The following information is available for two small company we are considering buying: Eldridge Company Balance...
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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: M 2009 2008 $ 29.568 $ 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. Income taxes payable $ 78,000 $ 48,456 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 Eldridge Company Income Statement For Year Ended December 31, 2009 Sales Cost of goods sold. Depreciation expense Other operating expenses Interest expense...... Other gains (losses): Loss on sale of equipment.......... Income before taxes Income taxes expense $288,000 $97,080 35.280 57,600 2,400 (192,360) (10.080) 85,560 33,180 $ 52,380 Net income 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: M 2009 2008 $ 29.568 $ 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. Income taxes payable $ 78,000 $ 48,456 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 Eldridge Company Income Statement For Year Ended December 31, 2009 Sales Cost of goods sold. Depreciation expense Other operating expenses Interest expense...... Other gains (losses): Loss on sale of equipment.......... Income before taxes Income taxes expense $288,000 $97,080 35.280 57,600 2,400 (192,360) (10.080) 85,560 33,180 $ 52,380 Net income 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
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