ch08 beams10e tb
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Chapter 8 Test Bank
CONSOLIDATIONS - CHANGES IN OWNERSHIP INTERESTS
Multple Ch!"e #uest!ns
LO$
$% Wh"h !& the &!ll!'n( s "!rre"t) The *re"t sale !&
a**t!nal shares t! the parent "!+pan, &r!+ a sus*ar,
a% *e"reases the parent.s nterest an* *e"reases the
n!n"!ntr!lln( shareh!l*ers. nterest%
% *e"reases the parent.s nterest an* n"reases the
n!n"!ntr!lln( shareh!l*ers. nterest%
"% n"reases the parent.s nterest an* n"reases the
n!n"!ntr!lln( shareh!l*ers. nterest%
*% n"reases the parent.s nterest an* *e"reases the
n!n"!ntr!lln( shareh!l*ers. nterest%
/se the &!ll!'n( n&!r+at!n n ans'ern( 0uest!ns 1 an* 2%
On De"e+er 2$3 14453 Gant-Petrel C!rp!rat!n.s Investment in
Penguin Corporationa""!unt ha* a alan"e !& 67173444% The alan"e
"!nsste* !& 84 !& Pen(un.s 65443444 st!"kh!l*ers. e0ut, !n that
*ate an* 6973444 !& (!!*'ll% On :anuar, 13 144;3 Pen(un n"rease*
ts !utstan*n( "!++!n st!"k &r!+ $73444 t! $83444 shares%
LO$
1% Assu+e that Pen(un s!l* the a**t!nal 23444 shares *re"tl,
t! Gant-Petrel &!r 6$743444 !n :anuar, 13 144;% Gant-Petrel.s
per"enta(e !'nershp n Pen(un ++e*atel, a&ter the pur"hase
!& the a**t!nal st!"k s
a% 55-1
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LO$
2% Assu+e that Pen(un s!l* the a**t!nal 23444 shares t! !uts*e
nterests &!r 6$743444 !n :anuar, 13 144;% Gant-Petrel.s
per"enta(e !'nershp ++e*atel, a&ter the sale !& st!"k '!ul*
e
a% 55-1>3444@ n! *?*en*s
'ere *e"lare*% On Mar"h $3 14453 Brstler* re*u"e* ts nterest n
/n*errush , selln( a 14 nterest3 !ne-&!urth !& ts n?est+ent3&!r 6893444%
LO$
9% I& Brstler* uses a e(nnn(-!&-the-,ear sale assu+pt!n3
ts (an !n sale an* n"!+e &r!+ /n*errush &!r 1445 'll e
Gan !n Sale In"!+e &r!+ /n*errush
a% 673;44 67>3944%
% 673;44 6513;44%
"% 6>3444 67>3944%
*% 6>3444 6513;44%
LO$
7% I& Brstler* uses the a"tual-sale-*ate sales assu+pt!n3
ts (an !n the sale an* n"!+e &r!+ /n*errush &!r 1445 'll
e
Gan !n Sale In"!+e &r!+ /n*errush
a% 61$3254 67>3944
% 61$3254 6513;44
"% 6153594 67>3944
*% 6153594 6513;44
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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LO$
8% What s Butt!n-0ual.s per"enta(e !'nershp n Sa?annah a&ter
Sa?annah ssues ts st!"k t! Butt!n-0ual)
a% ;5%21%
% 84%92%"% 81%7;%
*% 82%92%
LO$
>% Assu+n( that Sa?annah has n! &e* assets3 'hat s the a+!unt
!& (!!*'ll ass!"ate* 'th the ssuan"e !& shares t! Butt!n-
0ual)
a% 6283$;5%
% 6943121%
"% 69$3241%*% 69$3;21%
/se the &!ll!'n( n&!r+at!n &!r 0uest!ns $43 an* $$%
Great r(ater* C!rp!rat!n a"0ure* a >4 nterest n Slpstrea+
C!rp!rat!n at ts 68$43444 !!k ?alue !n De"e+er 2$3 1447% A
su++ar, !& the st!"kh!l*ers. e0ut, &!r Slpstrea+ at the en* !& 1447
an* 1445 s as &!ll!'s
$1
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LO$
$$% I& Slpstrea+ s!l* the a**t!nal shares *re"tl, t! Great
r(ater*3 Great r(ater*.s Investment in Slipstream
a""!unt a&ter the sale '!ul* e
a% 6$32743444%
% 6$32>73444%"% 6$39173444%
*% 6$37443444%
LO1
$1% Wh"h !& the &!ll!'n( s "!rre"t a!ut the treat+ent !&
prea"0ust!n earnn(s !n "!ns!l*ate* &nan"al state+ents)
I% E"lu*e the sus*ar, sales an* epenses pr!r t!
