Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2018. The book value and fair value of Vicker's accounts on that date (prior to creating the combination) are as follows, along with the book value of Bullen's accounts:Bullen Book Value Vicker Book Value Vicker Fair Value
Retained earnings, 1/1/20 $250,000 $240,000
Cash and receivables 170,000 70,000 $70,000
Inventory 230,000 170,000 210,000
Land 280,000 220,000 240,000
Buildings (net) 480,000 240,000 270,000
Equipment (net) 120,000 90,000 90,000
Liabilities 650,000 430,000 420,000
Common stock 360,000 80,000
Additional paid-in capital 20,000 40,000

Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding shares of Vicker. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2018 balances) as a result of this acquisition transaction?

(A) $524,000 and $420,000.
(B) $60,000 and $250,000.
(C) $524,000 and $250,000.
(D) $60,000 and $490,000.
(E) $380,000 and $250,000.

Answers

Answer 1

Answer:

Answer:

The answer is (c)$524,000 and $250,000...the explanation is attached below

Explanation:

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The current sections of Birmingham Inc.â€™s balance sheets at December 31, 2019 and 2020, are presented here. Birminghamâ€™s net income for 2020 was $193,000. The income statement included depreciation expense, $25,000, amortization expense, $10,000, and a gain on disposal of equipment, $7,000. The equipment was sold for $47,000. Birmingham also issued bonds for $60,000. 2020 2019Current assets Cash $417,000 $ 99,000 Accounts receivable 120,000 93,000Inventory 159,000 176,000Prepaid expenses 29,000 24,000Total current assets $725,000 $392,000 Current liabilities Accrued expenses payable $ 17,000 $ 6,000 Accounts payable 88,000 94,000Total current liabilities $105,000 $100,000 InstructionsPrepare the net cash provided by operating activities section of the companyâ€™s statement of cash flows for the year ended December 31, 2020 using the indirect method.

Answers

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense 25,000

amortization expense 10,000

gain on disposal (7,000)

Adjusted Income 221,000

Change in Working Capital:

Increase in A/R (27,000)

Decreasein Inv 17,000

Increase in Prepaid (5,000)

Increase Accrued /P 11,000

Decreasein A/P (6,000)

Change In Working Capital (10,000)

From Operating Activities 211,000

Investing

Sale of Equipment 47,000

Financing

Bonds Issued 60,000

Cash Flow 318,000

Beginning Cash 99,000

Cash Flow 318,000

Ending Cash 417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

Alpha Industries is considering a project with an initial cost of $7.9 million. The project will produce cash inflows of $1.63 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.58 percent and a cost of equity of 11.25 percent. The debt–equity ratio is .59 and the tax rate is 40 percent. What is the net present value of the project?

Answers

Answer:

$494,918

Explanation:

For computation of net present value we need to follow some steps which is shown below:-

After tax cost of debt = Pretax cost of debt × (1 - tax rate)

=5.58% × (1 - 0.4)

= 3.348%

debt ÷ equity

= Debt - equity ratio

Hence debt = 0.59 equity

Assume the equity be $x

Debt = $0.59x

Total = $1.59x

WACC = Respective costs × Respective weights

= (x ÷ 1.59x × 11.25%) + (0.59x ÷ 1.59x × 3.348)

= 8.318%

Present value of annuity = Annuity × (1 - (1 + interest rate)^ - time period] ÷ Rate

=1.63 × [1 - (1.08317811321)^-7]÷ 0.08317811321

= $1.63 × 5.150256501

=$8,394,918.10

Net present value = Present value of cash inflows - Present value of cash outflows

= $8,394,918.10 - $7,900,000

= $494,918

The basis for classifying assets as current or noncurrent is conversion to cash within A. the operating cycle or one year, whichever is shorter. B. the operating cycle or one year, whichever is longer. C. the accounting cycle or one year, whichever is longer. D. the accounting cycle or one year, whichever is shorter.

Answers

Answer:

The basis for classifying assets as current or non-current is conversion to cash within

B. the operating cycle or one year, whichever is longer.

Explanation:

Assets are of two types, current assets, and non-current assets. Current assets are the assets which are placed on the list of the balance sheet of the company. Within one fiscal year, the current assets are expected to be converted into cash. On the other hand, non-current assets are the assets are long term asset of the company. They cannot be converted into cash in one fiscal year.

Changes in real GDP reflect Group of answer choices only changes in prices. only changes in the amounts being produced. both changes in prices and changes in the amounts being produced. neither changes in prices nor changes in the amounts being produced.

Answers

Answer:

Only changes in the amounts being produced is the correct answer to this question.

Explanation:

Real GDP is the value of goods and services at base year prices so real GDP changes reflect changes in the amounts produced in the economy.

Effective gross domestic product ( GDP) is an inflation-adjusted indicator representing the cost of the goods and economic resources by a nation in a given year (demonstrated in foundation-year prices) and is often referred to as "current prices," "corrected deflation," or "constant currency" GDP.

Final answer:

Changes in real GDP reflect both changes in prices and changes in the amounts being produced.

Explanation:

Changes in real GDP reflect both changes in prices and changes in the amounts being produced. Real GDP is a measure of the total value of goods and services produced in an economy adjusted for inflation. As prices increase, the value of goods and services produced will also increase, resulting in a higher real GDP. Similarly, when more goods and services are produced, real GDP increases as well.

Learn more about GDP here:

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Mary signed up and paid $660 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s accounting records would indicate:

Answers

Answer: $220 of revenue, $440 of deferred revenue

Explanation:

Based on the information in the question, revenue will be recognised for the months of June and july which will be:

= 2/6 × $660

= $220

Deferred revenue will be:

= $660 - $220

= $440

Therefore, As of August 1st, Choplet’s accounting records would indicate $220 of revenue, $440 of deferred revenue.

) Candy Man, Inc. reports the following information: Beginning Finished Goods Inventory 60 units Units produced 550 units Units sold 610 units Sales price $130 per unit Direct materials $17 per unit Direct labor $10 per unit Variable manufacturing overhead $17 per unit Fixed manufacturing overhead $14,000 per year Variable selling and administrative costs $6 per unit Fixed selling and administrative costs $12,500 per year What is the unit product cost using variable costing