G Company is considering the takeover of K Company whereby it will issue 8,000 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 15,000 shares outstanding, which were trading at $9.70 per share. The following information has been assembled: G Company Carrying Amount Fair Current assets $ 67,500 Value $57,000 K Company Carrying Fair Amount Value $29,000 $18,700 Plant assets 79,000 89,000 39,000 62,000 (net) $146,500 $68,000 Current $ 21,900 21,900 $ 6,900 6,900 liabilities Long-term debt 24,500 28,500 4,400 6,900 Common shares 67,000 29,000 Retained earnings 33,100 27,700 $146,500 $68,000 Required: (a) Prepare G Company's consolidated balance sheet immediately after the combination using the direct approach and accounting for the combination with The acquisition method G Company Consolidated Balance Sheet Assets Current assets Plant assets Goodwill 9,600 $ 9,600 Liabilities and Equity $ 0 (ii) The new-entity method Assets G Company Consolidated Balance Sheet $ 0 Liabilities and Equity $ 0 (b) Calculate the current ratio and debt-to-equity ratio for G Company under both methods. (Round your answers to 2 decimal places.) Current ratio Debt-to-equity ratio. New Entity Acquisition Method Method (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) Goodwill Investment in K Company Acquisition G Company $ K Company $ Entries Dr. $ Cr. $ Consolidated $ differential $ $ Current liabilities $ $ $ $ Long-term debt Common shares Retained earnings $ $ $ Total $ $