Question

In: Accounting

1. Consider the following information from the financial statements of Para Inc. and SIG Co.                           &nbsp

1. Consider the following information from the financial statements of Para Inc. and SIG Co.

                                                   P                               S

Separate income                      450

Net income                                                                  300

Separate OCI                          125                              100

S – OCI (P’s share)                 80

Provide the following:

a. Total Consolidated Net Income _________

b. Consolidated OCI_________

c. P’s %, Consolidated OCI_________

d. P’s %, Consolidated Net Income_________

e. Total Consolidated Comprehensive Income_________

f. P’s %, Consolidated Comprehensive Income_________

2. Assume the following data apply shortly after Perfunctory Co. acquires Serious, Inc.:

                                                P Co. (000s)                S Co. (000s)

Assets                                                  400                              200

Liabilities                                            250                              100

CS                                                       75                              60

APIC/OCC                                         50                              30

RE                                                       25                              10

P assets have a fair value = 435k; S’ identifiable assets have a fair value = 320k. P acquires 75% of S’s outstanding voting stock for $165k cash. S’ assets include pre-acquisition Goodwill of 40k, and P’s assets (and S’ liabilities) reflect a loan P has made to S for 10k. The DOA consolidated Balance Sheet should show:

a. identifiable assets____________

b. liabilities____________

c. Common Stock____________

d. APIC/OCC_____________

e. RE_____________

f. Goodwill (algebraic)____________

Solutions

Expert Solution

Requirement 1
a. $   750 (450+300)
b. $   225 (125+100)
C. 91.11% (125+80)/225*100
d. 92.00% (450+240)/750*100
e. $   975 (750+225)
f. 91.79% (205+690)/975*100
Requirement 2
a. $ 745 (435+320-10)
b. $ 340 (250+100-10)
C. $   75
d. $   73 (50+30*75%)
e. $   33 (25+10*75%)
f. $    -   W.N.1
W.N.1
S Co.
CS $   60
APIC $   30
RE $ 130 (10+(320-200))
$ 220
P's Share $ 165 (220*75%)
Cash Paid $ 165
Goodwill $    -  

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following information is taken from the financial statements of Knights, Inc. From the balance sheet:...
The following information is taken from the financial statements of Knights, Inc. From the balance sheet: Cash $ 30,000 Accounts receivable 150,000 Inventory 200,000 Plant assets (net of accumulated depreciation) 500,000 Current liabilities 150,000 Total stockholders’ equity 300,000 Total assets 1,000,000 From the income statement: Net sales $1,500,000 Cost of goods sold 1,080,000 Operating expenses 315,000 Interest expense 84,000 Income tax expense 6,000 Net income 15,000 From the statement of cash flows: Net cash provided by operating activities (including interest...
The following information was taken from the financial statements of Tolbert Inc. for December 31 of...
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $40 par value (no change during the year) $9,600,000 Preferred $5 stock, $100 par (no change during the year) 3,000,000 The net income was $822,000 and the declared dividends on the common stock were $60,000 for the current year. The market price of the common stock is $21.00 per share. For the common stock, determine (a) the earnings...
The following information was taken from the financial statements of Tolbert Inc. for December 31 of...
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $15 par value (no change during the year) $3,600,000 Preferred $4 stock, $200 par (no change during the year) 6,000,000 The net income was $792,000 and the declared dividends on the common stock were $60,000 for the current year. The market price of the common stock is $19.60 per share. For the common stock, determine (a) the earnings...
Formulating Financial Statements from Raw Data Following is selected financial information from Cisco Systems, Inc., for...
Formulating Financial Statements from Raw Data Following is selected financial information from Cisco Systems, Inc., for its fiscal year ended July 30, 2016 ($ millions). Cash, ending year $7,631    Total liabilities $58,067 Cash from operating activities 13,570    Cash from financing activities (4,699) Sales 49,247    Noncash assets 114,021 Stockholders' equity 63,585    Cash from investing activities (8,117) Cost of goods sold 18,287    Net income 10,739 Total expense (other than cost of goods sold) 20,221    Cash, beginning...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for its fiscal year ended May 29, 2016 ($ millions): *Cash from financing activites includes the effects of foreign exhange rate fluctuations. Revenue $16,563.1 Cost of goods sold $10,733.6 Cash from operating activities 2,629.8 Cash, ending year 763.7 Cash, beginning year 334.2 Total liabilities 16,405.2 Stockholders' equity 5,307.1 Cash from investing activities 93.4 Noncash assets 20,948.6 Total expenses (other than cost of goods sold) 4,092.7...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for its fiscal year ended May 25, 2003 ($ millions): Revenue $10,506 Cash from operating activities 1,631 Cash, beginning year 975 Stockholders' equity 4,475 Noncash assets 17,524 Cash from financing activities (885) Cost of goods sold 6,109 Total expenses (other than cost of goods sold) 3,480 Cash, ending year 703 Total liabilities 13,752 Cash from investing activities (1,018) Prepare the income statement, the balance sheet,...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for its fiscal year ended May 29, 2011 ($ millions): Revenue $ 14,880.2 Cash from operating activities 1,526.8 Cash, beginning year 673.2 Stockholders' equity 6,612.2 Noncash assets 18,054.9 Cash from financing activities* (865.3) Cost of goods sold 8,926.7 Total expenses (other than cost of goods sold) 4,155.2 Cash, ending year 619.6 Total liabilities 12,062.3 Cash from investing activities (715.1) *Cash from financing activities includes the...
1. Data from the financial statements of Dils Brothers Co. and J. Cox, Inc. are presented...
1. Data from the financial statements of Dils Brothers Co. and J. Cox, Inc. are presented below (in millions): Dils Brothers Co. J. Cox, Inc. Total liabilities, 2016 $70,914 $47,422 Total liabilities, 2015 72,208 60,092 Total assets, 2016 100,372 73,744 Total assets, 2015 94,114 70,416 Revenue, 2016 306,932 163,040 Net income, 2016 280 1,572 To the nearest hundredth, what is the 2016 debt-to-total assets ratio for Dils Brothers Co.? Select one: A. 44.16 B. 3.78 C. 0.26 D. 0.71 2....
Information from the financial statements of Ames Fabricators, Inc., included the following:    On October 15,...
Information from the financial statements of Ames Fabricators, Inc., included the following:    On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 23 million stock options were granted, exercisable for 23 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 90% of the quoted market price on January 1, 2021, which was $20....
The following information was taken from the financial statements of Monarch Resources Inc. for December 31...
The following information was taken from the financial statements of Monarch Resources Inc. for December 31 of the current year: Common stock, $40 par value (no change during the year) $6,400,000 Preferred $10 stock, $200 par (no change during the year) 4,000,000 The net income was $616,000, and the declared dividends on the common stock were $166,400 for the current year. The market price of the common stock is $40 per share. For the common stock, determine (a) the earnings...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT