What is the amount of consolidated retained earnings

Assignment Help Financial Management
Reference no: EM132040222

Use the following information to answer questions.

On January 1, 2005, Finch Corporation purchased 75% of the common stock of Grass Co. Separate balance sheet data for the companies at the combination date are given below:




Finch



Grass






Cash

$


24,000


$

206,000






Accounts Receivable



144,000



26,000






Inventory



132,000



38,000






Land



68,000



32,000






Plant assets



700,000



300,000






Accum. Depreciation

(

240,000

)

(

60,000

)





Investment in Lapp



392,000









Total assets

$


1,230,000


$

542,000


















Accounts payable

$


206,000


$

142,000






Capital stock



800,000



300,000






Retained earnings



224,000



100,000






Total liabilities & equities

$


1,230,000


$

542,000


At the date of combination, the book values of Grass's net assets were equal to the fair value except for Grass's inventory, which had a fair value of $60,000.

Determine below what the consolidated balance would be for each of the requested accounts.

1. What amount of Inventory will be reported?

a.$170,000.

b. $169,000.

c.$186,500.

d.$192,000.

2.What amount of Goodwill will be reported?

a.$10,500.

b.$20,000.

c.$42,000.

d.$75,500.

3.What amount of total liabilities will be reported?

a.$206,000.

b.$261,000.

c.$302,500.

d.$348,000.

4.What is the reported amount for the minority interest?

a.$ 69,333.

b.$100,000.

c.$130,666.

d.$150,000.

5.What is the amount of consolidated Retained Earnings?

a.$224,000.

b.$299,000.

c.$324,000.

d.$346,666.

6.What is the amount of total assets?

a.$1,244,500.

b.$1,380,000.

c.$1,472,000.

d.$1,762,000.

please explain

Reference no: EM132040222

Questions Cloud

Amount of hydrogen and oxygen available for the synthesis : What is the maximum mass (in mg) of C3H8O that could be synthesized from 5.463x1021 atoms of carbon, assuming that there is an unlimited amount
Complete nuclear equation showing the decay of sulfur : What is the complete nuclear equation showing the decay of sulfur-35 by beta emission? What happens in this equation.
Nitrogen gas reacts with hydrogen gas to produce ammonia : Nitrogen gas reacts with hydrogen gas to produce ammonia by the following equation:
What is the approximate break-even point in years : If they buy, the Jacobys would purchase and move into the home on January 1, 2014. What is the approximate break-even point in years
What is the amount of consolidated retained earnings : At the date of combination, the book values of Grass's net assets were equal to the fair value except for Grass's inventory, which had a fair value of $60,000.
Butane reacts with excess oxygen : Calculate the mass of water produced when 2.07 g of butane reacts with excess oxygen.
What is the specific heat of the metal : A 400.0 g metal bar requires 6.446 kJ of energy to change its temperature from 18.0 ºC to 95.0 ºC. What is the specific heat of the metal
Complete nuclear equation for this reaction : Phosphorus-33 is a radioactive isotope which decays by beta emission. What is the complete nuclear equation for this reaction and what is occurring.
Prepare a bond amortization schedule : On January 1, 2015, Loop Raceway issued 690 bonds, each with a face value of $1,000, Prepare a bond amortization schedule

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd