BUSN460 Senior Project<\/p>\n
Individual Financial Analysis Project (CanGo)<\/p>\n
Week 3<\/p>\n
Assumptions:<\/a><\/p>\n Balance Sheet<\/a><\/p>\n ASSETS<\/b>December 31, 2009 Income Statement<\/a><\/p>\n December 31, 2009December 31, 2008Sales Revenues$51,000,000$10,300,000Less: Sales Returns$(1,000,000)$(300,000) BUSN460 Senior Project Individual Financial Analysis Project (CanGo) Week 3 Assumptions: At the beginning of 2009, CanGo purchased the online gaming company. This purchase was for cash, paid for through the proceeds of the IPO and results in goodwill. 90% Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-49918","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=49918"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49918\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\nCash<\/b>$20,900,000Marketable Securities$117,000,000
\nAccounts Receivable<\/b>$33,000,000Less: Allowance for Bad Debts$(880,000)
\nNet Accounts Receivable<\/b>$32,120,000
\nInventory<\/b>Raw Materials$2,000,000Work-in-process$1,000,000Finished Goods$5,000,000Inventory Purchased for Resale$24,000,000
\nTotal Inventory<\/b>$32,000,000Plant, Property and Equipment$6,700,000Less: Accumulated Depreciation$(320,000)
\nNet Plant, Property and Equipment<\/b>$6,380,000
\nPrepaid Expenses<\/b>$200,000
\nGoodwill and Other Purchased Intangibles<\/b>$28,000,000Less: Amortization$(700,000)Net Goodwill and Other Purchased Intangibles$27,300,000
\nTotal Assets<\/b>$235,900,000
\nLIABILITIES AND OWNERS’ EQUITY<\/b>Accounts Payable $22,000,000Accrued Advertising $11,800,000Other Liabilities and Accrued Expense$1,400,000Current Portion of Long-Term Debt$2,300,000Long Term Debt$57,400,000Preferred Stock, $100 par value per share, 100,000 authorized, 0 shares issued and outstanding$0Common Stock, $1 par value per share, 250,000,000 shares authorized, 13,000,000 shares issued, 12,900,000 outstanding$13,000,000Additional Paid-in-Capital in excess of par value, Common Stock$117,000,000Treasury Stock$(1,000,000)Retained Earnings (less Cash Dividends Paid)$12,000,000$11,000,000
\nTotal Liabilities and Owner’s Equity<\/b>$235,900,000<\/p>\n
\nNet Sales Revenues<\/b>$50,000,000$10,000,000Less: Cost of Goods Sold$(9,000,000)$(4,000,000)
\nGross Profit<\/b>$41,000,000$6,000,000
\nOperating Expenses:<\/b>Advertising and Sales$(26,000,000)$(3,000,000)Depreciation$(160,000)Salaries and Wages$(1,700,000)$(1,400,000)Product Development$(4,000,000)$(1,200,000)Merger and Acquisition Related Costs, including Amortization of Goodwill and Other Intangibles$(700,000)$0
\nTotal Operating Expenses<\/b>$(32,560,000)Income from Continuing Operations Before Income Taxes$8,440,000Less: Income Taxes at 35%$(2,954,000)
\nIncome from Continuing Operations<\/b>$5,486,000
\nDiscontinued Operations:<\/b>Income from Operations of Discontinued Division (less applicable income taxes)$350,000Loss on Disposal of Discontinued Division (less applicable income taxes)$(150,000)
\nTotal Gain from Discontinued Operations<\/b>$200,000
\nExtraordinary Items:<\/b>Loss from fire (less applicable income taxes)$(200,000)
\nNet Income<\/b>$5,486,000
\nDivisional Revenues<\/b>Books$15,000,000$7,000,000Online gaming$25,000,000Customized MP3\/CD\/DVD$10,000,000$3,000,000Customized MP3\/CD\/DVD Inventory at end of 2009$8,000,000<\/p>\n","protected":false},"excerpt":{"rendered":"