Assume that the following statements of financial position are stated and a book value. Construct a...

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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. Current assets Net fixed assets Total Current assets Net fixed assets Total Amherst Co. $22,000 Current liabilities 56,000 Long-term debt Equity $78,000 Total Essex Inc. $6,400 Current liabilities 9,800 Long-term debt Equity $16,200 Total $9,300 19,800 48,900 $78,000 $3,800 3,100 9,300 $16,200 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. Current assets Net fixed assets Total Current assets Net fixed assets Total Amherst Co. $22,000 Current liabilities 56,000 Long-term debt Equity $78,000 Total Essex Inc. $6,400 Current liabilities 9,800 Long-term debt Equity $16,200 Total $9,300 19,800 48,900 $78,000 $3,800 3,100 9,300 $16,200

Answer rating: 100% (QA)

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