Advanced Accounting - Chapter 1 - Case 1

Advanced Accounting - Chapter 1 - Case 1 - Part A:...

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Part A: Calculating Purchase Price Shares Purchased Class A Stock 51,412,707 Class B Stock 213,250,000 Total Shares 264,662,707 X $55 per share Purchase Price $14,556,448,885.00 Cash and Cash equivalents 94,000,000 Accounts Receivable, net 553,000,000 Deferred Income Taxes 100,000,000 Inventories 964,000,000 82,000,000 Notes Payable (72,000,000) Accounts Payable (403,000,000) Accrued Liabilities (982,000,000) (11,000,000) Income Tax Accrued (121,000,000) Long-Term debt (4,094,000,000) Other noncurrent liabilities (770,000,000) Deferred Income Taxes (1,180,000,000) (5,840,000,000) Non-Priority 3,057,000,000 Trademarks 3,414,000,000 163,000,000 6,634,000,000 Purchase Price $14,556,448,885.00 Book Value of Net Assets 794,000,000 Goodwill $13,762,448,885.00 Part B: Amortization Expense = Goodwill/Amortization Period Amortization Expense Tax Rate $344,061,222.13 38% $130,743,264.41 Nabisco Net Income $357,000,000.00 Less: Amortization Expense (130,743,264.41) $226,256,735.59 Prepaid expenses and Other
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Advanced Accounting - Chapter 1 - Case 1 - Part A:...

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