Answer:
Conceptual
Explanation:
Conceptual decision making is based on creative thinking and the leader is not afraid to take risks and take the visionary approach to solve his/her problems. In the given scenario, Marie is a risk taker and consider her alternatives taking into account the broader perspective and future possibilities. She is more achievement oriented than finding immediate short term solutions.
<h3><u>Changes considered to reduce the cost of the project: </u></h3>
Cost Estimates of a Residential Design have the following elements:
1) Quantity Takeoff
2) Labor Hours
3) Labor Rates
4) Material Prices
5) Equipment Costs
6) Subcontractor Quotes
7) Indirect Costs
8) Profit Margin
Quantity Takeoff is the very basic element required in Residential Building. Labor hours and rates depends on the location, work difficulty, market value, and other extrinsic factors. Material prices and Subcontractor Quotes again depends on location, supply and demand. Equipment Costs depends on the location, place of purchase, transportation cost, size of equipment, etc. Indirect costs are overheads for labor and contractors.
As we can check the above elements, we cannot change Quantity takeoff, as no one wants to compromise in the quality. However, we can try to slightly negotiate with Labor rates and Subcontractor Quotes. Again, as mentioned the budget is significantly high, so we need to work on reducing 2 costs, which are Equipment Costs and Material Prices.
Answer:
Cash outflow of $579,500
Explanation:
Net cash flow is the sum of all cash inflow and outflows of the company.
In this question the company has cash outflow from Spain and inflow from Germany.
As per given data
Cash flow from Spain subsidiary = €5,000,000 outflow
Cash flow from German subsidiary = €4,500,000 inflow
Net cash flow to parent company = - €5,000,000 + €4,500,000
Net cash flow to parent company = - €500,000
The currency is converted using the exchange rate of $1.159 per euro.
Net cash Flow in U.S. dollars = - €500,000 x $1.159 per euro
Net cash Flow in U.S. dollars = - $579,500
Answer:
Turnover Company
The net income of Turnover will increase by $500,000.
Explanation:
a) Data and Calculations:
Turner Company's shareholding in ICA = 10%
ICA pays dividend totalling $5 million
Turner's share of dividend = $500,000 ($5 million * 10%)
b) This is not based on equity accounting. Instead, the investment will be reported at fair value. Equity accounting method will be applied in recording Turner's investments in ICA Company, if the ownership interest is valued at 20–50% of the stock.
c) The $500,000 dividends received from ICA Company will be reported in the Income Statement of Turner Company as other income, unless Turner ordinarily buys and sells stocks. The 10% shareholding does not amount to significant control or influence for the accounts of Turner and ICA to be consolidated.
