Which of the following is a true statement?

Bonita Cosmetics acquired 10% of the 218,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on Marc

Semmy [17]

Answer:

See explanation section

Explanation:

Req. A: Situation 1

Mar 18 Available for sale of stocks of MF Debit $283,400

Cash Credit $283,400

Note: As Bonita acquired 10% of Martinez shares at $13, total cash has to be paid to Martinez Fashion = (218,000*10%) × $13 = 21,800 shares × $13 = $283,400.

Jun 30 Cash Debit $7,130

Dividend Revenue Credit $7,130

Note: As Martinez declared $71,300 to all stockholders, Bonita will receive 10% of those dividends as they acquired 10% of the total stocks. The cash received from the MF is = $71,300 × 10% = $7,130.

Securities Fair Value

Dec 31 Adjustment Debit $21,800

Unrealized holding gain (loss)- Equity Credit $21,800

Note: As the market price of the share increased to $14-$13 = $1, Bonita would gain from the increased market price. Total gain = $1 × (218,000 shares × 10%) = $21,800.

Req. B Situation 2

Investment in Seles

Jan 1 Common stock of Seles Corp. Debit $77,520

Cash Credit $77,520

Note: As Windsor, Inc. obtained 30% of Martinez shares at $8, total cash has to be paid to Martinez Fashion = (32,300*30%) × $8 = 9,690 shares × $8 = $77,520.

Jun 15 Cash Debit $10,560

Dividend Revenue Credit $10,560

Note: As Seles declared $32,300 to all stockholders, Windsor, Inc. will receive 30% of those dividends as they acquired 30% of the total stocks. The cash received from the MF is = $32,300 × 30% = $10,560.

Investment in Seles

Dec 31 Cash Debit $24,600

Revenue Credit $24,600

Note: As Seles reported a net income of $82,000, due to acquiring 30% of Seles stock, Windsor, Inc. will receive 30% of its net income. The revenue is = $82,000 × 30% = $24,600.

5 0

3 years ago

Solve for the unknown number of years in each of the following (Enter rounded answers as directed, but do not use rounded number

marishachu [46]

Answer:

a) 7.627144987

b) 5.605222315

c) 20.04031392

d) 10.17644951

Explanation:

We need to solve for years starting from the future value of a lump sum formula:

$PV(1+r)^n=FV\\$

We use logarithmics properties and solve:

$(1+r)^n=FV/PV\\\\log_{1+r}(FV/PV) = n\\\\n = \frac{log FV/PV}{log (1+r)}$

a)

log(1655/800)/log1.1 = n

7.627144987

b)

log(4250/2491)/log1.08 = n

5.605222315

c)

log(392620/33905)/log1.13 = n

20.04031392

d)

log(214844/33600)/log1.20 = n

10.17644951

5 0

3 years ago

The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the w

sesenic [268]

Answer:

E.match its core competencies.

Explanation:

The Mayo Clinic in Minnesota is known for top-quality medical care and focusing its efforts on satisfying customer needs that match its core competencies.

every organization has is desire goals and vision.

the goals and vision of Mayo clinic is satisfying customer need which made them provide all the social amenities and medical equipment and infrastructure needed for quality treatment of patient.

with this core competencies : its makes then increase and advance there there establishment to other countries.

4 0

3 years ago

Describe the business reasons/requirements for ups to invest so heavily in networking technology? assume a strategic focus of op

slega [8]

Answer

The various reasons for ups to invest in networking technology can be: to raise its profile as a company, to increase its reliable connections, to boost growth through creating positive influence, to open new opportunities and to generate referrals

Explanations

Network technology is the utilization of a connected system through optic cable, satellite, wireless cables for data, communication devices and other resources in different parts to build an infrastructure to relay information. Taking a strategic focus of operations, network technology can help the company reach many clients, increase the knowledge required in that business and in the long run attain a great business growth and higher profits. Currently, through networking, companies share their success and mistakes with other firms to understand challenges and enable faster growth.

3 0

3 years ago

Suppose that a business is considering two strategies: buy or sell. If economic conditions improve, then the strategies will ret

Leno4ka [110]

Answer:

The answer is: Following the expected value criterion the investor should choose the sell strategy.

Explanation:

The formula we use to calculate the expected return value of the different strategies is:

ERV = ∑ (expected return x probability of occurrence)

The buy strategy has an expected return value of of 1%

ERV Buy = (10% x 33.3%) + (1% x 33.3%) + (-8% x 33.3%) = 1%

The sell strategy has an expected return value of of 1.67%

ERV Sell = (6% x 33.3%) + (2% x 33.3%) + (-3% x 33.3%) = 1.67%

8 0

3 years ago