Wind Energy America Inc. (WNEA) is a small, publicly traded company entering the field of energy production

Question:

Wind Energy America Inc. (WNEA) is a small, publicly traded company entering the field of energy production from wind power. As of 2010, its stock trades in the over-the-counter market, and it is subject to SEC regulations regarding financial statement disclosure. The company existed under the name Dotronix since 1980. It was initially involved in the production of cathode ray tubes, digital signs, and non-prescription healthcare products. By early 2007, it discontinued or disposed of all its previous product lines, changed its name to Wind Energy America, Inc., and entered the wind power industry. By year-end June 30, 2007, it made a few small investments, and added more during the nine months ended March 31, 2008. The company's showed the following at June 30, 2007, and March 31,2008:

The company had an operating loss of $365,741 for the nine months ended March 31, 2008, and has yet to report any operating revenues from its wind power business. Its stock generally traded between $1.10 and $2.60 during the third quarter of 2007, between $1.30 and $2.00 during the fourth quarter of 2007, and between $0.92 and $1.70 during the first quarter of 2008.
The company had the following asset acquisitions during the nine months ended March 31,2008:
€¢ December 2007 acquisition of wind farms from Northern Alternative Energy in exchange for 4,000,000 shares of company stock
€¢ February 2008 acquisitions of wind project assets from Boreal Energy in exchange for 18,500,000 shares of company stock
€¢ March 2008 acquisition of a 15% interest in the stock of Navitas Energy, Inc. from Boreal Energy in exchange for 10,000,000 shares of company stock
€¢ Additional wind project asset acquisitions for cash of $851,175
Besides the issuance of shares for asset acquisitions given above, the company also sold 1,159,987 common shares for $945,416 cash and issued 85,000 shares as compensation to executives; these shares were valued at $.90 each.
Required
a. Reconcile the information on shares issued as given above with the data on the company's balance sheets.
b. Determine the dollar amount assigned to the 32,500,000 shares issued in acquisition transactions by analysis of (1) the asset accounts, and (2) the equity accounts. The company's statement of cash flows gives the dollar value of shares issued for the acquisition of assets as $28,050,000.
c. What per-share valuation was attached to each of the three acquisitions described above? Assume the recorded goodwill pertains to the wind projects acquired from Boreal.
d. The company's Management Discussion and Analysis section of its 2008 annual report states that "the company did not seek or obtain any independent appraisal of the Boreal assets purchased in this transaction." How might the company have arrived at the recorded values?
e. Subsequent to March 31, 2008, the company entered into an exchange with Gamesa Corp., the parent company of Navitas Energy. The company exchanged its 15% interest in Navitas for various assets described as follows:

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...