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Bruno Company has decided to expand its operations. The bookkeeper




Question;Bruno Company has decided to expand its operations. The bookkeeperBruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.BRUNO COMPANYBALANCE SHEETDECEMBER 31, 2012Current assets Cash $262,650Accounts receivable (net) 342,650Inventories (lower-of-average-cost-or-market) 403,650Equity investments (trading)?at cost (fair value $123,330) 143,330Property, plant, and equipment Buildings (net) 573,330Equipment (net) 163,330Land held for future use 178,330Intangible assets Goodwill 82,650Cash surrender value of life insurance 92,650Prepaid expenses 14,650Current liabilities Accounts payable 138,330Notes payable (due next year) 127,650Pension obligation 85,330Rent payable 51,650Premium on bonds payable 55,650Long-term liabilities Bonds payable 503,330Stockholders? equity Common stock, $1.00 par, authorized 400,000 shares, issued 292,650 292,650Additional paid-in capital 182,650Retained earnings ? Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $162,650 and for the office equipment, $107,650. The allowance for doubtful accounts has a balance of $19,650. The pension obligation is considered a long-term liability. (List current assets in order of liquidity. List property plant and equipment in order of buildings and equipment.)Presented below is the trial balance of Vivaldi Corporation at December 31, 2012.Debit CreditCash $200,110 Sales $7,902,670Debt Investments (trading) (cost, $145,000) 155,670 Cost of Goods Sold 4,802,670 Debt Investments (long-term) 302,110 Equity Investments (long-term) 280,110 Notes Payable (short-term) 92,670Accounts Payable 457,670Selling Expenses 2,002,670 Investment Revenue 64,260Land 260,000 Buildings 1,043,110 Dividends Payable 139,110Accrued Liabilities 98,670Accounts Receivable 437,670 Accumulated Depreciation?Buildings 352,000Allowance for Doubtful Accounts 27,670Administrative Expenses 901,260 Interest Expense 212,260 Inventory 600,110 Extraordinary Gain 81,260Notes Payable (long-term) 903,110Equipment 602,670 Bonds Payable 1,003,110Accumulated Depreciation?Equipment 60,000Franchises 160,000 Common Stock ($5 par) 1,002,670Treasury Stock 193,670 Patents 195,000 Retained Earnings 81,110Paid-in Capital in Excess of Par 83,110$12,349,090 $12,349,090Calculate ending retained earnings and prepare a balance sheet at December 31, 2012, for Vivaldi Corporation. Ignore income taxes. (List current assets in order of liquidity. List property plant and equipment in order of land, building and equipment.)Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31.2012 2011Cash $205,670 $102,180 Accounts receivable 235,800 242,350 Investments 68,120 96,940 Equipment 390,380 314,400 Less: Accumulated depreciation?equipment (138,860 ) (116,590 )Current liabilities 175,540 197,810 Capital stock 209,600 209,600 Retained earnings 375,970 231,870 Additional information:Investments were sold at a loss (not extraordinary) of $9,170, no equipment was sold, cash dividends paid were $65,500, and net income was $209,600.(a) Prepare a statement of cash flows for 2012 for Sondergaard Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)As loan analyst for Madison Bank, you have been presented the following information.Plunkett Co. Herring Co.Assets Cash $117,200 $319,000 Receivables 210,300 306,200 Inventories 579,400 510,100 Total current assets 906,900 1,135,300 Other assets 505,200 614,100 Total assets $1,412,100 $1,749,400 Liabilities and Stockholders? Equity Current liabilities $308,100 $349,600 Long-term liabilities 390,400 505,200 Capital stock and retained earnings 713,600 894,600 Total liabilities and stockholders? equity $1,412,100 $1,749,400 Annual sales $935,700 $1,517,200 Rate of gross profit on sales 30 % 40 %Each of these companies has requested a loan of $50,010 for 6 months with no collateral offered. In as much as your bank has reached its quota for loans of this type, only one of these requests is to be granted.Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.)


Paper#44446 | Written in 18-Jul-2015

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