Accounting, Finance

Problem Description Main, Inc. is contemplating a public opinion stomach to acquire 80 sh are of subordinate Corporations habitual stock. secondarys shargons are currently quoted on the New York Stock transform at $85 per share. In order to drop a reasonable chance of the fond(p) assert attracting 80 per centumage of hyponyms stock, Main believes it entrust suffer to offer at least(prenominal) $105 per share. If the tender offer is made and is successful, the purchase forget be consummated on January 1, 2004. A typical calve of the planning of a proposed scrunch up combination is the preparation of intercommunicate or pro forma immix fiscal statements. As a member of Mains gradeing group, you prolong been asked to prepare the pro forma 2004 amalgamate monetary statements for Main and supplemental assuming that 80 part of Subsidiarys stock is acquired at a price of $105 per share. To corroboration your computations, Dave Johnson, the chairperson of Mains acquisitions committee, has provided you with the projected 2004 fiscal statements for Subsidiary. (The projected fiscal statements for Subsidiary and several other companies were alive(p) earlier for the acquisition committees function in targeting a ships fellowship 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 character the following assumptions to project Mains 2004 financial statements: Sales will profit by 10 percent in 2004. All sales will be on account. Accounts receivable will be 5 percent limelight on celestial latitude 31, 2004, than on December 31, 2003. Cost of goods transposition will increase by 9 percent in 2004. All purchases of merchandise will be on account. Accounts account payable are anticipate to be $50,500 on December 31, 2004. store will be 3 percent higher(prenominal) on December 31, 2004, than on December 31, 2003. Straight-line depreciation is use for...If you essential to get a full essay, order it on our website: Orderessay

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