Professional Documents
Culture Documents
COMBINATIONS
1
A Company
A Company
B Company
A Company
C Company
B Company
A Company
A Company
B Company
B Company
5
15,978,804 shares
Metro shareholders
7,669,826 shares
(0.48)
BUYER
Stock-for-stock
TARGET
Transaction
9
Keane
shareholders
Metro
shareholder
s
90.2%
Metro stockholders
9.8%
As a result of
stock transaction
10
TOTAL
$162,449
11
13
$622
Accounts receivable
$40,810
$1,004
$2,790
TOTAL ASSETS
$45,226
Accounts payable
$3,583
Accrued compensation
$9,800
(A)
Other liabilities
$3,889
Note payable
$65,938
Total Current liabilities
$83,210
(B)
14
Accounting after
acquisition
Under the purchase Method of accounting for
a business combination, the acquiring
company adds to its balance sheet the assets
acquired and the liabilities assumed, and
reduces its cash account or increases its
equity account to reflect the surrendered
resources.
15
Before merger
Net current assets
313,614
Fixed tangible assets 43,053
Intangible assets
43,819
Goodwill
71,984
Total assets
472,470
Liabilities
75,858
Capital stock
118,321
Deferred merger cost
Retained earnings
278,291
Total
472470
+
+
+
+
42,436
2,790
46,100
154,333
=
=
=
=
+
+
+
83,210
148,339
14,110
=
=
=
356,050
45,843
89,919
226,317
718,129
159,068
266,660
14 ,110
278,291
16
718,129
THE END
17