Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter E, Problem E.35Q
To determine
The amount that should be stated in the income statement of Company R.
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Instrument Corp. has the following equity investments which were held throughout 2010-2011: Fair Value Cost 12/31/10 12/31/11 FVTOCI $300,000 $400,000 $420,000 FVTPL 300,000 320,000 380,000 What amount of gain or loss would
Instrument Corp. report in its income statement for the year ended December 31, 2011 related to Its Investments and what amount is reported in its statement of financial position ended December 31, 2011 for its investments? S
Investment
gain and S
The following information is available for a FVTOCI investment: Purchase price $400,000; Unrealized holding gain at the end of year 1 $5,000; Unrealized holding
gain at the end of year 2 $6,000. Calculate the balance in the AOCI equity holding (loss) or gain account at the end of year 2 for reporting purposes.
O Gain of $6,000
O Gain of $411,000
O Gain of $5,000
O Gain of $11,000
Calculate the market to book ratio ,debt equity ratio and retained income for the year.
whats wrong with my answers kindly
Answer
1.
Market to book ratio = Market capitalisation/ Net book value = 243,000,000/1,750,000 = 138.85
Market capitalisation = MPS x No. of shares = 270 x 900,000 = 243,000,000
As the original cost of assets and depreciation is not given, we can assume that non-current assets as the net book value.
Step 2
2.
Debt/equity ratio = (Short term debt+Long term debt)/Shareholder's fund = (730,000+180,000)/(1,800,000+160,000)
Debt-equity ratio = 910,000/1,960,000 = 0.464
Short term debt is payables in the ques, long term debt is the loan amount in the ques, and
shareholders' fund = Share capital + Retained earnings
Debt equity is less than 1 which means that it is a low levered company i.e. it has a low level of debt in comparison to equity.
3.
Retained earning is given = 160,000
Chapter E Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. E - Prob. 1QCCh. E - Rolling Hills Productions held investments in...Ch. E - Prob. 3QCCh. E - Crandall's investment is in less than 2% of...Ch. E - Dumois Corporation purchased 1,500 shares of...Ch. E - Prob. 6QCCh. E - Use the Dumois Corporation data in question 5....Ch. E - Prob. 8QCCh. E - Prob. 9QCCh. E - Prob. 10QC
Ch. E - Prob. E.1SCh. E - (Learning Objective 2: Account for investments in...Ch. E - Prob. E.3SCh. E - Prob. E.4SCh. E - Prob. E.5SCh. E - Prob. E.6SCh. E - Prob. E.7SCh. E - Prob. E.8SCh. E - Prob. E.9SCh. E - Prob. E.10SCh. E - (Learning Objective 5: Record a held-to-maturity...Ch. E - Prob. E.12SCh. E - (Learning Objective 5: Calculate and record...Ch. E - Prob. E.14SCh. E - Prob. E.15SCh. E - Prob. E.16SCh. E - Prob. E.17AECh. E - (Learning Objective 2: Record transactions for...Ch. E - (Learning Objective 2: Analyze and report...Ch. E - Prob. E.20AECh. E - Prob. E.21AECh. E - Prob. E.22AECh. E - Prob. E.23AECh. E - Prob. E.24BECh. E - Prob. E.25BECh. E - (Learning Objective 2: Analyze and report...Ch. E - (Learning Objective 3: Account for transactions...Ch. E - Prob. E.28BECh. E - Prob. E.29BECh. E - Prob. E.30BECh. E - Prob. E.31QCh. E - Prob. E.32QCh. E - Prob. E.33QCh. E - Prob. E.34QCh. E - Prob. E.35QCh. E - Dividends received on an equity-method investment...Ch. E - Prob. E.37QCh. E - Prob. E.38QCh. E - Prob. E.39APCh. E - (Learning Objectives 2, 3: Analyze and report...Ch. E - (Learning Objectives 2, 3: Analyze and report...Ch. E - Prob. E.42APCh. E - Prob. E.43BPCh. E - LO 2, 3 (Learning Objectives 2, 3: Analyze and...Ch. E - Prob. E.45BPCh. E - Prob. E.46BPCh. E - Prob. E.47DC
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