Homework help
Module1–Business CombinationandConsolidation
StockAcquisition–ConsolidatedFinancialStatements-DateofAcquisition
InstructorComment:The followinglessonmodule wasdevelopedtoassiststudents intheir understandingofthecorrespondingsubjectmatterinthecoursetextbook.Thefollowingisnot a replacementforthedetailed presentationprovidedbytheauthors ofthetext,butinsteadis anattempttoprovidestudents withapragmaticdirectreviewwithheavyemphasisonprocess.
Myrecommendationistoapproach thecoursematerialinthefollowingsequence.
1. Read/studytheassigned correspondingsections ofthetext.
2. Readthe“ChapterReview” (PowerPoint)postedinD2L.
3. Read/completethe correspondinginstructordeveloped“Instructor SubjectMatter Presentation” (THISDOCUMENT)postedinD2L.
4. Completetheassigned textquestions,exercisesandproblems(authorrecommended solutionsforassigned oddexercisesposted inD2L).
5. Reviewthecorrespondinginstructordeveloped“InstructorProblem SolvingModules”posted inD2L.
Forstockacquisitionswheresignificantinfluenceandcontrolexist,theacquirer(parent) is requiredbytheSEC,forfinancialreportingpurposes,toconsolidate theacquiredcompany (subsidiary).Thedevelopmentofconsolidatedfinancialstatementsisacomplexprocess.Inan efforttofocus onthekeyaspectsrequired fortheaccountingofconsolidationswewillapply a3- StepProcess.
3-
StepProcess:
•Confirmbusiness combinationisa StockAcquisition whichrequires consolidation
•Determinewhere (timing)inthe accounting process
•%Ownership
•Calcualatethe Difference
•FairValueversus BookValue
•Completethe Workpaper
•Complete Financial Statement
The application of the3-Step Processwillbedemonstratedusing abusinesscaseinvolving an acquisition.
Business Case – Paper & Ink Corporation
Paper & Ink Corporation is a manufacturer of computer paper and ink cartridges that supplies independentconvenientstores,pharmacies, and hardware storeswithasmallinventoryof personalcomputer(printer)supplies.These storessellcomputerpaper and ink cartridgesto their customers, who are primarily individual consumers.
Paper & Ink Corporation is able to keep their costs down by selling directly (not througha wholesaler)totheindependentconvenientstores, pharmacies, and hardware stores. Still, increasing direct competition fromonline wholesalers(independent convenientstores, pharmaciesandhardwarestores canorderonline as an alternative supplier) and the indirect competition fromlarge computer supply stores (i.e. OfficeMax) has negatively impacted Paper & InkCorporation’ssales(Paper& InkCorporation is losing market share).
Afteranextensiveinternal reviewtheexecutivemanagement team of Paper & Ink Corporation hasdeterminedthatthecompanyneedstodiversify its product offerings to better differentiate themselves fromtheir competition. Their idea istoaddanewproduct linethatwillbenefitboth Paper & Ink Corporation and their customers. The keyproductthattheyhavedecidedtoaddis ink refill capsules. The capsules come in two sizes:anindividual(oneinkcartridgerefill) anda multiple (100ink cartridge refill). The decision toadd ink refill capsules was based onan internalreview ofthecompany’sstrengthsandweaknesseswhich issummarizedinExhibit A.
Assume thatonJanuary 1,2012Paper &InkCorporation(parentcompany)acquired 75%ofthe stock of Smooth Solutions (subsidiary company) for $31,000,000 (approximately 1.5X sales). SmoothSolutionsstockholdershaveagreedtoaccept a combination of cash and Paper & Ink Corporationstockaspayment.Thestock priceof Paper & Ink Corporation (market price per NASDAQ) at the market closeon December 31, 2011 was $25/share.
|
PurchasePrice: |
$ 31,000,000 |
|||
|
Payment: |
||||
|
Cash |
$ |
3,100,000 |
||
|
Stock |
$ |
27,900,000 |
||
|
MktPrice |
$ |
25 |
#ofShares |
1,116,000 |
The following are the financial statements (balancesheet) forthetwocompaniesimmediately before the acquisition.
