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6 Company is considering the takeover of K Company whereby it will issue 6,200 common shares for all of the outstanding shares of K Company.

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6 Company is considering the takeover of K Company whereby it will issue 6,200 common shares for all of the outstanding shares of K Company. K Company will become a wholly owned subsidlary of G Company. Prior to the acquisition, G Company had 18,000 shares outstanding. which were trading at $7.10 per share. The following information has been assembled: Required: (o) Prepare G Company's consolidated balance sheet immedlately after the combination using the direct approach and accounting for the combination with (i) The acquisition method (b) Calculate the current ratio and debt-to equity ratio for G Company under both methods. (Round your answers to 2 decimal places.) (c) Prepare G Company's consolidated balance sheet immediately after the combination using the worksheet approach and the acquisition method. (Leave no cells blank - be certain to enter " 0 " wherever required. Values in the first two columns ond last column (the "parent", "subsidiory" and "consolidated" bolances) that are to be deducted should be indicoted with a minus sign, while oll volues in the "Entry" columns should be entered os positive values. For occounts where multiple adjusting entries are required, combine all debit entries into one omount and enter this amount in the debit column of the worksheet. Similarly. combine oll credit entries into one amount and enter this omount in the credit column of the worksheet. Omit $ sign in your response, (ii) The new-entity method

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