Mitchell Boehm

Mergers & Acquisitions

Problems 8-11
8
a.
Current assets 38,600 $ Current liabilities 20,000 $
Property, net 450,000 Long-term liabilities 200,000
Identifiable intangibles 5,000 Capital stock 90,000
Investment in Quarry 1,200 Retained earnings 185,100
AOCI (300)
Total assets 494,800 $ Total liabilities and equity 494,800 $
Sales revenue 900,000 $
Cost of sales (750,000)
Operating expenses (140,000)
Impairment loss (300)
OCI 300
Net Income 10,000 $
b.
Current assets 34,400 $ Current liabilities 20,000 $
Property, net 450,000 Long-term liabilities 200,000
Identifiable intangibles 5,000 Capital stock 90,000
Investment in Quarry 6,800 Retained earnings 186,200
Total assets 496,200 $ Total liabilities and equity 496,200 $
Sales revenue 900,000 $
Cost of sales (750,000)
Operating expenses (140,000)
OCI 1,200
Net Income 11,200 $
Income Statement (in thousands)
PARKER CORPORATION
Balance Sheet (in thousands)
31-Dec-13
PARKER CORPORATION
Income Statement (in thousands)
Year ended December 31, 2013
Balance Sheet (in thousands)
c.
Current assets 31,000 $ Current liabilities 23,000 $
Property, net 535,000 Long-term liabilities 281,000
Identifiable intangibles 5,000 Capital stock 90,000
Goodwill 11,000 Retained earnings 188,000
Total assets 582,000 $ Total liabilities&equity 582,000 $
Sales revenue 960,000 $
Cost of sales (770,000)
Operating expenses (177,000)
Net income 13,000 $
9 a.
Current assets 1,200,000 $ Current liabilities 14,000,000 $
Plant and equipment, net 150,000,000 Noncurrent liabilities 265,000,000
Investment in Albarcol 3,000,000 Capital stock 10,000,000
Intangibles 200,000,000 Retained earnings 65,200,000
Total assets 354,200,000 $ Total liab. And equity 354,200,000 $
Current assets 600,000 $ Current liabilities 200,000 $
Plant and equipment, net 65,000,000 Noncurrent liabilities 55,000,000
Investment in Albarcol 500,000 Capital stock 1,000,000
Intangibles 3,500,000 Retained earnings 13,400,000
Total assets 69,600,000 $ Total liab. And equity 69,600,000 $
b.
Balance Sheet (in thousands)
Income Statement (in thousands)
Allen Corp
Balance Sheet
Barkely Corp.
Balance Sheet
The Impairment loss is $2,500,000. It is not appropriate for Allen to not report the
impairment loss if Barkely does because it is a joint venture and therefore have an
equal share in the company.
Current assets 15,000,000 $ Current liabilities 27,000,000 $
Property and equipment 560,000,000 Long-term debt 465,000,000
Intangibles 50,000,000 Capital stock 50,000,000
Goodwill 22,000,000 Retained earnings 120,000,000
AOCI (15,000,000)
Total assets 647,000,000 $ Total liab and equity 647,000,000 $
Wilson Corporation
Balance Sheet