/ 915 75% Find CASE 11-2 Amerbran Corapany (A)" Amerban Company was a diversified company that 4. The year-end balance in Defested Income Taxes w sold various consumer products, including food, to $17,548 lower than it was at the start of the yeat. bacco, distilled, and personal care products and fi 5. New property, plant, and equipment purchases hancial services Financial statements for the com totaled $260,075, all paid for with cash. Disposals pany are shown in Exhibit 1. The 19x1 financial statements reflect the follow- of fixed acts generated $33,162 cash proceeds. ing transactions (dollar amounts are in thousands); 6. Acquisition of another company that was made for cash resulted in additional depreciable assets 1. Depreciation and amortization expense was of $31,691 and goodwill of $102,030. $115,974 7. Cash dividends were paid in the amount of 2. Net income included a low of $66,046 resulting $216,158 from the write-off of some obsolete equipment. 8. The firm declared and issued a 100 percent The equipment had not yet been disposed of common stock dividend effective Septem- 3. Net income included $59,610 from Amerbran's ber 10, 19xl; that is, cach shareholder received investment in a subsidiary; none of this income as a dividend a number of shares equal to his or had been received in cash her holdings prior to the dividend. The newly issued shates were valued at par in recording *Capricht James S. Reece. this transaction 352 Liscial Acco The Mew 11. The Stof Cash Pows Cause Edition Question Threement och flows for the 19x1 Index went to show the mec inch (54.9601 9. The fim spent $30/609 to purchase treasury sock on the open market. Some of the shared were reied to certain employees waar 10. The firm increased its short-term debts indi- cated on the balance sheet in Exhibit 1. Long teran borrowing decreased by $34.606 Activate Go to Sen EXHIBITI AMERIRAN COMIANY Find AMERBRAN COMPANY Balance Sheets of Deceber 31 (in thousanda) 19x1 1920 $ 28,912 756,152 1,244,912 76,140 2,106,116 1,116,534 1,566,268 723.442 842,826 645,210 115.826 $4,876.512 $ 23,952 687,325 1,225,402 77.167 2,013,846 1058,637 1,366,719 645.734 720,985 577,606 62374 $4433.48 Assets Cash Accounts receivable Inventories Prepaid expenses Total currentes Investments Property, plant, and equipment, at cost Less accumulated depreciation Net property, plant, and equipment Goodwill Others Totalets Liabilities and Shareholders' Equity Accounts payable Short-term debt Accred expenses payable Total current liabilities I Long-term liabilities Total liabilities Convertible preferred stock Common stock, par Additional paid in capital Toy stock, att Retained wine To shareholders Total liabilities and shareholdenegaty INCOME STATEMENT For the waren in thonda Sales reven Cutos Excel Giogin Selline, eraldistrative Income down Provinciale Net income $271,452 430,776 922.990 1.625,218 890674 2.505.892 33,828 322.834 53,641 (110,945) 2.024.265 2020.620 $4826512 $238,377 351,112 725.262 1,317,751 032828 2.250.579 42,611 161,417 57,072 (102 705) 2.024.474 2.152.869 4433448 $7.622.677 2.803,613 2.837616 1,911,439 224558 38 353 DOLL / 915 75% Find CASE 11-2 Amerbran Corapany (A)" Amerban Company was a diversified company that 4. The year-end balance in Defested Income Taxes w sold various consumer products, including food, to $17,548 lower than it was at the start of the yeat. bacco, distilled, and personal care products and fi 5. New property, plant, and equipment purchases hancial services Financial statements for the com totaled $260,075, all paid for with cash. Disposals pany are shown in Exhibit 1. The 19x1 financial statements reflect the follow- of fixed acts generated $33,162 cash proceeds. ing transactions (dollar amounts are in thousands); 6. Acquisition of another company that was made for cash resulted in additional depreciable assets 1. Depreciation and amortization expense was of $31,691 and goodwill of $102,030. $115,974 7. Cash dividends were paid in the amount of 2. Net income included a low of $66,046 resulting $216,158 from the write-off of some obsolete equipment. 8. The firm declared and issued a 100 percent The equipment had not yet been disposed of common stock dividend effective Septem- 3. Net income included $59,610 from Amerbran's ber 10, 19xl; that is, cach shareholder received investment in a subsidiary; none of this income as a dividend a number of shares equal to his or had been received in cash her holdings prior to the dividend. The newly issued shates were valued at par in recording *Capricht James S. Reece. this transaction 352 Liscial Acco The Mew 11. The Stof Cash Pows Cause Edition Question Threement och flows for the 19x1 Index went to show the mec inch (54.9601 9. The fim spent $30/609 to purchase treasury sock on the open market. Some of the shared were reied to certain employees waar 10. The firm increased its short-term debts indi- cated on the balance sheet in Exhibit 1. Long teran borrowing decreased by $34.606 Activate Go to Sen EXHIBITI AMERIRAN COMIANY Find AMERBRAN COMPANY Balance Sheets of Deceber 31 (in thousanda) 19x1 1920 $ 28,912 756,152 1,244,912 76,140 2,106,116 1,116,534 1,566,268 723.442 842,826 645,210 115.826 $4,876.512 $ 23,952 687,325 1,225,402 77.167 2,013,846 1058,637 1,366,719 645.734 720,985 577,606 62374 $4433.48 Assets Cash Accounts receivable Inventories Prepaid expenses Total currentes Investments Property, plant, and equipment, at cost Less accumulated depreciation Net property, plant, and equipment Goodwill Others Totalets Liabilities and Shareholders' Equity Accounts payable Short-term debt Accred expenses payable Total current liabilities I Long-term liabilities Total liabilities Convertible preferred stock Common stock, par Additional paid in capital Toy stock, att Retained wine To shareholders Total liabilities and shareholdenegaty INCOME STATEMENT For the waren in thonda Sales reven Cutos Excel Giogin Selline, eraldistrative Income down Provinciale Net income $271,452 430,776 922.990 1.625,218 890674 2.505.892 33,828 322.834 53,641 (110,945) 2.024.265 2020.620 $4826512 $238,377 351,112 725.262 1,317,751 032828 2.250.579 42,611 161,417 57,072 (102 705) 2.024.474 2.152.869 4433448 $7.622.677 2.803,613 2.837616 1,911,439 224558 38 353 DOLL