|
BALANCESHEET |
||||||
|
$US |
Paper&InkCorp. |
SmoothSolutions |
||||
|
12/31/2011 |
12/31/2011 |
|||||
|
Cash |
$ 5,550,000 |
$ 200,000 |
||||
|
Short‐TermInvestments |
$ 2,400,000 |
$ ‐ |
||||
|
AccountsReceivable |
$ 5,500,000 |
$ 5,250,000 |
||||
|
Inventory |
$ 10,000,000 |
$ 11,300,000 |
||||
|
Equipment |
$ 19,325,000 |
$ 7,450,000 |
||||
|
Trucks |
$ 4,200,000 |
$ 1,900,000 |
||||
|
Trailers |
$ 2,400,000 |
$ 750,000 |
||||
|
OtherAssets |
$ 1,750,000 |
$ 1,150,000 |
||||
|
Building |
$ 875,000 |
$ 750,000 |
||||
|
Land |
$ 500,000 |
$ 425,000 |
||||
|
Long‐TermInvestments |
$ 4,500,000 |
$ ‐ |
||||
|
OtherLongTermAssets |
$ 1,200,000 |
$ 1,350,000 |
||||
|
Goodwill |
$ ‐ |
$ ‐ |
||||
|
Difference |
$ ‐ |
$ ‐ |
||||
|
TotalAssets |
$ 58,200,000 |
$ 30,525,000 |
||||
|
AccountsPayable |
$ 7,250,000 |
$ 4,250,000 |
||||
|
OtherCurrentLiabilities |
$ 3,250,000 |
$ 2,150,000 |
||||
|
NotesPayable |
$ 4,000,000 |
$ ‐ |
||||
|
CreditLine |
$ 5,000,000 |
$ 7,000,000 |
||||
|
LongTermDebt |
$ 5,400,000 |
$ 3,350,000 |
||||
|
OtherLongTermLiabilities |
$ ‐ |
$ ‐ |
||||
|
TotalLiabilities |
$ 24,900,000 |
$ 16,750,000 |
||||
|
CommonStock(Par$.10) |
$ 250,000 |
$ 125,000 |
||||
|
APIC |
$ 22,000,000 |
$ 11,500,000 |
||||
|
RE |
$ 11,050,000 |
$ 900,000 |
||||
|
TotalEquity |
$ 33,300,000 |
$ 13,775,000 |
||||
|
TotalLiabilitiesandEquity |
$ 58,200,000 |
$ 30,525,000 |
•Confirmbusiness combinationisa StockAcquisition whichrequires consolidation
•Determinewhere (timing) inthe accountingprocess
Step1-Assess
theBusinessScenario
Assessingthebusiness scenariocanhavemanymeanings. Fornow,wewillfocusonthe accountingaspects ofthetransaction.Intermsoftheaccounting,Paper&InkCorporationis buying75%ofthestockofSmoothSolutions.
InstructorInsight: It maynotalways bereadilyclearwhattypeoftransactionistakingplace (assetacquisitionorstockacquisition).Particularly,ininstanceswhere100%oftheacquisition targetispurchased.Inrealitywewouldneedmoredetailed informationtoknowhoweach transactionwouldneedtobeaccounted.Forexample,assuming Paper&InkCorporationdid purchase100%ofthestockofSmoothSolutions,willPaper&InkCorporationretirethestock ofSmoothSolutionswhichwouldlikelyresultinthedissolutionofSmoothSolutions asalegal entity.Ifthiswerethecase, thetransactionwouldbeaccountedforasanassetacquisition.If Paper&InkCorporationheldthestock(NOTretirethestock)SmoothSolutionswouldcontinue toexistasaseparate legalentity.Thus, weknowwewouldneedtoaccountforthistransaction (businesscombination)asastock acquisition.
