On June 18, 2010, the Group acquired certain assets and liabilities of 2 Sisters Food Group,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On June 18, 2010, the Group acquired certain assets and liabilities of 2 Sisters Food Group, Inc. for consideration of £52m. On July 19, 2010, the Group acquired 100% of the ordinary share capital of Wild Rocket Foods, LLC for consideration of £64m. The table below sets out the provisional analysis of the net assets acquired and the fair value to the Group regarding these two acquisitions. Noncurrent assets Current assets Current liabilities Noncurrent liabilities Net assets acquired Goodwill arising on acquisitions Consideration: Cash Noncash Total consideration Preacquisition carrying values £m 45 9 (6) (8) 40 Fair value adjustment £m 7 (1) (1) (11) (6) Provisional fair values on acquisition £m 52 8 (7) (19) 34 82 116 45 76 116 The goodwill represents the benefit of supply chain efficiencies, production economies, the ability to develop new and innovative products, and further third-party revenue potential. Required a. How were the two transactions financed? What impact would the financing have on the three principal financial statements? b. Explain the potential reasons for the adjustment in the values of net assets acquired. c. What is goodwill and what percentage of the transactions does it constitute? On June 18, 2010, the Group acquired certain assets and liabilities of 2 Sisters Food Group, Inc. for consideration of £52m. On July 19, 2010, the Group acquired 100% of the ordinary share capital of Wild Rocket Foods, LLC for consideration of £64m. The table below sets out the provisional analysis of the net assets acquired and the fair value to the Group regarding these two acquisitions. Noncurrent assets Current assets Current liabilities Noncurrent liabilities Net assets acquired Goodwill arising on acquisitions Consideration: Cash Noncash Total consideration Preacquisition carrying values £m 45 9 (6) (8) 40 Fair value adjustment £m 7 (1) (1) (11) (6) Provisional fair values on acquisition £m 52 8 (7) (19) 34 82 116 45 76 116 The goodwill represents the benefit of supply chain efficiencies, production economies, the ability to develop new and innovative products, and further third-party revenue potential. Required a. How were the two transactions financed? What impact would the financing have on the three principal financial statements? b. Explain the potential reasons for the adjustment in the values of net assets acquired. c. What is goodwill and what percentage of the transactions does it constitute?
Expert Answer:
Answer rating: 100% (QA)
The two transactions that is acquisition of assets and liabilities of 2 Sisters Food Group worth 52m ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The total assets and liabilities of Omni Company at January 1 and December 31, 2012, are presented below. Determine the amount of net income or loss for 2012, applying each of the following...
-
The amounts of the assets and liabilities of Padre Travel Service as of June 30, 2010, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings...
-
The amounts of the assets and liabilities of St. Simon Travel Service at June 30, 2012, the end of the current year, and its revenue and expenses for the year are listed below. The capital of Gwen...
-
What is the output produced from the following statements? System.out.println("name\tage\theight"); System.out.println("Archie\t17\t5'9\""); System.out.println("Betty\t17\t5'6\"");...
-
Why do firms decentralize?
-
Write a paper on Individual Postings addressing the following. Please describe how marketers build brand equity by creating the right brand knowledge structures with the right consumers.
-
Is there any notion of a trade-off between risk and return involved in an ecoefficiency portfolio matrix? How are green stars and dirty dogs related? In your answer cite examples from an industry...
-
Suppose you are a monopolist and you have two customers, Joseph and Monique. Each will buy either zero or one unit of the good you produce. Joseph is willing to pay up to $50 for your product;...
-
Here is a portion of the dataset: salary sales roe 1 2327 3598.8 28.1 2 1619 7632.8 11.0 3 729 1391.3 22.6 4 3068 3825.6 21.5 What is the residual for the fourth CEO?
-
Consider a vibrating system of your choice modeled by y" + cy' + ky = (t). (a) Using graphs of the solution, describe the effect of continuously decreasing the damping to 0, keeping k constant. (b)...
-
a. KTM Malaysia Berhad's stock is currently selling for RM2.00 per share. You have invested RM100,000 in the company stock. You intend to purchase the company's stock using margin financing. You pay...
-
If you purchased 125 shares of Avia Solutions Groups common stock for \($32\) per share, what is your expected rate of return if the stock pays end-of-year dividend of \($3.68?\) Assume the stock is...
-
A sample of an ideal gas for which \(\gamma=\frac{7}{5}\) initially has a volume of \(1.00 \mathrm{~L}\) and a pressure of \(100 \mathrm{~Pa}\). If the gas expands isentropically to \(1.20...
-
Refer to Table 2.2, in which annual macroeconomic data including GDP, CPI, 3-month T-bill rate, prime rate, private consumption, private investment, net exports, and government expenditures from 1960...
-
The Madagascar Corporation wants to achieve a steady 9 percent growth rate. If it can achieve a 13 percent return on equity, what percentage of earnings must Madagascar retain for investment purposes?
-
The market price for the Fidesco Groups common stock is \($64\) per share. The price at the end of year 1 is expected to be \($75,\) and dividends for next year should be \($3.98.\) What is the...
-
Post your reflection on two episodes from the TV shows and compare and contrast their representation of Autism with the description of ASD in the required (as well as recommended) readings
-
In a nonmagnetic medium, E = 50 cos (10 9 t 8x) a y + 40 sin (10 9 t 8x) a z V/m find the dielectric constant r and the corresponding H.
-
What is hedge accounting?
-
Vale S.A., a Brazilian mineral products company, provided the following note on a voluntary basis in its 2009 annual report: 11Cash Generation (Unaudited) Consolidated operating cash generation...
-
Bull Arm Company has the following items at December 31, Year 1: $200,000, 5 percent note payable, due March 15, Year 2. The company has reached an agreement with the bank to refinance the note for...
-
Consider the mass \(m\) suspended by a nonlinear hardening spring as shown in Figure 2.34. The spring obeys \(F=k x^{3}\) and has an original length of \(L\). The coordinate \(x\) is the stretch of...
-
Calculate the equivalent torsional spring constant for the stepped shaft shown in Figure 2.40. The two shafts have negligible mass and are made of a material with shear modulus \(G_{1}\) and...
-
A disk of mass \(m\) is mounted between two shafts with different properties, as shown in Figure 2.39. (a) What is the natural frequency of the system? (b) If the disk is rotated \(\theta\), where...
Study smarter with the SolutionInn App