答案和详解如下： Q51. Haggs wants to make sure that he assumes the proper accounting method when he does his analysis. The acquisition of BC stock will lead to Simpson's total net cash flow equaling which of the following for the year ending December 31, 1999?
A) $−3,190,000.
B) $360,000.
C) $−2,830,000.
Correct answer is C) Simpson paid a total of $−3,190,000 (290,000 shares × $11) however, they also received a dividend from BC of $360,000. For 1999 Bailey Corporation is paying $1.20 in dividends per share (1,200,000 / 1,000,000). As of December 1999, Simpson has purchased 300,000 shares of BC (= 290,000 + 10,000). So dividends received is 300,000 × $1.20 = $360,000. This will make the total cash flow for the year $−2,830,000.
Q52. Assume that on the balance sheet date shown below TME Corporation acquires 70% of Abcor, Inc. common stock for $25,000 in cash. Pre-acquisition Balance Sheets
December 31, 2001 | | TME Corp. | Abcor, Inc. | Current assets | $80,000 | $38,000 | Other assets | 28,000 | 15,000 | Total assets | $108,000 | $53,000 | | | | Current liabilities | $60,000 | $32,000 | Common stock | 15,000 | 14,000 | Retained earnings | 33,000 | 7,000 | Total liabilities and equity | $108,000 | $53,000 |
What will be the post-acquisition current ratio, using both the consolidation method and the equity method, respectively, for TME? The choices below represent Consolidation and Equity, respectively. A) 1.01, 0.92.
B) 1.04, 1.11.
C) 1.21, 1.02.
Correct answer is A) With the consolidation method: The current assets are ($80,000 + $38,000 - $25,000) = $93,000. The current liabilities are ($60,000 + $32,000) = $92,000. The current ratio is $93,000/$92,000 = 1.01. With the equity method: The current assets are ($80,000 - $25,000) = $55,000. The current liabilities are $60,000. The current ratio is $55,000/$60,000 = 0.92.
Q53. Using the consolidation method to account for the acquisition, what will be the post-acquisition current assets of TME?
A) $105,000.
B) $93,000.
C) $118,000.
Correct answer is B) Using the consolidated basis of accounting, the post-acquisition level of the current assets is the amount of the current assets prior to acquisition minus the amount of cash used for the acquisition. ($80,000 + 38,000 – 25,000) = $93,000. Q54. Using the consolidation method to account for the acquisition, what will be the post-acquisition amount that will be recorded as the minority interest?
A) $14,700.
B) $21,000.
C) $6,300.
Correct answer is C) Since only 70% of Abcor was purchased by TME there is a minority interest that must be accounted for, equal to the percentage of Abcor not owned by TME times Abcor’s net worth. (0.30)($53,000 – 32,000) = $6,300.
|
发表于 2009-1-8 10:48
| 
