Recast Frosty Footwear's balance sheet for the last year, considering the balance sheet adjustments for the asset approach to business value. Recommend a business value using the asset approach.
Homework Answers
REAS0NS
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1. ASSET METHOD : ASSET VALUE REFERS TO METHOD FOR CALCULATION OF VALUE OF BUSINESS ASSUMING A SITUATION WHERE IF A BUSINESS IS SOLD IN PRESENT CONDITION WHAT WILL BE THE CURRENT VALUE OF ASSETS AND LIABILITIES. THUS ASSET METHOD FOCUSES ON "NET ASSET VALUE" OF THE COMPANY WHICH IS CURRENT SALE VALUE OF ASSET SUBRACTED BY CURRENT SALE VALUE OF LIABILITY.
2. SCRAP INVENTORY SHALL ALSO BE CONSIDERED AS IT HOLDS VALUE OF $25000.
3.DEPRICIATION AS PER STRAIGHT LINE METHOD SHALL BE DEDUCTED FROM VALUE OF PROPERTY PLANT AND EQUIPMENT AS ACCELERATED DEPRICIATION IS USED FOR INCOME TAX PURPOSES SHALL BE IGNORED FOR ACCOUNTING'S POINT OF VIEW. THUS AMOUNT OF 305296 IS IGNORED AND AMOUNT OF 198845 SHALL BE DEDUCTED FROM VALUE OF PROPERTY PLANT AND EQUIPMENT .
4. NON COMPLETE AGREEMENT AND LOAN FEES SHALL HAVE NO VALUE GIVEN IN THE QUESTION'S ADJUSTMENTS.
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Recast Frosty Footwear's balance sheet for the last year,
considering the balance sheet adjustments for the...
Recast Frosty Footwear's balance sheet for the last year, considering the balance sheet adjustments for the...
Recast Frosty Footwear's balance sheet for the last year,
considering the balance sheet adjustments for the asset approach to
business value. Recommend a business value using the asset
approach.
Exhibit 2: Frosty Footwear Inc. Balance Sheets for Years 2006-2007 12/31/2007 12/31/2006 $ Current Assets Cash Accounts Receivable (net 5,000) Inventory Prepaid Expenses $ 503,443 613,485 852,343 391,347 610,525 654,684 33,035 Total Current Assets $1,969,271 $ 1,689,591 Property, Plant & Equipment Leasehold Improvements Furniture & Fixtures Machinery & Equipment Vehicles 5,120...
Use the private company transactions method to fill out the yellow highlighted area and explain the...
Use the private company transactions method to fill out the
yellow highlighted area and explain the value for P:
Frosty Footwear, Inc. Recasted Income Statements for 2006 & 2007 2007 79,139 2006 19,578 Operating Profit $ $ Recasting Adjustments: Owners/Mgt Compensation CEO Bonus Compensation Salaries & Wages Professional Fees Rent Allocation Commissions Bad Debts Advertising & Promotion Trade Shows Research Depreciation Allocation Amortization--Purchase Debt Interest Other Expense 80,000 7,914 8,331 10,422 23,912 122,089 22,485 104,310 25,162 4,008 1,995 12.600 107,534...
Recast Frosty Footwear's income statements for the last two years considering the potential income statement adjustments...
Recast Frosty Footwear's income statements for the last two
years considering the potential income statement adjustments under
the income approach to business value. Calculate the Non-Recasted
and Recasted EBITDA.
Exhibit 1: Frosty Footwear Inc. Income Statements for Years 2005-2007 2007 2006 2005 $ 2,248,511 41,300 $ 1,789,429 30,172 $ 2,050,742 31,800 Sales Units Sold Cost of Goods Sold 596,194 185,736 26,921 12,434 62,723 Material 771,007 251,120 25,719 693,945 207,823 18,374 19,110 95,798 Direct Labor Rent Allocation 11,131 77,157 Depreciation Allocation...
Balance Sheet: Use the following financial information to prepare a balance sheet: Burger Shack, Inc.; Balance...
Balance Sheet: Use the following financial information to prepare a balance sheet: Burger Shack, Inc.; Balance Sheet Inventory 335,000 Accounts Receivable Accounts Payable 40.000 Buildings Furniture and Fixtures 16,000 Trademark Mortgage 325,000 Note Payable (6 month) Equipment and Vehicles 40,000 Retained Earnings Notes Receivable (3 month) 50,000 Land Common Stock (1,000,000 shares) 100,000 Cash Salaries Payable 90,000 192,000 110,000 20,000 150,000 113,000 40,000 15,000 Assets Current Assets Total Current Assets Fixed Assets Total Fixed Assets Intangible Assets Total Intangible Assets...
Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash...
Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand Total Current Assets Total Fixed Assets Total Assets Accounts Payable Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Bank Loans Total Current Liabilities Long-Term Bank Loans Outstanding Total Liabilities Year 11 Year 12 Shareholder Equity: Balance Change Common Stock 20,000 Additional Capital 120,000 0 Retained Earnings 60,000 20,000 Total Shareholder Equity 200,000 +20,000 Total Liabilities and Shareholder Equity $...
