Amerbrand Company (A) Amerbrand Company was a diversified company that sold various consumer products, including food,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Amerbrand Company (A) Amerbrand Company was a diversified company that sold various consumer products, including food, tobacco, distilled, and personal care products and financial services. Financial statements for the company for 2004 are shown in Exhibit 1. These statements reflect the following transactions (dollar amounts in thousands): 1. Depreciation and amortization expense was $115,974. 2. Net income included a loss of $66,046 resulting from the write-off of some obsolete equipment. The equip- ment had not yet been disposed of. 3. Net income included $59,610 from Amerbrand's investment in a subsidiary; none of this income had been re- ceived in cash. 4. The year-end balance in Deferred Income Taxes was $17,548 lower than it was at the start of the year. 5. New property, plant, and equipment purchases totaled $260,075, all paid for with cash. Disposals of fixed as- sets generated $33,162 cash proceeds. 6. Acquisition of another company that was made for cash resulted in additional depreciable assets of $31,691 and goodwill of $102,030. 7. Cash dividends were paid in the amount of $216,158. 8. The firm declared and issued a 100 percent common stock dividend effective September 10, 2004; that is, each shareholder received as a dividend a number of shares equal to his or her holdings prior to the dividend. The newly issues shares were valued at par in recording this transaction. 9. The firm spent $30,609 to purchase treasury stock on the open market. Some of the shares so acquired were issued to certain employees as a bonus. 10. The firm increased its short-term debt as indicated on the balance sheet in Exhibit 1. Long-term borrowing de- creased by $34,606. Assignment 1 Prepare a statement of cash flows for the year 2004. In order for your statement to show the correct increase in cash ($4,960), you will need to add a "miscellaneous activities" category; this will capture several transactions that were not described because they are somewhat complicated. Assets Cash Accounts receivable Inventories Prepaid expenses Total current assets Investments Property, plant, and equipment, at cost Less accumulated depreciation Net property, plant, and equipment Goodwill Other assets AMERBRAND COMPANY (A) Exhibit 1. Balance Sheets as of December 31 (in thousands) Total assets I Liabilities and Shareholders' Equity Accounts payable Short-term debt Accrued expenses payable Total current liabilities Long-term liabilities Total liabilities Convertible preferred stock Common stock, at par Additional paid-in capital Treasury stock, at cost Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $ 2004 28,912 756,152 1,244,912 76,140 2,106,116 1,116,534 1,566,268 723,442 842,826 645,210 115,826 4,826,512 271,452 430,776 922,990 1,625,218 880,674 2,505,892 33,828 322,834 53,641 (110,948) 2,021,265 2,320,620 $ 4,826,512 2003 $ 23,952 687,325 1,225,402 77,167 2,013,846 1,058,637 1,366,719 645,734 720,985 577,606 62,374 4,433,448 238,377 351,112 728,262 1,317,751 932,828 2,250,579 42,611 161,417 57,072 (102,705) 2,024,474 2,182,869 $ 4,433,448 Sales revenues, net Cost of sales Income Statement For the year ended December 31, 2004 (in thousands) Excise taxes on goods sold Gross margin Selling, general, and administrative expenses Income before income taxes Provision for income taxes Net income I $7,622,677 2,803,623 2,887,616 1,931,438 1,328,107 603,331 274,558 $ 328,773 Amerbrand Company (A) Amerbrand Company was a diversified company that sold various consumer products, including food, tobacco, distilled, and personal care products and financial services. Financial statements for the company for 2004 are shown in Exhibit 1. These statements reflect the following transactions (dollar amounts in thousands): 1. Depreciation and amortization expense was $115,974. 2. Net income included a loss of $66,046 resulting from the write-off of some obsolete equipment. The equip- ment had not yet been disposed of. 3. Net income included $59,610 from Amerbrand's investment in a subsidiary; none of this income had been re- ceived in cash. 4. The year-end balance in Deferred Income Taxes was $17,548 lower than it was at the start of the year. 5. New property, plant, and equipment purchases totaled $260,075, all paid for with cash. Disposals of fixed as- sets generated $33,162 cash proceeds. 6. Acquisition of another company that was made for cash resulted in additional depreciable assets of $31,691 and goodwill of $102,030. 7. Cash dividends were paid in the amount of $216,158. 8. The firm declared and issued a 100 percent common stock dividend effective September 10, 2004; that is, each shareholder received as a dividend a number of shares equal to his or her holdings prior to the dividend. The newly issues shares were valued at par in recording this transaction. 9. The firm spent $30,609 to purchase treasury stock on the open market. Some of the shares so acquired were issued to certain employees as a bonus. 10. The firm increased its short-term debt as indicated on the balance sheet in Exhibit 1. Long-term borrowing de- creased by $34,606. Assignment 1 Prepare a statement of cash flows for the year 2004. In order for your statement to show the correct increase in cash ($4,960), you will need to add a "miscellaneous activities" category; this will capture several transactions that were not described because they are somewhat complicated. Assets Cash Accounts receivable Inventories Prepaid expenses Total current assets Investments Property, plant, and equipment, at cost Less accumulated depreciation Net property, plant, and equipment Goodwill Other assets AMERBRAND COMPANY (A) Exhibit 1. Balance Sheets as of December 31 (in thousands) Total assets I Liabilities and Shareholders' Equity Accounts payable Short-term debt Accrued expenses payable Total current liabilities Long-term liabilities Total liabilities Convertible preferred stock Common stock, at par Additional paid-in capital Treasury stock, at cost Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $ 2004 28,912 756,152 1,244,912 76,140 2,106,116 1,116,534 1,566,268 723,442 842,826 645,210 115,826 4,826,512 271,452 430,776 922,990 1,625,218 880,674 2,505,892 33,828 322,834 53,641 (110,948) 2,021,265 2,320,620 $ 4,826,512 2003 $ 23,952 687,325 1,225,402 77,167 2,013,846 1,058,637 1,366,719 645,734 720,985 577,606 62,374 4,433,448 238,377 351,112 728,262 1,317,751 932,828 2,250,579 42,611 161,417 57,072 (102,705) 2,024,474 2,182,869 $ 4,433,448 Sales revenues, net Cost of sales Income Statement For the year ended December 31, 2004 (in thousands) Excise taxes on goods sold Gross margin Selling, general, and administrative expenses Income before income taxes Provision for income taxes Net income I $7,622,677 2,803,623 2,887,616 1,931,438 1,328,107 603,331 274,558 $ 328,773
Expert Answer:
Answer rating: 100% (QA)
Amerbran Company Statement of cash flow Net cash flow from Operating activities Amount Net Profit 32... View the full answer
Related Book For
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
Posted Date:
Students also viewed these accounting questions
-
Amerbran Company was a diversified company that sold various consumer products, including food, tobacco, distilled products, and personal care products and financial services. Financial statements...