a"0ust!n &r!+ "!ns!l*ate* sales an* epenses%
II% In"lu*e the sus*ar, sales an* epenses pr!r t!
a"0ust!n an* *e*u"t prea"0ust!n n"!+e as a separatete+%
a% I !nl,%
% II !nl,%
"% I !r II%
*% Nether I n!r II%
LO$
$2% I& a parent "!+pan, an* !uts*e n?est!rs pur"hase shares !& a
sus*ar, n relat!n t! estn( st!"k !'nershp Fratal,
a% there 'll e n! a*ust+ent t! a**t!nal pa*-n "aptal
re(ar*less 'hether the st!"k s s!l* a!?e !r el!' !!k
?alue%
% the transa"t!n 'll re0ure+ent an n?est+ent a""!unt
a*ust+ent%
"% the transa"t!n 'll re0ure the el+nat!n !& a (an &
t 'as "!n*u"te* at e"!n!+" ar+s len(th%
*% the transa"t!n 'll re0ure the el+nat!n !& a l!ss &
t 'as "!n*u"te* at e"!n!+" ar+s len(th%
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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LO1
$9% Her!n C!rp!rat!n a"0ure* 94 !& WatersE*(e In"%.s "!++!n
st!"k &!r 69443444 !!k ?alue !n :anuar, $3 1445 'hen
WatersE*(e e0ut, "!nsste* !& 67443444 "aptal st!"k an*
67443444 retane* earnn(s% On Septe+er $3 1445 Her!n !u(ht
an a**t!nal 24 nterest n WatersE*(e &!r 61$43444% In !th
"ases3 Waterse*(e !!k ?alue e0uale* the &ar ?alue%
WatersE*(e ha* n"!+e !& 6$143444 earne* e?enl, thr!u(h 1445
an* pa* *?*en*s 0uarterl, !& 6173444%
The "!ns!l*ate* n"!+e state+ent !& Her!n C!rp!rat!n an*
Sus*ar, &!r the ,ear 1445 sh!ul* sh!' pre-a"0ust!n n"!+e
!&
a% 6 73222%
% 6 83444%
"% 6213444%
*% 6753444%
/se the &!ll!'n( n&!r+at!n t! ans'er 0uest!ns $7 thr!u(h $8%
B!'err* C!rp!rat!n pur"hase* a ;4 nterest n Sta(e C!rp!rat!n
!n :une $3 1445 at a pur"hase pr"e !& 62>43944% On ths *ate3
Sta(e.s !!k ?alues 'ere e0ual t! ts &ar ?alues e"ept &!r an
unre"!r*e* "!p,r(ht3 an* ts st!"kh!l*ers. e0ut, "!nsste* !&
61>43444 !& C!++!n St!"k an* 61$43444 !& Retane* Earnn(s% All "!st-
!!k *&&erentals 'ere attrute* t! the "!p,r(ht3 'h"h ha* an
est+ate* e"!n!+" l&e !& ten ,ears%
Durn( 14453 Sta(e earne* 6$143444 !& net n"!+e earne* un&!r+l,
thr!u(h!ut the ,ear an* pa* 653444 !& *?*en*s !n Mar"h $ an*
an!ther 653444 !n Septe+er $%
LO1
$7% Mn!rt, nterest n"!+e &!r 1445 s
a% 6253444%
% 6213944%
"% 65$3144%
*% 6743444%
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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LO1
$5% Prea"0ust!n n"!+e &!r 1445 s
a% 6743444%
% 6273444%
"% 6993444%
*% 6253444%
LO1
$;% The ?alue !& the "!p,r(ht that s n"lu*e* n B!'err*.
