Corporate Finance

Q-2. Solve the following questions:-

(A)- Create the statement of sources and uses of cash from the following entries:

( 2.5 Marks )

(B)- Energetic, Inc. believes that it can acquire Satisfied Industries and improve efficiency to the extent that the market value of Satisfied will increase by $5 million. Satisfied currently sells for $20 a share, and there are 1 million shares outstanding. 1. Satisfied's management is willing to accept a cash offer of $25 a share. Can the merger be accomplished on a friendly basis? 2. What will happen if Satisfied's management holds out for an offer of $28 a share?

NetincomeDividendsIncreasedinventoryIncreasedreceivablesDepreciationIncreasedpayablesIncreasedlong-termdebtIncreasedfixedassets$1,000600801006045200475