Mr. Rehman is the CEO of XYZ Company, a manufacturer and retailer of Omani Dishdesha brand. The company imports the raw material from countries like UAE, India and Bangladesh and then manufactures various types of Dishdaha and other dress materials (jeans, shirt, etc) for male customers. The larget market for the firm is Oman. However, the sales manager of the firm Me, Mohammed is insisting on entering other marker (like UAE, Suudi Arabia, Bahrain, Qatar and Kuwait) and Asian market (like India, Pakistan, Bangladesh, etc). Mohammed is optimistic about entering into GCC and Asian markets and is of the opinion that these markets will act as a sustainable growth model for the firm. The demand in the local Omani market is stagnant and competition has increased manifold The finance manager of the fimm Ms Aisha is pessimistic about Asian market and is recommending entering only GCC market. One of her reservations for GCC market is that . OMR is pepped with USD and so are other GCC currencies. This will reduce the currency exposure compared to other currencies However, the HR manager Ms. Sumiais averse for any foreign investments, as it will create various issues like repairement of new employees, a lot of capital expenditure and risk exposure in these foreign markets. Ms. Samin proposes to emphasize more on the local market and instead diversify the business portfolio within Oman Mr. Rehman has identified a UAE based firm Star LLC, a retailer of men's clothing brand. . a Following portion reflect the financial details 4 Star LLC Ifigures in $) 65,000 61,000 4,000 11,000 95,000 Year Emling 31 Dec 2020 XYZ LLC I figures in ) Revenue SS.MKI Expenses 45,KI Net 10,000 Cash 12.00 Receivable and inventory 77.000 Pented technology concurrent) 900/KKI Equipment noncurrentes) 120.000 Total assets 299,000 Liabilities 25.01 Common stock 901,0KKI (book value is si per share Additional paid up capital 77.000 Retained earning 107.00 Total liabilities & equity 299,000 65,00) 75.000 246,000 26,000 80,000 95.000 45,000 246,000 Star LLC's equipment was actually $ 35,000 and patented technology as $ 75.000. Fair valde of receivables and inventory for Star LLC was 5 105,000 XYZ LLC acquired all comme slack of Star LLC by issuing 12.000 shares of 1 par value and having 5 16 as fair value and taking a loan of $ 75,000 Any undervalued noncurrent sets should be amortized spanning a five year period. Any access of consideration transferred over fair value should be amortized over ten years. Following figures are assumed for the next two years XYZ LLC Star LLC NUO 20.000 5.000 4.000 Net income for 2021 Dividends declared for 2021 Net income for 2002 Dividends declared for 2022 9.000 22.000 6.100 4.000 Task 3: Define business combination in the given context and differentiate various forms of business combinations. Which form of business combination is suitable for the given scenario? Justify. (LO 2.3) Task 4: (LO 2.4, LO 2.5 & LO 2.6) A. Calculate goodwill from the above information. Show goodwill calculation with both the methods of accounting equation. B. Prepare statement of consolidated retailed earnings (for years 2021 & 2022). C. Prepare balance sheet for XYZ LLC (for year ending 31 Dec 2020). Mr. Rehman is the CEO of XYZ Company, a manufacturer and retailer of Omani Dishdesha brand. The company imports the raw material from countries like UAE, India and Bangladesh and then manufactures various types of Dishdaha and other dress materials (jeans, shirt, etc) for male customers. The larget market for the firm is Oman. However, the sales manager of the firm Me, Mohammed is insisting on entering other marker (like UAE, Suudi Arabia, Bahrain, Qatar and Kuwait) and Asian market (like India, Pakistan, Bangladesh, etc). Mohammed is optimistic about entering into GCC and Asian markets and is of the opinion that these markets will act as a sustainable growth model for the firm. The demand in the local Omani market is stagnant and competition has increased manifold The finance manager of the fimm Ms Aisha is pessimistic about Asian market and is recommending entering only GCC market. One of her reservations for GCC market is that . OMR is pepped with USD and so are other GCC currencies. This will reduce the currency exposure compared to other currencies However, the HR manager Ms. Sumiais averse for any foreign investments, as it will create various issues like repairement of new employees, a lot of capital expenditure and risk exposure in these foreign markets. Ms. Samin proposes to emphasize more on the local market and instead diversify the business portfolio within Oman Mr. Rehman has identified a UAE based firm Star LLC, a retailer of men's clothing brand. . a Following portion reflect the financial details 4 Star LLC Ifigures in $) 65,000 61,000 4,000 11,000 95,000 Year Emling 31 Dec 2020 XYZ LLC I figures in ) Revenue SS.MKI Expenses 45,KI Net 10,000 Cash 12.00 Receivable and inventory 77.000 Pented technology concurrent) 900/KKI Equipment noncurrentes) 120.000 Total assets 299,000 Liabilities 25.01 Common stock 901,0KKI (book value is si per share Additional paid up capital 77.000 Retained earning 107.00 Total liabilities & equity 299,000 65,00) 75.000 246,000 26,000 80,000 95.000 45,000 246,000 Star LLC's equipment was actually $ 35,000 and patented technology as $ 75.000. Fair valde of receivables and inventory for Star LLC was 5 105,000 XYZ LLC acquired all comme slack of Star LLC by issuing 12.000 shares of 1 par value and having 5 16 as fair value and taking a loan of $ 75,000 Any undervalued noncurrent sets should be amortized spanning a five year period. Any access of consideration transferred over fair value should be amortized over ten years. Following figures are assumed for the next two years XYZ LLC Star LLC NUO 20.000 5.000 4.000 Net income for 2021 Dividends declared for 2021 Net income for 2002 Dividends declared for 2022 9.000 22.000 6.100 4.000 Task 3: Define business combination in the given context and differentiate various forms of business combinations. Which form of business combination is suitable for the given scenario? Justify. (LO 2.3) Task 4: (LO 2.4, LO 2.5 & LO 2.6) A. Calculate goodwill from the above information. Show goodwill calculation with both the methods of accounting equation. B. Prepare statement of consolidated retailed earnings (for years 2021 & 2022). C. Prepare balance sheet for XYZ LLC (for year ending 31 Dec 2020)