Given the information provided by the financial statements in Situation 2, what would you tell Abrahams? (As part of your answer, calculate the firm's cash flows.)
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Given the information provided by the financial statements in Situation 2, what would you tell Abrahams? (As part of your answer, calculate the firm's cash flows.)
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- Help Save & Exit Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $35 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31. 2021 Oct. 18 Purchased 2 million shares of Millwork Ventures Company common stock for $55 million. Millwork has a total of 32 million shares issued. 31 Received semiannual interest of $2.1 million from the Kansas Abstractors bonds. 1 Purchased 10% bonds of Holistic Entertainment Enterprises at their $18 million face value, to be held until they mature in 2031. Semiannual interest is payable April 30…Described below are certain transactions of Jeno Corporation during 2022. 1. On April 1, the corporation bought a truck for P6,000,000 from Haechan Corporation, payingP1,000,000 in cash and signing a one year, 12% note for the balance of the purchase price. 2. On May 1, the corporation received proceeds of P18,760,000 from Jisung Bank by signing a 10% note payable in equal annual installments of P2,000,000. The payment is to apply first to interest and then to principal. The first installment is due or April 30, 2023.3. On August 1, the Board of Directors declared a P300,000 cash dividend that was payable on September 10, to shareholders of record on August 31.4. On December 15, the corporation purchased goods from Chenle Company for P1,500,000 subjectto cash discount terms 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on January 14, 2023.5. Sales during the month of December amounted to P6,832,000,…Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2024 and the first month of 2025. The only securities held by Amalgamated at October 1, 2024 were $30 million of 10% bonds of Kansas Abstractors, Incorporated purchased on May 1, 2024 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31. October 18, 2024 Purchased 2 million shares of Millwork Ventures Company common stock for $58 million. Millwork has a total of 30 million shares issued. October 31, 2024 November 1, 2024 November 1, 2024 Received semiannual interest of $1.5 million from the Kansas Abstractors bonds. Purchased 10% bonds of Holistic Entertainment Enterprises at their $18 million face value, to be held until they mature in 2034.…
- On December 31, 2017, PanTech Company invests $36,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary of SoftPlus. Previously, PanTech had no equity interest in SoftPlus. Immediately after PanTech’s investment, SoftPlus presents the following balance sheet: Cash $ 36,000 Long-term debt $ 216,000 Marketing software 252,000 Noncontrolling interest 108,000 Computer equipment 72,000 PanTech equity interest 36,000 Total assets $ 360,000 Total liabilities and equity $ 360,000 Each of the above amounts represents an assessed fair value at December 31, 2017, except for the marketing software. Accordingly the December 31 fair value of SoftPlus is assessed at $144,000. If the marketing software was undervalued by $36,000, what amounts for SoftPlus would appear in PanTech's December 31, 2017, consolidated financial statements? If the marketing software…Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2024 and the first month of 2025. The only securities held by Amalgamated at October 1, 2024 were $30 million of 10% bonds of Kansas Abstractors, Incorporated purchased on May 1, 2024 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31. October 18, 2024 Purchased 2 million shares of Millwork Ventures Company common stock for $58 million. Millwork has a total of 30 million shares issued. October 31, 2024 November 1, 2024 November 1, 2024 December 1, 2024 December 20, 2024 December 21, 2024 December 23, 2024 December 29, 2024 December 31, 2024 Received semiannual interest of $1.5 million from the Kansas Abstractors bonds. Purchased 10% bonds of…Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 1. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one- year, 9% note for the balance. 2. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 3.
- Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 1. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one- year, 9% note for the balance. 2. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 3. (a) Prepare the journal entries necessary to record the transactions above using appropriate dates. Company uses the periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit > >Van Rushing Hunting Goods’ fiscal year ends on December 31. At the end of the 2016 fiscal year, the company had notes payable of $12 million due on February 8, 2017. Rushing sold 2 million shares of its $0.25 par, common stock on February 3, 2017, for $9 million. The proceeds from that sale along with $3 million from the maturation of some 3-month CDs were used to pay the notes payable on February 8. Through his attorney, one of Rushing’s construction workers notified management on January 5, 2017, that he planned to sue the company for $1 million related to a work-site injury on December 20, 2016. As of December 31, 2016, management had been unaware of the injury, but reached an agreement on February 23, 2017, to settle the matter by paying the employee’s medical bills of $75,000. Rushing’s financial statements were finalized on March 3, 2017. Required: 1. What amount(s) if any, related to the situations described should Rushing report among current liabilities in its balance sheet at…Gold Corporation began its operation at the beginning of 2018. Its functional currency is the US dollar and its presentation currency is the Philippine peso. Gold Corporation had cash of $225,000 and common stock of $225,000 on January 1, 2018. At the beginning of February, Gold Corporation purchased land for $80,000 and building for $55,000 in exchange for a three-year note payable. Revenue for 2018 was $355,000. Operating expenses, including depreciation of $5,000, were $250,000. The statement of financial position for Gold Corporation in US dollar at the end of 2018 is as follows: Gold Company Balance Sheet December 31, 2018 Assets US Dollars Cash 105,000 170,000 100,000 50,000 425.000 Accounts receivable Land Building, net Total assets Liabilities and Shareholders' Equity Accounts payable Long-term debt Share capital Retained earnings Total liabilities and stockholders' equity 10,000 155,000 225,000 35.000 425.000 Additional land was purchased in March in exchange for a three-year…
- The ZBD Co. had USD 1, 530, 000 balance on investment on January 1, 2015. The bonds are accounted for as a financial asset at fair value through profit or loss. The company has 1,500 bonds with face value of P1,000 that pay interest of 8% every March 1 and September 1 of each year until The investment’s fair value (dirty price) at year-end is USD1,525,000. What is the interest income recognized by ZBD Co for year 2015? Show solution and explanation.The capital accounts of Moli and Golu showed balances of Rs.40,000 andRs. 20,000 as on April 01, 2016. They shared profits in the ratio of 3:2. Theyallowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of Rs. 10,000 to the firm on August 01, 2016.During the year, Moli withdrew Rs. 1,000 per month at the beginning of every month whereas Golu withdrew Rs. 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was Rs.20,950. Calculate intereston drawings show distribution of profits and prepare partner’s capital accounts.Neptune Corporation is preparing its December 31, 2018, balance sheet. The following itemsmay be reported as either assets, liabilities or stockholders’ equity.a) Neptune invested $75,000 in an available for sale securities, fair value of which is $95,000 b) On October 1, 2018, the company borrowed $900,000 for 5 years at 8% per year. Interest is to be paid half-yearly on April 1 of every year. c) On December 15, 2018, the company declared a $1.50 per share dividend on the 60,000 shares of common stock outstanding, to be paid on January 25, 2019. Instructions: For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’equity. Mention the classification as well.