Answer:
Cost of goods sold to be reported in consolidated financial statement = $1,000,000
Explanation:
Whenever there is 100% or more than 50% holding in a company, then equity method is followed under which all of the items are to be consolidated, but in case where there are inter transfers that is transfer from holding to subsidiary or vice-versa then such transactions, profit not realized is to be eliminated.
In case where inventory is transferred to subsidiary after adding profit by holding company, then in case if that inventory is sold to third party by year end then entire profit is recognized even the profit added by holding to cost of goods sold to subsidiary.
Where in case such inventory is not sold further by subsidiary to third party and is still held in the stock then such profit added on sale by holding to subsidiary is eliminated.
In our case the entire inventory is sold to third party by the year end.
Therefore, entire profit will be recognized and cost of goods sold to be shown in consolidated financial statements = $600,000 + $400,000 = $1,000,000.
Gross income, or gross profit I think
<span>A customer touch point for abacus airlines would be an item such as reservation desk.
A customer touch point is a point in the process where a consumer and the organization exchange information, finish providing the service, or handle transactions. At the reservation desk, the customer and the business are focusing on the business and service transactions. </span>
Answer:
Instructions are listed below
Explanation:
Giving the following information:
At the end of each year, she invests the accumulated savings ($1,825) in a brokerage account with an expected annual return of 8%. She will invest for 45 years.
A) We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {1825[(1.08^45)-1]}/0.08= $705,372.75
B) n= 25
FV= {1825[(1.08^25)-1]}/0.08= $133,418.34
C) FV= 705,372.75 A=?
We need to isolate A:
A= (FV*i)/{[(1+i)^n]-1}
A=(705,372.75*0.08)/[(1.08^25)-1]
A= $9,648.64
Answer:
d. One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.
CORRECT As the project yields over time can differ. This generates that projects with a lower IRR can achieve a higher NPV at lower rates.
There is a crossover point after which a projects NPV are equal and from there the one with higher IRR obtains better NPV
Explanation:
a. One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
FALSE both method consider time value of money
b. One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital
FALSE The IRR can be compared against the cost of capital to indicate wether or not a project should be preferable
.c. One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.
FALSE IRR considers the time value of money
e. One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
FALSE it considers all the cash flows over the project's full life.
