drop down 1. 0.84, 1.43, 0.70

Under addtl information

earnings per share

National 3.24, 2.16, 2.70

Sanger 1.61, 1.18, 1.07

consolidated 2.02, 2.06, 8.41

price to earnings ratio

National 28.94, 21.41, 23.15

Sanger 29.66, 32.71, 39.25

I will upload rhe other half of the question in another post

he Financial Accounting Standards Board (Fas8) eliminated the vee of pooling of interests pethod for the accounting of mergers occurring after July 2001, Since then, all mergen have been handied waing purchase accounting. ionsider the following casei Which of the following statements best describes the merger's ellect on the mered compuny's conselideted balance sheet? purchuse price and the fair market valse of the tarpet firmi aseb. On the consolidated balance sheec, Company B's common atack value wal be vaikten up (recorded) in Company As books at a value oreater than was recorded on Company Bis books. Company B's labilities wall be deducted from Compeny Air lobilters in the consoldeted balance sheet. Wo weeld sgo. National Enterpcises inc. (We) and Sanger Machine Comeany agred to a merger in which fational will purchase sarger using a stockor-stock transactian, Nationals latest evaluation of the deal ewpects no nyeergutic benefter from the merger and has noted that its common stock is urrently priced at 350.00 per shares Sangert shares are trading for s3s.00 pee thare. Nusional has olfered a 201 premium over the current price for, Ganger's shares. Eccording to the terms of the purchane, the tranaction's erchange ratie, hich indoates the number of Natonal ahares that each Sanger shareholder will receive for each share sold, will by Given tha informution and that whach follown, complete the tatie reperding the fatienal-sanger merpec: the target. The merger is expected to creste synergitic benefits for the troet conound Company A buys Company B for $50. The value of Company B's equity (total assets minus ts total labilities) is $40. Which of the following statements best describes the merger's effect on the merged company's consolidated balance sheet? On the consolidated balance sheet, a goodwil account will be created and will carry a positive balance equal to the difference between the purchase price and the fair market value of the target firm's assets. On the consolidated balance sheet, Company B's common stock value will be written up (recorded) on Company A's books at a value greater than was recorded on Company B's books, Company B's liabilities will be deducted from Company A's liabilities in the consolidated balance sheet, Two wecks ago, National Enterprises Inc. (NE) and Sanger Machine Company agreed to a merger in which National will purchase Sanger using a stockfor-stock transaction. National's latest evaluation of the deal expects no synergistic benefits from the merger and has noted that its common stock is currently pnced at $50.00 per share; Sanger's shares are trading for $35.00 per share. National has offered a 20% premium over the current price for Sanger's shares. According to the terms of the purchase, the transaction's exchange ratio, which indicates the number of National shares that each Sanger shareholder will receive for eoch share sold, will be Given this information and that which follows, complete the table regarding the National-Sanger merger: True or False: The company with a larger market value in a merger is alwaye the acquirec, and the company with a smaller market value in a merger is the target. The merger is expected to create synergastic benefits for the target company 5. Financial reporting for mergers The Financial Accounting Standards Board (FaSB) eliminated the use of pooling-of-interests method for the accounting of mergers occurring after July 1, 2001. Since then, all mergers have been handled using purchase accounting. Consider the following case: Company A buys Company B for $50. The value of Company B't equty (total assets minus its total liabilities) is $40. Which of the following statements best describes the merger's effect on the merged company's consolidated balance sheet? On the consolidated balance sheet, a goodwill docount will be created and will carry a positive balance equal to the difference between the purchase price and the fair market value of the target firm's assets. On the consolidated balance sheet, Company B's common stock value will be written up (recorded) on Company A's books at a value greater than was recorded on Company B's books. Company B's liabilities will be deducted from Company A's liablities in the consolidated balance sheet. Two weeks ago, National Enterprises Ine (NE) and Senger Machine Company agreed to a merger in which Notional will purchase Sanger using a stockfor stock transaction, National's latest evaluation of the deal expects no synergistic benefits from the merger and has noted that its common stock is currently priced at \$\$50.00 per share; Sangers shares are trading for $35.00 per share. National has offered a 20% premium over the current price for Sanger's shares. According to the terms of the purchase, the transaction's exchange ratio, which indecates the number of National shares that each Sanger shareholder will receive for