For which of the following firms is debt financing most appropriate?

a biotech company whose breakthrough drug will not be approved for the next 10 years

a small oil and gas exploration company facing trouble due to falling gas prices

Silicon Valley tech startup with no revenue

a large, mature industrial conglomerate

Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the year ended December 31, 2019. From the statement of cash flows for the year ended December 31, 2020, you determine the following:

• Net income for the year ended December 31, 2020, was $96,500.
• Dividends paid during the year ended December 31, 2020, were $66,000.
• Accounts receivable decreased $12,500 during the year ended December 31, 2020.
• The cost of new buildings acquired during 2020 was $129,000.
• No buildings were disposed of during 2020.
• The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2020, was $191,000.

Required:

1. Complete the December 31, 2020, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.)
2. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.

Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Complete the December 31, 2020, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.)

When calculating the NCI share of equity the step approach is used. Demonstrate the step approach, explaining in detail each journal entry, using the following information:

Time Ltd acquired 90% of Out Ltd for $252,000 cash on 1 July 2018. At that date the equity of Out included the following:

       Share Capital          $200 000

       Retained Earnings              80 000

                                   280 000

On 30 June 2020, Out Ltd provided the following information:

Profit after tax               $ 40 000

Retained earnings (1/7/19)       100 000

Dividend paid                    10 000

6. P acquired HHH stock at various times and at various prices over the past three years as shown below. P sold 100 shares of HHH stock for $20,000 in 2020, but he cannot identify the particular shares that were sold. How much gain must P report on the sale?

            P bought 50 shares of HHH stock in 2014 for $3,000.

            In 2016 P bought 100 shares of HHH stock for $5,000

            In 2018 P bought 200 shares of HHH stock for $9,000

          In 2019 P bought 100 shares of HHH stock for $4,500

Bensen Company began operations when it acquired $26,700 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,700 that had a $3,500 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $2,300 cash. Bensen uses straight-line depreciation.

Required

Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)

On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $310,500 when K-Tech’s book value was $410,500. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $207,000. At the acquisition date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year remaining life) was undervalued by $27,000.

In 2020, K-Tech reports $22,500 net income and declares no dividends. At the end of 2021, the two companies report the following figures (stockholders’ equity accounts have been omitted):

Note: Parentheses indicate a credit balance.

In 2021, assuming K-Tech has declared no dividends, what are the noncontrolling interest’s share of the subsidiary’s income and the ending balance of the noncontrolling interest in the subsidiary?

a) $34,640 and $245,280.

b) $31,960 and $250,640.

c) $26,600 and $234,480.

d) $40,000 and $216,000.

On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $313,500 when K-Tech’s book value was $413,500. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $209,000. At the acquisition date, K-Tech's trademark (20-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (10-year remaining life) was undervalued by $29,000.

In 2020, K-Tech reports $25,500 net income and declares no dividends. At the end of 2021, the two companies report the following figures (stockholders’ equity accounts have been omitted):

What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interests?

In 2021, assuming K-Tech has declared no dividends, what are the noncontrolling interest’s share of the subsidiary’s income and the ending balance of the noncontrolling interest in the subsidiary?

One study reports that 34​% of newly hired MBAs are confronted with unethical business practices during their first year of employment. One business school dean wondered if her MBA graduates had similar experiences. She surveyed recent graduates from her​ school's MBA program to find that 31​% of the 129 graduates from the previous year claim to have encountered unethical business practices in the workplace. Can she conclude that her​ graduates' experiences are​ different?

What is the value of the test​ statistic?

A. The assumptions and conditions are not​ met, so the test cannot proceed.

B.The test statistic is? ​(Round to two decimal places as​ needed.)

What is P-value of the test statistic?

A. P-value? (Round to three decimal places as​ needed.)

B. The assumptions and conditions are not​ met, so the test cannot proceed.