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sammy [17]
3 years ago
14

If a company owns multiple lines of business in different areas such as cable TV, film entertainment, networks, and publishing,

and decides to sell a specific unit, the resulting gain or loss would most likely be classified as a(n)______ on the income statement.
Business
1 answer:
Zepler [3.9K]3 years ago
8 0

Answer: The answer is Discontinued Operation.

Explanation: Discontinued Operation in financial accounting is a term that is used to refer to part(s) of a company’s line of businesses or products that have been sold or shut down.

Discontinued operations are reported on the income statement, but separately from continuing operations.

The decision to list discontinued operations separately on the income statement is useful because it shows investors where the profits are coming from and which operations have ceased to function, especially useful when companies are about to merge.

You might be interested in
Harvey is an auto dealer at Vonga Automobiles. As part of his team, he is required to directly call potential customers and conv
Naily [24]

Answer: Sales orientation

Explanation:

A firm that makes use sales orientation is focused on making its products and services very good and affordable. When a sales orientation strategy is adopted, the goal is to sell many goods and services without the firm worrying about marketing to its target audience.

The idea is that by making a product or service that is superior and being sold at the right price, which is combined with aggressive sales tactics, firms can convince people to purchase whatever they are selling. With the explanation, we can infer that the company Harvey works for uses a sales orientation.

4 0
3 years ago
Orange Inc., an orange juice producer with a current debt-to-equity ratio of 2, is considering expanding its operations to produ
postnew [5]

Answer:

8.25%

Explanation:

Orange, Inc. should calculate the MARR (minimum acceptable rate of return) for this project using the following:

Re = 12% (similar to Paste, Inc., so it can be considered the industry's average)

Rd = 6% x (1 - 25%) = 4.5%

MARR = (1/2 x 12%) + (1/2 x 4.5%) = 6% + 2.25% = 8.25%

This calculation is similar to calculating a company's WACC since you must determine the weighted cost of financing the project.

6 0
4 years ago
If country A exports $10 billion worth of goods to country B and imports $8 billion worth of goods from country B, then country
mr_godi [17]

Answer:

b. $2 billion trade surplus with country B.

Explanation:

When a country exports more than it imports, it is said that the country has a trade surplus. On the other hand, when a country imports more than it exports, it is said that the country has a trade deficit.

In this case, exports to country B are worth $10 billion which are larger than the $8 billion of imports from country B. Country A's trade surplus is given by:

S = \$10-\$8\\S=\$2\ billion

Therefore, the answer is alternative b.

6 0
3 years ago
Kelly Slater owns a parcel of land in Palm Springs and is considering two possible development options which both use his signat
expeople1 [14]

Answer:

d. Choose Option B because it has a higher NPV

Explanation:

The computation is shown below:

For Option A:

Investment = $10 million

Present Value of cash flows = Cash flow ÷ Discounting rate

= $2 ÷  10%

= $20 million

Now

NPV = $20 - $10

= $10 million

We know that

IRR is the rate at which the NPV will be zero

So,  2 ÷  r - 10 = 0

r = 20%

For Option B:

Investment = $50 million

Present Value of cash flows = $6.5 ÷  10% = $65 million

NPV = $65 - $50 = $15 million

we know that

IRR is the rate at which the NPV will be zero

So, 6.5÷ r -50 = 0

r = 13%

Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.

However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage

 

7 0
3 years ago
Deep water can _____.
kobusy [5.1K]
The answer is D because if u were in a flood it would mess up ur car
5 0
3 years ago
Read 2 more answers
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