G Company is considering the takeover of K Company whereby it will issue 7,100 common shares for all of the outstanding shares of K Company. K Company will become a wholly owned subsidiary of G Company. Prior to the acquisition, G Company had 14,000 shares outstanding, which were trading at $9.00 per share. The following information has been assembled: G Company Carrying Fair Amount K Company Carrying Fair Value Amount Current assets $ 57,500 $53,000 Value $21,000 $14,700 Plant assets 71,000 81,000 31,000 48,000 (net) $128,500 $52,000 Current $ 21,100 21,100 $ 6,100 6,100 liabilities Long-term debt 20,500 24,500 3,600 5,500 Common shares 53,000 21,000 Retained earnings 33,900 21,300 $128,500 $52,000 Required: (a) Prepare G Company's consolidated balance sheet immediately after the combination using the direct approach and accounting for the combination with (i) The acquisition method Assets G Company Consolidated Balance Sheet $ 0 Liabilities and Equity $ 0 (ii) The new-entity method G Company Consolidated Balance Sheet Assets Liabilities and Equity (b) Calculate the current ratio and debt-to-equity ratio for G Company under both methods. (Round your answers to 2 decimal places.) New Entity Acquisition Method Method Current ratio Debt-to-equity ratio (c) Prepare G Company's consolidated balance sheet immediately after the combination using the worksheet approach and the acquisition method. (Leave no cells blank - be certain to enter "O" wherever required. Values in the first two columns and last column (the "parent", "subsidiary" and "consolidated" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Entry" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Omit $ sign in your response.) Consolidated Financial Statement Working Paper G Company Consolidated Balance Sheet Current assets Plant assets (net) G Company $ K Company $ Entries Dr. $ Cr. $ Consolidated $ Goodwill Investment in K Company Acquisition differential $ $ Current liabilities $ $ $ $ Long-term debt Common shares Retained earnings $ $ $ Total $ $