Balance Sheet after Business Acquisition Wilson Corporation acquires Greatbatch Company for $60 million cash in a...

Transcribed Image Text:

Balance Sheet after Business Acquisition Wilson Corporation acquires Greatbatch Company for $60 million cash in a merger. The balance sheets of both companies at the date of acquisition are as follows: Balance Sheet (in millions) Current assets Property and equipment Intangibles Total assets Current liabilities Long-term debt Capital stock Retained earnings Accumulated other comprehensive income (loss) Total liabilities and equity (in millions) Assets Current assets Property and equipment Intangibles Goodwill Greatbatch's property and equipment is overvalued by $35 million, its reported intangibles are undervalued by $15 million, and it has unreported intangibles, in the form of customer databases and marketing agreements, valued at $10 million. Total assets Wilson Greatbatch $ 60 500 20 $580 $25 400 50 120 (15) $580 Required Prepare Wilson's balance sheet immediately following the merger. Use a negative sign with your answer for AOCI if the balance is a loss. $ $ Wilson Corporation Balance Sheet $5 90 Liabilities Current liabilities Long-term debt 3 $98 $2 65 12 15 Total liabilities Equity Capital stock Retained earnings 4 $98 $ $ $ AOCI Total equity $ Total liabilities and equity $ Balance Sheet after Business Acquisition Wilson Corporation acquires Greatbatch Company for $60 million cash in a merger. The balance sheets of both companies at the date of acquisition are as follows: Balance Sheet (in millions) Current assets Property and equipment Intangibles Total assets Current liabilities Long-term debt Capital stock Retained earnings Accumulated other comprehensive income (loss) Total liabilities and equity (in millions) Assets Current assets Property and equipment Intangibles Goodwill Greatbatch's property and equipment is overvalued by $35 million, its reported intangibles are undervalued by $15 million, and it has unreported intangibles, in the form of customer databases and marketing agreements, valued at $10 million. Total assets Wilson Greatbatch $ 60 500 20 $580 $25 400 50 120 (15) $580 Required Prepare Wilson's balance sheet immediately following the merger. Use a negative sign with your answer for AOCI if the balance is a loss. $ $ Wilson Corporation Balance Sheet $5 90 Liabilities Current liabilities Long-term debt 3 $98 $2 65 12 15 Total liabilities Equity Capital stock Retained earnings 4 $98 $ $ $ AOCI Total equity $ Total liabilities and equity $

Answer rating: 100% (QA)

Wilson Corporation Balance Sheet in millions Assets Current assets 1060 Propert... View the full answer