Investment in Stage a""!unt !n :une $3 1445 s
a% 6 13544%
% 6 73944%
"% 6 >3544%
*% 6$43944%
LO1
$8% The a+!rtJat!n epense re"!r*e* &!r the "!p,r(ht n 1445 s
a% 62$7%
% 6754%
"% 68$7%
*% 6>54%
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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LO$
Eer"se $
At De"e+er 2$3 14493 the st!"kh!l*ers. e0ut, !& G!sha'k C!rp!rat!n
an* ts 84-!'ne* sus*ar,3 Treet!p C!rp!rat!n3 are as &!ll!'s
G!sha'k Treet!pC!++!n st!"k3 6$4 par ?alue 6 143444 6 $13444
Retane* earnn(s 83444 53444
T!tals 6 183444 6 $83444
G!sha'k.s n?est+ent n Treet!p.s a""!unt alan"e s e0ual t! the
Treet!p !!k ?alue% Treet!p C!rp!rat!n ssue* 117 a**t!nal shares
!& "!++!n st!"k *re"tl, t! G!sha'k !n :anuar, $3 1447 at 6$8 per
share%
Re0ure* C!+pute the &!ll!'n(
$% C!+pute the alan"e n G!sha'k.s Investment in Treetop a""!unt
!n :anuar, $3 1447 a&ter the ne' n?est+ent s re"!r*e*%
1% Deter+ne the (!!*'ll F& an, &r!+ G!sha'k.s ne' n?est+ent n
the 117 Treet!p shares%
LO$
Eer"se 1
At the e(nnn( !& 14453 Starln( C!rp!rat!n hel* an 84 nterest
n T'( C!rp!rat!n% The n?est+ent a""!unt alan"e 'as 6>4434443"!nsstn( !& 84 !& T'(.s 6$34>73444 !& net assets an* 6193444 !&
(!!*'ll%
Durn( 14453 T'( un&!r+l, earne* 61293444 an* pa* *?*en*s !&
62;3744 !n Aprl $ an* a(an !n O"t!er $% On Au(ust $3 14453
Starln( s!l* 24 !& ts n?est+ent n T'( &!r 615137443 there,
re*u"n( ts nterest n T'( t! 75%
Re0ure* C!+pute the &!ll!'n( usn( the a"tual sales *ate
assu+pt!n
$% Gan !r l!ss !n sale%
1% In"!+e &r!+ T'( &!r 1445%
2% N!n"!ntr!lln( nterest &!r 1445%
LO$
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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Eer"se 2
At the e(nnn( !& 14453 l,"at"her C!rp!rat!n hel* a 54 nterest
n L"hen C!rp!rat!n% The n?est+ent a""!unt alan"e 'as 613$4434443
"!nsstn( !& 54 !& L"hen.s 6231153555 !& net assets an* 6$593444
!& (!!*'ll%
Durn( 14453 L"hen earne* 62443444 an* pa* *?*en*s !& 6$$43444 !n
N!?e+er $% On O"t!er $3 14453 l,"at"her s!l* $4 !& ts n?est+ent
n L"hen &!r 625934443 there, re*u"n( ts nterest n L"hen t!
