All categories

2 years ago

On May 1, Soriano Co. reported the following account balances along with their estimated fair values:

Business

1 answer:

s2008m [1.1K]2 years ago

6 0

Answer:

Receivables (Dr.) $143,600

Inventory (Dr.) $76,400

Copyrights (Dr.) $577,000

Patented Technology (Dr.) $913,000

Goodwill (Dr.) $32,800

Current Liability (Cr.) $197,000

Long term liability (Cr.) $658,300

Cash (Cr.) $845,000

Contingent Consideration (Cr.) $42,500

Professional Fee Expense (Dr.) $141,000

Cash (Cr.) $141,000

Paid of Investment banking firm

Explanation:

Total of Assets 1,710,000

Total of Liabilities 855,300

Net Assets 854,700

Total Fair value of identifiable Assets 854,700

Fair value of contingent Liability 42,500

Consideration Paid as Cash 845,000

Good will $32,800

You might be interested in

Kincaid Company provided consulting services of $2,500 to a customer who paid $1,300 and promised to pay the remainder next mont

Anon25 [30]

Answer:

B. Cash 1,300 Dr, Accounts Receivable 1,200 Dr, Consulting Revenue 2,500 Cr

Explanation:

Kincaid Company

Journal Entry

Date Description Debit Credit

Cash $1,300

<em>Accounts Receivable $1,200</em>

Consulting Revenue $2,500

6 0

3 years ago

To maintain production, the quality of materials must be high because no buffer inventories are available to take up the slack.

Sophie [7]

Answer:

Just in time (JIT) inventory management

Explanation:

Just in time (JIT) inventory management is a system created to lower inventory costs and increase manufacturing efficiency. JIT aligns materials and components orders with production schedules in order to reduce inventory levels to the lowest possible level.

It was developed by Toyota in order to reduce the costs of its car manufacturing processes. Once I visited a Toyota pickup factory and it was amazing to see that the whole inventory of finished engines was 4 units, and the factory produced more than 500 pickups per day.

3 0

3 years ago

The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beg

maksim [4K]

Answer:

$ 168,000

Explanation:

Include both Mark-ups and Mark-Downs and Exclude beginning inventory

When LIFO Inventory Method is used to find out Ending inventory retail Value. Cost to Retail Ratio will be Applied for both Previous year ending Inventory and the Current Year addition To Calculates

the Previous year Ending inventory :

Cost to Retail Ratio : Ending inventory at cost / Ending inventory at Retail

For Current year Addition :

Cost to Retail Ratio : Current Year Addition in Cost /Current Year Addition in Retail

Current year addition in retail includes : Markup ,Markdown purchases

Kindly check the attached images below to see the step by step explanation to the question above.

5 0

3 years ago

Taylor is negotiating to buy some land. Under the first option, Taylor will give Ella $150,000 and assume her mortgage on the la

Anna11 [10]

Answer:

The cost basis for the land is equal under both options.

Explanation:

If Taylor pays Ella $150,000 in cash and assumes the mortgage of $100,000, the cost basis of the land will be $250,000 (= $150,000 + $100,000). If he decides to pay Ella the full amount of $250,000, that will also be the cost basis of the land.

The only real difference is that if Taylor decides to assume the mortgage, he will need a smaller initial cash flow ($150,000).

8 0

3 years ago

The rule of 70 applies in any growth-rate application. Let’s say you have $2000.00 in savings and you have three alternatives fo

vekshin1

Answer:

(a)70 years

(b)23.33 years

Explanation:

According to the Rule of 70, for a given interest rate x, funds double in $\frac{70}{x}$ years.