands of dollars) Year 8 Sales $64,000 Cost of sales. 50,000 Gross profit 14,000 Operating expenses before interest and income taxes 8,000 Interest expense 1,780 Earnings before income taxes 4,220 Income tax expense 1,900 Net earnings $ 2,320 MORKSEN CORP. Consolidated Statements of Financial Position At December 31, (in thousands of dollars) Year 8 Year 7 Assets Current assets Cash $ 480 $ 380 740 10,880 Short-term investments Accounts receivable 740 8,400 Merchandise inventory 16,660 10,060 Total current assets 28,660 19,680 Property, plant, and equipment Land 4,000 4,000 Buildings and equipment 26,000 26,000 30,000 30,000 8,940 7,440 Less: Accumulated depreciation. Net property, plant, and equipment 21,060 22,560 Total assets $49,720 $42, 240 Liabilities and Shareholders' Equity Current Liabilities Bank loan $16,500 $11,400 Accounts payable 6,000 4,300 Other liabilities 1,640 1,600 Income tax payable 960…
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Sales Costs Taxable income $30,600 18,350 Balance Sheet Assets $72,400 Debt $36,000 Equity 36,400 $12,250 Total $72,400 Total $72,400 Taxes (22%) 2,695 Net income $ 9,555- Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,600 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $34,272. What is the external financing needed? (Do not round intermediate calculations.)
Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $355,300 $211,680 Property, plant, and equipment 543,400 509,600 Intangible assets 146,300 62,720 Current liabilities 188,100 94,080 Long-term liabilities 428,450 321,440 Common stock 104,500 109,760 Retained earnings 323,950 258,720 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Kwan Company Comparative Balance Sheet For the Years Ended December 31 Current Current year year Amount Percent Previous Previous year year Amount Percent Current assets $355,300 $211,680 % Property, plant, and equipment 543,400 509,600 % Intangible assets % 146,300 62,720 % % %
Vertical Analysis of Balance Sheet Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows: Previous Year Current Year $330,000 Current assets $206,250 Property, plant, and equipment 649,000 552,750 Intangible assets 121,000 66,000 Current liabilities 253,000 156,750 Long-term liabilities 462,000 363,000 Common stock 88,000 90,750 Retained earnings 214,500 297,000 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Alvaraz Company Comparative Balance Sheet For the Years Ended December 31 Previous Previous Current Current year Amount Percent year year Amount year Percent % % Current assets $330,000 $206,250 % Property, plant, and equipment 552,750 649,000 66,000 121,000 Intangible assets
Assume the following data for Cable Corporation and Multi-Media Incorporated. Multi-Media Incorporated Cable Corporation $ 39,800 352,000 409,000 $ 190,000 2,170,000 966,000 234,000 545,000 175,000 421,000 Net income Sales Total assets Total debt Stockholders' equity a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Cable Corporation Multi-Media, Incorporated 2. Which firm has the higher return? Return on Stockholders' Equity % %