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the acquisition, X borrowed the entire amount. The balance sheet of X and Y are as follow. Construct a post merger balance sheet using the

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the acquisition, X borrowed the entire amount. The balance sheet of X and Y are as follow. Construct a post merger balance sheet using the purchase method of accounting 1. Assume that Firm X acquires Firm Y by paying $36m of cash. To finance for Balance Sheet - X (in $m) Cash Fixed Assets 25 Debt 95 Equit 120 20 100 120 Balance Sheet - Y (in $m) 30 Cash Fixed Assets 4 Equity 26 30 30

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