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denis-greek [22]
2 years ago
10

Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h

omes using mostly borrowed funds from local banks. Your subsidiary purchases all of its materials from Hong Kong and pays Hong Kong dollar. The Hong Kong dollar is tied to the U.S. dollar. Your subsidiary borrowed funds from the U.S. parent, and must pay the parent $100,000 in interest each month. Australia has just raised its interest rate in order to boost the value of its currency (Australian dollar). The subsidiary’s cost of purchasing materials measured in Australian dollar will ____________. A. increase B. decrease C. not change
Business
1 answer:
Nat2105 [25]2 years ago
4 0

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.  

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Corporation began with retained earnings of million. Revenues during the year were ​million, and expenses totaled million. decla
lakkis [162]

Complete Question:

Cell One Corporation began 2018 with retained earnings of $ 260 million. Revenues during the year were $ 520 ​million, and expenses totaled $ 340 million. Cell One declared dividends of $ 61 million. What was the​ company's ending balance of retained​ earnings? To answer this​ question, prepare Cell One​'s statement of retained earnings for the year ended December​ 31, 2018​, complete with its proper heading.

Answer:

Cell Corporation

Statement of Retained Earnings for the year ended December 31, 2018:

                                                      $'million

Retained Earnings, Dec. 31, 2017   260

Net Income                                       180

Dividends                                          (61)

Retained Earnings, Dec. 31, 2018   379

Explanation:

a) Data and Calculations:

Beginning Retained Earnings = $260 million

Revenues during the year were $ 520 ​million

Expenses totaled                          $ 340 million

Net Income (Revenue - Expenses) $180 million

Cell One declared dividends of $ 61 million

b) Cell Corporation's Retained Earnings for the year ended December 31, 2018 is the difference between the beginning retained earnings, net income, and the amount of dividend declared during the current year.  This figure gives the amount of equity that has been retained for growing the business, which is an important internal source of corporate funding.

8 0
2 years ago
Which would likely require a cost development using reproduction cost?
Minchanka [31]

Answer: Option C

Explanation:  Manufactured dwelling implies a trailer, a camper van or perhaps an engineered residence. It relates to a formation, portable in one or maybe more parts, that is built on a continuous frame and, when linked to the necessary services, is intended to be used even without a perpetual structure.

In simple words, Manufactured accommodation (usually referred to as U.S. mobile homes) is a form of precast concrete accommodation that is primarily constructed in manufacturing plants and then transferred to use locations. Thus, from the above we can conclude that the correct option is C.

6 0
3 years ago
Jane and Joe made two investments of $25,000 and $40,000 with different investors that yielded a combined rate of return of 10%
OLga [1]

Answer:

10.625%

Explanation:

The combined rate of return for two investments can be calculated using the below mentioned formula:

Combined interest=[(interest rate of first investment*first investment+interest rate of second investment*second investment)/(First investment+Second investment)]

In the given question

Combined interest=10%

Interest rate of first investment=9%

First investment=$25,000

Interest rate of second investment=?

Second investment=$40,000

10%=[(9%*25,000+Interest rate of second investment*$40,000)/(25,000+40,000)]

10%=(2250+Interest rate of second investment*$40,000)/65,000

10%*65,000=2250+Interest rate of second investment*$40,000

6500-2250=Interest rate of second investment*$40,000

4,250=Interest rate of second investment*$40,000

Interest rate of second investment=10.625%

5 0
3 years ago
The following information is from the December 31, 2017 balance sheet of Jackson Corporation
blsea [12.9K]

Answer:Average issue price = $105--b

Explanation:

Preferred stock , $100 par = $260,000

number of shares issued =Preferred stock / par value preferred stock= =$260,000 / $100 = 2,600 shares

Paid in capital in excess of par = total issued price - preferred stock

total issued value =  paid in capital in excess of par preferred stock + preferred stock = 14,000 + 260,000=$274,000

Average issue price = Total issue price / number of shares issued = $274,000/ 2600= 105.38 =  $105

7 0
3 years ago
Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock
uysha [10]

Stockton Corporation violated the rights of a stockholder who owned one share of common stock by paying the stockholder a smaller dividend per share than another common stockholder or rejecting the stockholder's sale of stock on an organized exchange and the stockholder's request to vote via proxy because she was home sick.

<h3>What are the reasons for violation?</h3>

A shareholder is a person who purchases shares in a firm that is publicly traded. They are known as owners and are qualified to receive dividends. Dividends represent a percentage of income.

Dividends paid to common shareholders are equal for all.

Greater preference is given to preferred shareholders than to regular stockholders.

To learn more about this Stockton problem visit:

brainly.com/question/22950605

#SPJ4

5 0
10 months ago
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