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Alinara [238K]
3 years ago
13

Flexible Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building constructio

n. Flexible purchased the General Gas Pipeline Company, which was Flexible Fittings' largest customer. This strategic decision bringing the two companies together is called a_________
a. horizontal merger.
b. vertical merger.
c. hostile acquisition.
d. conglomerate merger.
Business
2 answers:
tatuchka [14]3 years ago
6 0

Answer:

b. vertical merger.

Explanation:

A vertical merger is the joining of two firms at different stages of related businesses..

Tcecarenko [31]3 years ago
5 0

Answer: The correct option is B. Vertical Merger.

Explanation: A vertical merger is the combination of two or more companies that are involved in different stages of the supply chain of a common product or service.

Most often, a merger happens in order to increase synergies, gain more control of the supply chain process, and drive up business. A vertical merger will often result in incurring of lower costs, while increasing productivity and efficiency of the companies involved.

You might be interested in
At a price of _____, books will be both supplied and demanded. $10 $20 $30
dezoksy [38]

well if im right it should be 20$.

4 0
3 years ago
Michael Company reports the following account balances at the end of the first year of​ operations: Revenues $ 160 comma 000 Cos
professor190 [17]

Answer:

$46,000

Explanation:

The computation of the total liabilities at the end of the first​ year is shown below:

We know that

Total assets = Total liabilities + stockholder equity

where,

Total assets = Cash + land + short term investment

                    = $102,000 + $40,000 + $14,000

                    = $156,000

Stockholder equity = Common stock + net income - dividend paid

                                = $50,000 + 72,000 - $12,000

                                = $110,000

So, the total liabilities would be

= $156,000 - $110,000

= $46,000

Working Note:

The net income is

= Revenue - cost of goods sold - Salaries Expense -  Utilities Expense - Advertising Expense ​

= $160,000 - $46,000 - $21,000 - $11,000 - $10,000

= $72,000

3 0
3 years ago
Berkshire Inc. uses a periodic inventory system. At the end of 2015, it missed counting some inventory items, resulting in an in
zlopas [31]

Answer:

Assets understated by $510,000, liabilities understated by $153,000 and shareholders' equity understated by $357,000.

Explanation:

An understatement of closing inventory will have the following effects,

First of all the inventory as an asset is understated by $510,000

Second, this inventory was subject to deduction from the Cost of goods sold as, Cost of goods sold = Opening Inventory + Purchases - Closing Inventory.

Since this amount was not subtracted from the CGS, the gross profit and ultimately the Net profits were understated by $510,000.

This will be added in the net profits.

With an increase in net profits, the tax payable amount also increases. This is calculated as 510,000 * 0.30 = $153,000

So total change in profits is = 510,000 - 153,000 = $357,000

While $153,000 is still payable and is recorded as a tax payable liability.

Thus,

Assets understated by $510,000

Liabilities Understated by $153,000 (tax payable)

Share holders equity understated by $357,000 (part of retained profits)

Hope that helps.

6 0
3 years ago
The unemployment rate in an economy is 6 percent. The total population of the economy is 290 million, and the size of the civili
Natali [406]

Answer:

The answer is B.

Explanation:

Unemployed people are those who are out of work and who are actively looking for a job. They are also those citizens they are willing to work but cannot find.

The unemployment rate is 6 percent.

So, The number of unemployed workers in this economy is 9 million (6 percent of 150 million civilian labour force)

We cannot use the total population because out of it, we have young citizen and old ones who are not searching for or willing to work.

4 0
3 years ago
A company's common stock is selling in the market at a "multiple of 15". If the market price of the common stock is currently $1
Angelina_Jolie [31]

Answer:

earnings per share = $0.67

Explanation:

the earnings per share = stock price / multiple value = $10 / 15 = $0.67

When you read that a stock is selling at a multiple of X, it means that the stock price is currently X times the current earnings per share. In this case, since the stock price is $10, to calculate the EPS you must divide 10 by the multiple value.

4 0
3 years ago
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