Professional Documents
Culture Documents
Chapter
17
Learning
Objective 1
Intercorporate Investments
Intercorporate Investments
Market Method
Market Method
Changes in
market value
Market Method
Learning
Objective 2
Acquisition of a Subsidiary
Acquisition of a Subsidiary
Assets
= Liabilities +
Stockholders
equity
InvestCash,
Accounts
Stockment + other = payable, + holders
in S
assets
etc.
equity
Ps accounts, January 1:
Before acquisition
Acquisition of S
Ss accounts, January 1:
Intercompany eliminations for a consolidated
balance sheet
Consolidated, January 1
+210
210
0
650
210
400
=
=
=
840
=
=
200
450
190
210
210
450
390
Acquisition of a Subsidiary
Acquisition of a Subsidiary
Component Percentages
Learning
Objective 4
Current ratio
Average collection period in days
Total debt to equity
Gross profit rate or percentage
Return on sales
Comparisons
Comparisons
The End
End of Chapter 17