1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
PolarNik [594]
2 years ago
11

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

Business
1 answer:
umka21 [38]2 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

You might be interested in
Gideon Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off
zloy xaker [14]

Answer and Explanation:

The Journal entry is shown below:-

Bad debts expense Dr, $2,000

          To Accounts receivable-Hopkins $2,000

(Being write off is recorded)

Here we debited the bad debt expenses as it increased the expenses and we credited the accounts receivable as it reduced the assets so that the proper posting could be done  

7 0
3 years ago
brainstorming solicits the help of multiple people to formulate concepts and identify ways to bring them to market. true or fals
andreev551 [17]

Answer:

a.

Explanation:

hahshahaha joke lang

3 0
2 years ago
The fundamental purposes of communication are to provide information and instructions, to influence others, and to ________ acti
SSSSS [86.1K]
You don't communicate to convey activities, or to integrate activities. We can, therefore, eliminate answers "a," "b," and "e." 

So is our purpose to discuss or organize an activity? Either answer fits. We discuss activities to gather the opinions of others regarding said activities. But discussing is, itself, a form of communicating, it is not an outcome. The other points listed are outcomes "we provide... influence... [through communication]." Therefore, the answer must be "c. organize".
3 0
3 years ago
During its first year of operations, Walnut Company completed the following two transactions. The annual accounting period ends
natima [27]

Date               Account title                      $Debit                  $Credit

Dec 31            Wages Expenses               4800

                       Wages Payable                                              4800

                          (to record accrued wages)

Jan 06             Wages Payable                 4800

                        Cash                                                              4800

                        (to record payment of wages in cash)

An accounting period, in bookkeeping, is the length with reference to which management accounts and monetary statements are prepared. In management accounting, the accounting period varies widely and is decided via management. monthly accounting periods are common.

An accounting duration is the time frame for which a business prepares its financial statements and reports its financial performance and position to external stakeholders. this could be after three, six, or twelve months. The accounting period usually coincides with the business's fiscal year.

learn more about the fiscal year here brainly.com/question/15982144

#SPJ4

6 0
1 year ago
A registered representative sends a prospecting letter to customers stating that significant profits can be achieved by purchasi
nalin [4]

Answer:

B) must be balanced by a statement that trading options can also result in significant losses.

Explanation:

Representatives do not trade securities by themselves, they only enter orders on behalf of their clients and following their clients' orders. That means that the clients assume the risk of losing money due to a bad investment. The clients are also the ones that benefit the most since it is their money being invested. Any statement that states the possibility of significant earnings, must also include the possibility of significant losses.

5 0
2 years ago
Other questions:
  • A market researcher wants a large sample size for her survey and decides to stand in the food court of a mall during Christmas s
    15·1 answer
  • Which of the following is a question you should ask your boss regarding individual performance evaluations?
    8·1 answer
  • Compared to attending a technical school, completing a four-year college degree allows you to
    11·2 answers
  • Point Company paid $4,000 cash to purchase a new machine. The company also paid $500 cash for an initial training cost that was
    9·1 answer
  • Penn Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the begi
    13·1 answer
  • On January 2, Yorkshire Company acquired 29% of the outstanding stock of Fain Company for $440,000. For the year ended December
    7·1 answer
  • Ramort Company reports the following cost data for its single product. The company regularly sells 21,500 units of its product a
    15·1 answer
  • Which of the following correctly describes globalization
    6·1 answer
  • Projects that provide the _____ are assigned the highest priority when setting priorities for systems requests. a. greatest bene
    8·1 answer
  • When it comes to market sizing, things tend to be a bit __________ for b2b sellers compared to b2c sellers.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!