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Law Incorporation [45]
3 years ago
14

Stock Acquisition McDermott Corporation has been in the midst of a major expansion program. Much of its growth had been internal

, but in 20X1 McDermott decided to continue its expansion through the acqui- sition of other companies. The first company acquired was Tippy Inc., a small manufacturer of inertial guidance systems for aircraft and missiles. On June 10, 20X1, McDermott issued 17,000 shares of its $25 par common stock for all 40,000 of Tippy's $10 par common shares. At the date of combination, Tippy reported additional paid-in capital of $100,000 and retained earnings of $350,000. McDermott's stock was selling for $58 per share immediately prior to the combination. Subsequent to the combination, Tippy operated as a subsidiary of McDermot.
Required: Present the journal entry or entries that McDermott would make to record the business combina- tion with Tippy.
Business
1 answer:
azamat3 years ago
3 0

Answer:

Explanation:

Investment in Tippy Inc., Common stock 986000 [17000*58]

         Common stock  425000 [17000*25]  

         Additional paid-in capital  561000  

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As a teenager, Enrique learned a valuable lesson from his dad, who told him to invest $1,000 at 8 percent interest at age 20 and
mojhsa [17]

Answer: $538,806.50

Explanation:

This question is a compound interest question. If the savings increased at 14% per year then the amount when he is 68 will be;

Future Value = Present Value * ( 1 + Interest Rate ) ^ Years

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= 48

Future Value = 1,000 ( 1 + 14%) ^ 48

= 1,000 * 538.8065

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5 0
3 years ago
To be competitive, ____________ recommended that American firms adopt a new management style that was a hybrid of the approaches
kakasveta [241]

Answer:

The correct answer is letter "C": William Ouchi, Theory Z.

Explanation:

American professor William Ouchi (born in 1943) proposed the "Theory Z", first described in his book "<em>Theory Z: How American Management Can Meet the Japanese Challenge</em>" which is an approach that explains how firms should develop a strong company philosophy and culture and consensus in decisions.  

Theory Z aims to employee development, as well, by concerning about their well-being, making them generalists instead of specialists, promoting individual responsibility, and monitoring them informally but with formal measures.

6 0
3 years ago
A spotter stands near the lifter with his feet wide and hands near the lower back. He pays careful attention to the bar and make
patriot [66]
Hello!

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8 0
4 years ago
Helena Furnishings wants to sharply reduce its cash conversion cycle. Which of the following steps would reduce its cash convers
Lelechka [254]

Answer:

Option B. The company reduces its days sales outstanding (DSO).

Explanation:

As we know that:

Cash conversion Cycle = Receivable days + Inventory days - Payable days

Option A says that the increasing inventory without increasing sales will reduce the cash conversion then it is incorrect because increase in inventory keeping sales constant, increases the inventory days which will increase the cash conversion cycle. So the statement is incorrect.

Option B says that the reduction in Days Sales Outstanding which is also known as receivable days will result in decrease in cash conversion cycle then it is correct because we can see from the equation that reduction in receivable days will reduce the cash conversion cycle.

Option C says that the paying bills sonner by keeping the sales same will decreases the cash conversion cycle then it is again incorrect because reduction in payable days increases the cash conversion cycle.

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7 0
3 years ago
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zvonat [6]

Answer: Option C

 

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7 0
4 years ago
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