Facts for Questions 40-41Tweety, Inc. plans to be acquired by another company. Tweety, Inc.'s incomae stalement reflectsthe following:Net incomeExtraordinary Loss on Sale of a DivisionDepreciation and Amortization ExpensePlanned Capital ExpendituresDecrease in Necessary Working CapitalDebt PaymentsInterest Expense, netNon-Recurring Gain971,237185,37162,c8637,53415,73234,04921,36210,742There are currently two proposals being considered by Tweety, Inc.Proposal 1: the acquiring company wil purchase all of Twoety, Inc.'s common stock outstandingin an all-cash deal. The purchase price will refect the entorprise value of the company (tactoringin its debi).Proposal 2: the acquiring company wil purchase all of Tweoty. Inc's common stock outstandingin an all-cash deal. The purchase price will refect the value of the company on a debl-freebasis.Question 40After factoring in Tweety, Inc.'s debt, what amount of cash is available for distribution lo thecommon shareholders if Proposal 1 is approved?(A) $1,176,048(B) $1,120,637(C) $1,145,808(D) $957,010Question 41.Which of the following relects the cash flow that will be used to valuo Tweety, Inc. on a debt-free basis if Proposal 2 is approvod?(A) S90,856(0) $1,120,637(C) $1,176,048(D) $1,145,868 Question 37.Total Consolidated, Inc. (TCI") accepted a commercial loan two years ago. The loan agroementIncludes the following provision:Borrower shall maintain at all times a Consolidated Total Debt to Capital Ratio, asof the last day of oach fiscal quarter and calculated on a Consolidated basis for thefour fiscal quartors most recently ended, equal to or loss than 1.00.Currently, TCI has $10,000,000 in total assets and $11,500,000 in total liabilities, including$6,000,000 in total debt.TCI has never missed an interest payment under the loan agreement. Is TCI currently indefault?(A) Yes, because TCI breached its minimum net worth requirement.(B) No, because TCI never missed an Interest payment.(C) No, because TCl's debt-to-equity ratio is less than 1.00.(D) Yes, because TCrs debl-to-total-capital ratio is greater than 1.00.(E) No, because TCI's debt-to-total-capital ratio is less than 1.00.Question 38.Capital Financial Co. ("CFC") needs more capital to fund an upooming investment. CFC doesnot want to give up any equity, use a single lender, or enter into a secured debt obligation.Which of the following would be the best choice for CFC to do to raise the money it needs?(A) Issue convertible notes(B) Issue debentures(C) Spread the news that CFC wants to be acquired(D) Issue bonds(E) Obtain a syndicated loan using one of its investments as collateralQuestion 39.SalesGuru Corp. ("SGC") is a private company that provides consulting services to olharbusinesses. SGC uses an innovative model In its services and there are few comparablecompanies in the relevant market. SGC's balance shoet primarily reflocts intangible assets.If you want to determine SGC's value, which approach would bo bost to use?(A) A market approach(B) An asset approach(C) An income approach(D) Eilher (A) or (B)(E) Either (B) or (C)

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Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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WHat is the Fixed Assets Turnover Ratio ? given Noncurrent Assets Equity securities - at fair value through other comprehensive income 8, 21 16,267,140 Due to related parties - noncurrent portion 8, 21 347,927,681 Property and equipment - net 9 6,390,497,964 Deferred tax assets 19 64,994,497 Retirement benefits asset 18 16,267,140 Other non-current assets 10, 21 30,221,963 Available for sale investment 10 - Total Noncurrent Assets 6,849,909,245 Revenue 2,104,932,423
16. ABC Co.'s biological asset has a fair value less costs to sell of P 100,000 and P120,000, respectively. The year-end adjusting entry will most likely include a. a credit to unrealized gain of P 20,000 to be recognized in profit or loss b. a credit to unrealized gain of P 20, 000 to be recognized in other comprehensive income c. a debit to unrealized gain of P 20,000 to be recognized in profit or loss d. none of these
amount. An entity reported the following data for the current year. What net amount in OCI that may not be recycled to profit or loss? * Net sales Cost of goods sold Selling expenses Administrative expenses P9.500,000 4,000,000 1,000,000 1,200,000 Interest expense 700,000 Gain from expropriation of land 500,000 Income tax 800,000 Income from discontinued operations Unrealized gain on equity investment at FVOCI Unrealized loss on futures contract designated as a cash flow hedge Increase in projected benefit obligation due to actuarial assumptions Foreign translation adjustment- debit Revaluation surplus 600,000 900,000 400,000 300,000 100,000 2,500,000
