Consider the following premerger information about Firm X and Firm Y:Firm X Firm Y$96,000 $22,50053,000 18,000Total earningsSharesoutstandingPer-share values:MarketBook$$Assets from XAssets from YGoodwillTotal Assets XY53 $14 $18008Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at amerger premium of $5 per share, and that neither firm has any debt before or after themerger. Construct the postmerger balance sheet for Firm X assuming the use of thepurchase accounting method. (Do not round intermediate calculations and round youranswers to the nearest whole number, e.g., 32.)

When two existing companies join to form one new company, it is called merger. The companies merge…

Answered: merger. Construct the postmerger…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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please answer with full explaination and tell me why other options are incorrect . Define all.......
1
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Please decsribe, explain and give examples to the following terms so I can understand well: 1. Par Value 2. Stated Value 3. Share Certificate
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Application Directions: On the space provided, write your FIRST NAME if the idea being expressed is CORRECT, and your LAST NAME, if otherwise. 1. When an entity's net working capital is positive, current liabilities exceed current assets. 2. Marketing managers prefer lower inventory quantities since costs are associated with carrying inventories 3. When an entity's net working capital is negative, current liabilities exceed current assets. 4. Entities would prefer to convert inventories to cash the fastest way possible. 5. Working capital management is critical in every organization. 6. At the economic order quantity, carrying costs exceed ordering costs. 7. The higher the firm's current assets, the higher the profitability and the higher the risk. 8. The reorder point is measured as the lead time in order processing multiplied by daily inventory usage. 9. A firm's choice in the level of its working capital reflects its risk preference. 10.A safety stock prevents the occurrence of…

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merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)