B) workplaces
The location may be different but the job stays the same
Answer:
The answer is: As described in the question, North Korea is one of the poorest countries in the world, and it is expensive to train doctors to perform eye surgery. In a poor country, the labor cost of the doctor will not be that large but doctors need very specific and expensive equipment to perform eye surgeries. North Korea probably cannot afford to purchase the equipment necessary for performing eye surgeries.
Available Options Are:
a. Increasing ROIC by increasing return on sales
b. Decreasing ROIC by increasing return on sales
c. Decreasing ROIC by decreasing return on sales
d. Increasing ROIC by decreasing return on sales
Answer:
Option C. Decreasing ROIC by decreasing return on sales
Explanation:
The return on sales would be reduced as the research expenses have increased substantially. The implications of increased research expenses on the ROIC can be understood by analyzing the ROIC formula which is given as under:
ROCI = Operating Income (1 - Tax Rate) / Book Value of Invested Capital
As revenue expenditure (Research and Development expenses) of the company has increased, this would decrease the operating income of the company which means that the numerator would be decreased and as a result the ROIC would decrease.
Answer: $672,000
Explanation:
Porter sold land to Simi which means that their land balance reduces. Simi's however increases by the same amount. As Porter owned all the voting stock, the sale will be accounted for at the book value.
The Consolidated balance for land in 2020 will therefore be calculated as,
= (Porter land value - Sales price) + (Simi land value + Sales price)
= (416,000 - 65,000) + (256,000 + 65,000)
= 351,000 + 321,000
= $672,000
The book value of the Consolidated land will be $672,000 in 2020.