79%
Re0ure* C!+pute the &!ll!'n( usn( the a"tual sales *ate
assu+pt!n
$% Gan !r l!ss !n sale%
1% In"!+e &r!+ L"hen &!r 1445%
2% N!n"!ntr!lln( nterest epense &!r 1445%
LO$
Eer"se 9
At De"e+er 2$3 1447 ,ear-en*3 Lap'n( C!rp!rat!n.s n?est+ent n
Open(r!un* In"% 'as 1443444 "!nsstn( !& 84 !& Open(r!un*.s
61743444 st!"kh!l*ers. e0ut, !n that *ate% On Aprl $3 14453
Lap'n( s!l* 14 nterest F!ne-&!urth !& ts h!l*n(s n Open(r!un*
&!r 6573444% Durn( 14453 Open(r!un* ha* net n"!+e !& 6;73444 an*
!n :ul, $3 14453 Open(r!un* pa* *?*en*s !& 6943444%
Re0ure*
$% Re"!r* the !urnal entres e&!re ,ear-en* 1445 assu+n( the
e0ut, +eth!*%
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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LO$
Eer"se 7
On Aprl $3 14453 G!ul*an C!rp!rat!n pa* 6$143444 &!r a 17
nterest n Ter+te M!un* C!rp!rat!n% On :ul, $3 14453 G!ul*an
a"0ure* an a**t!nal 97 Fase* !n the :anuar, $3 1445 nu+er !&
Ter+te M!un* shares !utstan*n( &!r 61253944% Ter+te M!un*.sst!"kh!l*ers. e0ut, !n :anuar, $3 1445 "!nsste* !& 62443444 !& 6$4
par ?alue C!++!n St!"k an* 6$443444 !& Retane* Earnn(s% Ter+te
M!un*.s net n"!+e &!r 1445 'as 6$993444 earne* un&!r+l, thr!u(h!ut
the ,ear%
Re0ure* Cal"ulate ea"h !& the &!ll!'n( a+!unts
$% G!ul*an.s n"!+e &r!+ Ter+te M!un* &!r 1445%
1% The a+!unt !& +n!rt, nterest n"!+e that 'll appear !n the
"!ns!l*ate* n"!+e state+ent !& G!ul*an an* Sus*ar, &!r
1445%
LO1
Eer"se 5
Catr* C!rp!rat!n pa* 61943444 !n Aprl $3 1445 &!r all !& the
"!++!n st!"k !& Bu( C!rp!rat!n n a usness a"0ust!n% Bu(.s
st!"kh!l*ers. e0ut, at Aprl $ "!nsste* !& the 6$>73444 :anuar, $3
1445 st!"kh!l*ers. e0ut, !& Bu( plus &rst 0uarter n"!+e less
*?*en*s% D?*en*s are pa* 0uarterl,% An, e"ess "!st !?er !!k
?alue a"0ure* s (!!*'ll 'th a $4-,ear a+!rtJat!n per!*%
A**t!nal n&!r+at!n
$% Catr* s!l* e0up+ent 'th a 7-,ear re+ann( use&ul l&e t!
Bu( !n :ul, $3 1445 &!r a (an !& 6$43444%
1% Bu(.s a""!unts pa,ale alan"e at De"e+er 2$ n"lu*es 673444
*ue t! Catr* &r!+ the sale !& e0up+ent%
2% Catr* a""!unts &!r ts n?est+ent n Bu( usn( the e0ut,
+eth!* as a !ne-lne "!ns!l*at!n%
Re0ure*
C!+plete the '!rkn( papers t! "!ns!l*ate the &nan"al state+ents!& Catr* an* Bu( C!rp!rat!ns &!r the ,ear 1445%
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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LO1
Eer"se ;
S'all!' C!rp!rat!n pa* 6513444 t! a"0ure $44 !& Gull,
C!rp!rat!n.s !utstan*n( ?!tn( "!++!n st!"k at !!k ?alue !n Ma, $3
1445% The st!"kh!l*ers. e0ut, !& Gull, !n :anuar, $3 1445 "!nsste*
!& 6943444 Captal St!"k an* 6143444 Retane* Earnn(s% Gull,.s t!tal*?*en*s &!r 1445 'ere 6534443 pa* e0uall, !n Aprl $ an* O"t!er
$% Gull,.s net n"!+e 'as earne* un&!r+l, thr!u(h!ut 1445%
Durn( 14453 S'all!' +a*e sales !& 6$43444 t! Gull, at a (r!ss pr!&t
!& 623444% One-hal& !& ths +er"han*se 'as n?ent!re* , Gull, at
,ear-en*3 an* !ne-hal& !& the 1445 nter"!+pan, sales 'ere unpa* at
