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wlad13 [49]
3 years ago
15

On January 1, Year 1, Johnston Company purchased a 40% interest in the common stock of Truly Inc. for $100,000. Johnston has sig

nificant influence but not control. On December 10, Year 1, Truly declared and paid dividends of $20,000. Truly reported net income of $50,000 for Year 1.
What is the book value of Johnston’s investment in Truly at the end of Year 1?
Business
1 answer:
e-lub [12.9K]3 years ago
5 0

Answer:

$112,000

Explanation:

The Equity method shall be used in this question for determining book value of investment made by the Johnston company in Truly Inc because the investment gives the Johnston company the significant influence over the Truly Inc.

Under equity method, the book value of investment made by the Johnston company as at end of year 1 shall be determined as follow:

Amount invested initially                                 $100,000

Add: Net income for the year                          $20,000

(50,000*40%)

Less: dividends received                                 ($8,000)

(20,000*40%)    

Book value of investment at end of year 1      $112,000

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Answer:

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A neighborhood sportswear store sells a pair of victoria sneakers for $40. due to the recent fitness craze, these shoes are in h
Anettt [7]

The current lot size of 235 is too large.

We use the given data to find the Economic Order Quantity or EOQ and then compare it to the lot size of 235.

Economic Order Quantity is used to arrive at the optimum purchase order for goods (in number of units) while minimizing ordering and handling costs.

The formula for calculating EOQ is:

Q = \sqrt{2DS/H},

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Q is the order lot in number of units

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H is holding cost per unit (in $)

We can arrive at the annual demand for the product as follows:

Annual Demand = No. of units sold per week * No. of weeks the store operates

Annual Demand = 50*52 = 2600 units

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Holding Cost = 20%*$40 = $8

Substituting the above values in the EOQ formula, we get,

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3 years ago
Tyler Smithson owns Joe on the Run, a small chain of three cof- fee shops, all of which are facing a challenge that is common to
prohojiy [21]

Answer:

A) To improve capacity the constraint that must be addressed is the preparation and dispatch constraint which is similar to all three shops.to address this a central preparation / dispatch center that serves all three shops the needed products should be created independently, with the primary purpose of mass preparation/dispatch to the coffee shops  and not attending to customers which hampers the production of the three shops.

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C ) At store level to improve performance proper stock taking should be essential to ensure there is enough products on the menu to serve to the customers

Explanation:

A) To improve capacity the constraint that must be addressed is the preparation and dispatch constraint which is similar to all three shops.to address this a central preparation / dispatch center that serves all three shops the needed products should be created independently, with the primary purpose of mass preparation/dispatch to the coffee shops  and not attending to customers which hampers the production of the three shops.

B ) To improve efficiency: packaging should be made ready at the drive thru station so that customer who drive in can quickly pick up the package without having to queue up for long. also consider preparing some orders on the menu that attracts the most customers ahead of time this way the queue would be reduced.

C ) At store level to improve performance proper stock taking should be essential to ensure there is enough products on the menu to serve to the customers

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Answer:

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