The relationship between quantity supplied and price is ____

Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of $10,000,000 and cost of

Elden [556K]

Answer:

$10,140,000

Explanation:

To make consolidated statements company needs to consolidate the financial data of its own and its subsidiary.

Revenue can be consolidated of parent and subsidiary as follow:

First

Add revenue of both companies

Total Sales = Patti Company sales + Shannon Inc. sales

Total Sales = $10,000,000 + $200,000 = $10,200,000

Now deduct the sale made to each other because sales mad within the group is not recorded for consolidation purposes and it is not a sale for a group it is an internal group transfer.

Consolidated Sales = Total sales - Internal Sales

Consolidated Sales = $10,200,000 - $60,000 = $10,140,000

8 0

3 years ago

At the end of 2009, the following information is available for Clobes Company, Snyder Company, and Welz Company (you must show y

ella [17]

Answer:

Answer is explained in the explanation section below.

Explanation:

Note: This question is incomplete and lacks necessary data to solve for this question. However I have found similar question on the internet and I will be using that data. Besides, I have attached the data used in the attachment below.

Solution:

1. The debt-to-equity ratio is the best way to assess financial risk. A higher debt-to-equity ratio indicates a higher level of financial risk. This ratio represents the willingness of the equity of the owners to fulfil their obligations.

Formula used:

Debt-to-equity ratio = Total liabilities divided by owner's equity

For Clobes:

Total liabilities = 100,000

Owners' equity = 200,000

Debt-to-equity ratio = 100000/200000 = 0.5

For Snyder:

Total liabilities = 300,000

Owners' equity = 200,000

Debt-to-equity ratio = 300000/200000 = 1.5

For Welz:

Total liabilities = 300,000

Owners' equity = 100,000

Debt-to-equity ratio = 300000/100000 = 3

Welz faces the greatest financial risk because it has the highest debt-to-equity ratio. It has a debt-to-equity ratio of three. Even though it depends on the industry, a company's debt-to-equity ratio should be between 1 and 1.5 if it is considered optimal. In this case, Welz's financial risk is considerably higher.

2. calculate Return on Equity(ROE)

Formula used:

ROE = Net income / Owner's equity

For Clobes:

Net income = 25,000

Owners' equity = 200,000

ROE = 25,000 / 200000 = 0.125

For Snyder:

Net income = 30,000

Owners' equity = 200,000

ROE = 30000 / 200000 = 0.15

For Welz:

Net income = 20,000

Owners' equity = 200,000

ROE = 20000 / 100000 = 0.2

Welz has the highest return of equity (ROE) of 0.2.

As a result, Welz is the most profitable company.

3. Return on assets:

Formula used

Return on Assets = Net income / Total assets

For Clobes:

Net income = 25,000

Total assets = 300,000

Return on Assets = 25,000 / 300000 = 0.08

For Snyder:

Net income = 30,000

Total assets = 500000

Return on Assets = 30000 / 500000 = 0.06

For Welz:

Net income = 20,000

Total assets = 400,000

Return on Assets = 20000 / 400000 = 0.05

Hence,

Clobes has the highest return on assets, which is 0.08.

5 0

3 years ago

If the supply of person-hours in this market shifts to the right, then the equilibrium wage will ______ and the equilibrium numb

abruzzese [7]

If the supply of person-hours in the market shifts to the right, then the equilibrium wage will fall and the number of person-hours will increase.

The equilibrium wage price is at the intersection of the supply and demand for labor. Personnel is hired as much as the factor where the extra value of hiring an employee Is equal to the extra income revenue from selling their output.

Labor market Equilibrium, the actual salary, and the equilibrium quantity of exertions traded are decided by the intersection of labor supply and labor call for. on the equilibrium actual wage, the amount of hard work provided equals the quantity of labor demanded.

A person's labor supply curve marks out the number of hours they are willing to work at one-of-a-kind wages, the equal manner that a vendor's supply curve marks out how a great deal they are inclined to promote at exceptional costs.

Learn more about the supply curve here brainly.com/question/11717727

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4 0

1 year ago

How does the interpretation of the regression coefficients differ in multiple regression and simple linear regression?

kati45 [8]

Answer and explanation:

Regression coefficients portrait the changes in variables after one unit has changed keeping the rest of the predictors of the model the same. While the simple linear regression is predicted from one variable, the multiple regression is predicted for more than one of them.

5 0

3 years ago

The use of a differentiation strategy would be expected to be LEAST effective in which of the following markets? a. Commodity go

Tema [17]

Answer:

The correct answer is letter "A": Commodity goods.

Explanation:

A differentiation strategy is an approach adopted by companies to make the goods or services they offered unique compared to their competitors. Most firms tend to use price as the main key to the difference between their products and the competitors'.

Thus, the differentiation strategy is less likely to be applied in commodity goods because they are inherently unique such as oil, natural gas, precious metals or foreign currencies.

3 0

3 years ago

The relationship between quantity supplied and price is _____