Write a memorandum (as a Word document) to Ms. Franklin summarizing the results of your analysis, including a summary of the financial ratios you computed and your recommendation.

Forecast the separate financial statements of Parent Inc. Using Ms. Franklin’s assumptions and Parent’s 20X0 financial statements, prepare pro forma 20X1 financial statements for Parent Inc., assuming that the acquisition is not attempted. Support your statements with appropriate work papers and journal entries. Pro forma financial statements include a statement of operation, a statement of retained earnings, a balance sheet, and a cash flow statement.
Create a multimedia piece (such as a narrated power point slides with at least a 2-3 minute narration) summarizing your solution in the assignment section of week 3. Do not make it available to the class.
Adjust the separate financial statements of Parent Inc. to reflect the proposed acquisition. Adjust Parent’s pro forma 20X1 financial statements prepared in Milestone 1 to reflect the proposed acquisition (i.e., adjust Parent’s forecasted financial statements for bond issuance, stock purchase, income from subsidiary, etc.). Support your statements with appropriate work papers and journal entries. Pro forma financial statements include a statement of operation, a statement of retained earnings, a balance sheet, and a cash flow statement.
Prepare a pro forma consolidated worksheet. Prepare a pro forma consolidation worksheet for Parent Inc. and its proposed subsidiary as of December 31, 20X1. To ensure you are starting with the right numbers, use the solution provided to Milestone 1 for the adjusted pro forma 20X1 financial statements of Parent Inc., and the projected 20X1 financial statements of Subsidiary Corporation in Table 1. Show all consolidation adjusting entries, including minority interest entries.
Perform ratio analysis. Compute earnings per share for (1) the separate financial statements of Parent Inc. prepared in Milestone 1 and (2) the consolidated financial statements contained in the solution for the pro forma consolidation worksheet prepared in Milestone 3. Also, calculate current ratio and return on average stockholders’ equity for the separate company and consolidated financial statements.
Write a memorandum (as a Word document) to Ms. Franklin summarizing the results of your analysis, including a summary of the financial ratios you computed and your recommendation. Attach copies of both sets of pro forma financial statements of Parent Inc. and the pro forma consolidation worksheet.
each spreadsheet tab has different reqirements based on the number sequence on the first tab.

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