Acme Auto Supplies Balance Sheet December 31, 2007 AS Assets Cash - $60,000 S Prepaid Insurance...
Acme Auto Supplies Balance Sheet December 31, 2007 AS Assets Cash - $60,000 S Prepaid Insurance - $40,000 Accounts Receivable - $50,000 Inventory - $70,000 Land held for investment - $80,000 Land - $95,000 Building - $100,000 Less: Accumulated Depreciation - ($30,000) Trademark - $70,000 Total Assets - $535,000 Liabilities Accounts Payable - $65,000 Salaries Payable - $10,000 Mortgage Payable - $90,000 Total Liabilities - $165,000 Stockholders' Equity Common Stock - $120,000 Retained Earnings - $250,000 Total Stockholders' Equity -...
please help fill out this sheet Preparation of Balance Sheet Ari Company's December 31 post-closing trial balance contai...
please help fill out this sheet
Preparation of Balance Sheet Ari Company's December 31 post-closing trial balance contains the following normal balances: Cash $19,000 Accounts payable 20,000 Building 439,500 Long-term notes payable 785,000 Common stock 950,000 Retained earnings 75,000 Accumulated depreciation-Equipment 180,000 Land 877,000 Accounts receivable 22,500 Accumulated depreciation-Building 135,000 Wages payable 6,000 Patent (net of amortization) 120,000 Notes payable (short term) 131,000 Inventory 206,000 Equipment 600,000 Allowance for doubtful accounts 2,000 DUSITISSUUUISE Balance Sheet December 31 Assets Current Assets:...
Question 2 Given the partial balance sheet shown below, provide values for the missing information as...
Question 2 Given the partial balance sheet shown below, provide values for the missing information as requested. Enter your answers as whole numbers with no commas or dollar signs (1.e. 1234) 2017 2016 Assets Current Assets Cash and Equivalents Accounts Receivable Inventory Total Current Assets Huntsville Manufacturing Company Balance Sheet as of December 31 2017 2016 Liabilities and Shareholder Equity Current Liabilities 18,385 $ 23,500 Accrued Wages and Taxes 34,325 Accounts Payable 95,820 Notes Payable $ 165,675 Total Current Liabilities...
Question 6 Next> < Previous Given the following Year 9 selected balance sheet data: Assets $126,000...
Question 6 Next> < Previous Given the following Year 9 selected balance sheet data: Assets $126,000 245,000 240,000 $485,000 Cash on Hand Total Current Assets Total Fixed Asset Investments Total Assets Liabilities and Shareholder Equity Accounts Payable Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Loans Total Current Liabilities Long-Term Bank Loans Total Liabilities S 66,000 0 0 17,000 83,000 66,000 149,000 Year 8 Year 9 Balance Change Shareholder Equity: 10,050 81,500 0 Common Stock (at a...
Terry Co. Balance Sheet As of 12/31/Year 3 Year 3 Assets Year 2 Current Assets Cash...
Terry Co. Balance Sheet As of 12/31/Year 3 Year 3 Assets Year 2 Current Assets Cash $526.500 $729.000 ($40.500) S972 000 S80.750 S101,250 $2,349,000 $405.000 SEBA, 500 (S202,500) $1.134.000 $121,500 $81.000 $2,227.500 5486,000 $81.000 $121,500 $101.250 S40,500 $830,250 $324.000 $41,420 $365.420 $324.000 $41,420 $365,420 Allowance for Bad Debts Inventory Prepaid Insurance Prepaid Rent Total Current Assets Long-term investments Loans to other businesses Expansion Fund Total Long-term Investments PPE Land Building Equipment Accumulated Depreciation Total PPE Intangible Assets Patents, net Total...
Recast Frosty Footwear's balance sheet for the last year,
considering the balance sheet adjustments for the asset approach to
business value. Recommend a business value using the asset
approach.
Exhibit 2: Frosty Footwear Inc. Balance Sheets for Years 2006-2007 12/31/2007 12/31/2006 $ Current Assets Cash Accounts Receivable (net 5,000) Inventory Prepaid Expenses $ 503,443 613,485 852,343 391,347 610,525 654,684 33,035 Total Current Assets $1,969,271 $ 1,689,591 Property, Plant & Equipment Leasehold Improvements Furniture & Fixtures Machinery & Equipment Vehicles 5,120...
Use the private company transactions method to fill out the
yellow highlighted area and explain the value for P:
Frosty Footwear, Inc. Recasted Income Statements for 2006 & 2007 2007 79,139 2006 19,578 Operating Profit $ $ Recasting Adjustments: Owners/Mgt Compensation CEO Bonus Compensation Salaries & Wages Professional Fees Rent Allocation Commissions Bad Debts Advertising & Promotion Trade Shows Research Depreciation Allocation Amortization--Purchase Debt Interest Other Expense 80,000 7,914 8,331 10,422 23,912 122,089 22,485 104,310 25,162 4,008 1,995 12.600 107,534...
