CAP Inc. and SAP Company
AmazingExpertThe financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow:
CAP | SAP | |
Revenues | $ 900,000 | $ 300,000 |
Expenses | 660,000 | 200,000 |
Profit | $ 240,000 | $ 100,000 |
CAP | SAP | |
Retained earnings, 1/1/Year 5 | $ 800,000 | $ 200,000 |
Profit | 240,000 | 100,000 |
Dividends paid | 90,000 | 0 |
Retained earnings, 12/31/Year 5 | $ 950,000 | $ 300,000 |
Equipment (net) | $ 700,000 | $ 600,000 |
Patented technology (net) | 900,000 | 300,000 |
Receivables and inventory | 400,000 | 170,000 |
Cash | 80,000 | 110,000 |
Total assets | $2,080,000 | $1,180,000 |
Ordinary shares | $ 530,000 | $ 470,000 |
Retained earnings | 950,000 | 300,000 |
Liabilities | 600,000 | 410,000 |
Total equities and liabilities | $2,080,000 | $1,180,000 |
On December 31, Year 5, after the above figures were prepared, CAP issued $300,000 in debt and 15,000 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $40 per share. CAP also paid $30,000 to a broker for arranging the transaction. In addition, CAP paid $40,000 in stock issuance costs. SAP’s equipment was actually worth $710,000 but its patented technology was valued at only $270,000.
Required:
What are the balances for following accounts on the on the Year 5 consolidated financial statements?
(a) Profit
(b) Retained earnings, 12/31/Year 5
(c) Equipment
(d) Patented technology
(e) Goodwill
(f) Ordinary shares
(g) Liabilities
- 8 years ago
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- cap_inc._and_sap_company.docx