Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could you please help me with these questions Rainbow Logistics purchased land with the intention of building an office. Rainbow also engaged other contractors for

Could you please help me with these questions

Rainbow Logistics purchased land with the intention of building an office. Rainbow also engaged other contractors for fencing, paving, lighting, landscaping, and to remove a dilapidated building to make room for new office building. The following information relates to these transactions:(10 Marks).

  • Purchased land for $ 350,000.
  • Paid $ 4,000 for seller's back property taxes.
  • Paid $ 22,000 to have the dilapidated building removed.
  • Paid a builder $ 400,000 to design and build the office building.
  • Paid an excavation company $ 20,000 to grade and clear the land to make it suitable for building purposes.
  • Paid a landscaping company $ 10,000 for trees and shrubs.
  • Paid a contractor $ 16,000 for outside lighting around the parking area and sidewalks.
  • Paid $ 26,000 to have the parking lot paved.
  • Paid a fence builder $ 15,000 to construct a security fence around the property.

Instructions

Determine the cost of the land, the building, and the land improvements.

Land =

Building =

The following information is available from the audited financial statements of Molson Coors Brewing Company and Big Rock Breweries Income Trust for their year ends.(10 Marks)

Molson/Coors

(in millions of US dollars)

Big Rock Breweries

(in thousands of Cdn dollars)

Net revenue

$ 5,844

$ 38,701

Profit

$ 373

$ 8,380

Total assets, ending

$ 11,603

$ 42,170

Total assets, beginning

$ 11,799

$ 41,786

Instructions

Calculate both companies' asset turnover and return on assets.

a) AssetTurnover:___________________________________________

b) Return onAsset____________________________________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

Students also viewed these Accounting questions