Compute the following ratios: i. Accounts Receivable Turnover ratio; ii. Accounts Payable Turnover ratio; iii. Average Collection Period; iv. Average Payable Period; v. Quick Ratio; vi. Gross Profit Margin. vii. Net Profit Margin viii. Debt ratiob b. Explain briefly what is factoring?
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a. Compute the following ratios:
i.
ii. Accounts Payable Turnover ratio;
iii. Average Collection Period;
iv. Average Payable Period;
v. Quick Ratio;
vi. Gross Profit Margin.
vii. Net Profit Margin
viii. Debt ratiob
b. Explain briefly what is factoring?
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- Question:The following is the extract from trial balance of G Limited, subsidiary of Y Limited for the year ended 31 December 2021. Dr CrInventory on hand: 31/12/2020 50 000 Sales 1025000Purchases 350 000 Depreciation 25 000 Rent income 40 000Dividend paid 11 000 Other expenses 300 000 Income tax expense 145 000 Additional information: 1. Y Limited acquired its interest in G limited on the 1 st May 2021. 2.The average monthly sales of G Limited accrued evenly throughout the year.…(TCO C) Jewels Co. acquired Diamond Co. in an acquisition transaction. Yules decided to use the partial equity method to account for the investment. The current balance in the investment account is $430,000. Describe in words how this balance was derived.Linden Corporations is negotiating for the purchase of Hill Company. The following is an abbreviated balance sheet of Hill. Assets Cash Land Equipment, net Trademark Total assets Additional Information: Hill Company Balance Sheet As of December 31, 2025 $100,000 230,000 200,000 40,000 $570.000 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Common stock Retained earnings Total liabilities and stockholders' equity 1. Land is undervalued by $20,000. 2. Equipment is overvalued by $3,000. Hill agrees to sell the business to Linden for $370,000. $150,000 250,000 140,000 30,000 $570,000 Instructions Prepare the entry to record the purchase of Hill Company on Linden's books.
- Hamilton Companys balance sheet on January 1, 2019, was as follows: Korbel Company is considering purchasing Hamilton (a privately held company) and discovers the following about Hamilton: a. No allowance for doubtful accounts has been established. A 10,000 allowance is considered appropriate. b. Marketable securities are valued at cost. The current market value is 60,000. c. The LIFO inventory method is used. The FIFO inventory of 140,000 would be used if the company is acquired. d. Land, included in property, plant, and equipment, which is recorded at its cost of 50,000, is worth 120,000. The remaining property, plant, and equipment is worth 10% more than its depreciated cost. e. The company has an unrecorded trademark that is worth 70,000. f. The companys bonds are currently trading for 130,000. g. The pension liability is understated by 40,000. Required: 1. Compute the amount of goodwill if Korbel agrees to pay 500,000 cash for Hamilton. 2. Next Level What are the reasons that the book value of Hamiltons net identifiable assets differ from their market value? 3. Prepare the journal entry to record the acquisition on the books of Korbel assuming Hamilton is liquidated. 4. If Korbel agrees to pay only 400,000 cash, how much goodwill exists? 5. If Korbel pays only 400,000 cash, prepare the journal entry to record the acquisition on its books, assuming Hamilton is liquidated.Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $146,000. On that date, the fair value of the noncontrolling interest was $36,500, and Slice reported retained earnings of $44,000 and had $92,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Pizza Slice Corporation Debit $ Products Company Debit $ 82,000 109,000 82,000 164,000 Item Credit Credit 88,000 277,000 82,000 507,000 176, 200 119,000 20,000 10,000 44,000 Cash & Receivables Inventory Land Buildings & Equipment Investment in Slice Products Company Cost of Goods Sold Depreciation Expense Inventory Losses Dividends Declared 44,000 10,000 6,000 22,000 $ 193,000 Accumulated Depreciation Accounts Payable Notes Payable Common Stock 40,000 266,920 285,000 299,000 207,000 32,280 $ 70,000 15,000 155,000 92,000 82,000 105,000 Retained Earnings Sales Income…At the time of acquisition X & Y Co., stock issue expected cost expenses OMR 48,000. Finally, acquisition cost was OMR 64,000. How much will record in the income statement. Select one: a. OMR 48,000 b. OMR 64,000 c. OMR 16,000 d. OMR 112,000
