On May 1, Soriano Co. reported the following account balances along with their estimated fair values:CarryingAmountFair Value151,00080,000587,000652,0001,470,000Receivables151,00080,000InventoryCopyrightsPatented technology168,000855,000$ 1, 254,000Total assets237,000 $694,000100,000223,000Current liabilities237,000Long-term liabilitiesCommon stock681, 000Retained earningsTotal liabilities and equities$ 1,254,000On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. Tofacilitate the merger, Zambrano also paid $105,000 to an investment banking firm.The following information was also available:• Zambrano further agreed to pay an extra $82,400 to the former owners of Soriano only if they meet certain revenue goals duringthe next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at$41,200.Soriano has a research and development project in process with an appraised value of $238,500. However, the project has not yetreached technological feasibility and the project's assets have no alternative future use.a&b. Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was(a) $727,400 & (b) $849,700. (If no entry is required for a transaction/event, select "No journal entry required" in the first accountfield.)

In accounting records, a journal entry is used to record the debit and credit sides of a…

On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Fair Value 151,000 $ 151,000 80, 000 587,000 652,000 $ 1,254,000 $ 1,470,000 Amount Receivables Inventory Copyrights Patented technology Total assets 80,000 168,000 855,000 Current liabilities Long-term liabilities Common stock $4 237,000 681,000 237,000 694,000 100,000 223,000 Retained earnings Total liabilities and equities $ 1,254,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist acilitate the merger, Zambrano also paid $105,000 to an investment banking firm. The following information was also available:

On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Fair Value 151,000 $ 151,000 80, 000 587,000 652,000 $ 1,254,000 $ 1,470,000 Amount Receivables Inventory Copyrights Patented technology Total assets 80,000 168,000 855,000 Current liabilities Long-term liabilities Common stock $4 237,000 681,000 237,000 694,000 100,000 223,000 Retained earnings Total liabilities and equities $ 1,254,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist acilitate the merger, Zambrano also paid $105,000 to an investment banking firm. The following information was also available:

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 9.4.13P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables $ 144,100 $ 144,100 Inventory 77,400 77,400 Copyrights 135,500 509,500 Patented technology 901,000 744,000 Total assets $ 1,258,000 $ 1,475,000 Current liabilities $ 235,000 $ 235,000 Long-term liabilities 686,000 671,300 Common stock 100,000 Retained earnings 237,000 Total liabilities and equities $ 1,258,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $133,500 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $87,600 to the former owners of Soriano only if they meet certain revenue goals during the…
On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables $ 188,400 $ 188,400 Inventory 76,600 76,600 Copyrights 146,000 522,000 Patented technology 864,000 646,000 Total assets $ 1,275,000 $ 1,433,000 Current liabilities $ 182,000 $ 182,000 Long-term liabilities 700,000 682,000 Common stock 100,000 Retained earnings 293,000 Total liabilities and equities $ 1,275,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $123,000 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $74,000 to the former owners of Soriano only if they meet certain revenue goals during the…
On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables . . . . . . . . . . . . . . . . . . . . . . . $ 90,000 $ 90,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 75,000 Copyrights . . . . . . . . . . . . . . . . . . . . . . . . 125,000 480,000 Patented technology . . . . . . . . . . . . . . . 825,000 700,000 Total assets . . . . . . . . . . . . . . . . . . . . . . . $1,115,000 $1,345,000 Current liabilities . . . . . . . . . . . . . . . . . . . $ 160,000 $ 160,000 Long-term liabilities . . . . . . . . . . . . . . . . 645,000 635,000 Common stock . . . . . . . . . . . . . . . . . . . . 100,000 Retained earnings . . . . . . . . . . . . . . . . . . 210,000 Total liabilities and equities . . . . . . . . . . $1,115,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the…
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. PadreCompany Sol Company Book Values Book Values Fair Values 12/31 12/31 12/31 Cash $ 159,000 $ 45,550 $ 45,550 Receivables 277,500 380,000 380,000 Inventory 437,500 289,000 348,200 Land 700,000 213,000 188,500 Building and equipment (net) 752,500 274,000 336,700 Franchise agreements 311,000 273,000 304,800 Accounts payable (352,000 ) (179,000 ) (179,000 ) Accrued expenses (109,000 ) (42,250 ) (42,250 ) Longterm liabilities (932,500 ) (640,000 ) (640,000 ) Common stock—$20 par value (660,000 ) Common stock—$5 par value (210,000 ) Additional paid–in…
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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. PadreCompany Sol Company Book Values Book Values Fair Values 12/31 12/31 12/31 Cash $ 400,000 $ 120,000 $ 120,000 Receivables 220,000 300,000 300,000 Inventory 410,000 210,000 260,000 Land 600,000 130,000 110,000 Building and equipment (net) 600,000 270,000 330,000 Franchise agreements 220,000 190,000 220,000 Accounts payable (300,000) (120,000) (120,000) Accrued expenses (90,000) (30,000) (30,000) Long-term liabilities (900,000) (510,000) (510,000) Common stock—$20 par value (660,000) Common stock—$5 par value (210,000) Additional…
The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). Atwood Franz co. Franz Co. Particular Book Value Book Value fair Value 12/31/2021 12/31/2021 12/31/2021 Cash 870 240 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570 (240 (240 Accrued expenses (270 (60 (60 Long-term liabilities (2,700 (1,020 (1,120 Common stock ($20 par) (1,980 Common stock ($5 par) (420 Additional paid-in capital (210 (180 Retained earnings 1/1/18 (1,170 (480 Revenues (2,880 (660 Expenses 2,760 620 Note: Parenthesis indicates a credit balance. Assume an acquisition business combination took place on December 31, 2021. Atwood issued 50 shares of its common stock with a fair value of $35 per…
The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is:Dec. 31, 20Y9 Dec. 31, 20Y8AssetsCash $70,720 $47,940Accounts receivable (net) 207,230 188,190Inventories 298,520 289,850Investments 0 102,000Land 295,800 0Equipment 438,600 358,020Accumulated depreciation—equipment (99,110) (84,320)Total assets $1,211,760 $901,680Liabilities and Stockholders' EquityAccounts payable (merchandise creditors) $205,700 $194,140Accrued expenses payable (operating expenses) 30,600 26,860Dividends payable 25,500 20,400Common stock, $1 par 202,000 102,000Paid-in capital: Excess of issue price over par—common stock 354,000 204,000Retained earnings 393,960 354,280Total liabilities and stockholders' equity $1,211,760 $901,680The income statement for the year ended December 31, 20Y9, is as follows:Sales $2,023,898Cost of goods sold 1,245,476Gross profit $778,422Operating expenses:Depreciation expense $14,790Other operating expenses 517,299Total operating expenses 532,089Operating…
The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). Atwood Franz Co. Franz Co. Book Value Book Value Fair Value 12/31/2021 12/31/2021 12/31/2021 Cash $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570 ) (240 ) (240 ) Accrued expenses (270 ) (60 ) (60 ) Long-term liabilities (2,700 ) (1,020 ) (1,120 ) Common stock ($20 par) (1,980 ) Common stock ($5 par) (420 ) Additional paid-in capital (210 ) (180 ) Retained earnings 1/1/18 (1,170 ) (480 ) Revenues (2,880 ) (660 )…
Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
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