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A is acquiring B in a leverage buyout transaction. The buyer is purchasing all the common equity of the target, and the following sources &

A is acquiring B in a leverage buyout transaction. The buyer is purchasing all the common equity of the target, and the following sources & uses of funds table is associated with the transaction:

Sources of Funds Amount ($) Uses of Funds Amount ($)
Revolver 0 Equity Purchase 35,000
Bank Debt 20,000 Repay Existing Debt 5,000
Cash on Hand 1,500 M&A Fees and Expenses 150
Sponsor's Equity 18,850 Financing Fees 200
Total Source of Funds 40,350 Total Use of Funds 40,350

Complete the pro forma balance sheet, filling out all the positive and negative adjustments necessary to obtain the post-closing balance sheet after the LBO. [Assume that there are no write-ups of tangible and intangible assets.]

Pre-Closing Adjustments (+) Adjustments (-)
Cash and Cash Eq. 2,500 x [ Select ] ["350", "0", "1,500", "1,000", "Insufficient information to answer"]
Goodwill 0 ["Insufficient information to answer.", "8,450", "21,500", "25,000", "16,350"] x
Total Common equity 10,000 [ Select ] ["18,450", "Insufficient information to answer", "35,000", "18,850", "18,650"] [ Select ] ["10,200", "Insufficient information to answer", "18,650", "10,150", "18,500"]

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