Assume that the following balance sheets are stated at book value. The fair market valueof James's fixed assets is equal to $9,300. Jurion pays $16,000 for James and raises theneeded funds through an issue of long-term debt.Jurion Co.CurrentCurrent assets $ 12,000$ 5,300liabilitiesNet fixed36,000 Long-term debt9,800assetsEquity32,900Total$48,000Total$48,000James, Inc.Current assets $3,400 Current liabilities$ 1,300Net fixed assets 6,400 Long-term debt 1,900Equity6,600Total$9,800Total$9,800Construct a postmerger balance sheet assuming that Jurion Co. purchases James, Inc.,and the purchase method of accounting is used. (Do not round intermediatecalculations and round your answer to the nearest whole number, e.g., 32.)Jurion Co., post-mergerCurrent assetsFixed assetsCurrent liabilitiesLong-term debtGoodwillEquityTotalTotal

Goodwill = Purchase consideration - Net assets Net Assets = ( Total current assets + Total fixed…

Assume that the following balance sheets are stated at book value. The fair market value of James's fixed assets is equal to $9,300. Jurion pays $16,000 for James and raises the needed funds through an issue of long-term debt. Jurion Co. Current liabilities Current assets $ 12,000 $ 5,300 Net fixed 36,000 Long-term debt 9,800 assets Equity 32,900 Total $48,000 Total $48,000 James, Inc. Current assets $3,400 Net fixed assets 6,400 Current liabilities$ 1,300 Long-term debt 1,900 Equity 6,600 Total $9,800 Total $9,800 Construct a postmerger balance sheet assuming that Jurion Co. purchases James, Inc., and the purchase method of accounting is used. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Jurion Co., post-merger Current liabilities Long-term debt Equity Current assets Fixed assets Goodwill Total Total

Assume that the following balance sheets are stated at book value. The fair market value of James's fixed assets is equal to $9,300. Jurion pays $16,000 for James and raises the needed funds through an issue of long-term debt. Jurion Co. Current liabilities Current assets $ 12,000 $ 5,300 Net fixed 36,000 Long-term debt 9,800 assets Equity 32,900 Total $48,000 Total $48,000 James, Inc. Current assets $3,400 Net fixed assets 6,400 Current liabilities$ 1,300 Long-term debt 1,900 Equity 6,600 Total $9,800 Total $9,800 Construct a postmerger balance sheet assuming that Jurion Co. purchases James, Inc., and the purchase method of accounting is used. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Jurion Co., post-merger Current liabilities Long-term debt Equity Current assets Fixed assets Goodwill Total Total

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 6QE

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