Question
Pearl, Inc., a drug company, reported the following information. The company prepares its financial statements in accordance with GAAP. 2020 (,000) Current liabilities $551,514 Convertible
Pearl, Inc., a drug company, reported the following information. The company prepares its financial statements in accordance with GAAP.
| 2020 (,000) | ||
| Current liabilities | $551,514 | |
| Convertible subordinated debt | 646,772 | |
| Total liabilities | 1,228,946 | |
| Stockholders' equity | 176,587 | |
| Net income | 58,037 |
Analysts attempting to compare Pearl to drug companies that issue debt with detachable warrants may face a challenge due to differences in accounting for convertible debt.
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Intermediate Accounting Volume 2
Authors: Thomas H. Beechy
5th Edition
0071091319, 978-0071091312
