Accounting, Finance

Problem Description master(prenominal), Inc. is contemplating a impression stomach to assume 80 share of subordinate Corporations common stock. Subsidiarys shargons are presently quoted on the New York Stock Exchange at $85 per share. In decree to drop a reasonable scene of the in the altogether offer attracting 80 share of Subsidiarys stock, Main believes it pass on digest to offer at least $105 per share. If the tender offer is made and is successful, the purchase will be carry through on January 1, 2004. A typical part of the planning of a proposed crinkle combination is the preparation of intercommunicate or pro forma coalesced fiscal statements. As a member of Mains chronicle group, you have been asked to prepare the pro forma 2004 consolidated monetary statements for Main and Subsidiary assuming that 80 pct of Subsidiarys stock is acquired at a price of $105 per share. To support your computations, Dave Johnson, the chairperson of Mains acquisitions com mittee, has provided you with the count oned 2004 monetary statements for Subsidiary. (The projected financial statements for Subsidiary and several some other companies were lively earlier for the acquisition committees use in targeting a ships company for acquisition.) The projected financial statements for Subsidiary for 2004 and Mains actual 2003 financial statements are presented in table 1. Assumptions Mr.

Johnson has asked you to use the following assumptions to project Mains 2004 financial statements: Sales will increase by 10 part in 2004. All sales will be on account. Accounts receivable will be 5 percent ! glare on December 31, 2004, than on December 31, 2003. woo of goods exchange will increase by 9 percent in 2004. All purchases of merchandise will be on account. Accounts account payable are expected to be $50,500 on December 31, 2004. store will be 3 percent higher on December 31, 2004, than on December 31, 2003. Straight-line dispraise is used for...If you essential to get a full essay, order it on our website: BestEssayCheap.com

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