Condensed balance sheets for phillips company and solina company on january 1, 2013, are as follows: phillips solinacurrent assets$180,000$85,000plant and equipment (net)450,000140,000total assets$630,000$225,000total liabilities$95,000$35,000common stock, $10 par value350,000160,000other contributed capital125,00053,000retained earnings (deficit)60,000(23,000)total liabilities and equities$630,000$225,000on january 1, 2013, the stockholders of phillips and solina agreed to a consolidation. because fasbrequires that one party be recognized as the acquirer and the other as the acquiree, it was agreed that phillips wasacquiring solina. phillips agreed to issue 20,000 shares of its $10 par stock to acquire all the net assets of solinaat a time when the fair value of phillips’ common stock was $15 per share. on the date of consolidation, the fair values of solina’s current assets and liabilities were equal to their bookvalues. the fair value of plant and equipment was, however, $150,000. phillips will incur $20,000 of direct acqui-sition costs and $6,000 in stock issue costs. required: prepare the journal entries on the books of phillips to record the acquisition of solina company’s net assets.

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.