On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park $ 116,000 107,500 $ 223,500 $ 52,500 66,000 105,000 Total liabilities and equities $ 223,500 Strand $ 31,300 49,200 $ 80,500 $ 30,500 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity 50,000 $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for noncurrent liabilities?

Using the following financial information, this firm's total debt to total capital ratio is closest to: Cash $  10,000 Accounts payable $  30,000 Accounts receivables     50,000 Notes payable     20,000 Inventories   150,000 Total current liabilities $  50,000 Total current assets $210,000 Long-term debt     50,000 Net fixed assets     90,000 Common equity   200,000 Total assets $300,000 Total liabilities & equity $300,000   Question 35 options:   8%   17%   67%   26%

21. Kinsella Corporation's statement of financial position showed the following amounts: current liabilities, $75,000; total liabilities, $100,000; total assets, $200,000. What is the total long-term debt to total equity ratio? a.0.375 b.0.125 c.0.75 d.0.25

Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…

Calculate debt to equity, long-term debt to equity and specify as a percent to 2 decimal places

A company's balance sheet showed the following amounts for liabilities and stockholders' equity accounts: Current Liabilities, $50,000; Bonds Payable, $600,000; Long-Term Lease Obligations, $120,000; and Deferred Income Tax Liability, $20,000. Total stockholders' equity was $520,000. What is the debt to equity ratio?

On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect method, Jim Shorts Corporation should report: O that $1.5 million to be added to net income O An investing activity of $580 million. O A financing activity of $300 million. O that $1.5 million to be deducted from net income

22. McLaughlin Corporation's statement of financial position showed the following amounts: current liabilities, $75,000; total liabilities, $100,000; total assets, $200,000. What is the total debt to total assets ratio? a.1 b.2 c.0.50 d.0.875

The following data apply to the next six problems. Consider Fisher & Company's financial data as follows (unit: millions of dollars except ratio figures):Cash and marketable securities             $100Fixed assets                                            $280Sales                                                       $1,200Net income                                             $358Inventory                                                 $180Current ratio                                            3.2Average collection period                       45 daysAverage common equity                         $500 Calculate the amount of the long-term debt.(a) $134 (b) $500(c) $74 (d) $208

Crane Limited had $2.39 million of bonds payable outstanding and the unamortized premium for these bonds amounted to $44,600. Each $1,000 bond was convertible into 20 preferred shares. All bonds were then converted into preferred shares. The Contributed Surplus - Conversion Rights account had a balance of $21,500. Assume that the company follows IFRS. a. Assuming that the book value method was used, what entry would be made? Account Titles and Explanation Debit Credit                     b. Assume that Crane Ltd. offers $9,000 to induce early conversion. What journal entry would be made?     Account Titles and Explanation Debit Credit