each share sold, will be ad . Given this information and that which omplete the tabie regarding the National-Senger merget. Consolidated Financial Data he Financial Accounting Standards Board (Fas8) eliminated the vee of pooling of interests pethod for the accounting of mergers occurring after July 2001, Since then, all mergen have been handied waing purchase accounting. ionsider the following casei Which of the following statements best describes the merger's ellect on the mered compuny's conselideted balance sheet? purchuse price and the fair market valse of the tarpet firmi aseb. On the consolidated balance sheec, Company B's common atack value wal be vaikten up (recorded) in Company As books at a value oreater than was recorded on Company Bis books. Company B's labilities wall be deducted from Compeny Air lobilters in the consoldeted balance sheet. Wo weeld sgo. National Enterpcises inc. (We) and Sanger Machine Comeany agred to a merger in which fational will purchase sarger using a stockor-stock transactian, Nationals latest evaluation of the deal ewpects no nyeergutic benefter from the merger and has noted that its common stock is urrently priced at 350.00 per shares Sangert shares are trading for s3s.00 pee thare. Nusional has olfered a 201 premium over the current price for, Ganger's shares. Eccording to the terms of the purchane, the tranaction's erchange ratie, hich indoates the number of Natonal ahares that each Sanger shareholder will receive for each share sold, will by Given tha informution and that whach follown, complete the tatie reperding the fatienal-sanger merpec: the target. The merger is expected to creste synergitic benefits for the troet conound Company A buys Company B for $50. The value of Company B's equity (total assets minus ts total labilities) is $40. Which of the following statements best describes the merger's effect on the merged company's consolidated balance sheet? On the consolidated balance sheet, a goodwil account will be created and will carry a positive balance equal to the difference between the purchase price and the fair market value of the target firm's assets. On the consolidated balance sheet, Company B's common stock value will be written up (recorded) on Company A's books at a value greater than was recorded on Company B's books, Company B's liabilities will be deducted from Company A's liabilities in the consolidated balance sheet, Two wecks ago, National Enterprises Inc. (NE) and Sanger Machine Company agreed to a merger in which National will purchase Sanger using a stockfor-stock transaction. National's latest evaluation of the deal expects no synergistic benefits from the merger and has noted that its common stock is currently pnced at $50.00 per share; Sanger's shares are trading for $35.00 per share. National has offered a 20% premium over the current price for Sanger's shares. According to the terms of the purchase, the transaction's exchange ratio, which indicates the number of National shares that each Sanger shareholder will receive for eoch share sold, will be Given this information and that which follows, complete the table regarding the National-Sanger merger: True or False: The company with a larger market value in a merger is alwaye the acquirec, and the company with a smaller market value in a merger is the target. The merger is expected to create synergastic benefits for the target company 5. Financial reporting for mergers The Financial Accounting Standards Board (FaSB) eliminated the use of pooling-of-interests method for the accounting of mergers occurring after July 1, 2001. Since then, all mergers have been handled using purchase accounting. Consider the following case: Company A buys Company B for $50. The value of Company B't equty (total assets minus its total liabilities) is $40. Which of the following statements best describes the merger's effect on the merged company's consolidated balance sheet? On the consolidated balance sheet, a goodwill docount will be created and will carry a positive balance equal to the difference between the purchase price and the fair market value of the target firm's assets. On the consolidated balance sheet, Company B's common stock value will be written up (recorded) on Company A's books at a value greater than was recorded on Company B's books. Company B's liabilities will be deducted from Company A's liablities in the consolidated balance sheet. Two weeks ago, National Enterprises Ine (NE) and Senger Machine Company agreed to a merger in which Notional will purchase Sanger using a stockfor stock transaction, National's latest evaluation of the deal expects no synergistic benefits from the merger and has noted that its common stock is currently priced at \$\$50.00 per share; Sangers shares are trading for $35.00 per share. National has offered a 20% premium over the current price for Sanger's shares. According to the terms of the purchase, the transaction's exchange ratio, which indecates the number of National shares that each Sanger shareholder will receive for each share sold, will be ad . Given this information and that which omplete the tabie regarding the National-Senger merget. Consolidated Financial Data