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Assume that the following balance sheets are stated at book value. Meat Co. Current assets Current $13,200 $ 5,900 liabilities Net fixed Long-term 37,800
Assume that the following balance sheets are stated at book value. Meat Co. Current assets Current $13,200 $ 5,900 liabilities Net fixed Long-term 37,800 10,400 assets debt Equity 34,700 Total $51,000 Total $51,000 Loaf, Inc. Current Current $ 4,000 $ 1,900 assets liabilities Net fixed Long-term 8,800 2,500 assets debt Equity 8,400 Total $12,800 Total $12,800 Suppose the fair market value of Loaf's fixed assets is $12,900 versus the $8,800 book value shown. Meat pays $19,600 for Loaf and raises the needed funds through an issue of long-term debt. Construct the postmerger balance sheet under the purchase accounting method. Current assets Fixed assets Goodwill Total Meat Co., post-merger Current liabilities Long-term debt Equity Total
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