ADVANCED ACCOUNTING CONNECT ACCESS >I<
1st Edition
ISBN: 9781266418150
Author: Hoyle
Publisher: MCG CUSTOM
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Textbook Question
Chapter 3, Problem 11P
What is Phoenix’s consolidated
a. $250,000
b. $290,000
c. $330,000
d. $360,000
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On January 1, 2019, Pali Company acquired 75% of Silicon Company's voting stock for $44,300 in cash. The noncontrolling interest had an
estimated fair value of $12,700. Silicon's assets and liabilities at the date of acquisition were reported at amounts approximating fair value,
but it had previously unreported indefinite life identifiable intangibles valued at $21,000. Silicon's total shareholders' equity at January 1,
2019 was as follows:
Capital stock
Retained earnings
Accumulated other comprehensive income
Total
It is now December 31, 2020 (two years later). Identifiable intangibles impairment for 2019 was $1,000 and there was no goodwill
impairment. There is no identifiable intangibles impairment for 2020, but goodwill impairment for 2020 is $200. Pali uses the complete
equity method to account for its investment. December 31, 2020 trial balances for Pali and Silicon follow.
Current assets
Property, net
Intangibles
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Liabilities
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RE,…
Changes in Various Ratios
Presented below is selected information for Turner Company:
Sales revenue
Cost of goods sold
Interest expense
Income tax expense
Net income
Cash flow from operating activities
Capital expenditures
Accounts receivable (net), December 31
Inventory, December 31
Stockholders' equity, December 31
Total assets, December 31
2019
2018
$950,000 $850,000
575,000 545,000
20,000
20,000
27,000
30,000
65,000
55,000
70,000
60,000
45,000
45,000
126,000 120,000
196,000 160,000
450,000 400,000
750,000
675,000
Required
Calculate the following ratios for 2019. The 2018 results are given for comparative purposes.
Round answers to one decimal place. Use 365 days in a year.
2018
35.9%
8.3%
6.5%
1. Gross profit percentage
2. Return on assets
3. Return on sales
4. Return on common stockholders' equity
(no preferred stock was outstanding)
5. Accounts receivable turnover
6. Average collection period
13.9%
8.0
45.6 days
2019
0 %
0 %
0 %
0 %
0
0 days
indicated by a minus sign. Round the final ansWers to
CONSOLIDATED STATEMENTS OF EARNINGS
For the years ended April 28, 2019, April 29, 2018, and April 30, 2017
(in millions ofU.S. dollars, except per-share amounts)
2019
2018
2017
2019
2018
2017
Revenues
$ 27,310.0
22,798.4
$ 31,000.0 $
30,590.0
Cost of sales
26,232.2
26, 182.0
%
Gross profit
4,767.8
4,408.0
4,511.6
%
Operating, selling, administrative, and general expenses
3,633.2
3,462.8
3,416.5
%
Restructuring costs
15.3
62.9
14.1
%
%
(2.6)
(18.9)
(9.1)
%
%
(Gain) loss on disposal of property and equipment and other assets
Depreciation, amortization, and impairment of property and equipment,
intangible assets and other assets
Total operating expenses
334.8
318.1
281.3
%
3,980.7
3,824.9
3,721.0
%
787.1
583.1
790.6
Operating income
Share of earnings of joint ventures and associated companies accounted
for using the equity method
Net financial expenses
68.2
110.1
13.2
%
101.2
111.2
109.2
%
754.1
582.0
694.6
%
Earnings before income…
Chapter 3 Solutions
ADVANCED ACCOUNTING CONNECT ACCESS >I<
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - When a parent company applies the initial value...Ch. 3 - Several years ago, Jenkins Company acquired a...Ch. 3 - Benns adopts the equity method for its 100 percent...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Paar Corporation bought 100 percent of Kimmel,...Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - If no legal, regulatory, contractual, competitive,...Ch. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - What is Phoenixs consolidated retained earnings...Ch. 3 - On its December 31, 2018, consolidated balance...Ch. 3 - Prob. 13PCh. 3 - Herbert, Inc., acquired all of Rambis Companys...Ch. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Following are selected account balances from...Ch. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - On January 1, 2017, Pinnacle Corporation exchanged...Ch. 3 - Following are selected accounts for Mergaronite...Ch. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39APCh. 3 - Prob. 40APCh. 3 - Prob. 1DYSCh. 3 - FASB ASC AND IASB RESEARCH CASE A vice president...Ch. 3 - Prob. 4DYSCh. 3 - Prob. 5DYS
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