,ear-en* 1445%
S'all!' s!l* e0up+ent 'th a ten-,ear re+ann( use&ul l&e t! Gull,
at a 613444 (an !n De"e+er 2$3 1445% The stra(ht-lne *epre"at!n
+eth!* s use*%
nan"al state+ents !& S'all!' an* Gull, C!rp!rat!ns &!r 1445
appear n the &rst t'! "!lu+ns !& the partall, "!+plete*
"!ns!l*at!n '!rkn( papers%
Re0ure*
C!+plete the '!rkn( papers &!r S'all!' C!rp!rat!n an* Sus*ar,
&!r the ,ear 1445%
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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S'all!' C!rp!rat!n an* Sus*ar,
C!ns!l*at!n W!rkn( Papers
&!r the ,ear en*e* De"e+er 2$3 1445
S'all!' Gull,
El+nat!ns N!n-
"!ntl
C!ns!l-
*ate*Det Cre*t
INCOME STATEMENTNet Sales 6 843444 6943444
In"!+e &r!+ Gull, 53744
Gan !n sale !&
E0up+ent 13444
C!st !& sales F 943444 F $73444
Depre"at!n F $$3444 F 93444
Other epenses F $13744 F 53444
Prea"0ust!n
In"!+e
Net n"!+e 173444 $73444
Retane*Earnn(s 543444 143444
A** Net n"!+e 173444 $73444
D?*en*s F $43444 F 53444
Retane*
Earnn(s $13444
BALANCE SHEET
Re"e?ales-net $>3444 $53444
In?ent!res $43444 83444
Other assets $43744 $93444
Lan* 73444 73444
Bul*n(s-net 143444 $73444
In?est+ent nGull, 573744
E0up+ent-net 943444 113444
TOTAL ASSETS 6 $;43444 6843444
LIAB K E#/IT
A""!unts pa,ale $53444 $43444
Other *et $>3444 $3444
C!++!n st!"k 543444 943444
Retane*
Earnn(s
;73444 1>3444
N!n"!ntr!lln(Interest
TOTAL LIAB% K
E#/IT
6
$;43444 6843444
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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S'&t C!rp!rat!n an* Sus*ar,
C!ns!l*at!n W!rkn( Papers
&!r the ,ear en*e* De"e+er 2$3 1445
S'&t
Weather
r!nt
El+nat!ns N!n-
"ntl
C!ns!l-
*ate*Det Cre*t
INCOME STATEMENTNet Sales 6
543444
6293444
In"!+e &r!+
Weather r!nt
93844
Gan !n sale !&
E0up+ent $3744
C!st !& sales F 1;3444 F $53444
Depre"at!n F 73444 F 23444
Other epenses F $13$44 F 73444
N!n"ntl% epense
Net n"!+e 113144 $43444
Retane*Earnn(s $43$44 $;3444
A** Net n"!+e 113144 $43444
D?*en*s F $13444 F 93444
Retane*
Earnn(s $1 Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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S!lut!ns
Multple Ch!"e #uest!ns
$ *
1 " F$73444 shares>3444 $
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$4 Slpstrea+.s st!"kh!l*ers. e0ut,
pr!r t! the st!"k ssuan"e 6 $34743444
Plus Captal re"e?e* &r!+ ne'
st!"k ssue* 9743444
Ne' st!"kh!l*ers. e0ut, 6 $37443444
Great r(ater*.s !'nershpper"enta(e
;;%$9
Great r(ater*.s a*uste*
n?est+ent n Slpstrea+ 6 $3$7;3$44
$$ In?est+ent alan"e at $1973444
A**t!nal n?est+ent F$43444
Shares 697 9743444
In?est+ent a""!unt alan"e 6 $32>73444
$1
$2 a
$9 " 6$143444 net n"!+e 13544
$8 r!+ #uest!n $;
F6>3544 Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
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$>
14
Eer"se $
Re0ure+ent $
C!st !& n?est+ent F6$83444 84
6 $93944Plus Pur"hase !& 117 Treet!p
