The following information is available for two small company we are considering buying: Eldridge Company Balance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information is available for two small company we are considering buying: Eldridge Company Balance Sheets At December 31 Assets: Cash.......... Accounts receivable Merchandise inventory.. Long-term investments Machinery.. Accumulated depreciation Total assets...******* Liabilities: 2009 2008 $ 29.568 S 27.648 38.616 35.280 87.750 74,052 67.080 67.680 210.600 174.600 (40.260) (37.440) $393.354 $341.820 Accounts payable.. $ 78.000 $ 48.456 Income taxes payable.. 12.870 12.240 Bonds payable.. 58.500 79.200 Total liabilities. $149.370 $139.896 Equity: Common stock. 140.400 115.200 Contributed capital in excess of par. 15.600 10.800 Retained earnings. 87.984 75.924 Total equity $243.984 $201.924 Total liabilities and equity $393.354 $341.820 Sales...........gmanet Eldridge Company Income Statement For Year Ended December 31, 2009 Cost of goods sold... Depreciation expense Other operating expenses.. Interest expense......... Other gains (losses): Loss on sale of equipment. Income before taxes $288.000 $97.080 35.280 57.600 2.400 (192,360) (10.080) 85.560 Income taxes expense Net income 33.180 $ 52.380 Prepare the statement of cash flows for the year ended December 31. Additional information includes: 1. Old machinery with an original cost of $45,060 was sold. 2. New machinery was purchased for $81,060 cash. 3. The only changes affecting retained earnings are net income and cash dividends paid. 4. Additional shares of stock were issued for cash The following information is available for two small company we are considering buying: Eldridge Company Balance Sheets At December 31 Assets: Cash.......... Accounts receivable Merchandise inventory.. Long-term investments Machinery.. Accumulated depreciation Total assets...******* Liabilities: 2009 2008 $ 29.568 S 27.648 38.616 35.280 87.750 74,052 67.080 67.680 210.600 174.600 (40.260) (37.440) $393.354 $341.820 Accounts payable.. $ 78.000 $ 48.456 Income taxes payable.. 12.870 12.240 Bonds payable.. 58.500 79.200 Total liabilities. $149.370 $139.896 Equity: Common stock. 140.400 115.200 Contributed capital in excess of par. 15.600 10.800 Retained earnings. 87.984 75.924 Total equity $243.984 $201.924 Total liabilities and equity $393.354 $341.820 Sales...........gmanet Eldridge Company Income Statement For Year Ended December 31, 2009 Cost of goods sold... Depreciation expense Other operating expenses.. Interest expense......... Other gains (losses): Loss on sale of equipment. Income before taxes $288.000 $97.080 35.280 57.600 2.400 (192,360) (10.080) 85.560 Income taxes expense Net income 33.180 $ 52.380 Prepare the statement of cash flows for the year ended December 31. Additional information includes: 1. Old machinery with an original cost of $45,060 was sold. 2. New machinery was purchased for $81,060 cash. 3. The only changes affecting retained earnings are net income and cash dividends paid. 4. Additional shares of stock were issued for cash
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Mom's Cookies, Inc., is considering the purchase of a new cookie oven. The original cost of the old oven was $45,000; it is now five years old, and it has a current market value of $20,000. The old...
-
Your company has two divisions: One division sells software and the other division sells computers through a direct sales channel, primarily taking orders over the internet. You have decided that...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Evaluating these 3 bonds: Face value Coupon rate Maturity year A 1000 8% 5 B 1000 6% 10 C 1000 0% 10 Suppose the yield curve is flat at 7% for all maturities. Use annual compounding in this problem....
-
Fit a Poisson regression model to the total species count with covariates log(area) and log (elevation). Confirm the results of the LRT discussed above to determine if at least one of the two...
-
Using the data from exercise 31, fit an appropriate polynomial trend model along with seasonal dummies to make a forecast for November and December of 2010 Exercise 31 Year 2005 2005 Month Jan Feb...
-
A company often test-markets a proposed product in a specific area or location. Suppose that you wish to test-market your new, revolutionary SuperWax car wax, which requires only one application for...
-
The fermentation of corn produces a mixture of 3.3 mol% ethyl alcohol in water. If 20 mol% of this mixture is distilled at 1atm by a simple, batch distillation, calculate and plot the...
-
7. Keiko pays $340 per month for food, a semiannual health insurance premium of $1600, and an annual car insurance premium of $650. Find the monthly cost for budgeting.
-
Compound A, C8H10O, has the IR and 1H NMR spectra shown. Propose a structure consistent with the observed spectra, and assign each peak in the NMR spectrum. Note that the absorption at 5.5 ?...
-
Discuss the concept of sense making and its significance in facilitating sense giving during periods of organizational ambiguity and transformation?
-
Enumerate the types of changes that are covered by the consistency standard.
-
a. What body is authorized to issue pronouncements on GAAP? b. Which pronouncements are recognized as being authoritative?
-
Take a look at Exhibit 3.2 on the value chain. Pick a company in which you are interested, research it, and develop an assessment of how it is doing in delivering value at each link in the chain....
-
What effect does inadequate disclosure have on the auditor's report?
-
Assuming that in the multiplication of bacteria by fission (division into two bacteria) the probability of a bacterium dividing during a time interval \(\Delta t\) is equal to \(a \Delta t+o(\Delta...
-
Locate a firm in which vertical integration has been a part of their key strategy and respond to the following: Has the company had success in their vertical integration? Why or why not? Does the...
-
Explain the regulation of the secretions of the small intestine.
-
What is this project's discounted payback period? (10 points) a. 3.04 b. 3.24 c. 3.44 d. 3.64 Assume that the appropriate cost of capital for this project is 12 percent. Time 0 1 Cash Flow -$750 $400...
-
What is this project's IRR? a. 25.67% b. 27.19% c. 28.76% d. 29.86% Assume that the appropriate cost of capital for this project is 12 percent. 0 1 2 Time Cash Flow -$750 $400 $300 3 $200 4 $400
-
What is this project's Modified IRR (MIRR)? a. 18.78% b. 19.65% c. 20.14% d. 21.37% Assume that the appropriate cost of capital for this project is 12 percent. Time Cash Flow 0 1 -$750 $400 $300 2 3...
Study smarter with the SolutionInn App