On January \(1,20 \mathrm{X} 1\), Speedy Plumbers issued shares of its \(\$ 5\) par value stock to acquire all the shares of Flash Heating Company, which was liquidated immediately thereafter. The balance sheet for Speedy Plumbers and balance sheets for the combined company under both purchase and pooling of interests treatment are presented.

\section*{Required}
Shortly after the above information was compiled, a fire destroyed the accounting records. You have been employed to determine the answers to a number of questions raised by the owners of the newly combined company.

a. What was the value of the shares issued by Speedy Plumbers to acquire Flash Heating Company?
\(b\). What was the fair value of the net assets held by Flash Heating immediately before the combination?

c. How many shares of Speedy Plumbers were issued in completing the combination?

d. What was the market price per share of Speedy Plumbers stock at the date of combination?
\(e\). Was the full retained earnings balance of Flash Heating carried forward in the pooling case? How do you know?

f. What was the book value of the net assets of Flash Heating at combination?
g. Flash Heating uses a LIFO inventory basis. How much did its inventory increase in value between the date purchased and the time of the business combination?
h. What was the balance in working capital reported by Flash Heating before the business combination?

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Speedy Plumbers Combined Company Purchase Balance Sheet Item Pooling Cash $ 70,000 $100.000 $ 100,000 Accounts Receivable 130,000 180,000 180,000 Inventory Land 100,000 170.000 220,000 100,000 160,000 175,000 Buildings and Equipment 400,000 600.000 550,000 Less: Accumulated Depreciation (150,000) (230,000) Goodwill (150,000) 55.000 Total Assets $650,000 $980,000 Accounts Payable Bonds Payable Common Stock $ 40,000 100.000 200,000 $ 60.000 160,000 $1,130,000 $ 60.000 160,000 240,000 240.000 Additional Paid-In Capital 60,000 130.000 420,000 Retained Earnings 250,000 390.000 250,000 Total Liabilities and Equities $650,000 $980,000 $1,130,000