The answer is C
“There’s nothing we can do about it”
A,B and D have a positive tone.
But C sounds kinda mean
Consolidation Rules Under GAAP
The general rule requires consolidation of financial statements when one company’s ownership interest in a business provides it with A MAJORITY OF the voting power- meaning it controls more then 50% of the voting shares
Question Completion:
see Exhibit 4 attached.
Answer:
1. The largest and smallest divisions by net sales in 2017:
Largest divisions:
Fabric & Home care with 32%
Baby, Feminine & Family Care, 28%
Smallest divisions:
Beauty with 18%
Grooming, 11%
Healthcare, 11%
2. The one most important division in terms of the proportionate net earnings for the company is:
Fabric & Home Care
Explanation:
The two largest divisions generate 60% of the net sales of the company while the three smallest divisions generate only 40%. In terms of the proportionate net earnings for the company, the two largest divisions also generate 53% of the net earnings of the company, while the three smallest divisions generate 47%. The analysis shows that the company's financial sustenance is largely driven by the Fabric & Home Care division and the Baby, Feminine & Family Care division. Another up-and-coming division is the Beauty division, which generates 18% of the net sales and 20% of the net earnings.
Answer:
A) They would be indifferent, as Sally's income net of costs equals $25,000.
Explanation:
Sally's economic profit = accounting profit - opportunity costs
- accounting profit = $12,000
- opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000
economic profit = $12,000 - $12,000 = $0
Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.
Answer:
$850,000
Explanation:
Total Hours of Department 1=$80,000+$90,000
=$170,000/$200,000*1000,0000
