Assume that the following statements of financial position are stated and a book value. Construct a post-merger
Question:
Assume that the following statements of financial position are stated and a book value. Construct a post-merger statement of financial position assuming that Amherst Co. purchases Essex Inc. and the pooling of interests method of accounting is used.
Amherst Čo. $ 5,300 $12,000 Current assets Current liabilities Long-term debt Equity Net fixed assets 36,000 9,800 32,900 Total $48,000 Total $48,000 Essex Inc. $3,400 Current liabilities $1,300 Current assets Net fixed assets Long-term debt Equity 6,400 1,900 6,600 $9,800 Total $9,800 Total
Step by Step Answer:
In the pooling method all accounts of both companies ...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-0071051606
8th Canadian Edition
Authors: Stephen A. Ross, Randolph W. Westerfield
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