Basedontheinformationprovided,wehavedeterminedthatwearedealing withastock acquisition.Wealsoneedtodeterminewhatpointintimeweareinthetransaction. Inthis scenarioitappearswearejustbeforetheactualtransaction“DateofAcquisition.”Weknow thisislikelythecasebyboththedescriptionofevents,“Thefollowing arethefinancial statements(balancesheet)forthetwocompaniesimmediatelybefore theacquisition.”In addition,whenreviewingPaper&InkCorporationsbalancesheet thereisnoinvestmentin subsidiary account.
Havingdeterminedthattheactualtransactionhasyettoberecorded,weknowthatPaper&Ink Corporation willneedtomaketheaccountingentryatthetimeofthetransaction. Thus,wewill assumethatthe$31milliondollar paymenttotheshareholdersofSmoothSolutionstakesplace. Therefore,Paper& InkCorporationwillneedtomakethefollowingentry:
|
Account |
Debit |
Credit |
||||||
|
InvestmentinSubsidiary(SmoothSolutions) |
$ 31,000,000 |
|||||||
|
Cash |
$ |
3,100,000 |
||||||
|
CommonStock(1,116,000@$.10) |
$ |
111,600 |
||||||
|
APIC |
$ |
27,788,400 |
||||||
|
Torecordthe75%stockacquisitionofSmoothSolutionsonJanuary1,2012. |
||||||||
|
APIC |
$ |
416,826 |
||||||
|
Cash |
$ |
416,826 |
||||||
|
Torecordstockregistrationfeesforissuanceof1,116,000commonshares. |
||||||||
Note–Theseareactualjournal entries (REALentries)thataremadeinPaper &Ink Corporation’sledger atthetimeofacquisition.
Q1.Short Answer- Immediately after the above transaction what change(s) will be
made
on the respective books (ledger) of
each company?Pleaseexplainwhyorwhynotchanges
aremadeto eachcompany’srespectivefinancialstatement(s).
Paper & Ink Corporation: Smooth Solutions:
Q2.Calculations - Show the calculations confirmingthefollowingbalance sheetaccountshave correctlystatedbalances (perthebalancesheet below):
Cash $2,033,174
Common Stock $ 361,600
APIC $49,371,574
Q3.Short Answer– Explain why the subsidiarycompany’s cash account wasnotimpacted by the purchase transaction?
|
BALANCESHEET |
|||||||||
|
$US |
Paper&InkCorp |
SmoothSolutions |
|||||||
|
1/01/2012 |
1/01/2012 |
||||||||
|
Cash |
$ 2,033,174 |
$ 200,000 |
|||||||
|
Short‐TermInvestments |
$ 2,400,000 |
$ ‐ |
|||||||
|
AccountsReceivable |
$ 5,500,000 |
$ 5,250,000 |
|||||||
|
Inventory |
$ 10,000,000 |
$ 11,300,000 |
|||||||
|
Invesment inSubsidiary |
$ 31,000,000 |
$ ‐ |
|||||||
|
Equipment |
$ 19,325,000 |
$ 7,450,000 |
|||||||
|
Trucks |
$ 4,200,000 |
$ 1,900,000 |
|||||||
|
Trailers |
$ 2,400,000 |
$ 750,000 |
|||||||
|
OtherAssets |
$ 1,750,000 |
$ 1,150,000 |
|||||||
|
Building |
$ 875,000 |
$ 750,000 |
|||||||
|
Land |
$ 500,000 |
$ 425,000 |
|||||||
|
Long‐TermInvestments |
$ 4,500,000 |
$ ‐ |
|||||||
|
Other LongTerm Assets |
$ 1,200,000 |
$ 1,350,000 |
|||||||
|
TotalAssets |
$ 85,683,174 |
$ 30,525,000 |
|||||||
|
AccountsPayable |
$ 7,250,000 |
$ 4,250,000 |
|||||||
|
OtherCurrentLiabilities |
$ 3,250,000 |
$ 2,150,000 |
|||||||
|
NotesPayable |
$ 4,000,000 |
$ ‐ |
|||||||
|
CreditLine |
$ 5,000,000 |
$ 7,000,000 |
|||||||
|
LongTermDebt |
$ 5,400,000 |
$ 3,350,000 |
|||||||
|
TotalLiabilities |
$ 24,900,000 |
$ 16,750,000 |
|||||||
|
CommonStock(Par$.10) |
$ 361,600 |
$ 125,000 |
|||||||
|
APIC |
$ 49,371,574 |
$ |
11,500,000 |
||||||
|
RE |
$ |
11,050,000 |
$ |
2,150,000 |
|||||
|
TotalEquity |
$ |
60,783,174 |
$ |
13,775,000 |
|||||
|
TotalLiabilitiesandEquity |
$ |
85,683,174 |
$ |
30,525,000 |
|||||
Q4.True/False–Theexisting liabilityaccountson the subsidiary’s balancesheetwillalways equal fair value?Explain your answer.
