2010-11-13_225653_e10-8 - Exercise 10-8 Reorganization...

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Exercise 10-8 Reorganization Balance Sheet LO1 The following balance sheet was prepared for crane company on December 31, 2009: Crane company balance sheet December 31, 2009 Cash $33,000 Accounts receivable $52,5000 Less: Allowance for Uncollectibles 3,800 48,700 Inventory 71,000 Property and equipment (net) 142,000 Goodwill 20,000 Total assets $314,700 Accounts payable $66,000 10% Bonds payable, due 6/30/12 130,000 Common stock, $20 par, 10,000 shares outstanding 200,000 Retained Earnings (deficit) (81,300) Total Equities $314,700 Crane Company has had operating difficulties, accumulating a deficit over several years before 2009. During 2009, however, Crane reported a significantly lower operating loss, and prospects for the future are relatively bright. Although management and stockholders are optimistic about the future, it is almost certain that the company will lack the necessary working capital to handle existing obligations and expected future growth. In light of these facts, crane has
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2010-11-13_225653_e10-8 - Exercise 10-8 Reorganization...

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