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In: Finance
The balance sheet of MT Co. shows current assets of $14,000, net fixed assets of $21,800,...
The balance sheet of MT Co. shows current assets of $14,000, net fixed assets of $21,800, current liabilities of $4,300, long-term debt of $2,600, and equity of $28,900. The balance sheet of LF Inc. has current assets of $4,700, net fixed assets of $8,100, current liabilities of $2,200, long-term debt of $1,200, and equity of $9,400. The market value of LF's fixed assets is $14,100. MT purchases LF for $20,000 and raises the funds through an issue of long-term debt. What will be the value of the equity account on the post- merger balance sheet assuming the purchase accounting method is used? Multiple Choice $39,600 $28,900 $33,600 $43,000 $29,600
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jeff jeffy answered 1 year agoRelated Solutions
1 Building a Balance Sheet KCCO, Inc. has current assets of $5,300, net fixed assets of $23,900,...
1 Building a Balance Sheet KCCO,
Inc. has current assets of $5,300, net fixed assets of $23,900,
current liabilities of $4,100, and long-term debt of
$10,600. What is the value of shareholder’s equity for
this firm? How much is net working capital?
A company’s Balance Sheet (in millions) Assets Liabilities & Equity Current $20 Net Fixed $80 Bonds...
A company’s Balance Sheet (in millions) Assets Liabilities &
Equity Current $20 Net Fixed $80 Bonds ($1000 Par) 40 Preferred
stocks ($100 Par) 20 Total $100 Common Stock ($1 par) 40 Total $100
The company's bonds have 15 years to mature, pay 12% coupon rate
semi-annually and comparable bonds' YTM is 14%. The market price of
the common stock is $3.25 per share. The most recent dividend on
the common stock was $0.85. The company’s applicable tax rate is
30%....
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $3 million and net plant and equipment equals $2.6
million. It has notes payable of $150,000, long-term debt of
$746,000, and total common equity of $1.55 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
Balance Sheet The assets of Dallas & Associates consist entirely of current assets and net plant...
Balance Sheet The assets of Dallas & Associates consist
entirely of current assets and net plant and equipment. The firm
has total assets of $2.5 million and net plant and equipment equals
$2 million. It has long-term debt of $750,000, and total common
equity of $1.5 million. The firm only finances with debt and common
equity, so it has no preferred stock on its balance sheet.
a. What is the amount of total liabilities and equity that
appears on the...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.9 million and net plant and equipment equals $2.6
million. It has notes payable of $155,000, long-term debt of
$747,000, and total common equity of $1.55 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
Balance Sheet The assets of Dallas & Associates consist entirely of current assets and net plant...
Balance Sheet
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.6 million and net plant and equipment equals $2.2
million. It has notes payable of $155,000, long-term debt of
$746,000, and total common equity of $1.45 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.6 million and net plant and equipment equals $2.2
million. It has notes payable of $140,000, long-term debt of
$755,000, and total common equity of $1.45 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET The assets of Dallas & Associates consist
entirely of current assets and net plant and equipment. The firm
has total assets of $5 million and net plant and equipment equals
$3.5 million. It has notes payable of $500,000, long-term debt of
$2,000,000, and total common equity of $1.75 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.5 million and net plant and equipment equals $2.2
million. It has notes payable of $140,000, long-term debt of
$745,000, and total common equity of $1.45 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.6 million and net plant and equipment equals $2.2
million. It has notes payable of $145,000, long-term debt of
$750,000, and total common equity of $1.55 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
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