Q5.ShortAnswer– Explainhowtoaccountforassets andliabilitiesidentifiedatthetimeofthe acquisitionbutarenotlisted onthesubsidiary company’s balance sheet?
Q6.MultipleChoice–Tocalculatethetotalimplied valueoftheacquired companythe followingdatapointsareneeded:
a. %ownershipacquired, fairvaluegivenup,andfairvaluereceived
b. %ownershipacquired,fairvaluereceived,bookvaluereceived
c. Theimpliedvalueisbasedonanoutside valuationoftheacquiredcompany.
d.
%ownership
acquiredandfairvaluegivenup
•%Ownership
• Calcualate the Difference
• FairValue versusBook Value
Computation andAllocationofDifference(CAD)Schedule.
%ofownership= 75% 25% 100%NonContrilling
Parent Interest(NCI) TotalImpliedValue
FairValueGivenUpèBookValue ReceivedèDifference AccountsReceivable Inventory
Equipment
Trucks Trailers OtherAssets BuildingLand
OtherLong Term Assets Patent Rights‐Note1 Customer List‐Note2 Brand Names‐Note3
$ 31,000,000
$ 10,331,250
$ 20,668,750
$ 10,333,333 $
$ 3,443,750 $
$ 6,889,583 $
$
$
$
$
$
$
$
$
$
$
$
$
41,333,333
13,775,000
27,558,333
(500,000)
(300,000)
2,550,000
(800,000)
(200,000)
(650,000) $
250,000
1,575,000
(600,000)
1,000,000
500,000
2,000,000
4,825,000
Net IncreaseinAssets
Contaminated Land‐CleanUpEstimate‐Note4 EmployeeLawsuit‐Note5 Customer Lawsuit ‐Note6
Balance
Goodwill
Balance
$ 800,000
$ 100,000 $
$ 250,000 $
$ 23,883,333
$ 23,883,333
$ ‐
1,150,000
3,675,000
NetIncreaseinLiabilities NetIncrease
Note:Fairvaluedifferencesarecalculated
ontheschedulebelow.