shares at 6$8 !n :anuar, $3 1447 93474
In?est+ent a""!unt alan"e 6 $;3974
Re0ure+ent 1
Treet!p.s st!"kh!l*ers. e0ut, at
:anuar, $3 1447 6 $83444
Plus A**t!nal "aptal &r!+ the
shares ssue* 93474
T!tal st!"kh!l*ers. e0ut, a&terssuan"e !& the ne' shares 6 113474
G!sha'k.s per"enta(e
F>54 117
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Eer"se 1
Prel+nar, "!+putat!ns
In?est+ent alan"e3 :anuar, $ 6 >443444
In"!+e &r!+ T'( F61293444 ;3144
Less Aprl $ *?*en*s F62;3744 84 F 243444
B!!k ?alue at :ul, 2$3 1445 6 >;>3144
Re0ure+ent $
Pr!"ee*s &r!+ sale 6 1513744
B!!k ?alue !& nterest s!l*
F6>;>3144 24 1>23;54
L!ss !n sale 6 F 2$3154
Re0ure+ent 1
In"!+e &r!+ T'( &r!+ :an $
thr!u(h :ul, 2$ F&r!+ a!?e
6$4>3144 6 $4>3144
In"!+e &r!+ Au(ust $ De"e+er 2$
F61293444 7 Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
8-11
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23/30
Eer"se 2
Prel+nar, "!+putat!ns
In?est+ent alan"e3 :anuar, $ 6 13$443444
In"!+e &r!+ L"hen F62443444
> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
8-12
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8/11/2019 Ch08 Beams10e TB
24/30
Eer"se 9
Re0ure+ent Det Cre*t
Aprl $
In?est+ent n Open(r!un* $83;74
In"!+e &r!+ Open(r!un* $83;74
Cash 573444
In?est+ent n Open(r!un* 923;74
Gan &r!+ sale !& n?est+ent n
Open(r!un*
1$3174
:ul, $
Cash 193444
In?est+ent n Open(r!un* 193444
De"e+er 2$
In?est+ent n Open(r!un* 223;74
In"!+e &r!+ Open(r!un* 223;74
Selln( pr"e 6 573444
B!!k ?alue !& nterest s!l*
Be(nnn( alan"e 6 1443444
In"!+e &!r 2 +!nths
6;73444 $
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25/30
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26/30
Eer"se 5
Catr* C!rp!rat!n an* Sus*ar,
C!ns!l*at!n W!rkn( Papers
&!r the ,ear en*e* De"e+er 2$3 1445
Catr* Bu(
El+nat!ns Mn
Int
C!ns!l-
*ate*Det Cre*tINCOME STATEMENT
Net Sales 6 7443444 6$;43444 65;43444
In"!+e &r!+
Bu( 1$3444 " 6 1$3444
Gan !n sale !&
e0up+ent $43444 a $43444
C!st !& sales F1243444 F >43444 F2143444
Depre"at!n F$$23444 F 243444 6 $3444 F$913444
Other epenses F 243444 F $43444 F 943444
Prea"0ust!n
n"!+e * $43444 F $43444
Net n"!+e $783444 943444 $783444
Retane*
Earnn(s ;73444 743444 * 743444 ;73444
A** Net n"!+e $783444 943444 $783444
D?*en*s
Prea"0ust!n
*?*en*s
F 243444 F 143444 "
*
$73444
73444
F 243444
Retane*
Earnn(s $1
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27/30
Eer"se ;
S'all!' C!rp!rat!n an* Sus*ar,
C!ns!l*at!n W!rkn( Papers
&!r the ,ear en*e* De"e+er 2$3 1445
S'all!' Gull,
El+nat!ns Mn
Int
C!ns!l-
*ate*Det Cre*tINCOME STATEMENT
Net Sales 6 843444 6943444 a 6 $43444 6$$43444
In"!+e &r!+
Gull,
53744 * 53744
Gan !n sale !&
e0up+ent 13444 " 13444
C!st !& sales F 943444 F $73444 $3744 a 6 $43444 F 953744
Depre"at!n F $$3444 F 93444 F $73444
Other epenses F $13744 F 53444 F $83744
Prea"0ust!n
n"!+e e 73444 F 73444
Net n"!+e 173444 $73444 173444
Retane*
