Greenmount Ltd, an ASX listed consumer goods corporation aims to acquire a fashion business to generate new growth opportunities. Following a formal…


i don’t have any idea.. about calculate the net asset values of both target firms with Australian Accounting Standards..

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Greenmount Ltd, an ASX listed consumer goods corporation aims to acquire a fashion business to generate new growth opportunities. Following a formal…
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can you pleases tell me.. how can i calculate it?

Greenmount Ltd, an ASX listed consumer goods corporation aims to acquire a fashion businessto generate new growth opportunities. Following a formal search process, external advisorshave identified the following two businesses as best matching entities for a potential take—over:Tallows Ltd and Bilgolo Ltd. Only one will be selected. To move forward with the selection process, the external advisor has estimated that both firms have the same entity value of 52mbased on a Discounted Cash Flow {DCF} model, i.e. acquisition price of $2 million (excluding advisorfees}, which will be paid as cash consideration. The external advisor will charge 55,000finder’s fee and $3,000 legal fees paid in cash to prepare all required due diligence. You have been given access to the following information about the assets, liabilities, andshareholders’ equity for both potential target firms: Tallows Ltd _ _ RemainingHistorical cost: Carrying amount useful "f:Cash and cash equivalents 5 12,000 5 12,000 5Accounts receivable 5 21,000 5 21,000 5Inventory 5 250,000 5 220,000 5Property Plant and Equipment {net} 5 2,000,000 5 1,200,000 5 5 yearsTotal Assets 5 1,453,000 5Accounts Payable S 145,000 5Bank Loans 5 200,000 5Shareh olders’ Equity 5 1,108,000 5IJabilities and shareholders’ equity 5 1,453,000 5 Additional information for Tallows Ltd: Taking into account current market information and historical data of the firm, you determinethe following fair values: Accounts receivables: $18,000, Inventory: $180,000, Property Plantand Equipment: $1,000,000. _ _ RemainingHlstflffll costs Carrying amount useful "f:Cash and cash equivalents 5 5,003 5 5,000 5Accounts receivable 5 230,000 5 230,000 5Inventory 5 600,003 5 600,030 5Property Plant and Equipment {net} 5 5,500,000 5 1,000,000 5 10 yearsTotal Assets 5 1,835,000 3Accounts Payable 5 200,030 5Bond Payable 5 350,000 5Shareh olders’ Equity 5 1,275,000 5IJabilities and shareholders’ equity 5 1,836,000 5 Additional information for Bilgola Ltd: Considering current market prices and further historical information from the company, youdetermine the following fair values: Accounts receivable $200,000, Inventory $500,000,Property Plant and Equipment $2,000,000.

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