50.1K

Verified Solution

Link Copied!

FLOUNDER CORPORATION Statement of Financial Position December 31, 2020 Current assets $ 446,200 Current liabilities $ 349,600 Investments 588,800 Long-term liabilities 883,200 Property, plant, and equipment 1,582,400 Shareholders' equity 1,628,400 Intangible assets 243,800 $ 2,861,200 $ 2,861,200 The following additional information is available: 1. The current assets section includes the following: cash $ 138,000; accounts receivable $ 156,400, less $ 9,200 allowance for doubtful accounts; inventory $ 165,600; and unearned revenue $4,600. The cash balance is composed of $ 174,800, less a bank overdraft of $ 36,800 (at a separate financial institution). Inventory is stated at the lower of FIFO cost and net realizable value. 2 . 3. 4. The investments section includes the following: note receivable from a related company, due in 2026, $ 36,800; FV-NI investments in shares $ 73,600 (fair value $ 73,600); FV-OCl investments in shares $ 115,000 (fair value $ 142,600); bond sinking fund $ 230,000; and patents $ 105,800, net of accumulated amortization. Property, Plant, and Equipment include buildings $956,800, less accumulated depreciation $ 331,200; equipment $ 414,000, less accumulated depreciation $ 165,600; land $ 460,000; and land held for future use $ 248,400. Intangible Assets include franchise, net of accumulated amortization, $ 243,800. Current liabilities include the following: accounts payable $ 128,800; notes payable, short-term $ 73,600, long-term $ 110,400; and income tax payable $ 36,800. Long-term liabilities are composed solely of 7% bonds payable issued at a discount, due in 2028. Shareholders' equity has 70,000 preferred shares (200,000 authorized), which were issued for $ 414,000, and 92,000 common shares (unlimited number authorized), which were issued at an average price of $10 per share. In addition, the 5. 6. 7. 7. Shareholders' equity has 70,000 preferred shares (200,000 authorized), which were issued for $414,000, and 92.000 common shares (unlimited number authorized), which were issued at an average price of $10 per share. In addition, the corporation has retained earnings of $ 266,800 and accumulated other comprehensive income of $ 27,600. (a) Prepare a statement of financial position in good form. (Adjust the amounts in each SFP classification based on the additional information.(List Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.) FLOUNDER CORPORATION Statement of Financial Position Assets $ $ >

Answer & Explanation Solved by verified expert

See Answer