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Confused with the three companies and tchart BACKGROUND during 20Y3: Johnson Controls is a manufacturing company and had the following investment related activities 1. The

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Confused with the three companies and tchart

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BACKGROUND during 20Y3: Johnson Controls is a manufacturing company and had the following investment related activities 1. The company purchased Jones & Co.'s 5-year, 5%, $100,000 bond. The bond was purchased on January 1, 20Y3 for $95,788 to yield 6% interest. The bond pays annual interest on December 31. Johnson is holding the investment as available-for-sale. At December 31, 20Y3, the bond had a fair market value of $97,500. 2. The company purchased 6,000 shares of Dobson Lid. common stock at a cost of $255,000 on July 31, 20Y3. These shares do not give Johnson significant influence over Dobson. On October 31, 20Y3, Dobson Ltd. paid a $2 per share cash dividend. At December 31, 20Y3, Dobson Ltd. was trading at $40 a share. 3. On January 1, 20Y3, the company invested in Rothrock Industries by acquiring 30% of Rothrock's outstanding stock for $21,500,000. During 20Y3, Rothrock Industries reported net income of $5,000,000 and paid cash dividends totaling $1,000,000. At December 31, 20Y3, Rothrock Industries had a market value of $75,000,000. Note: Ignore any excess price issues. REQUIRED Using the following templates, show how each of the above transactions impacted Johnson's cash flows, income, and balance sheet for 20Y3. Round all amounts to the nearest whole dollar. View each column as a standalone analysis of each investment type. Do not show their cumulative changes like we do in other activities and handouts. Some lines might not have answers. List account names or transaction descriptions in the first column and amounts in the remaining columns. NOTE: The t-accounts are not required, but it is strongly suggested that you work the problems using t- accounts first and then transfer your answers to the appropriate financial statements.\fIMPACT ON CURRENT PERIOD CASH FLOW Jones & Co Dobson Ltd. Rothrock Industries Net Impact on Current Period Cash Flow Jones & Co Dobson Ltd. Rothrock Industries Net Impact on Current Period Earnings ASSETS: Jones & Co Dobson Ltd. Rothrock Industries Change in Assets LIABILITIES + EQUITY: Change in Liabilities + Equity

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