ols Window Help 58% s adv accounting 401.pdf (page 67 of 1,182) Problem 1-3 (LO 3, 4, 6) Pro forma income after an acquisition. Moon Company is contemplating the acquisition of Yount, Inc., on January 1, 20X1. If Moon acquires Yount, it will pay $730,000 in cash to Yount and acquisition costs of $20,000. The January 1, 20X1, balance sheet of Yount, Inc., is anticipated to be as follows: Yount, Inc. Pro Forma Balance Sheet January 1,20x1 Assets Liabilities and Equity $100,000 Current liabilities Accounts receivable Inventory . Depreciable fixed assets Accumulated depreciation .(80,000 $ 30,000 165,000 80,000 115,000 120,000 Long-term liabilities 200,000 Retained earnings 390000 Total liablities and equity... $390,000 Total assets.. Fair values agree with book values except for the inventory and the depreciable fixed assets, which have fair values of $70,000 and $400,000, respectively Your projections of the combined operations for 20XI are as follows: Combined sales $200,000