The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31, 2018, prior to the business combination whereby Goodwin acquired Corr, are as follows (in thousands): Goodwin CorrRevenues$2,700 $600 Expenses 1,980 400 Net income$720 $200 Retained earnings, 1/1$2,400 $400 Net income 720 200 Dividends (270) (0)Retained earnings, 12/31$2,850 $600 Cash$240 $220 Receivables and inventory 1,200 340 Buildings (net) 2,700 600 Equipment (net) 2,100 1,200 Total assets$6,240 $2,360 Liabilities$1,500 $820 Common stock 1,080 400 Additional paid-in capital 810 540 Retained earnings 2,850 600 Total liabilities and stockholders' equity$6,240 $2,360 ??On December 31, 2018, Goodwin

Question

obtained a loan for $600 and used the proceeds, along with the transfer of 30 shares of its $10 par value common stock, in exchange for all of Corr's common stock. At the time of the transaction, Goodwin's common stock had a fair value of $40 per share.??In connection with the business combination, Goodwin paid $25 to a broker for arranging the transaction and $35 in stock issuance costs. At the time of the transaction, Corr's equipment was actually worth $1,400 but its buildings were only valued at $560.?Compute the consolidated receivables and inventory for 2018.

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

Answer 1

Answer: C