moreaccounting - Exercise 7-13(1 E3-18 The Canton...

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Exercise 7-13 (1) E3-18 The Canton Corporation operates in four distinct business segments. The segments, along with 2006 information on revenues, assets and net income, are listed below ($ in millions): Segment Revenues Assets Net Income Pharmaceuticals $2,000 $1,000 $200 Plastics 3,000 1,500 270 Farm equipment 2,500 1,250 320 Electronics 500 250 40 Total company $8,000 $4,000 $830 Required: 1. For which segments must Canton report supplementary information according to SFAS No. 131? Total Company Revenues of $ 8,000 2. What amounts must be reported for the segments you identified in requirement 1? $ 8,000 E3-20 ? Judgment Case 3-5 You recently joined the auditing staff of Best, Best, and Krug, CPAs. You have been assigned to the audit of Clearview, Inc., and have been asked by the audit senior to examine the balance sheet prepared by Clearview’s accountant. CLEARVIEW, INC. Balance Sheet At December 31, 2011 ($ in millions) Assets Current assets: Cash $ 10.5 Accounts receivable 112.1
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Exercise 7-13 (2) Inventories 220.6 Prepaid expenses 5.5 Total current assets 348.7 Investments 22.0 Property, plant, and equipment, net 486.9 Total assets $ 857.6 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 83.5 Accrued taxes and interest 25.5 Current maturities of long-term debt 20.0 Total current liabilities 129.0 Long-term liabilities 420.0 Total liabilities 549.0 Shareholders’ equity: Common stock $100.0 Retained earnings 208.6 Total shareholders’ equity 308.6 Total liabilities and shareholders’ equity $857.7
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