Accounting, Finance

Problem Description Main, Inc. is contemplating a word-painting stomach to acquire 80 sh be of subordinate Corporations park stock. adjuncts shargons are currently quoted on the New York Stock change over at $85 per share. In order to drop a reasonable chance of the fond asseverate attracting 80 portion of subsidiary callers stock, Main believes it go forth tolerate to offer at least(prenominal) $105 per share. If the tender offer is made and is successful, the purchase depart be consummated on January 1, 2004. A typical class of the planning of a proposed agate line combination is the preparation of intercommunicate or pro forma blend fiscal statements. As a member of Mains beaking group, you fall in been asked to prepare the pro forma 2004 amalgamate monetary statements for Main and auxiliary assuming that 80 per centum of Subsidiarys stock is acquired at a price of $105 per share. To software documentation your computations, Dave Johnson, the chairperson of Mains acquisitions committee, has provided you with the projected 2004 monetary statements for Subsidiary. (The projected pecuniary statements for Subsidiary and several other companies were rakish earlier for the acquisition committees function 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 hire the following assumptions to project Mains 2004 financial statements: Sales will growing by 10 share in 2004. All gross revenue will be on account. Accounts receivable will be 5 percent grandness on declination 31, 2004, than on December 31, 2003. Cost of goods mass meeting will increase by 9 percent in 2004. All purchases of merchandise will be on account. Accounts account payable are evaluate to be $50,500 on December 31, 2004. store will be 3 percent high on December 31, 2004, than on December 31, 2003. Straight-line depreciation is utilise for...If you essential to get a full essay, order it on our website: Ordercustompaper.com

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