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Allushta [10]
3 years ago
8

The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows:

Business
1 answer:
Simora [160]3 years ago
5 0

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

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A machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. The amount that should be r
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A company just paid a $2 dividend per share. The dividend growth rate is expected to be constant at 10% for 2 years, after which
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Answer:

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Po = $3.9461 + $38.4068

Po = $42.35

Explanation: This question relates to valuation of shares with 2-phase growth model.  The value of shares in the first phase will be determined by discounting the dividend for the 2 years by cost of equity. The dividends for year 1 and year 2 were obtained by subjecting the current dividend paid (Do) to growth rate.  

Moreso, the value of shares for the second phase was calculated by considering the last dividend paid(D2) and then subject it to the new growth rate. The adjusted dividend was then capitalized at the appropriate discount rate of the company.

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How should emotional appeal in fund-raising messages be used? A. Using a mild appeal to convince people and avoid offending them
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Answer:

The correct answer is letter "B": Using sensory details to help people connect to a cause.

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Sensory details are used in writing to attract readers' attention. Those details involve the use of the senses: <em>sight, sound, touch, smell, </em>and <em>taste</em>. Sensory details help information, whether written or spoken, to push the audience to interact with what us being prompted.  

<em>In case the objective of using sensory details for a fund-raising message, the writer, for instance, could talk about the need of collecting monetary resources to clean the river that crosses the bridge that connects the suburbs with the city because of its unpleasant bad smelling. The next time the reader goes through the bridge, the individual will likely pay attention to the smelling of the bridge to confirm what the author said, which will possibly lead him or her to contribute with the cleaning cause.</em>

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Answer:

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Let plug in the formula

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Cost of goods sold= $6,326

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