Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

Alpha Company is considering the purchase of Beta Company. Alpha has collected the following data about Beta: Beta Company Book Values Estimated Market ValuesTotal identifiable assets $585,000 $750,000Total liabilities 320,000 320,000Owners’ equity $265,000 Cumulative total net cash earnings for the past five years of $850,000 includes extraordinary cash gains of $67,000 and nonrecurring cash losses of $48,000.Alpha Company expects a return on its investment of 15%. Assume that Alpha prefers to use cash earnings rather than accrual-based earnings to estimate its offering price, and that it estimates the total valuation of Beta to be equal to the present value of cash-based earnings (rather than excess earnings) discounted over five years. (Goodwill is then computed as the amount implied by the excess of the total valuation over the identifiable net assets valuation.)Required: Compute (a) an offering price based on the information above that Alpha might be willing to pay, and (b) the amount of goodwill included in that price. Compute the amount of goodwill actually recorded, assuming the negotiations result in a final purchase price of $625,000 cash.

Alpha Company is considering the purchase of Beta Company. Alpha has collected the following data about Beta: Beta Company Book Values Estimated Market ValuesTotal identifiable assets $585,000 $750,000Total liabilities 320,000 320,000Owners’ equity $265,000 Cumulative total net cash earnings for the past five years of $850,000 includes extraordinary cash gains of $67,000 and nonrecurring cash losses of $48,000.Alpha Company expects a return on its investment of 15%. Assume that Alpha prefers to use cash earnings rather than accrual-based earnings to estimate its offering price, and that it estimates the total valuation of Beta to be equal to the present value of cash-based earnings (rather than excess earnings) discounted over five years. (Goodwill is then computed as the amount implied by the excess of the total valuation over the identifiable net assets valuation.)Required: Compute (a) an offering price based on the information above that Alpha might be willing to pay, and (b) the amount of goodwill included in that price. Compute the amount of goodwill actually recorded, assuming the negotiations result in a final purchase price of $625,000 cash.

Alpha Company is considering the purchase of Beta Company. Alpha has collected the following data about Beta: Beta Company Book Values Estimated Market ValuesTotal identifiable assets $585,000 $750,000Total liabilities 320,000 320,000Owners’ equity $265,000 Cumulative total net cash earnings for the past five years of $850,000 includes extraordinary cash gains of $67,000 and nonrecurring cash losses of $48,000.Alpha Company expects a return on its investment of 15%. Assume that Alpha prefers to use cash earnings rather than accrual-based earnings to estimate its offering price, and that it estimates the total valuation of Beta to be equal to the present value of cash-based earnings (rather than excess earnings) discounted over five years. (Goodwill is then computed as the amount implied by the excess of the total valuation over the identifiable net assets valuation.)Required: Compute (a) an offering price based on the information above that Alpha might be willing to pay, and (b) the amount of goodwill included in that price. Compute the amount of goodwill actually recorded, assuming the negotiations result in a final purchase price of $625,000 cash.

Alpha Company is considering the purchase of Beta Company. Alpha has collected the following data about Beta: Beta Company Book Values Estimated Market ValuesTotal identifiable assets $585,000 $750,000Total liabilities 320,000 320,000Owners’ equity $265,000 Cumulative total net cash earnings for the past five years of $850,000 includes extraordinary cash gains of $67,000 and nonrecurring cash losses of $48,000.Alpha Company expects a return on its investment of 15%. Assume that Alpha prefers to use cash earnings rather than accrual-based earnings to estimate its offering price, and that it estimates the total valuation of Beta to be equal to the present value of cash-based earnings (rather than excess earnings) discounted over five years. (Goodwill is then computed as the amount implied by the excess of the total valuation over the identifiable net assets valuation.)Required: Compute (a) an offering price based on the information above that Alpha might be willing to pay, and (b) the amount of goodwill included in that price. Compute the amount of goodwill actually recorded, assuming the negotiations result in a final purchase price of $625,000 cash.

testimonials icon
HCA 305 Week 3 Assignment - Final Outline...
testimonials icon
1. A piece of gold with a mass of 5.50 kg and density of 19300 kg/m3 is suspended from a string and then totally immersed i...
testimonials icon
This week’s required readings discuss intimate partner abuse and the residual effects of victimization. Looking ahead to your Holistic Victim Res...
testimonials icon
Using the regression results and the other computations from Assignment 1, determine the market structure...
testimonials icon
what role does social stigma play in police ethics .purchase_post_btn img {...
testimonials icon
Responses 1 Developing an exercise program encourages older adults to be more active. A good exe...
testimonials icon
The purpose of this assignment is for you to identify an issue of concern for your role as an advanced practice nurse (Access to care) to formulate...
testimonials icon
Introduction:As a course about music, one of the most important things we will be doing is experiencing music “i...
testimonials icon
Order Grade A+ Academic Papers Instantly!...
testimonials icon
Question 1Describe how you would prepare for and conduct an effective interview. Discuss the common errors interviewers...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65