(A)company y has inventory worth $200mm and PP&E worth $500mm and no other assets. company X buys company Y for $1B in cash. what happens to the company X balance sheet after the acquisition?
(b) since company X paid $1B for only $700mm of assets, does it necessarily mean that they overpaid for company Y?
why?

(A)company y has inventory worth $200mm and PP&E worth $500mm and no other assets. company X...
X Company acquires all of Y Company's assets and liabilities for $15,000,000 in cash. The fair values of Y's assets and liabilities approximate their book values, except Y has developed technology valued at $8,000,000 that is not reported on its balance sheet, and its buildings are overvalued by $7,000,000. Here is Y's balance sheet just prior to the acquisition: Y Company Current assets $ 500,000 Land, buildings, and equipment 9,500,000 Total assets $10,000,000 Liabilities $ 6,000,000 Common stock, $1 par...
Assets Cash 25 Receivables (net) 56 Inventory 51 PP & E (net) 201 Goodwill 25 Total assets 358 Liabilities & Equity Accounts payable 59 Short term debt 12 Long term debt 130 Preferred stock 17 Common Equity 140 Total Liabilities + Equity 358 Questions: Show your work and calculations (Answers that are Multiples (X) or Percents (%) should be carried to 1 decimal place) 1. What is Newco’s net working capital? ($) 2. Calculate its balance sheet financial leverage using...
Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than the fair value of the identifiable net assets acquired. One of the assets acquired is a building, originally valued at $37,000 at the date of the purchase. Six months after the acquisition, it is discovered that the building was really only worth $25,000 at the date of acquisition. What entry is made to reflect this new information? a. A debit of $12,000 to Loss...
11) Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies forcash $5,000. What effect would this transaction have on the accounting equation? Assets, $5,000 increase, equity, $5,000 increase. Assets, $5,000 increase, equity, $5,000 decrease. Liabilities, $5.000 increase, equity, $5.000 decrease. Assets, $5,000 decrease, equity, $5,000 decrease. Assets, no effect:liabilites, no effect 12) Unearned revenues are revenues that have been earned and received revenues that have been earned but not yet colected liabilites created...
Mynor Company Balance Sheet As of December 31, 2019 Assets Liabilities & Owners’ Equity Current Assets Current Liabilities Cash $ 31,400 A/P $ 77,900 A/R 65,000 Raw Materials 19,500 Owners’ Equity Finished Goods 128,820 Common Stock $125,000 Total Current Assets $244,720 Retained Earnings 520,000 Long Term Assets PP&E $922,180 Total Owners’Equity 645,000 Accum Deprec (444,000) Net PPE 478,180 Total Assets $722,900 Total Liabs & Owners Equity $722,900 ======= ======= 1. Sales projections for the 2020 are: 1st Quarter 70,000 units Each unit sells for $17 and is sold on account. 2nd Quarter 60,000 units Cash collections are 80% in the month of sale 3rd Quartet 90,000 units and 20% in the following...
What was the total increase in assets between 2011 and 2012?
What was the hospital's 2012 net income (assume the hospital is
NFP and as such does not pay out dividends? Also assume that the
hospital had no charitable donations during 2012).
What kinds of debt and equity are used to fund the hospital's
increase in assets?
It's great that the hospital has positive net income and that
it's growing its asset base. What concerns do you have about the...
When a firm acquires 70% of Y company preferred stocks. The combiner can classify the stock investment as acquisition case اختر أحد الخيارات a. False b. True The partnership is an association of or more persons اختر أحد الخيارات .a. Four o .b. Five O .C. Three o .d. Two O A & B decided to liquidate AB LLP. The non-cash assets of AB partnership at cost 500,000 and the non-cash assets were sold for ?$480,000. The loss on realization...
XYZ Company Balance Sheet 12/31/XXXX Assets A Current Assets Cash Accounts Receivable Inventory Prepaid Items Other CA Total Current Assets Net Plant & Equipment Total Assets $7,500 12,100 10,400 5,900 4,300 $40,200 82,300 $122,500 XYZ Company Balance Sheet 12/31/xxxx Liabilities & Equity Current Liabilities Accounts Payable Wages Payable Notes Payable Taxes Payable Total Current Liabilities Long Term Debt Total Liabilities $7,200 3,600 5,400 4.200 $20,400 35,700 $56,100 Common Stock Retained Earnings 28,700 37,700 Total Liabilities & Equity $122,500 Homework Problem,...
The entry for the realization of noncash assets?
Y T AA AB AC 2 current liabilities Notes Payable (in 2013) Accounts Payable Salary & Wages Payable Total current liabilities $ 13,500.0 27,000.0 40000 Long Term Liabilities Notes Payable (after 2013) Long Term Debt Total long term liabilities Total Liabilities S 44,500.0 Owner's Equity A Mangold Capital S. Otis Capital P. Tyler Capital Owner's Capital $33.0000 21.0000 3.000.0 $ 57,000.0 Total Liabilities & Owner's Equity $101.500.0 The partners share Income and...
1. What was the total increase in assets between 2011 and
2012?
2. What was the hospital's 2012 net income (assume the hospital
is NFP and as such does not pay out dividends? Also assume that the
hospital had no charitable donations during 2012).
3. What kinds of debt and equity are used to fund the hospital's
increase in assets?
4. It's great that the hospital has positive net income and that
it's growing its asset base. What concerns do...