1. Directly attributable costs include:I. Interest Expense when the asset is ready for useII. Value-added taxes, the entity is not VAT-registered a. I onlyb. II onlyc. Both I and IId. Neither I nor II2. Computation of maximum dividend of wasting asset corporations include the following, except: I. Appropriated retained earningsII. Realized portion of accumulated depletiona. I onlyb. II onlyc. I and IId. None from I and IIPLEASE ADD REFERENCE FOR ANSWERPS: NOT SATISFIED WITH THE ANSWER OF LAST TUTOR
1. Directly attributable costs include:I. Interest Expense when the asset is ready for useII. Value-added taxes, the entity is not VAT-registered a. I onlyb. II onlyc. Both I and IId. Neither I nor II2. Computation of maximum dividend of wasting asset corporations include the following, except: I. Appropriated retained earningsII. Realized portion of accumulated depletiona. I onlyb. II onlyc. I and IId. None from I and II PLEASE ANSWER ITH REFERENCE
If Beta Limited has opening PP&E balance of 150, a depreciation expense of 75, and a closing PP&E balance of 170, what is Beta's net capital expenditure (or CAPEX)? 395 55 95 245
Current Attempt in Progress At December 31, 2020, the equity investments of Bramble Inc. that were accounted for using the FV-OCI model without recycling were as follows: Investment Ahn Inc. Burnham Corp. Chi Ltd. Total Cost and Carrying Amount $175,500 122,600 73,000 $371,100 Fair Value $149,800 140.100 75,100 $365,000 Unrealized Gain (Loss) $(25,700 ) 17,500 2,100 $(6,100) Because of a change in relationship with Ahn Inc., Bramble Inc. sold its investment in Ahn for $153,700 on January 20, 2021. No other investments were acquired or sold during 2021; however, a dividend of $1,300 was received from Burnham Corp. in June. At December 31, 2021, the fair values of Burnham and Chi shares were $154,800 and $72,200, respectively.
Refer to the situation described in BE 11–13. Assume that the present value of the estimated future cash flowsgenerated from the division’s assets is $22 million and that their fair value approximates fair value less costs tosell. What amount of impairment loss should C&R recognize if the company prepares its financial statementsaccording to IFRS?
2. What amount of unrealized holding gain should be PROBLEMS Problem 23-1 (IAA) Simple Company reported the following information in relation to land: * The entity purchased land on January 1, 2021 for P500,000 cash. On December 31, 2021, the land has a current replacement cost of P600.000. * On December 31, 2022, the land has a current replacement cost of P750,000. The entity sold the land for P1,000,000 cash on December 31, 2023. On this date, the current replacement cost of the land is P800,000. - What amount of unrealized holding gain should be reported in 2021? a. 600,000 b. 500,000 C. 100,000 d. 0. reported in 2022? a. 250,000 150,000 c. 100,000 d. 0. reported in 2023? a. 300,000 b. 250,000 50,000 d. C. in 2023? a. 500,000 b. 250,000 C. 200,000 d. 150,000 711
Question 9 Phillips Corporation sold a fixed asset used in its operations for greater than its carrying amount. Phillips should report the transaction in the income statement using the: A. Gross concept, showing the proceeds as part of revenues and the carrying amount as part of expenses in the continuing operations section of the income statement. B. Net concept, showing the total amount as a component of other comprehensive income, net of taxes. C. Net concept, showing the total gain as part of discontinued operations, net of taxes. D. Net concept, showing the total gain as part of continuing operations , not net of taxes.
If ABC Co. sold everything it owned and paid off all the company owed, the amount left over would represent ABC's ______. Question 42 options: A) revenue B) owners' equity C) liabilities D) goodwill E) assets
In Able Company’s efforts to estimate a value for Baker Company's goodwill, Able is estimating Baker Company's expected future earnings. Able is using Baker's past earnings to project the future earnings. Which of the following items should be eliminated from Baker's past earnings in order to project future earnings? Extraordinary items Amortization expense for identifiable intangibles a. Yes Nob. Yes Yesc. No Yesd. No No

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