Company H is a hardware chain, focused in “do it yourself” equipment rentals and materials. The one method to utilize excess fund is an acquisition. Company H’s boss and person Z decided to value the potential target of company L. For the purpose of this person Z conducted certain estimation regarding the company L. To determine: The way in which value of merger shared among parties involved and the outcomes of this research.

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9. Calculating Payments [LO3] The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $110 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here: Sales Q1 $2,250 Q2 $2,730 Sales for the first quarter of the following year are projected at $2,475. Calculate the company's cash outlays by completing the following: Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q3 $2,390 Q4 $2,190 Q1 Q2 Q3 Q4

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Chapter 26, Problem 8MC

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Company H is a hardware chain, focused in “do it yourself” equipment rentals and materials. The one method to utilize excess fund is an acquisition. Company H’s boss and person Z decided to value the potential target of company L. For the purpose of this person Z conducted certain estimation regarding the company L.

To determine: The way in which value of merger shared among parties involved and the outcomes of this research.

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9. Calculating Payments [LO3] The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $110 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here: Sales Q1 $2,250 Q2 $2,730 Sales for the first quarter of the following year are projected at $2,475. Calculate the company's cash outlays by completing the following: Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q3 $2,390 Q4 $2,190 Q1 Q2 Q3 Q4

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