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solmaris [256]
3 years ago
13

As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 20% of Nursery Supplies Inc

.'s 10 million shares for $67 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $60 million and distributed cash dividends of $1.50 per share. At the end of the year, the fair value of the shares is $63 million.
Business
1 answer:
Natalija [7]3 years ago
8 0

Answer:

Nursery Supplies at year-end 76,000,000

Gain on investment 12,000,000

Explanation:

Considering is considered a long-term investment for Florists International and the percentage of owership is significant we use equity method.

value of the investment at year end:

begining 67,000,000

income 60,000,000 x 20% = 12,000,000

cash dividends 10,000,000 shares x 1.5 x 20% = (3,000,000)

ending investment 76,000,000

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Answer:

Explanation:

Total asset turnover = Sales/total assets

3.2= 14000000/Total assets

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ROE = Net income/total equity

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6 0
2 years ago
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4 0
3 years ago
Which of the following would NOT cause a shift in supply? A. changes in the price of inputs B. changes in the price of other goo
adell [148]

Answer:

C.

Explanation:

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What will not affect the supply of any good is changes to consumer's input. An input generally referred to a substance that is required to produce an output. Unless the consumer of a good is also the producer of that good, a consumer's input will not impact the supply of a product.

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7 0
3 years ago
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Answer:

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3 years ago
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