(Learning Objective 3: Preparing a consolidated balance sheet) Alfa, Inc., owns Romeo Corp. The 2 companies’ individual balance sheets follow:
|
Alfa |
Romeo |
|
|
Assets |
||
|
Cash |
$ 49,000 |
$ 14,000 |
|
Accounts receivable, net |
82,000 |
53,000 |
|
Note receivable from Alfa |
__ |
42,000 |
|
Inventory |
55,000 |
77,000 |
|
Investment in Romeo |
100,000 |
— |
|
Plant assets, net |
286,000 |
99,000 |
|
Other assets |
22,000 |
8,000 |
|
Total |
$594,000 |
$293,000 |
|
Liabilities and Stockholders’ Equity |
||
|
Accounts payable |
$ 44,000 |
$ 26,000 |
|
Notes payable |
147,000 |
36,000 |
|
Other liabilities |
82,000 |
131,000 |
|
Common stock |
210,000 |
80,000 |
|
Retained earnings |
111,000 |
20,000 |
|
Total |
$594,000 |
$293,000 |
Required
1. Prepare the consolidated balance sheet of Alfa, Inc. It is sufficient to complete the consolidation work sheet.
2. What is the amount of stockholders’ equity for the consolidated entity?