|
FairValuevs. |
||||||||
|
BALANCESHEET |
FairValueReport |
BookValue |
||||||
|
$US |
SmoothSolutions |
SmoothSolutions SmoothSolutions |
||||||
|
1/01/2012 |
1/01/2012 |
1/01/2012 |
||||||
|
Cash |
$ 200,000 |
$ 200,000 |
$ ‐ |
|||||
|
Short‐TermInvestments |
$ ‐ |
$ ‐ |
$ ‐ |
|||||
|
AccountsReceivable |
$ 5,250,000 |
$ 4,750,000 |
$ (500,000) |
|||||
|
Inventory |
$ 11,300,000 |
$ 11,000,000 |
$ (300,000) |
|||||
|
Equipment |
$ 7,450,000 |
$ 10,000,000 |
$ 2,550,000 |
|||||
|
Trucks |
$ 1,900,000 |
$ 1,100,000 |
$ (800,000) |
|||||
|
Trailers |
$ 750,000 |
$ 550,000 |
$ (200,000) |
|||||
|
OtherAssets |
$ 1,150,000 |
$ 500,000 |
$ (650,000) |
|||||
|
Building |
$ 750,000 |
$ 1,000,000 |
$ 250,000 |
|||||
|
Land |
$ 425,000 |
$ 2,000,000 |
$ 1,575,000 |
|||||
|
Long‐TermInvestments |
$ ‐ |
$ ‐ |
$ ‐ |
|||||
|
OtherLongTermAssets |
$ 1,350,000 |
$ 750,000 |
$ (600,000) |
|||||
|
PatentRights‐Note1 |
$ ‐ |
$ 1,000,000 |
$ 1,000,000 |
|||||
|
CustomerList‐Note2 |
$ ‐ |
$ 500,000 |
$ 500,000 |
|||||
|
BrandNames‐Note3 |
$ ‐ |
$ 2,000,000 |
$ 2,000,000 |
|||||
|
TotalAssets |
$ 30,525,000 |
$ 35,350,000 |
$ 4,825,000 |
|||||
|
AccountsPayable |
$ 4,250,000 |
$ 4,250,000 |
$ ‐ |
|||||
|
OtherCurrentLiabilities |
$ 2,150,000 |
$ 2,150,000 |
$ ‐ |
|||||
|
NotesPayable |
$ ‐ |
$ ‐ |
$ ‐ |
|||||
|
CreditLine |
$ 7,000,000 |
$ 7,000,000 |
$ ‐ |
|||||
|
LongTermDebt |
$ 3,350,000 |
$ 3,350,000 |
$ ‐ |
|||||
|
OtherLongTermLiabilities |
$ ‐ |
$ ‐ |
$ ‐ |
|||||
|
ContaminatedLand‐CleanUpEstimate‐Note4 |
$ 800,000 |
$ 800,000 |
||||||
|
EmployeeLawsuit‐Note5 |
$ 100,000 |
$ 100,000 |
||||||
|
CustomerLawsuit‐Note6 |
$ ‐ |
$ 250,000 |
$ 250,000 |
|||||
|
TotalLiabilities |
$ 16,750,000 |
$ 17,900,000 |
$ 1,150,000 |
|||||
|
CommonStock(Par$.10) |
$ 125,000 |
|||||||
|
APIC |
$ 11,500,000 |
|||||||
|
RE |
$ 900,000 |
|||||||
|
TotalEquity |
$ 13,775,000 |
|||||||
|
TotalLiabilitiesandEquity |
$ 30,525,000 |
• Complete theWorkpaper
• Complete FinancialStatement
Q7.True/False-Workpaperentriesarejournalentries
thatareultimatelyrecordedintheparent company’sledger.
Explainyouranswer.
Asdiscussedinyourreading, whensignificantinfluenceandcontrolexists,theequity investmentmustbeconsolidatedintothecompany’sfinancial statements.Priortocreating consolidatedfinancialstatementstheinvestorsandcreditorsofPaper&InkCorporationhavea limitedviewofthecompany’sinvestmentinSmoothSolutions.Simply,a$31million dollar assetcalledInvestmentinSubsidiary.Notonlyistheinvestmentdifficulttoassess,itrepresents morethan50%ofPaper&InkCorporation’snetassets. Clearly,therequired accountingto consolidatetheinvestmentwillbetterreflect thecompany’sfinancial(andeconomic)position.
Theconsolidationprocessissimplyanaccountingmethodthatresultsinabetterpresentationof acompany’sfinancialstatements.Todeterminethecorrectbalance ofthecombinedcompany’s accountstheaccountantemploystheuseofatoolcalledaworkpaper.Theworkpaperdoesthe following:
ParentCompanyAccounts+SubsidiaryCompanyAccounts +WorkpaperEntries = Parent&Subsidiary CompanyConsolidatedAccount Balances
Inaddition,aseparateaccount (NCI)mustbecreatedforthoseinvestorsoftheacquired company(subsidiary company)thatdidnotselltheirownership(shares). Thisaccountiscalled theNoncontrollingInterest orNCI.Aseparatelineitemisrequired forthenetvalueofthe subsidiaryheldbytheNCIshareholdersintheConsolidatedFinancialStatements.Thisaccount isincludedtheequitysection oftheconsolidatedbalance sheet.
