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Project 1 Show the impact on Company A's balance sheet for a purchase of 10% of company B. Company A paid $110,000 for the investment

Project 1
Show the impact on Company A's balance sheet for a purchase of 10% of company B.
Company A paid $110,000 for the investment
You determine how Company A paid for the investment.
Show the impact on Company A's Income Statement and Balance sheet for the Company B Dividend

Total Dividend paid was $1,000,000

Project 1
Income Statement
Company B Declares a $1,000,000 Dividend
Company A Company B
Revenues $ 10,695,652 $ 6,920,384
Cost of Goods Sold 7,448,067 5,135,927
Gross Profit $ 3,247,585 $ 1,784,457
Operating and Selling Expenses 2,535,373 103,558
Asset Impairment 70,226 11,376
General and Administrative Expenses 672,827 1,645,245
Net Income from Operations $ (30,841) $ 24,278
Non-Controlling Interest In Income 107 (12,694)
Other Income/(Loss) (26,485) 698,748
Income Tax (Expense) Benefit (1,697) (248,722)
Net Income $ (58,916) $ 461,610
Project 1
Balance Sheet
Company A Buys 10% of Company B
Company A Company B
Assets
Current Assets $ 2,696,190 $ 1,915,316
Investment in Company B
Investments 992,500
Other Intangible Assets 80,765
Equipment 856,341 352,226
Other Assets 360,515 266,181
Deferred Tax Assets 33,421 177,327
Goodwill 64,312
Total Assets $ 4,010,779 $ 3,784,315
Liabilities
Current Liabilities $ 2,045,968 $ 1,056,641
Long Term Liabilities 916,862 1,648,684
Total Liabilities $ 2,962,830 $ 2,705,325
Stockholder's Equity
Non-Controlling Interest $ 107 $ 44,617
Common Stock 2,917 217,209
Preferred Stock 386,401 27,391
Additional Paid In Capital 1,119,775 1,018,667
Treasury Stock (57,733)
Retained Earnings (403,518) (228,894)
Total Stockholer's Equity $ 1,047,949 $ 1,078,990
Total Labilities and Stockholder's Equity $ 4,010,779 $ 3,784,315

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