Recast Frosty Footwear's income statements for the last two
years considering the potential income statement adjustments under
the income approach to business value. Calculate the Non-Recasted
and Recasted EBITDA.
Exhibit 1: Frosty Footwear Inc. Income Statements for Years 2005-2007 2007 2006 2005 $ 2,248,511 41,300 $ 1,789,429 30,172 $ 2,050,742 31,800 Sales Units Sold Cost of Goods Sold 596,194 185,736 26,921 12,434 62,723 Material 771,007 251,120 25,719 693,945 207,823 18,374 19,110 95,798 Direct Labor Rent Allocation 11,131 77,157 Depreciation Allocation...
Balance Sheet: Use the following financial information to prepare a balance sheet: Burger Shack, Inc.; Balance Sheet Inventory 335,000 Accounts Receivable Accounts Payable 40.000 Buildings Furniture and Fixtures 16,000 Trademark Mortgage 325,000 Note Payable (6 month) Equipment and Vehicles 40,000 Retained Earnings Notes Receivable (3 month) 50,000 Land Common Stock (1,000,000 shares) 100,000 Cash Salaries Payable 90,000 192,000 110,000 20,000 150,000 113,000 40,000 15,000 Assets Current Assets Total Current Assets Fixed Assets Total Fixed Assets Intangible Assets Total Intangible Assets...
Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand Total Current Assets Total Fixed Assets Total Assets Accounts Payable Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Bank Loans Total Current Liabilities Long-Term Bank Loans Outstanding Total Liabilities Year 11 Year 12 Shareholder Equity: Balance Change Common Stock 20,000 Additional Capital 120,000 0 Retained Earnings 60,000 20,000 Total Shareholder Equity 200,000 +20,000 Total Liabilities and Shareholder Equity $...
Acme Auto Supplies Balance Sheet December 31, 2007 AS Assets Cash - $60,000 S Prepaid Insurance - $40,000 Accounts Receivable - $50,000 Inventory - $70,000 Land held for investment - $80,000 Land - $95,000 Building - $100,000 Less: Accumulated Depreciation - ($30,000) Trademark - $70,000 Total Assets - $535,000 Liabilities Accounts Payable - $65,000 Salaries Payable - $10,000 Mortgage Payable - $90,000 Total Liabilities - $165,000 Stockholders' Equity Common Stock - $120,000 Retained Earnings - $250,000 Total Stockholders' Equity -...
please help fill out this sheet
Preparation of Balance Sheet Ari Company's December 31 post-closing trial balance contains the following normal balances: Cash $19,000 Accounts payable 20,000 Building 439,500 Long-term notes payable 785,000 Common stock 950,000 Retained earnings 75,000 Accumulated depreciation-Equipment 180,000 Land 877,000 Accounts receivable 22,500 Accumulated depreciation-Building 135,000 Wages payable 6,000 Patent (net of amortization) 120,000 Notes payable (short term) 131,000 Inventory 206,000 Equipment 600,000 Allowance for doubtful accounts 2,000 DUSITISSUUUISE Balance Sheet December 31 Assets Current Assets:...
Question 2 Given the partial balance sheet shown below, provide values for the missing information as requested. Enter your answers as whole numbers with no commas or dollar signs (1.e. 1234) 2017 2016 Assets Current Assets Cash and Equivalents Accounts Receivable Inventory Total Current Assets Huntsville Manufacturing Company Balance Sheet as of December 31 2017 2016 Liabilities and Shareholder Equity Current Liabilities 18,385 $ 23,500 Accrued Wages and Taxes 34,325 Accounts Payable 95,820 Notes Payable $ 165,675 Total Current Liabilities...
Question 6 Next> < Previous Given the following Year 9 selected balance sheet data: Assets $126,000 245,000 240,000 $485,000 Cash on Hand Total Current Assets Total Fixed Asset Investments Total Assets Liabilities and Shareholder Equity Accounts Payable Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Loans Total Current Liabilities Long-Term Bank Loans Total Liabilities S 66,000 0 0 17,000 83,000 66,000 149,000 Year 8 Year 9 Balance Change Shareholder Equity: 10,050 81,500 0 Common Stock (at a...
Terry Co. Balance Sheet As of 12/31/Year 3 Year 3 Assets Year 2 Current Assets Cash $526.500 $729.000 ($40.500) S972 000 S80.750 S101,250 $2,349,000 $405.000 SEBA, 500 (S202,500) $1.134.000 $121,500 $81.000 $2,227.500 5486,000 $81.000 $121,500 $101.250 S40,500 $830,250 $324.000 $41,420 $365.420 $324.000 $41,420 $365,420 Allowance for Bad Debts Inventory Prepaid Insurance Prepaid Rent Total Current Assets Long-term investments Loans to other businesses Expansion Fund Total Long-term Investments PPE Land Building Equipment Accumulated Depreciation Total PPE Intangible Assets Patents, net Total...
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