Theworkpaper entriesarebasically theadjustmentsneededtoarriveatacorrectlystated consolidatedaccount balance.
Reminder:Workpaperentriesare notrealentriesandthereforedonotimpacttherespective company’s ledger. They are adjustment entries usedintheworkaperprocesstoarriveatthe correct consolidated balance(s).
TheinputsintotheworkpaperentryaredrivenfromtheCAD.
|
ComputationandAllocationofDifference(CAD)Schedule. |
||||||||||||
|
% of ownership = |
75% |
25% |
100% |
|||||||||
|
NonControlling |
||||||||||||
|
Parent |
Interest(NCI) |
TotalImplied Value |
||||||||||
|
FairValueGivenUpè |
$ 31,000,000 |
$ 10,333,333 |
$ 41,333,333 |
|||||||||
|
BookValueReceivedè |
$ 10,331,250 |
$ 3,443,750 |
$ 13,775,000 |
|||||||||
|
Difference |
$ 20,668,750 |
$ 6,889,583 |
$ 27,558,333 |
|||||||||
|
Investment in Subsidiary – Smooth Solutions $31,000,000
NCI $10,333,333
The CADfirstcomparesthefairvaluegiven uptothebookvalue received.Thenext questionis toinvestigatewhether thereareany assetsandliabilitiesthat havea fairvaluethatisdifferent frombookvalue.Thisinformationisusedtobothdetermine if there is goodwill (or gain) and to completethe 2ndpart of the workpaper entry. The secondworkpaperentryisto properly allocatethe differenceaccount.
Q8.– PrepareEntry- Completetheworkpaper entry to allocate the difference account. Account(2) Debit Credit
Q9.- TrueorFalse -Thebalance sheetofPaper& Inc.Corp.hasalineitem“Investmentin Subsidiary”withabalance of$31,000,000.Thisbalanceisthetotal implied value of the subsidiary.Explainyouranswer.
Q10.MultipleChoiceèThis investment in subsidiary account would be found in which section of the parent company balance sheet?
a. Equity
b. Liabilities
c. Assets
d. Not included in the balance sheet
Once
the workpaper entries are completed we canthen complete the actual workpaper.The workpaper entry populates the workpaper and providesthenecessaryinformationtocomputethe
consolidated balances.
|
ConsolidationWorkpaper |
||||||||||||||
|
BALANCESHEET |
||||||||||||||
|
$US |
Paper& InkCorp. |
SmoothSolutions |
WorkpaperEntriesand |
Noncontrolling |
Consolidated |
|||||||||
|
Parent |
Subsidiary |
Eliminations |
Interest |
Balances |
||||||||||
|
1/01/2012 |
1/01/2012 |
Debit |
Credit |
|||||||||||
|
Cash |
$ 2,033,174 |
$ 200,000 |
$ 2,233,174 |
|||||||||||
|
Short‐TermInvestments |
$ 2,400,000 |
$ ‐ |
$ 2,400,000 |
|||||||||||
|
AccountsReceivable |
$ 5,500,000 |
$ 5,250,000 |
$ 500,000 |
(2) |
$ 10,250,000 |
|||||||||
|
Inventory |
$ 10,000,000 |
$ 11,300,000 |
$ 300,000 |
