For this question, refer only to the December 28, 2013, financial statements of Weis Markets.

i. What is the net book value of Weis Markets, Inc. (the company, not the individual assets or liabilities) at December 28, 2013? What does this amount represent?

iii. Assume that the market value of the company’s inventories is $79,022 (in thousands) higher than its book value. Further, included under property and equipment, net is land valued at an historic cost of $97,906 (in thousands). Recent real estate appraisals indicate that the land may be worth as much as $200,000 (in thousands). Also, assume Weis Markets has entered into long-

term leases for some of its stores.

 A review of those leases suggests that they are very favorable to the company. In other words, the company is leasing assets at below market rates. The fair value of those favorable leases is estimated to be $4,500 (in thousands). Finally, assume that all

other amounts recorded on the balance sheet approximate their fair values.

Based on your restated balance sheet, what is the fair value of Weis Markets, Inc.’s net assets at December 28, 2013?

iv. Compare your responses to parts f i. (net book value) and f iii. (fair value of net assets). Why are these amounts different? What does the difference represent?

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(dollars in thousands) December 28, 2013 and December 29, 2012 Assets Current: Cash and cash equivalents.. Marketable securities SERP investment Accounts receivable, net Inventories Prepaid expenses. Total current assets. Property and equipment, net. Goodwill.... Intangible and other assets, net, Total assets Liabilities Current: Accounts payable. Accrued expenses. Accrued self-insurance Deferred revenue, net Income taxes payable.. Deferred income taxes Total current liabilities. Postretirement benefit obligations, Deferred income taxes. Other WEIS MARKETS, INC. CONSOLIDATED BALANCE SHEETS Total liabilities Shareholders' Equity Common stock, no par value, 100,800,000 shares authorized, 33,047,807 shares issued Retained earnings..... Accumulated other comprehensive income, net Treasury stock at cost, 6.149,364 shares Total shareholders' equity. Total liabilities and shareholders' equity See accompanying notes to consolidated financial statements. S 2013 17,965 63,093 8,752 57,193 240,452 17,293 404,748 704,985 35,162 3,347 S 1,148,242 133,568 27,416 19,333 7,056 1,628 4,219 193,220 17,101 97,934 5,934 314,189 9,949 971,022 3,939 984,910 (150,857) 834,053 S 1,148,242 S 2012 S 14,381 82,501 7,058 53,842 245,243 10,132 413,157 638,634 35,162 3,487 $ 1,090,440 126,258 27,193 18,544 6,635 1,359 3,420 183,409 15,206 89,109 7,026 294,750 9,949 931,579 5,019 946,547 (150,857) 795,690 $ 1,090,440 (dollars in thousands) December 28, 2013 and December 29, 2012 Assets Current: Cash and cash equivalents.. Marketable securities SERP investment Accounts receivable, net Inventories Prepaid expenses. Total current assets. Property and equipment, net. Goodwill.... Intangible and other assets, net, Total assets Liabilities Current: Accounts payable. Accrued expenses. Accrued self-insurance Deferred revenue, net Income taxes payable.. Deferred income taxes Total current liabilities. Postretirement benefit obligations, Deferred income taxes. Other WEIS MARKETS, INC. CONSOLIDATED BALANCE SHEETS Total liabilities Shareholders' Equity Common stock, no par value, 100,800,000 shares authorized, 33,047,807 shares issued Retained earnings..... Accumulated other comprehensive income, net Treasury stock at cost, 6.149,364 shares Total shareholders' equity. Total liabilities and shareholders' equity See accompanying notes to consolidated financial statements. S 2013 17,965 63,093 8,752 57,193 240,452 17,293 404,748 704,985 35,162 3,347 S 1,148,242 133,568 27,416 19,333 7,056 1,628 4,219 193,220 17,101 97,934 5,934 314,189 9,949 971,022 3,939 984,910 (150,857) 834,053 S 1,148,242 S 2012 S 14,381 82,501 7,058 53,842 245,243 10,132 413,157 638,634 35,162 3,487 $ 1,090,440 126,258 27,193 18,544 6,635 1,359 3,420 183,409 15,206 89,109 7,026 294,750 9,949 931,579 5,019 946,547 (150,857) 795,690 $ 1,090,440

Answer rating: 100% (QA)

The net book value of Weis Markets Inc at December 28 2013 is 1847811 in thousands ... View the full answer