Question
The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31, 2018, prior to the business combination whereby Goodwin acquired Corr,
The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31, 2018, prior to the business combination whereby Goodwin acquired Corr, are as follows (in thousands):
Goodwin | Corr | |||||||||||
Revenues | $ | 2,700 | $ | 600 | ||||||||
Expenses | 1,980 | 400 | ||||||||||
Net income | $ | 720 | $ | 200 | ||||||||
Retained earnings, 1/1 | $ | 2,400 | $ | 400 | ||||||||
Net income | 720 | 200 | ||||||||||
Dividends | (270 | ) | (0 | ) | ||||||||
Retained earnings, 12/31 | $ | 2,850 | $ | 600 | ||||||||
Cash | $ | 240 | $ | 220 | ||||||||
Receivables and inventory | 1,200 | 340 | ||||||||||
Buildings (net) | 2,700 | 600 | ||||||||||
Equipment (net) | 2,100 | 1,200 | ||||||||||
Total assets | $ | 6,240 | $ | 2,360 | ||||||||
Liabilities | $ | 1,500 | $ | 820 | ||||||||
Common stock | 1,080 | 400 | ||||||||||
Additional paid-in capital | 810 | 540 | ||||||||||
Retained earnings | 2,850 | 600 | ||||||||||
Total liabilities and stockholders' equity | $ | 6,240 | $ | 2,360 | ||||||||
On December 31, 2018, Goodwin obtained a loan for $600 and used the proceeds, along with the transfer of 30 shares of its $10 par value common stock, in exchange for all of Corrs common stock. At the time of the transaction, Goodwins common stock had a fair value of $40 per share.
In connection with the business combination, Goodwin paid $25 to a broker for arranging the transaction and $35 in stock issuance costs. At the time of the transaction, Corr's equipment was actually worth $1,400 but its buildings were only valued at $560.
Compute the consolidated revenues for 2018.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started