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Ch5 Solutions - SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE...

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SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 5-1 Current assets Cash ................................................................... $ 30,000 Accounts receivable ......................................... $110,000 Less: Allowance for doubtful accounts... (8,000 ) 102,000 Inventories ......................................................... 290,000 Prepaid insurance ............................................ 9,500 Total current assets ............................. $431,500 BRIEF EXERCISE 5-2 Current assets Cash ................................................................... $ 7,000 Trading securities ............................................. 11,000 Accounts receivable ......................................... $90,000 Less: Allowance for doubtful accounts... (4,000 ) 86,000 Inventory ............................................................ 30,000 Prepaid insurance ............................................ 5,200 Total current assets ............................. $139,200 BRIEF EXERCISE 5-3 Long-term investments Held-to-maturity securities .............................. $ 56,000 Land held for investment ................................. 39,000 Long-term note receivables ............................ 42,000 Total investments ....................................... $137,000
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BRIEF EXERCISE 5-4 Property, plant, and equipment Land ................................................................... $ 71,000 Buildings ........................................................... $207,000 Less: Accumulated depreciation .............. (45,000 ) 162,000 Equipment ......................................................... $190,000 Less: Accumulated depreciation ............. (19,000 ) 171,000 Timberland ........................................................ 70,000 Total property, plant, and equipment... $474,000 BRIEF EXERCISE 5-5 Intangible assets Goodwill ............................................................. $150,000 Patents ............................................................... 220,000 Franchises ......................................................... 130,000 Total intangibles ......................................... $500,000 BRIEF EXERCISE 5-6 Intangible assets Goodwill ............................................................. $ 50,000 Franchises ......................................................... 47,000 Patents ............................................................... 33,000 Trademarks ....................................................... 10,000 Total intangible assets ............................... $140,000
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BRIEF EXERCISE 5-7 Current liabilities Notes payable ................................................... $ 22,500 Accounts payable ............................................. 72,000 Accrued salaries ............................................... 4,000 Income taxes payable ...................................... 7,000 Total current liabilities ......................... $105,500 BRIEF EXERCISE 5-8 Current liabilities Accounts payable ............................................. $220,000 Advances from customers .............................. 41,000 Wages payable .................................................. 27,000 Interest payable ................................................ 12,000 Income taxes payable ...................................... 29,000 Total current liabilities ......................... $329,000 BRIEF EXERCISE 5-9 Long-term liabilities Bonds payable .................................................. $400,000 Less: Discount on bonds payable ............ 29,000 $371,000 Pension liability ................................................ 375,000 Total long-term liabilities ..................... $746,000
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BRIEF EXERCISE 5-10 Stockholders’ equity Common stock .................................................. $750,000 Additional paid-in capital ................................. 200,000 Retained earnings ............................................ 120,000 Accumulated other comprehensive loss ....... (150,000 ) Total stockholders’ equity .......................... $920,000 BRIEF EXERCISE 5-11 Stockholders’ equity Preferred stock ................................................. $152,000 Common stock .................................................. 55,000 Additional paid-in capital ................................. 174,000 Retained earnings ............................................ 114,000 Total stockholders’ equity .......................... $495,000 BRIEF EXERCISE 5-12 Cash Flow Statement Operating Activities Net income .......................................................... $40,000 Depreciation expense ........................................ 4,000
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