FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- The following information relates to Dork Ltd and its subsidiary Sark Ltd. for the year ended 31 March 2018. Dork Ltd. Sark Ltd. $'000 $000 Sales revenue 3,300 1,500 Cost of sales (1,890) (900) Gross profit 1,410 600 Administrative expenses (315) (450) Dividend from Sark 72 – Profit before tax 1167 150 Income tax expense (195) (30) Profit for the year 972 120 Dividends paid 72 Profit retained 972 48 i. The issued share capital of the group was as follows. Dork Ltd.: 15,000,000 ordinary shares of $1 each. Sark Ltd.: 3,000,000 ordinary shares of $1 each. ii. Dork Ltd. purchased 80% of the issued share capital of Sark Ltd. in 2010. At that time, the retained earnings of Sark was at $168,000. Required: A. Insofar as the information permits, prepare the Dork group consolidated income statement for the year to 31 March 2018, showing profit…arrow_forwardThe asset side of the 2017 balance sheet for the Corporation is below. The company reported total revenues of $37,728 million in 2017 and $37,047 million in 2016. in millions May 31, 2017 May 31, 2016 Current assets: Cash and cash equivalents $ 21,784 $ 20,152 Marketable securities 44,294 35,973 Trade receivables, net of allowances for doubtful accounts of $319 and $327 as of May 31, 2017 and May 31, 2016, respectively 5,300 5,385 Inventories 300 212 Prepaid expenses and other current assets 2,837 2,591 Total current assets 74,515 64,313 Non-current assets: Property, plant and equipment, net 5,315 4,000 Intangible assets, net 7,679 4,943 Goodwill, net 43,045 34,590 Deferred tax assets 1,143 1,291 Other assets 3,294 3,043 Total non-current assets 60,476 47,867 Total assets $134,991 $112,180 How do I figure what the company’s gross amount…arrow_forwardHancock Company reported the following account balancesat December 31, 2027:Sales revenue $97,000Dividends. $11,000Supplies 13,000Accounts payable 41,000Patent $59,000Building Common stock.. $27,000Insurance expense .... $31,000Notes payable .. $39,000Income tax expense $42,000Cash . . $19,000Repair expense ?Copyright $20,000Equipment $14,000Utilities payable. $22,000Inventory $64,000Retained earnings. .. $87,000 (at Jan. 1, 2027)Interest revenue $55,000Cost of goods sold ..... .. $37,000Accumulated depreciation .... $23,000 $34,000Accounts receivable ? Trademark. ... $51,000Calculate the total intangible assets reported in HancockCompany's December 31, 2027 balance sheet. The following additional information is available:1) The note payable listed above was a 4- year bank loan taken out on September 1, 2024.2) The total P - P - E at Dec. 31, 2027 was equal to 75% of the total current liabilities at Dec. 31, 2027. ՄԴ Sarrow_forward
- Presented below are selected ledger accounts of Oriole Corporation as of December 31, 2017. Cash $68,000 Administrative expenses 106,700 Selling expenses 83,090 Net sales 544,700 Cost of goods sold 265,900 Cash dividends declared (2017) 22,650 Cash dividends paid (2017) 22,000 Discontinued operations (loss before income taxes) 41,200 Depreciation expense, not recorded in 2016 36,000 Retained earnings, December 31, 2016 96,390 Effective tax rate 30% (a) Net income $ 33,467 (b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 19,480 shares of common stock were outstanding during 2017. (Round earnings per share to 2 decimal places, e.g. 1.58.) ORIOLE CORPORATIONIncome Statement…arrow_forwardUramilabenarrow_forwardMarin Company provides you with the following condensed balance sheet information: Assets Current assets $ 41,700 Equity investments 60,000 Equipment (net) 227,600 Intangibles 55,500 Total assets $384,800 Liabilities and Stockholders’ Equity Current and long-term liabilities $96,400 Stockholders’ equity Common stock ($5 par) $ 19,700 Paid-in capital in excess of par 107,300 Retained earnings 161,400 288,400 Total liabilities and stockholders’ equity $384,800 For each of the following transactions, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders’ equity. (Each situation is independent.)(a) Marin declares and pays a $0.55 per share cash dividend. (1) Total assets $…arrow_forward
- Bethesda Mining Company has $445,900.50 worth of Total assets and $202,860 worth of Total Equity. Suppose that they had sales of $2,945,376 and net income of $40,206.85 for the year ending December 31, 2016. Calculate the DuPont identity. Select one: a.15% b.19.82% c.21.12% d.8.919%arrow_forwardBelow are the 2014 and 2015 year-end balance sheets for Tran Enterprises: Assets: 2015 2014 Cash $ 200,000 $ 170,000 Accounts receivable 864,000 700,000 Inventories 2,000,000 1.400,000 Total current assets $3,064,000 $2,270,000 Net fixed assets 6,000,000 5,600,000 Total assets $9,064,000 $7,870,000 Liabilities and equity: Accounts payable $1,400,000 $1,090,000 Notes payable to bank 1,600,000 1,800,000 Total current liabilities $3.000,000 $2,890,000 Long-term debt 2,400,000 2,400,000 Common stock 3,000,000 2,000,000 Retained earnings 664.000 580,000 Total common equity $3,664,000 $2,580,000 Total liabilities and equity $9,064,000 $7,870,000 The firm has never paid a dividend on its common stock, and issued $2.400.000 of 10-ycar, non-callable, long-term debt in 2014. As of the end of 2015, none of the principal on this debt had been repaid. Assume that the company's sales in 2014 and 2015 were the same. Which of the following statements must be CORRECT? Select one: The firm issued new…arrow_forwardThe following balance sheets were reported on January 1, 2016, for Wood Company and Rose Company: Wood Rose Cash $ 150,000 $ 30,000 Inventory 450,000 150,000 Equipment (net) 1,320,000 570,000 Total $1,920,000 $750,000 Total liabilities $ 450,000 $150,000 Common stock, $20 par value 600,000 300,000 Other contributed capital 375,000 105,000 Retained earnings 495,000 195,000 Total $1,920,000 $750,000 Required: Appraisals reveal that the inventory has a fair value $180,000, and the equipment has a current value of $615,000. The book value and fair value of liabilities are the same. Assuming that Wood Company wishes to acquire Rose for cash in an asset acquisition, determine the following cutoff amounts: The purchase price above which Wood would record goodwill. The purchase price at which Wood would…arrow_forward
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