- Question1 a) On 31 December 2018 Pee Plc purchased 80% of the share capital of Cee Ltd for £60,000 when its accumulated profits were £30,000. The individual Statement of Financial Positions of PeePlc and CeeLtdat 31December2020were as follows: Рее Cee Cee Ltd £ £ Non-current assets: Property, plant and equipment 160,000 50,000 Cost of investment 60,000 00000 220,000 50,000 Current assets 30.000 10,000 Total assets 250,000 60,000 Equity and liabilities Ordinarysharesof£leach 100,000 20,000 Retained profits 150,000 40,000 250,000 60,000 Consolidated goodwill is subject to an annual impairment review. No impairment has been detected to date. Required: Prepared the consolidated statement of financial position for the Pee group at 31 December 2020. Pee plc has a policy of valuing Non-Controlling interest at their share of net assets at acquisition.Illu.1 : A Ltd. acquired B Ltd. Business with the following values. Rs. Fixed Asets 3,00,000 1,00,000 50,000 Current assets Debentures Current Liabilities 1,00,000 Calculate purchase consideration. CS Scanned with CamScannerAsset versus stock acquisition. Barstow Company is contemplating the acquisition of the net assets of Crown Company for $875,000 cash. To complete thetransaction, acquisition costs are $15,000. The balance sheet of Crown Company on the purchase date is as follows:Crown CompanyBalance SheetDecember 31, 2015Assets Liabilities and EquityCurrent assets . . . . . . . . . . . . . . . . . . . . . $ 80,000 Liabilities . . . . . . . . . . . . . . . . $100,000Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 Common stock ($10 par). . . . 100,000Building . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000 Paid-in capital in excess of par 150,000Accumulated depreciation—building . . . (200,000) Retained earnings . . . . . . . . . 250,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . 300,000Accumulated depreciation—equipment . (100,000)Total assets. . . . . . . . . . . . . . . . . . . . . . $ 600,000 Total liabilities and equity . $600,000The following fair…
- sub parts to be solved a) Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transactions occurred between the two entities: On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for $12,000, this inventory previously costed Liala Ltd $10,000. By 30 June 2016, Jordan Ltd had sold 20% of this inventory to other entities for $3,000. The other 80% was all sold to external entities by 30 June 2017 for $13,000. During the 2016–17 period, Jordan Ltd sold inventory to Liala Ltd for $6,000, this being at cost plus 20% mark-up. Of this inventory, 20 % remained on hand in Liala Ltd at 30 June 2017. The tax rate is 30%. b) On 1 July 2016, Liala ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying value in Liala Ltd book was $200,000 (costs $300,000, accumulated depreciation $100,000). This plant has a remaining useful life of five (5) years form the date of sale. The group measures its property plants and equipment using a costs…Vodafone Group, Plc.Consolidated Statements of Financial PositionAt March 312015 2014£m £mLong-term assets:Goodwill 22,537 23,315Other intangible assets 20,953 23,373Property, plant, and equipment 26,603 22,851 2015 2014£m £mInvestments in associates and joint ventures (3) 114Other investments 3,757 3,553Deferred tax assets 23,845 20,607Post employment benefits 169 35Trade and other receivables 4,865 3,270102,726 97,118Current assets:Inventory 482 441Taxation recoverable 575 808Trade and other receivables 8,053 8,886Other investments 3,855 4,419Cash and cash equivalents 6,882 10,134Assets held for sale — 3419,847 24,722Total assets 122,573 121,840Equity (details provided in complete statements) 67,733 71,781Long-term liabilities:Long-term borrowings 22,435 21,454Taxation liabilities — 50Deferred tax liabilities 595 747Post employment benefits 567 584Provisions 1,082 846Trade and other payables 1,264 1,33925,943 25,020Current liabilities:Short-term borrowings 12,623 7,747Taxation…Pure Company purchased 70% of the ordinary shares of Gold Company on January 1, Year 6, for $484,800 when the latter company's accumulated depreciation, ordinary shares, and retained earnings were $76,000, $500,000 and $41,600, respectively. Non-controlling interest was valued at $196,900 by an independent business valuator at the date of acquisition. On this date, an appraisal of the assets of Gold disclosed the following differences: Land Plant and equipment Inventory Land Plant and equipment Less accumulated depreciation The plant and equipment had an estimated life of 20 years on this date. The statements of financial position of Pure and Gold, prepared on December 31, Year 11, follow: Carrying amount $ 161, 000 708, 000 134, 000 Patent (net of amortization) Investment in Gold Co. shares (equity method) Investment in Gold Co. bonds Inventory Accounts receivable Cash Ordinary shares Retained earnings Bonds payable (due Year 20) Accounts payable Fair value $ 212, 000 783, 000 117,000…