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dimulka [17.4K]
3 years ago
6

Bellbird Corporation acquired an 80% interest in Honey Inc for $130,000 on January 1, 2014, when Honey had Capital Stock of $125

,000 and Retained Earnings of $25,000. Bellbird's separate income statement and a consolidated income statement for Bellbird Corporation and Subsidiary as of December 31, 2014, are shown below.
Bellbird Consolidated
Sales revenue $150,000 $235,750
Income from Corporal 12,600
Cost of sales (60,000) (100, 000)
Other expenses (20,000) (50,000)
Noncontrolling interest income ( (3,150)
Net income $81,600 $81,600
Honey's separate income statement must have reported net income of:__________________.
Business
1 answer:
Lyrx [107]3 years ago
5 0

Answer:

$15,750

Explanation:

The computation of the net income reported by two methods is shown below:

= Income from Corporal + Non-controlling interest income

= $12,600 + $3,150

= $15,750

Or we can one thing also

= Income from Corporal ÷ acquiring percentage

= $12,600 ÷ 80%

= $15,750

All other information that is mentioned in the question is not relevant. Hence, ignored it

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A market with only two firms is called a
skelet666 [1.2K]

Answer: A.) duopoly

Explanation:

Memory trick: duo means two.

5 0
3 years ago
Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as
-BARSIC- [3]

Answer:

D) $3,285.

Explanation:

Date                                                  Purchases        Sales

Jan. 1   initial inventory 500 @ $9

Jan. 14                                                375 @ $14  

Jan. 17                                                250 @ $10  

Jan. 25                                               250 @ $11  

Jan. 29                                               260 @ $16  

January 31 only 365 units left.

Under LIFO what is the cost of inventory?

365 units x $9 per unit = $3,285

7 0
3 years ago
The impact of interest rate changes in the PV of $100 due in 20 years compared to the PV of $100 due in one year are:
kherson [118]

Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.

Explanation:

Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.

For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .

The present value of both are:

= 10,000 / (1 + 10%)²⁰                                                  = 10,000 / ( 1 + 10%)²

= $1,486.43                                                                  = $8,264.46

<em>Notice the difference. The longer term investment was more exposed to interest rate effects. </em>

8 0
3 years ago
Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31
dusya [7]

Answer:

Legacy

The total bond interest expense to be recognized over the bond's life is:

= $189,172.82

Explanation:

a) Data and Calculations:

Face value of 5.5% bonds issued = $660,000

Proceeds from the bonds issue =       648,412

Bonds discounts =                                $11,588

Interest payment = semiannually at 2.75% (5.5%/2)

Market interest rate = 6%

Effective semiannual interest rate = 3% (6%/2)

N (# of periods)  8

I/Y (Interest per year)  3

PV (Present Value)  648412

PMT (Periodic Payment)  18150

Results

FV = $982,784.82

Sum of all periodic payments = $145,200.00

Total Interest = $189,172.82

6 0
2 years ago
Why is working capital management one of the most important and time-consuming activities of the financial manager? What is net-
dybincka [34]

Answer:

Working capital is essential to a company's fundamental health and operational success. It helps in maintaining a solid balance between growth, profitability and liquidity.

Net working capital is the difference between a business/ company's current assets and current liabilities or debts.

Current assets are cash, accounts receivable and inventories of raw materials and finished goods

Current liabilities are accounts payable.

Explanation:

Working capital helps to maintain smooth operations and help improve a company's earnings and profitability and it includes:

1. Inventory management

2. Management of accounts receivable and account payable.

7 0
3 years ago
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