Figure: the Financial Statements for Goodwin, Inc., and Corr Company for for the Year

question 41

Multiple Choice

Figure:
The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31, 20X1, prior to Goodwin's acquisition business combination transaction regarding Corr, follow (in thousands) : On December 31, 20X1, Goodwin issued $600 in debt and 30 shares of its $10 par value common stock to the owners of Corr to acquire all of the outstanding shares of that company. Goodwin shares had a fair value of $40 per share.
Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in stock issuance costs. Corr's equipment was actually worth $1,400 but its buildings were only valued at $560.
-Compute the consolidated receivables and inventory for 20X1.

• A) $1,200.
• B) $1,515.
• C) $1,540.
• D) $1,800.
• E) $2,140.

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Definitions:

Inventory Controls

Systems and procedures implemented by a company to manage its inventory efficiently and minimize costs.

Merchandise

Goods that are bought and sold by a business in the regular course of its operation.

Adjusted Trial Balance

A statement prepared after adjusting entries are made, used to verify the balance of debits and credits before preparing financial statements.

End-of-period Spreadsheet

A tool used in accounting to gather all the financial data and adjustments needed to prepare financial statements at the end of an accounting period.