Answer:
Since no transactions are specified that were made out of the group ( i.e. Holding Company and Subsidiary) so, in consolidated income statement of 20x8, no COGS shall be shown for the transactions made between Pie and Slice Co.
Explanation:
In consolidated financial statements, we represent Holding ( Pie ) and Subsidiary ( Slice ) Companies as a single unit. Hence, the transactions made within the group are not considered in making of Consolidated financial statements.
However, both companies will show the sales and COGS in separate financial statements.
Answer:
2.34 million
Explanation:
Vasudevan incorporation reported an operating income of $2.90 million
The depreciation is $1.20 million
The tax rate is 40%
= 40/100
= 0.4
The firm's expenditure on fixed assets and net operating working capital is $0.6 million
Therefore, the free cash flow can be calculated as follows
Free cash flow= operating profit-tax+depreciation-expenditure
= 2.90-(2.90×0.4)+1.20-0.6
= 2.90-1.16+1.20-0.6
= 2.34
Hence the free cash flow is 2.34 million
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Jarrod exclude from his gross income of $13,500
Explanation:
The following items which are excluded from the gross income are:
1. Tuition = $12,000
2. Books and supplies = $1,500
The total amount would be equal to
= $12,000 + $1,500
= $13,500
These items would be excluded because the deduction is allowed for these items. Whereas, the room and personal expenses are taxable. Hence, it would be included in the gross income
Answer:
Star Associates is a venture capitalist.
Explanation:
A venture capital is a type of private equity firm that specializes in investing on early-stage startup companies. In exchange, they would receive a percentage of ownership over the company, depending on how much money they pledged in the funding round that the company held. Many tech entrepreneurs in Silicon Valley and elsewhere in the US receive this form of funding when they just started their company. Each venture capital firm has its own policy on the type of company the usually invest in and the amount that they are willing to pledge.
