(A)company y has inventory worth $200mm and PP&E worth $500mm and no other assets. company X...
(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?
Homework Answers
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(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...
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...
Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than...
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...
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...
XYZ Company Balance Sheet 12/31/XXXX Assets A Current Assets Cash Accounts Receivable Inventory Prepaid Items Other...
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,...
What was the total increase in assets between 2011 and 2012? What was the hospital's 2012...
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...
1. What was the total increase in assets between 2011 and 2012? 2. What was the...
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...
11. Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a...
11. Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed-it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,884,000 of fixed manufacturing overhead for an estimated allocation base of 288,400 direct labor-hours. Wallis does not maintain any beginning or ending...
Mayson Company produces wooden craft table. The company is completing its fifth year of operations and...
Mayson Company produces wooden craft table. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (2020). The budget will detail each quarter’s activity and the activity for the year in total. The master budget will be based on the following information: a Unit sales by quarter (for 2020) are projected as follows: First-quarter 60 000 Second quarter 75 000 Third-quarter 80 000 Fourth-quarter 95 000 It is expected...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed-it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,884,000 of fixed manufacturing overhead for an estimated allocation base of 288,400 direct labor-hours. Wallis does not maintain any beginning or ending...
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...
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,...
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...
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...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed-it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,884,000 of fixed manufacturing overhead for an estimated allocation base of 288,400 direct labor-hours. Wallis does not maintain any beginning or ending...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed-it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,884,000 of fixed manufacturing overhead for an estimated allocation base of 288,400 direct labor-hours. Wallis does not maintain any beginning or ending...
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