Racer Corp. acquired all of the common stock of Tangiers Co. in 2016. Tangiers maintained its incorporation. Which of Racer's account balances would vary between the equity method and the initial value method? Multiple Choice Goodwill, Investment in Tangiers Co., and Retained Earnings. Expenses, Investment in Tangiers Co., and Equity in Subsidiary Earnings. Investment in Tangiers Co., Equity in Subsidiary Earnings, and Retained Earnings. Common Stock, Goodwill, and Investment in Tangiers Co. Expenses, Goodwill, and Investment in Tangiers Co.

Racer Corp. acquired all of the common stock of Tangiers Co. in 2016. Tangiers maintained its incorporation. Which of Racer's account balances would vary between the equity method and the initial value method? Multiple Choice Goodwill, Investment in Tangiers Co., and Retained Earnings. Expenses, Investment in Tangiers Co., and Equity in Subsidiary Earnings. Investment in Tangiers Co., Equity in Subsidiary Earnings, and Retained Earnings. Common Stock, Goodwill, and Investment in Tangiers Co. Expenses, Goodwill, and Investment in Tangiers Co.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

See similar textbooks

Similar questions

BMJ company inc. plans to issue new common shares in order to increase its cash and cash equivalents and to finance its growth. Indicate the effect of this transaction on each of the following ratios by putting an "X" in the appropriate box: Augmentation/ Increase Diminution/Reduction/Decrease No effectThe cash ratio Total asset turnover The profitability of shareholders' equity The ratio of total liabilities to total assets
Graham Railways Inc. is evaluating its operations and provides the following information: Required: For each of the years 2017 through 2019, calculate Graham Railwayss earnings per share and dividend yield ratio. The company has no preferred stock or other potentially dilutive securities outstanding.
The following information is provided concerning the accounts of Jazzy Ltd .You are asked to identify how each of these items is shown in the financial statements. (a) gain on revaluation of available-for-sale investments (b) dividends paid during the year (c) revaluation gain on building (not reversing any previous revaluation) (d) transfer to dividend equalisation reserve (e) Unsecured notes issued
The 2017 comparative balance shoat and income statement of Orangovile Group Inc. folows (Clok the loon to view the Inoome ctatement) Orangovile Group had no non-cash investing and financing transactions during 2017. Dutng the yoar, there were no sales of land or plant and oquipment, no isuances of notas payable, and no rapurchase of common shares Required 1. m (Clok the loon to view the oomparative belanoe cheet) Propare the 2017 cash fow statomant by the indrect mothod. Evaluate the 2017 cash fow tor this company Requirement 1.Propare the 2017 cash fow statomant by the indirect method (Uce parentheces or a minus cign for numbers to be cubtraoted or for negative oach flows.) Orangevile Oroup Ina. Comparative balance sheet Income statemant Cash Flow Btatement For the Yhar Endad December 31, 2017 Cash fows from aperating actvitios Orangeville Group Ino. Crangeville Group ina. Net income Balanoe Sheet Inoome atateent Add (sutract) homs that affect net income and cash tow dtoronty Docember…
a. Fill in the amounts for the Norfolk Southern statement of changes in retained earnings. Note: Use negative signs with your answers, when appropriate. Norfolk Southern Inc. Consolidated Statements of Changes in Retained Income Beginning Balance at Dec. 31, 2015 $12,229 Net income Answer Dividends on Common Stock (834) Share repurchases (877) Other (10) Ending Balance at Dec. 31, 2016 12,510 Net income 6,485 Dividends on Common Stock Answer Share repurchases (1,134) Other (6) Ending Balance at Dec. 31, 2017 17,011 Net income 3,199 Dividends on Common Stock (1,013) Share repurchases Answer Other 97 Ending Balance at Dec. 31, 2018 $16,128 b. Is it true (or false) that Norfolk Southern purchased its own shares back during each year from 2016 to 2018?
Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company. (a) Fair Value Method (b) Equity Method Investment Account Dividend Revenue Investment Account Investment Revenue 1. At the beginning of Year 1, Crane bought 30% of Hudson's common stock at its book value. Total book value of all Hudson's common stock was $800,000 on this date. 2. During Year 1, Hudson reported $60,000 of net income and paid $30,000 of dividends. 3. During Year 2, Hudson reported $30,000 of net income and paid $20,000 of dividends. 4. During Year 3, Hudson reported a net loss of $10,000 and paid $4,000 of dividends. 5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.
4. An entity provided the following information on December 31, 2015:Total reported income since incorporation 1,700,000Total cash dividends paid ( 800,000)Unrealized holding loss on trading investment ( 120,000)Total share dividends distributed ( 200,000)Prior period adjustment recorded January 1, 2015 - credit 75,000What amount should be reported as retained earnings on December 31, 2015?
The following data are taken from the ledger of PQR Co. Date Particulars Debit Credit 1/1/2017 Balance 6/30/2017 Dividends paid 12/31/2017 Netincome for 2017 2/7/2018 Premium in share capital 4/30/2018 Loss on sale of land 9/30/2018 Dividends paid 12/31/2018 Net income for 2018 12/31/2018 Revaluation surplus 7/1/2019 Gain on sale of treasury stock 12/31/2019 Net income 2019 80,600 25,000 42,500 10,000 5,000 20,000 5,800 40,000 1,600 33,700 Unrealized loss on FV OCI securities 3,400 What is the correct balance of Retained earnings on December 31, 2019?
Applying Financial Statement Relations to Compute Dividends a. Fill in the amounts for the Norfolk Southern statement of changes in retained earnings. Note: Use negative signs with your answers, when appropriate. Norfolk Southern Inc. Consolidated Statements of Changes in Retained Income Beginning Balance at Dec. 31, 2015 $10,191 Net income Dividends on Common Stock Share repurchases Other Ending Balance at Dec. 31, 2016 Net income Dividends on Common Stock Share repurchases Other Ending Balance at Dec. 31, 2017 Net Dividends on Common Stock Share repurchases Other Ending Balance at Dec. 31, 2018 0 (695) (731) (8) 10,425 5,404 0 (945) (5) 14,176 2,666 (844) 0 81 $13,440 b. Is it true (or false) that Norfolk Southern purchased its own shares back during each year from 2016 to 2018? ◆
Comparative financial statement data for Sunland Corporation and Carla Vista Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2025. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Additional Information: Cash from operating activities Capital expenditures Dividends paid on common stock Average number of common shares outstanding (a1) Your answer is incorrect. Net income Earnings per share $ $ Sunland Corporation Sunland Corporation 2025 $1,805,000 1,238,000 309,000 8,000 89,000 427,600 542,400 71,490 148,700 152,400 83,400 36,800 100,000 $ Carla Vista Corporation $ 2025 $610,000 365,000 99,000 4,100 37,900 131,000 141,000 Compute the net income and earnings per share for each company for 2025. (Round earnings per share to 2 decimal places, e.g. 15.55.) 35,822 29,730 43,500 22,200 15,100 50,000 Carla Vista Corporation I
Compute and Interpret Measures for DuPont Disaggregation Analysis Use the information below for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder). 2014 ($millions) Sales Net income, consolidated Net income attributable to 3M shareholders Assets Total equity Equity attributable to 3M shareholders a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345= 12.35%) % 2015 $30,674 5,056 5,048 32,898 $31,389 11,747 13,142 11,708 13,109 b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. • Round profit margin to two decimal places (ex: 0.12345= 12.35%) • Round asset turnover and financial leverage to three decimal places. Profit margin Asset turnover % Financial leverage c. Compute ROA. Round answer to two decimal places (ex: 0.12345= 12.35%) ROA % d. Compute adjusted ROA (assume a statutory tax rate of 37% and pretax net interest expense of $123). Round…
The Debt-equity ratio of a company is 1:2, state giving reasons which of thefollowing would improve, reduce or no change the ratio:-1) Debenture redeemed for cash2) Issue new equity shares3) Payment of Proposed dividends4) Goods Purchased on Credit5) Goods Purchased on Cash6) Redemption of Debentures against the Purchase of a Fixed Assets.