Wilson Corporation acquires Greatbatch Company for $50 million cash in a merger.
The balance sheets of both companies at the date of acquisition are as follows:
Balance Sheet (in millions) Wilson Greatbatch
Current assets $60 $5
Property and equipment 500 90
Intangibles 20 3
Total assets $580 $98
Current liabilities $25 $2
Long-term debt 400 65
Capital stock 50 12
Retained earnings 120 15
Accumulated other-
comprehensive income (loss) (15) 4
Total liabilities and equity $580 $98
Greatbatch's property and equipment is overvalued by $30 million, its reported intangibles are undervalued by $20 million, and it has unreported intangibles, in the form of customer databases and marketing agreements, valued at $7 million.
Required:
Prepare Wilson's balance sheet immediately following the merger.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Wilson Corporation acquires Greatbatch Company for $50 million cash in a merger. The balance sheets of both companies at the date of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
With a___tax, the tax decreases as income increases. A.) Direct B.) Progressive C.) Proportional D.) Regressive
Answers (1)
The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and stock B has a beta of 1.29. This information implies that:
Answers (1)
Short term interest rates show the cost of borrowing money for how long?
Answers (2)
If the contribution margin is not sufficient to cover fixed expenses:Multiple Choicevariable expenses equal contribution margin. contribution margin is negative. a loss occurs. total profit equals total expenses.
Answers (1)
Sparks Corporation has 3,000 shares of 8%, $100 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $105,000 cash dividend ...
Answers (1)
New Questions in Business
Divided Fantastic Frames sells its frames for $15 per unit. Variable costs total $6 per unit, and fixed costs total $90,000. If Fantastic Frames increases sales by
Answers (1)
A trade show is usually focused on what? a. an employer b. an industry c. a school d. a craft
Answers (1)
The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars' worth of sales are generated from every $1 in total assets
Answers (1)
Select all maintenance procedures that may be performed in an office. update software replace printer cartridges clean copy machines install virus-protection software print copies to be distributed at a meeting
Answers (1)
Increases to owner's equity may be from expenses that are incurred. expenses exceeding revenue for the period. withdrawals of cash from the business by the owner. revenue that is derived from sales of goods or services
Answers (1)