(2) |
$ 21,000,000 |
|||||||||
|
InvesmentinSubsidiary |
$ 31,000,000 |
$ ‐ |
$ 31,000,000 |
(1) |
$ ‐ |
|||||||||
|
Equipment |
$ 19,325,000 |
$ 7,450,000 |
$ |
2,550,000 |
(2) |
$ 29,325,000 |
||||||||
|
Trucks |
$ 4,200,000 |
$ 1,900,000 |
$ 800,000 |
(2) |
$ 5,300,000 |
|||||||||
|
Trailers |
$ 2,400,000 |
$ 750,000 |
$ 200,000 |
(2) |
$ 2,950,000 |
|||||||||
|
OtherAssets |
$ 1,750,000 |
$ 1,150,000 |
$ 650,000 |
(2) |
$ 2,250,000 |
|||||||||
|
Building |
$ 875,000 |
$ 750,000 |
$ |
250,000 |
(2) |
$ 1,875,000 |
||||||||
|
Land |
$ 500,000 |
$ 425,000 |
$ |
1,575,000 |
(2) |
$ 2,500,000 |
||||||||
|
Long‐TermInvestments |
$ 4,500,000 |
$ ‐ |
$ 600,000 |
(2) |
$ 3,900,000 |
|||||||||
|
OtherLongTermAssets |
$ 1,200,000 |
$ 1,350,000 |
$ 2,550,000 |
|||||||||||
|
PatentRights‐Note1 |
$ ‐ |
$ |
1,000,000 |
(2) |
$ 1,000,000 |
|||||||||
|
CustomerList‐Note2 |
$ ‐ |
$ |
500,000 |
(2) |
$ 500,000 |
|||||||||
|
BrandNames‐Note3 |
$ ‐ |
$ |
2,000,000 |
(2) |
$ 2,000,000 |
|||||||||
|
Goodwill |
$ ‐ |
$ ‐ |
$ |
23,883,333 |
(2) |
$ 23,883,333 |
||||||||
|
Difference |
$ ‐ |
$ ‐ |
$ |
27,558,333 |
(1) |
$ 27,558,333 |
$ ‐ |
|||||||
|
TotalAssets |
$ 85,683,174 |
$ 30,525,000 |
$ 113,916,507 |
|||||||||||
|
AccountsPayable |
$ 7,250,000 |
$ 4,250,000 |
$ 11,500,000 |
|||||||||||
|
OtherCurrentLiabilities |
$ 3,250,000 |
$ 2,150,000 |
$ 5,400,000 |
|||||||||||
|
NotesPayable |
$ 4,000,000 |
$ ‐ |
$ 4,000,000 |
|||||||||||
|
CreditLine |
$ 5,000,000 |
$ 7,000,000 |
$ 12,000,000 |
|||||||||||
|
LongTermDebt |
$ 5,400,000 |
$ 3,350,000 |
$ 8,750,000 |
|||||||||||
|
OtherLongTermLiabilities |
$ ‐ |
$ ‐ |
$ ‐ |
|||||||||||
|
Contaminated Land‐CleanUpEstimate‐Note4 |
$ 800,000 |
(2) |
$ 800,000 |
|||||||||||
|
EmployeeLawsuit‐Note5 |
$ 100,000 |
(2) |
$ 100,000 |
|||||||||||
|
CustomerLawsuit‐Note6 |
$ ‐ |
$ ‐ |
$ 250,000 |
(2) |
$ 250,000 |
|||||||||
|
TotalLiabilities |
$ 24,900,000 |
$ 16,750,000 |
$ 42,800,000 |
|||||||||||
|
NCI |
$10,333,333 |
(1 |
$ 10,333,333 |
|||||||||||
|
CommonStock(Par $.10) |
$ 361,600 |
$ 125,000 |
$ |
125,000 |
(1) |
$ 361,600 |
||||||||
|
SharesIssuedandOutstanding |
$ |
0.10 |
3,616,000 |
1,250,000 |
||||||||||
|
APIC |
$ 49,371,574 |
$ 11,500,000 |
$ |
11,500,000 |
(1) |
$ 49,371,574 |
||||||||
|
RE |
$ 11,050,000 |
$ 2,150,000 |
$ |
2,150,000 |
(1) |
$ 11,050,000 |
||||||||
|
TotalEquity |
$ 60,783,174 |
$ 13,775,000 |
$ 71,116,507 |
|||||||||||
|
TotalLiabilitiesandEquity |
$ 85,683,174 |
$ 30,525,000 |
$ 113,916,507 |
|||||||||||
Solution: Homework help