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IrinaK [193]
3 years ago
11

What is the term called when a company pays for a set of assets that is worth more than their company’s worth if they liquidised

all their assets and paid back all their liabilities(Book Value)?
Is it called ‘impairment’?
Business
1 answer:
andriy [413]3 years ago
5 0

Offsetting Assets and Liabilities  is when a company pays for a set of assets that is worth more than their company’s worth if they liquidised all their assets and paid back all their liabilities(Book Value)

<u> Explanation: </u>

A firm who wants to restructure and to infuse further finance into the business they will go for the above said option stated in the question. The   term offsetting of assets and liabilities is being used to refer for the above mentioned transaction in the question.

According to the accounting principle the company will sell of his assets which is more than the company’s worth will pay off their liability simultaneously and then they proceed for the restructuring of finance. This way it will help them to minimise their debt and the firm can declare it a debt free company.

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Assume that at the end of the next year, Company A will pay a $2.00 dividend per share, an increase from the current dividend of
Bezzdna [24]

Answer:

The  value of the stock is $28.57

Explanation:

Data provided in the question:

Dividend paid at the end of the year, D1 = $2.00 per share

Increase in dividend = $1.50 per share

Growth rate, g = 5% = 0.05

Required rate of return = 12% = 0.12

Now,

Price with constant Dividend Growth model = D1 ÷ ( r - g )

= $2 ÷ ( 0.12 - 0.05 )

= $28.57

Hence,

The  value of the stock is $28.57

4 0
3 years ago
Describe five ways in which Consumers can have an impact on the environment?<br>​
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Answer:

When They makes their customers feel happy about their prices of their products

When they always makes sure they have all the products customers want and with suitable prices

5 0
2 years ago
Consider the following account balances (in thousands) for the Peterson Company.
Leya [2.2K]

Answer:

Peterson Company

1. A schedule for the cost of goods manufactured for 2017:

A. Peterson Company

Schedule of Cost of Goods Manufactured

For the Year Ended December 31, 2017 (in thousands)

Beginning direct materials inventory            21,000

less ending direct materials inventory        (23,000)

Beginning Work-in-process inventory         26,000

less ending work in process inventory      (25,000 )

Purchases of direct materials                       74,000

Direct manufacturing labor                          22,000

Indirect manufacturing labor                        17,000

Plant insurance                                               7,000

Depreciation - plant, building, & equipment 11,000

Repairs and maintenance - plant                  3,000

Total cost of manufactured goods         $133,000

B. Peterson Company

Schedule of Cost of Goods Manufactured

For the Year Ended December 31, 2017 (in thousands)

Direct materials

Beginning direct materials inventory            21,000

Purchases of direct materials                       74,000

Cost direct materials available                     95,000

less ending direct materials inventory         23,000

Direct materials used                                           72,000

Direct manufacturing labor                                 22,000

Indirect manufacturing costs:

Labor                                     17,000

Depreciation                         11,000

Plant Insurance                     7,000

Repairs and maintenance    3,000            

Total Indirect manufacturing costs                    38,000

Manufacturing costs incurred during 2017  $132,000

Beginning work in process inventory             26,000

Total costs to account for                             $158,000

less ending work in process inventory          25,000

Cost of goods manufactured                      $133,000

2. Peterson Company

Income Statement

For the Year Ended December 31, 2017 (in thousands)

Sales Revenue                                                      $310,000

Cost of goods sold:

Beginning Finished goods inventory      13,100

Cost of goods manufactured               133,000

Cost of goods available for sale         $146,100

less ending Finished goods inventory 20,000

Cost of goods sold                              $126,100      126,100

Gross profit                                                           $183,900

Operating costs :

Selling & Distribution costs  91,000

General & Admin. costs      24,000

Total operating costs                                            $115,000

Operating income (loss)                                       $68,900

Explanation:

The cost of manufactured goods is the sum of the costs of direct materials, direct labor, manufacturing overhead, and work in process inventory.

The cost of goods for sale is the sum of the beginning finished goods inventory plus the cost of manufactured goods less the ending finished goods inventory.

The income statement is a statement of revenue and costs in order to show the financial performance of an entity during a period of time.  It shows the gross profit and net operating profit or loss.

The Gross profit is the difference between Sales Revenue and the Cost of goods sold.

The Operating Profit (Loss) is the difference between the Gross profit and the Operating costs.

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3 years ago
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Silver Fire Electric Inc is a multinational enterprise.

A multinational enterprise, abbreviated as MNE and every so often also known as multinational corporation (MNC), just multinational or international corporation, is an employer generating items or delivering offerings in more than one country.

A multinational business enterprise is a corporate employer that owns and controls the manufacturing of goods or offerings in as a minimum one united states apart from its domestic united states.

Multinational corporations assist to create employment possibilities and international. Inward investments with the aid of MNCs construct a great deal-needed overseas currency for developing and growing economies. they also generate employment possibilities and assist enhance the expectation of what's possible in lesser advanced countries.

Learn more about Multinational corporations here brainly.com/question/494475

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6 0
2 years ago
Suppose a country's productivity last year was 84. if this country's productivity growth rate of 5% is to be maintained, this me
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88.2
Multiply 84 by 1.05
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