G Company is considering the takeover of K Company whereby it will issue 6,400 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 20,000 shares outstanding, which were trading at $7.60 per share. The following information has been assembled: Current assets Plant assets (net) Current liabilities Long-term debt Common shares Retained earnings G Company Carrying Amount $ 47,000 64,000 $111,000 $ 20,400 17,000 39,000 34,600 $111,000 Fair Value $ 49,500 74,000 20,400 21,000 K Company Carrying Amount $ 14,000 24,000 $ 38,000 $ 5,400 2,900 14,000 15,700 $ 38,000 Fair Value $ 11,200 34,000 5,400 4,100

G Company is considering the takeover of K Company whereby it will issue 6.400 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 20,000 sharbs outstanding, which were trading at $7.60 per share. The following information has been assembled: Required: a) Prepare 6 Compary's conselidated batence sheet imnedutety aher the combination using the dired ipproach and accourtang for the combination witt the acouisition method (b) Calculate the current ratio and debt-to-equity ratio for G Compary under both methods. (Round your answers to 2 decimal places.? (c) Prepare G Company's consolidated balance sheet immediately after the combination using the worksheet approach and the acquisition method, (leave no cells biank - be certain to enter "tr wherever required. Values in the first two columns and last column (the "partent", "vubsidiary" and "eensolidated" bolonees) that are to be deducted should be indicated with a minus sign, mhlie all values in the "Entry" columns should be entered as positive values. For accoumts where multiple asfiusting enteles are required, combine all debis entries into one omount and enter this amount in the debit column of the worksheet. Similarly, combine all credt entries inte one ambunt and enter this amount in the credit column of the worksheet. Omin 5 sign in your tesponse