Balance Sheets for Mergers

Consider the following premerger information about firm X and firm Y:

Firm X

Total earnings

Shares outstanding Per-share values:

Market

$105,000

43,900

Firm Y

$48,300

33,000

$

$

53

$ $

19

9

Book

21

> Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $5 per share. Assuming that neither firm has any debt before or after the merger, construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method.