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Lelechka [254]
3 years ago
9

On January 2, 20X5, Park Co. purchased 10 percent of Sky, Inc.'s outstanding common shares for $400,000. Park is the largest sin

gle shareholder in Sky, and Park's officers are a majority on Sky's board of directors. As a result, Park is able to exercise significant influence over Sky. Sky reported net income of $500,000 for 20X5, and paid dividends of $150,000. In its December 31, 20X5, balance sheet, what amount should Park report as investment in Sky?
Business
1 answer:
Diano4ka-milaya [45]3 years ago
4 0

Answer:

The answer is $435,000

Explanation:

Initial Investment-----------------$400,000

Park Co's share of Sky's net income(10% x $500,000) --- $50,000

Park Co's share of Sky's dividend (10% x $150,000) ---------------------- ($15,000)

Reported Investment--------- $435,000

Therefore, Park's balance sheet

will report $435,000 as the investment in Sky's in the year ended December 31, 20X5.

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In the preparation of departmental income statements, the preparer completes the following steps in the following order: (1 poin
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Answer:

The correct answer is a. Identify direct expenses; allocate indirect expenses; allocate service department expenses.

Explanation:

Selling costs are the costs incurred by a company to market the products or services, such as the salary of the sellers, commissions, gasoline of the trucks that distribute the orders, advertising, etc. Administrative expenses are the costs incurred by a company to manage its operations. Examples of these expenses would be the salary of the accountant, the surveillance expenses, the expenses for the cleaning service, stationery, salaries and benefits of the administrative staff of the company, etc. Some concepts can be shared, such as office rent. If there are sales and administration departments in the same building; The total expenditure must be applied to the two departments according to the space each of them uses (square meters) or at an estimated percentage; for the  therefore, of the total rent one part would be selling expenses and another part administration expenses.

3 0
4 years ago
Compared to a perfectly competitive firm, the demand schedule of a monopolistically competitive firm faces is:________
Volgvan

Compared to a perfectly competitive firm, the demand schedule of a monopolistically competitive firm faces <u>downward-sloping demand curves</u>.

A monopolistic market is a theoretical situation that describes a marketplace in which only one agency might also provide products and services to the public. A monopolistic market is the other of a perfectly competitive marketplace, in which an endless variety of companies function.

Monopolistic opposition exists while many businesses offer competing products or services which might be similar, but not best, substitutes. The barriers to access in a monopolistic competitive industry are low, and the choices of anyone firm do now not directly have an effect on its competition.

A monopoly has management over the supply of the product but though it can are seeking to influence the demand, it does not have management over it. In truth, a monopoly has to make a preference. it may set the price, but then it has to just accept the extent of income, consumers is prepared to buy at that fee.

Learn more about monopoly here: brainly.com/question/13113415

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5 0
2 years ago
A characteristic of a schedule of Accounts Receivable is that
Free_Kalibri [48]
D is the answer I believe
5 0
4 years ago
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Which of the following statements regarding the center of gravity method is false
grigory [225]

Answer:

Consider the following explanation

Explanation:

False statement are as follows,

A)  It is designed to minimize the maximum possible travel distance to any location

This statemet is false

Explanation- Center of gravity has nothing to do with travel distance or any kind of diisplacement. Following sentence is used in cargo industry ffor effieicent transportation.

C) And D) Are also false

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8 0
3 years ago
NewCorp has net income of $360. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year
zmey [24]

Answer:

The cash flow to stockholders amounts to $45

Explanation:

Cash flow to stockholders is the term which is defined as the cash amount which the company pays out to the shareholders.

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New equity raised is $81

So, putting the values above:

Cash flow to stockholders = $126 - $81

Cash flow to stockholders = $45

4 0
3 years ago
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