1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Consider a town in which only two residents, Kevin and Maria, own wells that produce water safe for drinking. Kevin and Maria ca
jarptica [38.1K]

Answer:

Monopolist profit maximizing price

A: $3 per gallon , total output =270 Kelvins profit = $810(801/7/2 = $405

Maria's profit = $405

B. $2.5 per gallon . Kelvin's profit =$450 Maria's profit = 337.5

C = False. At the same quantity , fall in price brings fall in revenue

Cournot Nash equilibrium

Explanation:

In a monopolist market system , price are set higher than the marginal cost as the producer enjoy the dominance of the market through the production of a unique good.

At the price of $3 , change in demand =(270-225) =45 , change in revenue = ($810-$787.50)22.5 and marginal revenue = (45/22,5) = 0.5. That forms the maximizing price for a monopolist.

On the new arrangement , price drops to $2.5 , Maria's profit =(315-45/2)2.5 = $337.5 and Kelvin's = ($787.5-337.5) = $450

Cournot Nash equilibrium is business model that explains the competition among rival companies producing similar product on the level of output produced independently.

6 0
3 years ago
Use the information below to calculate the number of orders per year when using the EOQ: Annual demand for an item is 43,000 uni
IRINA_888 [86]

Answer:

The closest answer is 49.

Explanation:

Given that,

Annual demand, D = 43,000 units

Ordering cost, O = $200

Per unit cost of the item = $50

Annual holding cost, H =  annual holding rate × Per unit cost of the item

                                      = 35% × $50

                                      = $17.5

EOQ=\sqrt{\frac{2\times D\times O}{H} }

EOQ=\sqrt{\frac{2\times 43,000\times 200}{17.5} }

              = 991.39

              = 992 units

Therefore,

Number of orders per year = Annual demand ÷ EOQ

                                             = 43,000 ÷ 992

                                             = 43.34

Hence, the closest answer is 49 and this is not given in the question.

5 0
3 years ago
What are some things to look for when choosing a credit card? what does the video suggest about credit cards?
algol13
Where is the video? I can't see it.
6 0
3 years ago
Allesandra would like to work in a school environment, and she knows that she would prefer a career in which she spends lots of
Margaret [11]
Elementary school teacher that’s the answer
8 0
3 years ago
Ernesto baca is employed by bigg company. he has a family membership in his company's health insurance program. the annual premi
Vaselesa [24]

A. $1,086.40

$5,432 * 20% = $1,086.40

7 0
3 years ago
Other questions:
  • Coca-Cola was first marketed in the 1860s as a patent medicine, designed to offer the virtues of cocaine without the vices of al
    6·1 answer
  • Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufac
    6·1 answer
  • Byron Corporation forecasts that its income will be $21,000 next year. The firm pays out 30 percent of earnings as dividends to
    11·1 answer
  • Rebecca would like to set up an account to supplement her parents' retirement income for the next 15 years.
    7·1 answer
  • Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $ 450.00 and
    10·1 answer
  • Explain the criticisms of labor unions today. 25 POINTSS​
    7·2 answers
  • If consumers really like an ad, __________. Group of answer choices their involvement in processing the ad may decrease classica
    14·1 answer
  • Acme Manufacturing makes their preliminary economic studies using a​ before-tax MARR of 17​%.More detailed studies are performed
    14·1 answer
  • A liquidity ratio measures the Group of answer choices income or operating success of an enterprise over a period of time. abili
    15·1 answer
  • Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!