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2 years ago

What are equity investments?

2 answers:

7 0

An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in anticipation of income from dividends and capital gains. :)

Rudik [331]2 years ago

4 0

Answer: An equity investment is money that is invested in a company by purchasing shares of that company in the stock market. These shares are typically traded on a stock exchange.

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An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Wellman Corp.

RUDIKE [14]

Answer:

Explanation:

There are three types of activities in the cash flow statement which are described below:

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the dividend and interest is received is recorded in this activity.

The loss and gain on sale of the assets is also recorded and amortization on intangible asset is also recorded

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

The categorization is shown below:

(1) Exchange of land for patent - Non-cash investing and financing activity as it does not involve any cash transaction

(2) Sale of building at book value - Investing activity

(3) Payment of dividends - Financing activity

(4) Depreciation - Operating activity

(5) Receipt of dividends on investment in stock - Operating activity

(6) Receipt of interest on notes receivable - Operating activity

(7) Issuance of capital stock - Financing activity

(8) Amortization of patent - Operating activity

(9) Issuance of bonds for land - Non-cash investing and financing activity as it does not involve any cash transaction

(10) Purchase of land - Investing activity

(11) Conversion of bonds into common stock - Non-cash investing and financing activity as it does not involve any cash transaction

(12) Loss on sale of land - Operating activity

(13) Retirement of bonds - Financing activity

7 0

3 years ago

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons, Frank and Greg, in equal shares. The

SVETLANKA909090 [29]

Answer:

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons, Frank and Greg, in equal shares. The will disinherits a third son, Hal. Don and Elsie divorce, but Don dies before changing his will. Under the Uniform Probate Code:

c. Frank and Greg receive the entire estate in equal shares.

Explanation:

Uniform Probate Code is applicable in almost 18 states of the United States that was developed to standardize the laws of wills, trusts, and intestacy.
The option a is not correct as Elsie can't get the half of the farm as Don and Elsie were divorced.
The option b is also incorrect as Elsie can't get the half of farm as well as Hal will not get the share.
The option c is correct as it is in accordance with Uniform Probate Code.
The option d is incorrect as state can't inherits the entire estate in the presence of heirs.

6 0

2 years ago

the activities a firm undertakes to create a certain perception of its product in the eyes of the target market are referred to

Dima020 [189]

Answer:

Positioning

Explanation:

Market positioning means the capability to develop a perception of a consumer. In this, the competitive advantage plays an important which enables the firm to become differentiate with that of the competitor with respect to the brand or product in which the firm is dealing. It is a motive to create an image of a brand

Therefore according to the given situation, the positioning is the right answer

3 0

3 years ago

Under the current/noncurrent method

sattari [20]

Answer:

a)A foreign subsidiary with current assets in excess of current liabilities will cause a translation gain (loss) if the local currency appreciates (depreciates).

Explanation:

6 0

3 years ago

On October 1, 2022, Ivanhoe Company places a new asset into service. The cost of the asset is $87500 with an estimated 5-year li

Dimas [21]

Answer:

$3150

Explanation:

Given:

Cost of the asset purchased = $87500 (on 1st October. 2022)

Salvage value at the end of its useful life = $24500

Useful life estimated = 5 years

Question asked:

What is the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation?

Solution:

As we know:

$Straight-Line\ Depreciation\ Expense=\frac{Cost\ - Salvage\ Value}{Useful\ Life\ of\ the\ Asset}$

$=\frac{87500-24500}{5} =\frac{63000}{5} =12600$

Depreciation expenses per year = $12600

But we have to find depreciation expenses for 2022 for:-

From 1st October, 2022 to 31st December, 2022 = 3 months.

Straight-Line Depreciation Expense for Partial Year = 

 $D\times\frac{N}{12} \\\\ D=Depreciation\ expense\ for\ a\ complete\ year.\\N= Number\ of\ months\ during\ which\ the\ fixed\ asset\ was\ available\ for\ use$

Depreciation Expense for 3 months = $12600\times\frac{3}{12} =\frac{37800}{12} =3150$

Therefore, the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation is $3150.

5 0

3 years ago