BREWER ND LL INTRO MGRL ACTG CON+ AC
BREWER ND LL INTRO MGRL ACTG CON+ AC
19th Edition
ISBN: 9781260711851
Author: BREWER
Publisher: McGraw-Hill Publishing Co.
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Chapter 14, Problem 8E
To determine

Ratios are computed based on the figures reflecting in the financial statement of the company. These ratios are useful tool for analyzing the various aspects of company’s performance.

Requirement1:

The Amount of working capital of the company shall be determined.

Requirement2:

To determine

Computation of Current ratio for the company.

Requirement3:

To determine

Computation of Acid-test ratio for the company.

Requirement4:

To determine

Computation of Debt-equity ratio for the company.

Requirement5:

To determine

Times interest earned shall be computed.

Requirement6:

To determine

Average collection period shall be determined.

Requirement7:

To determine

Average sales period shall be computed.

Requirement8:

To determine

Operating cycle earned shall be computed.

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Consolidation after Several Years  On January 1, 2016, Adams Corporation acquired all of the stock of Baker Company. The fair value of Adams’ shares used in the exchange was $37,500,000. At the time of acquisition, the book value of Baker’s shareholders’ equity was $5,000,000, and the book value of Baker’s building (25-year life) exceeded its fair value by $1,000,000. From the date of acquisition to December 31, 2021, Baker had cumulative net income of $1,300,000. For 2022, Baker reported net income of $300,000. Adams uses the complete equity method to account for its investment in Baker. There is no goodwill impairment loss for the period 2016 through 2021, but there is impairment loss of $100,000 in 2022. Baker declared no dividends during the period 2016–2022.  Required  Prepare the working paper eliminating entries necessary to consolidate the financial statements of Adams and Baker at December 31, 2022. Enter numerical answers using all zeros (do not abbreviate in thousands or in…
Give me the answer in a clear organized table please. Thank you!
Give me the answer in a clear organized table please. Thank you!

Chapter 14 Solutions

BREWER ND LL INTRO MGRL ACTG CON+ AC

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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License