6. Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and with a Current ratio of 2:1. Non- current asset balance is Php 2,000,000.00 comprised of Fixed Asset. There is no long-term debt with debt ratio of only 0.25:1. Using Book Value Method, what is the minimum value it can sell the 15% of the business? a. Php 750,000.00 b. Php 550,000.00 c. Php 450,000.00 d. Php 400,000.00
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- LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and with a Current ratio of 2:1. Non-current asset balance is Php 2,000,000.00 comprised of Fixed Asset. There is no long-term debt with debt ratio of only 0.25:1. Using Book Value Method, what is the minimum value it can sell the 15% of the business? choices: a. 450,000 b. 550,000 c. 400,000 d. 500,000Summerfields Sdn BhdBalance Sheet as at 31 December 2020 (RM’000)Cash 400 Account payable 1,200Marketable securities 500 Accrued wages 1,200Accounts receivable 750 Notes payable 700Inventories 500 Mortgage payable 2,200Net Fixed Asset 4,850 Common stock 500Retained earnings 1,200TOTAL ASSETS 7,000 TOTAL CLAIMS 7,000Additional information:-i) Sales in 2020 was RM 12 million and it is projected to increase to 18 million in 2021.ii) The company is operating at full capacity.iii) The net profit for this company in 2020 was RM1,200,000 and dividend payment wasRM300,000.iv) All external financing will be absorbed and met by common stock.Prepare a pro-forma balance sheet for Summerfields Sdn Bhd for the year ended 2021by using percent of sales method and determine the external funds required.
- Pax Limited showed the following assets and liabilities in its financial statements at 31 December 2018. DETAILS CARRYING AMOUNT FAIR VALUE PPE 10,000,000 14,000,000 Inventory 4,200,000 4,400,000 Long Term Loans (3,500,000) (3,500,000) Account Payable (2,500,000) (2,500,000) 8,200,000 12,400,000 The current market rate for similar transactions is 8.5% per annum. Chelsea Limited planned to acquire all the assets and liabilities of Pax Limited on 1 July 2018 and agreed to pay R13,400,000 in cash on 1 July 2019 in full settlement of the acquisition. Required: Calculate the purchase consideration. Calculate the goodwill or bargain purchase for this transaction. Prepare the journal entries required in the books of Chelsea Limited relating to this transaction.2.The following information is from Dejlah, Inc.s, financial statements. Sales (all credit) were AED 800 million for 2020. Sales to total assets... 2 times Total debt to total asset: 30% Current ratio ... 3.0 times Inventory turnover 5.0 times Average collection period 18 days Fixed asset turnover-.... 5.0 times Fill in the balance sheet: Cash..... Current debt Accounts receivable .. Long-term del Inventory ... Total debt . Total current assets Equity...... Fixed assets..... Total assets Total debt and equityRed Company financing has a total assets of P500,000 and total liabilities of P300,000 at the end of the December 31, 2020. What is the amount to be received by the shareholders if the company liquidates its total assets at P450,000 and payoff all of its liabilities? No peso sign, with comma, no decimal point.
- Debt Investments Classification Cost orAmortized Cost Fair Valueat end if 2017 Interest Incomein 2017 Sales Pricein 2018 Trading $15,000 $14,000 $750 $14,500 Available-for-Sale $18,000 $15,000 $1,000 $16,000 Held-to-Maturity $24,000 $25,500 $950 For the Houston Company, what amount will appear on the income statement in 2017? Select one: a. ($2,500) b. $1,700 c. ($300) d. $2,700 e. $3,000E17.22 (L04) HIT (Impairment) Komissarov SA has a debt investment in the bonds issued by Keune AG The bonds were purchased at par for € 400,000 and, at the end of 2019, have a remaining life of 3 years with annual interest payments at 10%, paid at the end of each year. This debt investment is classified as held-for-collection. Keune is facing a tough economic environment and informs its investors that it will be unable to make all payments according to the contractual terms. The con troller of Komissarov has prepared the following revised expected cash flow forecast for this bond investment. Dec. 31 Expected Cash Flows 2020 € 35,000 2021 35,000 2022 385,000 total cash flow € 455,000 Instructions a. Determine the impairment loss for Komissarov at December 31, 2019. b. Prepare the entry to record the impairment loss for Komissarov at December 31, 2019. c. On January 15, 2020, Keune receives a…From the following forecast the Balance sheet for the year 2021Balance sheet as of 31/12/2020Liabilities& Equity AmountAssetsAmountEquity33,000 Plant and machinery 10,000Retained earnings 10,000 Land Property20.000Accounts payable 7,000 Accounts receivables 3.000Inventories10.000Cash in hand2000Cash at Bank5.00050,00050,0001. It is expected that the company will make a net income of10% of forecasted sales2. The company will purchase additional 5000 OMR worthmachines by taking an additional loan of 5000 OMR3. Forecasted sales OMR 100,0004. Dividend payout will be 50%5. The following estimates are also given;Accounts payable 10,000Accounts receivable 6,000Inventories 15,000Cash in hand 6.000Cash at bank 1,000
- Debt Investments Classification Cost orAmortized Cost Fair Valueat end if 2017 Interest Incomein 2017 Sales Pricein 2018 Trading $15,000 $14,000 $750 $14,500 Available-for-Sale $18,000 $15,000 $1,000 $16,000 Held-to-Maturity $24,000 $25,500 $950 For the Houston Company, what is the unrealized gain or loss that will appear in the Accumulated Other Comprehensive Account in 2017? Select one: a. $1,500 gain b. $4,000 Loss c. $2,500 Loss d. $1,000 Loss e. $3,000 Loss PreviousSave AnswersNextJT Engineering’s current asset information for all four quarters of 2020 is shown below. JT maintained a constant $250,000 of current liabilities throughout the year. Based on the current ratio, in which quarter was JT least liquid? CURRENT ASSETS Q1 Q2 Q3 Q4 Cash $10,000 $8,500 $9,200 $9,000 Short-term Investments 72,000 75,000 69,000 70,000 Accounts Receivable 66,000 61,500 64,300 65,000 Inventory 110,000 112,000 112,000 111,500 Prepaid Expenses 20,000 21,500 20,100 21,400 TOTAL CURRENT ASSETS $278,000 $278,500 276,600 276,900 a.) Q3 b.) Q1 c.) Q4 d.) Q2TANO LIMITED - DEBTORS AGE ANAYLSIS SHEET AS AT 31/12 2013 Total 2 years and above More than 1yr Less than 2 yrs 6 months to 1yr More than3mth s, less than 6 mths 3 month and below Debtors GH₵ GH₵ GH₵ GH₵ GH₵ GH₵ AAB LTD 10,000 2,000 1,000 7,000 CCD LTD 60,000 5,000 4,000 20,000 21,000 10,000 QART LTD 50,000 5,000 45,000 HASON LTD 40,000 5,000 30,000 5,000 RATMAN LTD 20,000 5,000 15,000 WHENT LTD 70,000 8,000 30,000 32,000 POMOTY LTY 80,000 5,000 8,000 67,000 RANCH LTD 90,000 3,000 8,000 30,000…