-
XYZ Corporation has a claim for breach of contract against ABC Manufacturers. XYZ Corporation is located in Tarrytown, New York, and ABC Manufacturers is based in Danbury, Connecticut. If XYZ's claim...
-
The following data is available for three different alternatives. MARR =12% Alt. A Alt. B Alt. C $6,000 $900 $1,500 $525 $450 20 10 Data Initial Cost Uniform Annual Benefit Useful Life $300 5...
-
A fair die is tossed until all the numbers have been seen at least once. Let N be the number of tosses this requires. Find E(N). [Hint: Let N; be the number of tosses until i different numbers have...
-
Featherbed Surf & Leisure Holidays Ltd. (Featherbed) is a resort company based on Vancouver Island. Its operations include boating, surfing, diving, and other leisure activities; a backpackers'...
-
What are the advantages and disadvantages of online surveys?
-
Water flows in a horizontal, rectangular channel with an initial depth of \(1 \mathrm{~m}\) and an initial velocity of \(4 \mathrm{~m} / \mathrm{s}\). Determine the depth downstream if losses are...
-
Happy Camper Park was organized on April 1, 2009, by Amaya Berge. Amaya is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Amaya prepared the...
-
The Monks, a minor league baseball team, prepare financial statements on a monthly basis. Their season begins in April, but in Man the team engaged in the following transactions: (a) (b) Paid...
-
Aggie Oil Corporation, a new successful efforts company, incurred the following costs and made the other transactions shown below for the years 2018 and 2019. 2018 a. Paid $225,000 for G&G costs...
-
Developments in Technology Light is incident from air on the end face of a multimode optical fibre at angle of incidence as shown below. n n 1 2 The refractive indices of the core and cladding are...
-
What are the key factors driving organizational learning and knowledge management initiatives, and how can organizations foster a learning culture to enhance their competitive advantage in the...
-
Forecast pro-forma unlevered income statements for the next 3 years (2020-2022) using percent of sales forecasting (assume it is the beginning of 2020). You don't need to forecast the balance sheet....
-
1. Debug the following code by compiling it for debugging and executing it within a debugger. At which line of code does the program crash? Why does it crash there? #include #include main(int argc,...
-
Marketing mix analysis mini-study case for BMW company 1- Brand Management: Describe the company's 3 Cs of its brand communication, contribution, and competitive advantage; the concept of brand...
-
Consider the following ambiguous grammar S = B | CB=aB|Bb | DC:=bC | Ca | DD ::=x Which of the following regular expressions describes the same set of strings? (a + aa)"xb' + (b + bb)*xa*. (aa*)*xb*...
-
Each shot of the laser gun most favored by Rosa the Closer, the intrepid vigilante of the lawless 22nd century, is powered by the discharge of a 1.05 F capacitor charged to 79.7 kV. Rosa rightly...
-
Federated Shipping, a competing overnight delivery service, informs the customer in Problem 65 that they would ship the 5-pound package for $29.95 and the 20-pound package for $59.20. (A) If...
-
Delta Division of Gotham Industries, Inc., makes two products, A and B. Both products use the same raw material and are produced in the same factory by the same workforce. In preparing its annual...
-
As controller of the city of Oakly Heights, you have been asked to provide information to the mayor and city council that would be helpful in answering a variety of questions. Required: a. For each...
-
Refer to the description of Black Meter's cost accounting system in Appendix A and consider the following: 1. Trace through the cost accounting procedures described so that you are able to show how...
-
Solve Example 7.5 with equilibrium energy as the initial condition for the Oxygen molecule at 1 atmosphere and \(3200 \mathrm{~K}\). Example 7.5 Obtain the time dependent expression for the vibration...
-
Obtain a pseudo tri-diagonal matrix equation to solve the vorticity transport equation in a boundary layer with forward differencing in time and with appropriate differencing in space suitable for...
-
If the waverider of the Problem 7.44 has the wall temperature of \(1400 \mathrm{~K}\) and \(\operatorname{Re}=1.371 \times 10^{6}\) with respect to its length then find the drag coefficient with...
Study smarter with the SolutionInn App