Answer:
Patrick Corporation Group
a. The amount of total assets is:
= $1,544,000.
b. The amount of total stockholders' equity that should be reported is:
= $1,136,000.
Explanation:
a) Data and Calculations:
BALANCE SHEETS December 31, 2017
Patrick Sean Consolidated
Cash $70,000 $70,000 $140,000
Accounts receivable (net) 146,000 38,000 184,000
Inventories 100,000 46,000 168,000
Plant and equipment (net) 622,000 262,000 884,000
Investment in Sean 470,000 - -
Goodwill 168,000
Total assets $1,414,000 $424,000 $1,544,000
Accounts payable 176,000 90,000 266,000
Long-term debt 102,000 40,000 142,000
Common stock ($10 par) 340,000 64,000 340,000
Additional paid-in capital 14,000
Retained earnings 796,000 216,000 796,000
Total liabilities and
shareholders' equity $1,414,000 $424,000 $1,544,000
b) Total stockholders' equity after consolidation is calculated as:
Common stock ($10 par) 340,000
Retained earnings 796,000
Total equity = $1,136,000
