On June 1, Cline Co. paid $969,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's assets and liabilities on June 1 follow: Cash Accounts receivable $247,000 $254,000 Capitalized software costs $330,000 Goodwill $116,000 Liabilities Net assets $(215,000) $732,000 On June 1, Renn's accounts receivable had a fair value of $190,000. Additionally, Renn's in- process research and development was estimated to have a fair value of $258,000. All other items were stated at their fair value. On Cline's June 1 consolidated balance sheet, how much is reported for goodwill? a. $330,000 b. $21,000 c. $95,000 d. $159,000

On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow:Cash . . . . . . . . . . . . . . . . . . $150,000  Accounts receivable . . . . . . . . .180,000Capitalized software costs . . . 320,000Goodwill . . . . . . . . . . . . . .  . . . 100,000Liabilities . . . . . . . . . . . . .. . . (130,000)Net assets . . . . . . . . . . . . .. . $620,000  On June 1, Renn’s accounts receivable had a fair value of $140,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $200,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?

The general ledger trial balance of Cullen Corporation includes the following accounts at Dec. 31, 2021: Sales revenue                                  P1,200,000 Interest income                                        24,000 Proceeds on sale of fixed assets             50,000 Written-down value of assets sold           45,000 Valuation gain on trading investments     20,000 Dividends received                                    5,000 Cost of sales                                          840,000 Finance expenses                                    18,000 Selling and distribution expenses             76,000 Administrative expenses                           35,000 Income tax expense                                  85,000   How much should be reported as profit for the year. ended Dec. 31, 2021? a. P285,000 b. P200,000 c. P195,000 d. P150,000

On January 1, 2021, the general ledger of Tripley Company included the following account balances: Accounts Debit   Credit   Cash $ 94,000         Accounts receivable   44,000         Allowance for uncollectible accounts       $ 9,400   Inventory   30,400         Building   90,400         Accumulated depreciation         14,000   Land   208,000         Accounts payable         40,000   Notes payable (8%, due in 3 years)         60,000   Common stock         104,000   Retained earnings         239,400   Totals $ 466,800   $ 466,800 The $30,400 beginning balance of inventory consists of 304 units, each costing $100. During January 2021, the company had the following transactions: January   2   Lent $24,000 to an employee by accepting a 6% note due in six months.     5   Purchased 3,700 units of inventory on account for $407,000 ($110 each) with terms 1/10, n/30.     8   Returned 100 defective units of inventory purchased on January 5.     15   Sold…

The Davidson Corporation's balance sheet and income statement are provided here.   Davidson Corporation: Balance Sheet as of December 31, 2021 (millions of dollars) Assets     Liabilities and Equity   Cash and equivalents $ 20    Accounts payable $ 150 Accounts receivable   610    Accruals   320 Inventories   830    Notes payable   215   Total current assets $ 1,460      Total current liabilities $ 685 Net plant and equipment   2,465    Long-term bonds   1,490            Total liabilities $ 2,175          Common stock (100 million shares)   250          Retained earnings $ 1,500            Common equity $ 1,750 Total assets $ 3,925    Total liabilities and equity $ 3,925     Davidson Corporation: Income Statement for Year Ending December 31, 2021 (millions of dollars) Sales $ 7,250 Operating costs excluding depreciation and amortization   5,430 EBITDA $ 1,820 Depreciation and amortization   410 EBIT $ 1,410 Interest   130 EBT $ 1,280…

Consider the following financial data for Terry Enterprises:     Balance Sheet as of December 31, 2018               Cash $ 86,000   Accounts payable $ 15,500 Accts. receivable   91,500   Notes payable   93,500 Inventories   65,500   Accruals   19,500   Total current assets $ 243,000     Total current liabilities $ 128,500         Long-term debt   162,500 Net plant & equip.   419,500   Common equity   371,500 Total assets $ 662,500   Total liab. & equity $ 662,500               Statement of Earnings for 2018   Industry Average Ratios               Net sales $ 642,500   Current ratio 2.2× Cost of goods sold   482,000   Quick ratio 1.7× Gross profit $ 160,500   Days sales outstanding 44 days Operating expenses   119,500   Inventory turnover 6.7×   EBIT $ 41,000   Total asset turnover 0.6× Interest expense   14,500   Net profit margin 7.2%   Pre-tax earnings $ 26,500…

On January 1, 2021, the general ledger of Tripley Company included the following account balances:   Accounts Debit   Credit   Cash $ 70,000         Accounts receivable   40,000         Allowance for uncollectible accounts       $ 5,000   Inventory   30,000         Building   70,000         Accumulated depreciation         10,000   Land   200,000         Accounts payable         20,000   Notes payable (8%, due in 3 years)         36,000   Common stock         100,000   Retained earnings         239,000   Totals $ 410,000   $ 410,000       The $30,000 beginning balance of inventory consists of 300 units, each costing $100. During January 2021, the company had the following transactions:   January   2   Lent $20,000 to an employee by accepting a 6% note due in six months.     5   Purchased 3,500 units of inventory on account for $385,000 ($110 each) with terms 1/10, n/30.     8   Returned 100 defective units of inventory purchased on January 5.…

On January 1, 2021, the general ledger of Tripley Company included the following account balances:   Accounts Debit   Credit   Cash $ 70,000         Accounts receivable   40,000         Allowance for uncollectible accounts       $ 5,000   Inventory   30,000         Building   70,000         Accumulated depreciation         10,000   Land   200,000         Accounts payable         20,000   Notes payable (8%, due in 3 years)         36,000   Common stock         100,000   Retained earnings         239,000   Totals $ 410,000   $ 410,000       The $30,000 beginning balance of inventory consists of 300 units, each costing $100. During January 2021, the company had the following transactions:   January   2   Lent $20,000 to an employee by accepting a 6% note due in six months.     5   Purchased 3,500 units of inventory on account for $385,000 ($110 each) with terms 1/10, n/30.     8   Returned 100 defective units of inventory purchased on January 5.…

BBP, Inc., with sales of $400,000, has the following balance sheet:   BBP, Incorporated Balance Sheet as of 12/31/X0 Assets   Liabilities and Equity Cash $ 20,000   Accounts payable $ 16,000 Accounts receivable   52,000   Accruals   20,000 Inventory   72,000   Notes payable   60,000 Current assets   144,000   Current liabilities   96,000 Fixed assets   175,000   Common stock   100,000         Retained earnings   123,000 Total assets $ 319,000   Total liabilities and equity $ 319,000     The firm earns 17 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, determine whether the firm will need external funds and forecast the new balance sheet for sales of $520,000 assuming that cash changes with sales and that the firm is not operating at capacity. Use newly issued short-term debt to cover any needs for additional finance. If the firm has excess funds, add them to cash. Round your answers to the nearest dollar. Enter your…

BBP, Inc., with sales of $600,000, has the following balance sheet:   BBP, Incorporated Balance Sheet as of 12/31/X0 Assets   Liabilities and Equity Cash $ 30,000   Accounts payable $ 18,000 Accounts receivable   90,000   Accruals   36,000 Inventory   108,000   Notes payable   70,000 Current assets   228,000   Current liabilities   124,000 Fixed assets   180,000   Common stock   120,000         Retained earnings   164,000 Total assets $ 408,000   Total liabilities and equity $ 408,000     The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, determine whether the firm will need external funds and forecast the new balance sheet for sales of $780,000 assuming that cash changes with sales and that the firm is not operating at capacity. Use newly issued short-term debt to cover any needs for additional finance. If the firm has excess funds, add them to cash. Round your answers to the nearest dollar. Enter your…