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4 years ago

Answer please!

Business

1 answer:

Alex4 years ago

6 0

Answer:

Fixed capital is defined as the part of the total capital of the enterprise which is invested in long-term assets. Working Capital refers to the capital, which is used to perform day to day business operations. On the other hand, Working capital comprises of short-term assets and liabilities of the business.

Explanation:

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On January 1, 2018, Pine Company owns 40 percent (124,000 shares) of Seacrest, Inc., which it purchased several years ago for $7

elixir [45]

Answer:

A. Equity income $278,756

B. Other Comprehensive Loss ($136,400)

C. Gain on sale $37,177

Explanation:

Calculation to determine what income effects would be reported from its ownership in Seacrest

A. Calculation to determine the Equity Income In Seacrest, Inc.

EQUITY INCOME In Seacrest, Inc.

Investee income accrual—operations $310,200

$846,000 × 40% × 7/12 year $197,400

$846,000 × 32% × 5/12 year $112,800

Amortization ($34,100)

($21,700+$12,400)

$37,200 × 7/12 year $21,700

After 20 percent of stock is sold $12,400

[ (24,800 ÷ 124,000 shares): $37,200 × 80% × 5/12 year]

Recognition of unrealized gross profit

Remaining inventory—12/31/17

$16,600

Gross profit percentage on original 40%

sale($($54,000-$32,400) ÷ $54,000)

Gross profit remaining in inventory $6,640

($16,600*40%)

Ownership percentage 40%

Intra-entity gross profit recognized in 2018 $2,656

(40%*$6,640)

Equity income in Seacrest, Inc $278,756

($310,200-$34,100+$2,656)

B. Calculation to determine Other comprehensive loss—Seacrest, Inc.

OTHER COMPREHENSIVE LOSS—Seacrest, Inc.

1/1/18 to 8/1/18 ($372,000 × 40% × 7/12 year) $86,800

8/1/18 to 12/31/18 ($372,000 × 32% × 5/12 year) $49,600

Other Comprehensive Loss—Seacrest, Inc ($136,400)

($86,800+$49,600)

C. Calculation to determine Gain on Sale of Investment in Seacrest, Inc.

GAIN ON SALE OF INVESTMENT in Seacrest, Inc.

Book value—investment in Seacrest, Inc.—1/1/18

$905,200

Investee income accrual—1/1/18 – 8/1/18 $197,400

Investee other comprehensive loss 1/1/18 – 8/1/18 ($86,800)

Amortization—1/1/18 – 8/1/18 ($21,700)

Recognition of deferred profit $2,656

Investment in Seacrest book value 8/1/18 $996,756

(905,200+197,400-$86,800-$21,700+$2,656)

Percentage of investment sold 20%

(24,800 ÷ 124,000 shares)

Book value of shares being sold $199,351

(20%*996,756)

Proceeds from sale of shares $236,528

Gain on sale of 24,800 shares of Seacrest $37,177

($236,528-$199,351)

Therefore On Pine's financial statements for the year ended December 31, 2018 the income effects that would be reported from its ownership in Seacrest are:

A. Equity income $278,756

B. Other Comprehensive Loss ($136,400)

C. Gain on sale $37,177

8 0

3 years ago

Crane, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity c

expeople1 [14]

Answer:

Ordering and receiving = $7.35 per order

Food processing = $8.49 per machine hour

Packaging = $3.84 per labor hour

Explanation:

According to the scenario, computation of the given data are as follows,

We can calculate overhead rate by using following formula,

Overhead Rate = Estimated Overhead ÷ Estimated Use of Cost Drivers per Activity

So, by putting the value in the formula, we get

Overhead rate of Ordering and receiving = $117,600 ÷ 16,000 = $7.35 per order

Overhead rate of Food processing = 530,625 ÷ 62,500 = $8.49 per machine hour

Overhead rate of Packaging = 1,701,120 ÷ 443,000 = $3.84 per labor hour

6 0

3 years ago

Which type of fall is responsible for the highest percentage of overall deaths in construction

Finger [1]

The answer to this is roofs. Hopes it helps

6 0

3 years ago

Read 2 more answers

f the steps are small, a step-variable cost may be approximated using a ______ cost function without significant loss in accurac

posledela

If the steps are small, a step-variable cost may be approximated using a Variable cost function without significant loss in accuracy.

<h3>Variable cost function</h3>

An expense for the company that varies according to how much is produced or sold is called a variable cost.
Depending on a company's production or sales volume, variable costs grow or fall. They climb as production rises and reduce as production declines.
It is a production cost whose level fluctuates in response to shifts in a business's manufacturing activities.
For instance, the raw materials required to make a product's components are regarded as variable costs because they frequently change depending on the volume of units produced.
The total variable cost curve depicts the relationship between total variable cost and the volume of output produced graphically.

To learn more about the Variable cost function refer to:

brainly.com/question/27996021

#SPJ4

7 0

2 years ago

Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:

const2013 [10]

Answer and Explanation:

a. The computation of the earning per share is given below:

As we know that

Earning per share = (Net income - preference dividend) ÷ (average no of common shares oustanding)

For 20Y5

= ($1,508,000 - $60,000) ÷ 80,000 shares

= $18.1

For 20Y6

= ($2,676,000 - $60,000) ÷ 120,000 shares

= $21.8

b. Since the earning per share is increased from 20Y5 to 20Y6 so it is favorable

4 0

3 years ago