Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer A and B with the calculations P9-51. Reformulating RNOA for Acquisition Gross Profit Effects ADJUSTMENTS 9.2 LO3 Windstream Corporation, a communications and technology solutions

Answer A and B with the calculations

image text in transcribed
P9-51. Reformulating RNOA for Acquisition Gross Profit Effects ADJUSTMENTS 9.2 LO3 Windstream Corporation, a communications and technology solutions company, acquired PAETEC WINDS Holding Corporation in 2011. The merger was designed to increase Windstream's nationwide network CORPO with a more substantial fiber footprint. Use the selected financial statement and analysis data that follow PAETEC (W to answer the requirements. Both net operating profit after tax (NOPAT) and average net operating assets CORPO (NOA) are unadjusted for the effects of acquisition accounting. (P $ millions PAETEC 2010 Windstream 2010 Windstream 2011 Sales revenue . . . . . . . $1,624 $3,711 $ 4,286 Cost of goods or services sold . 809 1,402 1,790 Depreciation and amortization expense. . . .. 197 694 848 Property, plant and equipment (at cost). . .. . . 1,514 11,254 12,763 Accumulated depreciation . . . . . . . . 654 6,490 7,055 Intangible assets (excluding goodwill and other indefinite-life intangibles). . . . . . ... 280 2,039 2,685 Property, plant and equipment and finite-lived intangible asset acquisitions. . . . . . . . . . ... - 702 Net operating profit after tax (NOPAT) . .. . . . 9 654 624 Average net operating assets (NOA) . . . . . 1,231 6,844 10,035 Required a. Compute 2010 pre-merger RNOA for Windstream and PAETEC. b. Compute the unadjusted 2011 RNOA for the combined company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information For Business Decisions

Authors: Loren A Nikolai, Billie Cunningham, John D Bazley

3rd Edition

1111066884, 9781111066888

More Books

Students also viewed these Accounting questions

Question

Keep your head straight on your shoulders

Answered: 1 week ago

Question

Be straight in the back without blowing out the chest

Answered: 1 week ago

Question

Wear as little as possible

Answered: 1 week ago