FUNDAMENTAL ACCT PRINCIPLES LL W CONNECT
FUNDAMENTAL ACCT PRINCIPLES LL W CONNECT
25th Edition
ISBN: 9781265283629
Author: Wild
Publisher: MCG
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Chapter 7, Problem 14E
To determine

Concept Introduction:

Days Payable outstanding (DPO): Days payable outstanding is the time in days which the company takes to pay off its accounts payable. Day’s payable outstanding is calculated using the following formula:

  Days payable outstanding = Accounts Payable * 365Cost of Sales 

Requirement-1:

The day's payables outstanding for each company

To determine

Concept Introduction:

Days Payable outstanding (DPO): Days payable outstanding is the time in days which the company takes to pay off its accounts payable. Day’s payable outstanding is calculated using the following formula:

  Days payable outstanding = Accounts Payable * 365Cost of Sales 

Requirement-2:

Which company has negotiated the best credit terms with its suppliers

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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!

Chapter 7 Solutions

FUNDAMENTAL ACCT PRINCIPLES LL W CONNECT

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