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3 years ago

Consider the following premerger information about Firm X and Firm Y:

Business

1 answer:

umka21 [38]3 years ago

5 0

Answer:

Firm X and Firm Y

Post-merger Balance Sheet for Firm X

Net assets $886,000

Goodwill 90,000

Total assets $976,000

Common stock $742,000

Long-term debt 234,000

Total liabilities and

equity $976,000

Explanation:

a) Data and Calculations:

Firm X Firm Y

Total earnings $96,000 $22,500

Shares outstanding 53,000 18,000

Per-share values:

Market $53 $18

Book $14 $8

Net assets $742,000 $144,000

= (53,000*$14) (18,000*$8)

Net assets = Common Stock for each company

Merger premium on Firm Y $5

Goodwill on acquisition = $90,000 (18,000 * $5)

Investment in Firm Y = $234,000 (18,000 * ($8 + $5)

Long-term debt issued = $234,000

Net assets

Firm X net assets before acquisition = $742,000

Firm Y net assets before acquisition = 144,000

Net value of combined assets = $886,000

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A company reported net income of $290,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $21,0

NikAS [45]

Answer:

$310,500

Explanation:

The first step is to calculste the increase in account payable

= ending amount-beginning balance

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Decrease in account receivable

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= $3,000

Therefore the cash flow can be calculated as follows

= $290,000 + $17,500 + $3000

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3 years ago

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Answer:

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Explanation:

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13. In a market system, how are the terms of exchange established? a. Consumer advocacy groups establish fair prices for items,

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The forces underlying supply and demand interact to determine the market price.

<h3><u>Explanation:</u></h3>

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William pays $500 premium every six months for automobile insurance with collision coverage. His deductible is $750. William cau

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3 years ago

Read 2 more answers

A reporter appears on television and reports that a collegiate athlete is currently using steroids. The reporter has a sincere b

zhannawk [14.2K]

Answer:

The answer is D, the reporter is liable for a claim of libel

Explanation:

First of, we need to understand that libel in it self refers to a false statement or report published against an individual and of which the report has a very high tendency of tarnishing the individuals image. In order words, it can also be refereed to as the defamation of character where the victim in this case is refereed to as the character.

So, referring back to the question. As a reporter, it is assumed that proper diligence has been done in respect to investigation or investigative journalism as some like to call it before going before the public to declare such a defaming statement and in such a case where such sequentially, the statement comes to be a false statement, the reporter and in some cases the firm at large is liable for a claim of libel.

So as related to the question asked, the answer is D.

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3 years ago