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GalinKa [24]
3 years ago
7

Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management d

ecided to test the assets of the division for possible impairment. The test revealed the following: book value of division’s assets, $28.9 million; fair value of division’s assets, $22.2 million; undiscounted sum of estimated future cash flows generated from the division’s assets, $29.2 million. What amount of impairment loss should C&R recognize?
Business
1 answer:
marin [14]3 years ago
5 0

Answer:

The amount of impairment loss should C&R recognize is $6,700,000

Explanation:

According to the given data we have that the book value of division's assets is $28.9 million and fair value of division’s assets is $22.2 million.

Therefore, in order to calculate the amount of impairment loss should C&R recognize we would have to use the following formula:

impairment loss=book value of division's assets - fair value of division’s assets

impairment loss=$28.9 million-$22.2 million

impairment loss=$6,700,000

The amount of impairment loss should C&R recognize is $6,700,000

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For much of the 1990s, the U.S. economy was experiencing long-run economic growth, low unemployment, and a stable inflation rate
uysha [10]

Answer: . an increase in aggregate demand and short-run aggregate supply

Explanation:

From the question, we are informed that during the 1990s, the economy of the United States was experiencing long-run economic growth, low unemployment, and a stable inflation rate.

The reason for this is due to an increase in aggregate demand and short-run aggregate supply. This two factors will lead to the long run economic growth which the United States experienced.

6 0
3 years ago
Your firm is the external auditor of Downe Ltd (Downe). It has accepted a non-audit engagement to review and report on the inter
Ksju [112]

To review and report on internal controls over sales, purchasing and cash at Downe, your external audit firm should develop points for inclusion in your firm's report on identified internal control deficiencies at Downe.

In the cases described, the central deficiency is in the use of money not specifically allocated for payments and lack of adherence to company policy.

The consequences of these actions at Downe can mean a lack of control, organization and coordination of the flow of income and expenses, leaving businesses without correct records of capital utilization, legal compliance and inventory control.

It will therefore be necessary to restructure Downe's processes in order to implement a new policy that is passed on to all employees to be strictly enforced. In addition to greater control by managers and redesign of the organizational and work structure.

In this way, the company will guarantee that the processes occur in a planned, focused and strategic way, generating an improvement in the organizational culture and better positioning for the company in the market.

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6 0
3 years ago
Toy Mart recently announced that it will pay annual dividends at the end of the next two years of $1.60 and $1.10 per share, res
Delicious77 [7]

Answer:

$9.43

Explanation:

Calculation for what should this stock sell for today

Stock today = $1.60/1.135 + $1.10/1.135^2 + $13.50/1.135^5

Stock today = $9.43

Therefore what should this stock sell for today is $9.43

6 0
3 years ago
painting is acquired by an individual for use in his home. The painting is not of investment quality. It is later sold at a loss
lubasha [3.4K]

Answer:

The correct answer is e. a. and b.

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Capital assets are assets of a permanent nature used in the production of income, such as machinery, buildings, equipment, land, etc. It must be distinguished from inventory.

Painting is a capital asset, but it is also a personal use activity asset sold at a loss. The loss is not deductible.

8 0
3 years ago
What can an organization do to reconcile the different interests of various groups impacting the organization?
lubasha [3.4K]

Organization can strike a balance between the varying interests of the different groups impacting the organization

     The project managers must adhere to the procedure to tame the multi-headed beasts on uncontrolled projects in order to strike the correct balance between meeting stakeholders' expectations and completing the projects within the allotted timetable and budget.

     t's important to identify the project's stakeholders, assess the objectives, and comprehend their interests. The project manager must align the team with a common definition of "Success" and make sure that no outside forces interfere with or demotivate the team in order for the final output to be best-in-class.

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7 0
1 year ago
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