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Semenov [28]
3 years ago
5

ABC Company owns 30% of the outstanding shares of Teal Company. At the beginning of the current year, the carrying value of Teal

's stock on ABC's balance sheet was $60,000. During the period, Teal paid dividends of $10,000 and reported a net income of $40,000. What is the carrying value of Teal's stock on ABC's balance sheet at the end of the year?
Business
1 answer:
BabaBlast [244]3 years ago
6 0

Answer:

$69,000

Explanation:

Percentage of shares owned by ABC in Teal's company = 30%

This is an example of equity method investment , and a portion of the attributable income at the end of the year is earned and added to the initial stock.

Attributable income is the remaining income after dividends have been settled.

<u>Workings</u>

The opening carrying value of the shares on ABC balance sheet = 60,000

Profit made at the end of the period = 40,000

Dividends paid = 10,000

Attributable income to share holders = 40000-10000 = 30,000

ABC portion of attributable profit = 30000*30% = 9,000

Carrying value at the end of the year = opening carrying value + portion of the attributable profit

=60000+9000=69000

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Andrew Flint is the CEO of a small, publicly held company based in Idaho Falls, Idaho. Flint earned $76,000 last year as CEO. In
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Answer:

D, Flint can simply write ot the SEC to voice his concerns.

Explanation:

Since Flint does not have a case that warrants a court challenge but rather an observation, Flint can simply write to the SEC to intimate them about his observations and/or findings, as well as let the SEC know the position of his company on the rule being proposed by it.

Cheers.

6 0
3 years ago
Technology has proliferated in Kenya and Somaliland, with text messages used to replace cash, creating mobile money use that, on
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Answer: True

Explanation:

Something that has caught the attention of many has been how electronic money has been used in countries like Kenya and Somalia. A study has confirmed that the use of mobile money has reduced poverty in places like Kenya. Mobile money is defined as money where people can make financial transactions through their phones.

This type of activity has greatly influenced poverty reduction and the high rates that occurred when people had to send money over certain distances. In countries like Somalia, there are no longer any traces of physical money, everything is virtual. In this way, the country has achieved economic stability for years. People increasingly consume through their mobile phones, making in an easier way all kind of payments.

7 0
3 years ago
A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to
den301095 [7]

Answer:

Part a. Manufacturing the goods at home and let overseas sales managers handle the marketing.

Advantages  

  1. Can have a full authority in production activities.
  2. It is easy to set up a strategy and multiply the manufacturing.
  3. Having better regulator over human resources.
  4. The foreign sales agents will enhanced the understanding of European marketplaces.
  5. It lower the exit costs if product fails.

Disadvantages

  1. Having lack of information in European pharmaceutical procedures.
  2. The foreign agents may damage the brand name if not prudently handled.
  3. Additional costs in delivery of the products.

Part b. Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing.

Advantages

  1. Having full control in manufacturing activities.
  2. It is easy to set up a strategy and multiply the manufacturing.  
  3. Having better regulator over human resources.
  4. The brand name will not be damaged since the marketing is controlled by the same company

Disadvantages

  1. Utilization of extra resources to be consumed on marketing
  2. Having lack of information in European pharmaceutical procedures.
  3. Additional costs in delivery of the products  
  4. Having lack of information in European pharmaceutical procedures  

Part c. Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm

Advantages

  1. The risk is distributed among the firms.
  2. No additional delivery cost included.
  3. Knowledge of European organization will be valuable in
  4. understanding guidelines and advertising in European markets.

Disadvantages

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  3. Moderate level of exit cost is included.
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7 0
3 years ago
A job was timed for 60 cycles and had an average of 1.2 minutes per piece. The performance rating was 95 percent, and workday al
Igoryamba

Answer and Explanation:

The computation is given below:

a) Observation time is

= Average time

= 1.2 minutes

b) Normal time is

= Observation time × performance rating

= 1.2 minutes × 0.95

= 1.14 minutes

c. The standard time is  

= Normal time × allowance factor

= 1.14 × 1.11

= 1.265 minutes.

The allowance factor is  

= 1 ÷ (1 -  Allowances)

= 1 ÷ (1 - 0.1)

= 1.11

8 0
3 years ago
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guapka [62]

When firms compete by offering unique product features rather than competing on price, <u>non-price competition</u> occurs; it is when businesses employ tactics to boost sales and market shares without lowering prices.

What is non-price competition?

In non-price competition, a company "seeks to distinguish its product or service from competing items on the basis of features like design and workmanship," according to a marketing strategy. Because it exists between two or more producers who sell goods and services at the same prices but seek to expand their respective market shares by non-price factors like marketing strategies and higher quality, it frequently happens in imperfectly competitive markets.

Types of Non-Price Competition:

Marketing involves a range of approaches (based round the 4Ps), including product differentiation, advertising, promotion and distribution

Learn more about non-price competition here:

brainly.com/question/12297704

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