Colton Jones Inc.

On April 19, 1997, the company was offered for sale to Mr. Warren G. Hamer. Provided with the exhibits that contain the summary of Terms and Conditions of Sale, audited Income Statements and Balance Sheets, and Company History, Mr. Hamer needs to decide whether or not to place a bid, which is due on April 24. However, Mr. Hamer was

The company’s increase in inventory (illustrated on the statement of cash flows) rose after 1970 and culminated by a drastic increase in 1973. This increase in inventory (especially in 1973) appears to be heavily financed by short-term and long-term borrowing rather than the typical accounts payable. This is a bit unusual and in 1973 (when they acquired the greatest amount of debt equity, their accounts payable decreased. Their sales were not sufficient to offset the large outflows of inventory related costs. Furthermore, Grant’s decentralization was also a cause of their financial woes because rather than corporately controlling credit extension and credit terms, they allowed each store manager to set their own policies (and manipulate them as they desired). This disastrous policy imploded in 1975 when the company had to make a $155.7 million provision for bad debt expense. So not only did the company have substantial debt and bad debt to equity ratios, they were forced to write off about 8.8% of their total sales from 1975.

3. How, if at all, is the acquisition of Hamlet recognized or disclosed in the financial statements?

Billy’s Beats Inc., an SEC registrant, is a new audit client with a fiscal year-end of December 31, 2010. Billy’s is a manufacturer of musical instruments. Billy’s acquired Little Drummer Boy Inc. in 2010 for $575 million in cash. Significant assets acquired included property, plant, and equipment totaling $865 million and other assets totaling $145 million. The useful lives assigned to the property, plant, and equipment acquired were 30 years for the plant and 15 years for the equipment. The useful lives for the plant and equipment already owned by Billy’s are 20 years and 10 years. Other included assets of acquired customer lists, were

dealt at arm’s length, and the selling price of $1,250,000 is the fair market value of the shares at the

c. The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed.

T. Eaton Co. Limited, or more commonly known as Eaton’s, was founded in Toronto in 1869, by Timothy Eaton . It was one of the most successful department store retailers in Canada during the late 1800s to mid 1900s. Timothy Eaton’s success can be attributed to his strategy of appealing to the upper working class with disposable income and lower middle class as this reached a larger consumer base. Moreover, his introduction of the mail-order catalogue, his determination and detailed attention to the company’s accounting and finances, the increased urbanization and living standards, along with many more factors, led to Eaton’s success. Despite Eaton’s downfall in the 1970s, and finally bankruptcy in 1999 , it is undeniable that Eaton made some innovative changes to the retail landscape that differentiated itself, and are still present to this day. Firstly, all goods were sold at fixed cash prices, such that there would be no bartering, or price negotiations; so goods could not be purchased on credit. The introduction of the money-back guarantee was effective in gaining the loyalty of its customers: “Goods Satisfactory or Money Refunded” .

4. On the assumption that the Cooper management wants to acquire at least 80% of the outstanding Nicholson stock and to make the same offer to all stockholders, what offer must Cooper management make – in terms of dollar value and the form of payment (cash, stock, debt)?

* Phil owned 63% of the share, 31% the five investors and the rest is retained by the employees of the company.

Overall. The FASB Codification Topic 320: Investments-Debt and Equity Securities is included under the financial statement asset section and offers guidance on investment instruments that represent either a creditor relationship (debt) or an ownership interest (equity) and provides standards for reporting such investments according to generally accepted accounting principles (GAAP) (FASB ASC 320-10-05-2, 2016).

The financial needs of Jones Electrical will increase unless they change their policy on financing buyers while paying faster to their suppliers. This in deed is what is making that the company requires additional founds.

Thank you for taking the time to meet with us.During our meeting, you stated that you (Stephen) are planning to purchase your co-owner’s (Rob Wilco) shares of Wiki Art Gallery, Inc. (WAG). As a private company, WAG’s shares do not have a readily available market price. However, you and Rob have agreed on calculating the buy-out price using the “earning multiplier” equal to five times the GAAP based net income for the year ended September 30, 2011.You stated that you would like an opinion regarding the 2011 financial information as it has not been audited. You would like to know whether WAG’s fiscal 2011net income fairly reports

The club manager is concerned about the club’s capability to purchase equipment and expand its facilities. One club member has agreed to help prepare the following financial statements and help the manager ascertain whether the plans are realistic. Additional information follows the financial statements.

Exhibit 2 Basic Industries Company and Consolidated Affiliates: 10-Year Financial Highlights as Reported in 1994 Annual Report (dollar amounts in millions; per-share amounts in dollars)

While working with these companies she found out that many people who buy by mail have a lot of hobbies & one hobby that kept on coming in her analysis was gardening. In 1978 seeing an opportunity she offered a proposal to her Chairman to start with a ‘Gardening Catalogue’.