presented below is the balance sheet of mcdonald company 544229 | Homework Solutions
Presented below is the balance sheet of McDonald Company.
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presented below is the balance sheet of mcdonald company 544229 | Homework Solutions
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December 31, 2000 |
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Assets |
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Current assets: |
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Cash (including $10,000 restricted |
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for payment of note) |
$40,000 |
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Marketable equity securities |
20,000 |
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Accounts receivable, less allowance |
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for doubtful accounts of $12,000 |
70,000 |
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Inventory |
60,000 |
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Total current assets |
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Plant assets: |
$190,000 |
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Land |
40,000 |
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Buildings, net |
100,000 |
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Equipment |
$80,000 |
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Less: Accumulated depreciation |
20,000 |
60,000 |
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Patent |
20,000 |
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Organizational costs |
15,000 |
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235,000 |
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Other assets: |
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Prepaid insurance |
5,000 |
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Total assets |
$430,000 |
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Liabilities and Stockholders Equity |
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Current liabilities: |
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Accounts payable |
$60,000 |
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Wages payable |
10,000 |
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Notes payable, due July 1, 2003 |
20,000 |
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Bonds payable, due December 2010 |
100,000 |
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Total current liabilities |
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Dividends payable |
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Deferred tax liability, long term |
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Stockholders equity: |
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Common stock ($10 par, 10,000 |
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shares authorized, 5,000 shares outstanding) |
50,000 |
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Retained earnings |
156,000 |
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Total stockholders equity |
206,000 |
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total liabilities and stockholders equity |
$430,000 |
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Required Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized.
