RMontgomery

I don't have the stuff in front of me but i believe the balance sheet is "immediately following the acquisition", so the cash would have already been spent and the pro forma balance sheet will already exclude the spent amount.

RMontgomery

(lol... well, here in NC it's pasteurized as well)

I finally got around to looking at my Schweser notes on the subject. There's an example of an acquisition where the cash departs from the parent company and... it never really says where it goes. I still think there could easily be a case where new shares are issued and there would be no cash transacted, but unless it explicitly says that, it looks like the curriculum (read: what we need to know for next Saturday) intends for you to take the cash out for any kind of intercorporate investment, and only in the case of Equity method do you get a solitary investment asset in return; the other methods involve subsequently combining parent & consolidated entity balance sheets.

Thanks for your explanations, markCFAIL. Best of luck.