Earnn(s 543444 143444 e 143444 543444
A** Net n"!+e 173444 $73444 173444
D?*en*s F $43444 F 53444 *
e
23444
23444 F $43444
Retane*
Earnn(s $13444 6;73444
BALANCE SHEET
Re"e?ales-net $>3444 $53444 & 73444 243444
In?ent!res $43444 83444 $3744 $53744
Other assets $43744 $93444 193744Lan* 73444 73444 $43444
Bul*n(s-net 143444 $73444 273444
In?est+ent n
Gull, 573744
*
e
23744
513444
E0up+ent-net 943444 113444 " 13444 543444
TOTAL ASSETS 6 $;43444 6843444 6$;53444
E#/ITIES
A""!unts pa,ale $53444 $43444 & 73444 1$3444
Other *et $>3444 $3444 143444
C!++!n st!"k 543444 943444 e 943444 543444
Retane*
Earnn(s
;73444 1>3444 ;73444
Mn!rt,
nterest
TOTAL E#/ITIES 6 $;43444 6843444 6$;53444
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
8-1;
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28/30
Eer"se 8
S'&t C!rp!rat!n an* Sus*ar,
C!ns!l*at!n W!rkn( Papers
&!r the ,ear en*e* De"e+er 2$3 1445
S'&t Weather
r!nt
El+nat!ns N!n-
"ntl%
C!ns!l-
*ate*Det Cre*t
INCOME STATEMENT
Net Sales 6
543444
6293444 a 6 $13444 6813444
In"!+e &r!+
Weather r!nt
93844 e 93844
Gan !n sale !&
E0up+ent $3744 " $3744
C!st !& sales F 1;3444 F $53444 13444 a 6 $13444 F 223444
Depre"at!n F 73444 F 23444 * 244 F ;3;44
Other epenses F $13$44 F 73444 F $;3$44
N!n"ntl% epense 6 13444F 13444
Net n"!+e 113144 $43444 113144
Retane*
Earnn(s $43$44 $;3444 & $;3444 $43$44
A** Net n"!+e 113144 $43444 113144
D?*en*s F $13444 F 93444 e 23144F 844 F $13444
Retane*
Earnn(s $13244
Net Re"e?ales ;3444 73444 h $3444 $$3444
D?*en*s Re" 844 ( 844
In?ent!res ;3444 73444 13444 $43444
Plant assets-net 113444 923444 * 244 " $3744 523844In?est+ent n
Weather r!nt 9$3144
e
&
$3544
2>3544
G!!*'ll & 13444 13444
TOTAL ASSETS 6 843244 6543444 6>53$44
LIAB K E#/IT
A""!unts pa,ale $;3444 53444 h $3444 113444
D?*en*s
Pa,ale 23444 $3444 ( 844 23144
C!++!n st!"k 943444 243444 & 243444 943444
Retane*
Earnn(s 143244
123444 143244
N!n"ntl Interest
:anuar, $ & >3944 >3944
N!n"ntl Interest
De"e+er 2$ $43544 $43544
TOTAL LIAB% K
E#/IT
6
843244 6543444
6>53$44
=144> Pears!n E*u"at!n3 In"% pulshn( as Prent"e Hall
8-18
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8/11/2019 Ch08 Beams10e TB
29/30
Eer"se >
C!st !& n?est+ent 6 ;443444
B!!k ?alue a"0ure*
St!"kh!l*ers. e0ut,3 :an $ 6 8443444
In"!+e :an $ Au( 2$
F6;83444
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30/30
Eer"se $4
Re0ure+ent $
C!st !& n?est+ent F69743444
54 6 1;43444Share !& Trunk.s n"!+e &!r 1447
F6943444 54 193444
Investment in Trunkalan"e at
De"e+er 2$3 1447 1>93444
Plus Pur"hase !& $43444 Trunk
shares at 6$1 !n :anuar, $3 1445 $143444
In?est+ent a""!unt alan"e 6 9$93444
Re0ure+ent 1
Trunk.s st!"kh!l*ers. e0ut, at
:anuar, $3 1445 F69743444
6943444 !& 1447 net n"!+e 6 9>43444
Plus A**t!nal "aptal &r!+ the
shares ssue* $143444
T!tal st!"kh!l*ers. e0ut, a&ter
ssuan"e !& the ne' shares 6 5$43444
Ra?en.s per"enta(e
F193444 $43444