On 31 December 20X2, the balances of Argon Enterprises Inc.’s shareholders’ equity accounts were as follows (all are credit balances): Capital stock $ 303,000 Contributed surplus 5,230 Retained earnings 105,400 Currency translation differences 1,400 Mark-to-market adjustments on available for sale investments 26,700 Cash flow hedges 2,000 Actuarial gains and losses 1,400 $ 445,130 Argon’s statement of comprehensive income for the year ending 31 December 20X3 showed the following amounts, from “net profit for the year” through “comprehensive income”: 31 December 20X3 31 December 20X2 Net profit for the year $ 44,900 $ 68,300 Other comprehensive income (loss) net of applicable income tax: Currency translation differences (4,200 ) 2,800 Mark-to-market adjustments on available for sale investments (34,300 ) 8,000 Actuarial gains (losses) 2,100 (6,500 ) Cash flow hedges (600 ) (170 ) Total other comprehensive loss for the year (37,000 ) 4,130 Comprehensive income for the year $ 7,900 $ 72,430 Assume that the assets of Argon Enterprises Inc. totalled $2,181,300 at the end of 20X1, $1,927,800 at year-end 20X2, and $2,335,400 at year-end 20X3. Required: 1. Assume you are analyst for a private equity firm. Determine the following for each of 20X2 and 20X3

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5CE

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Question

On 31 December 20X2, the balances of Argon Enterprises Inc.’s shareholders’ equity accounts were as follows (all are credit balances):


Capital stock	$	303,000
Contributed surplus		5,230
Retained earnings		105,400
Currency translation differences		1,400
Mark-to-market adjustments on available for sale investments		26,700
Cash flow hedges		2,000
Actuarial gains and losses		1,400
	$	445,130

Argon’s statement of comprehensive income for the year ending 31 December 20X3 showed the following amounts, from “net profit for the year” through “comprehensive income”:

	31 December 20X3		31 December 20X2
Net profit for the year	$	44,900		$	68,300
Other comprehensive income (loss) net of applicable income tax:
Currency translation differences		(4,200	)		2,800
Mark-to-market adjustments on available for sale investments		(34,300	)		8,000
Actuarial gains (losses)		2,100			(6,500	)
Cash flow hedges		(600	)		(170	)
Total other comprehensive loss for the year		(37,000	)		4,130
Comprehensive income for the year	$	7,900		$	72,430

Assume that the assets of Argon Enterprises Inc. totalled $2,181,300 at the end of 20X1, $1,927,800 at year-end 20X2, and $2,335,400 at year-end 20X3.

Required:

1. Assume you are analyst for a private equity firm. Determine the following for each of 20X2 and 20X3