Accounting question: if a company is acquired another company at the end of 2021 for $1Billion, and is paying for this a

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Accounting question: if a company is acquired another company at the end of 2021 for $1Billion, and is paying for this a

Post by answerhappygod »

Accounting question: if a company is acquired another company at
the end of 2021 for $1Billion, and is paying for this acquisition
using $700Million in term loans and $200 Million in equity
issuance, and $100 Million in a revolver draw (I'm assuming this
would be like a line of credit), what figures on the income
statement, balance sheet and cashflow statements would I need to
adjust if i'm preparing 2022 pro forma statements?
So what line items do i need to adjust any by how much? taking
into account the new equity issuance and type of debt, as well as
outstanding shares, everything that will be impacted.
Please give a detailed response. Especially how i would adjust
shareholders' equity
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply