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NNADVOKAT [17]
2 years ago
7

Following is a portion of the investments footnote from Homer Corp. 2012 10-K. (in millions) 2012 Amortized cost of available-fo

r-sale securities $231,312
Gross unrealized gains 7,635
Gross unrealized losses $33,123
What amount does Homer report for available for sale securities on its 2012 balance sheet?
A) $25,488 million
B) $205,824 million
C) $231,312 million
D) $256,800 million
E) None of the above
Business
1 answer:
adelina 88 [10]2 years ago
4 0

Answer:

available for sale  security =$205,824 million as of 2012

correct option is B) $205,824 million

Explanation:

given data

cost of sale securities =  $231,312

Gross unrealized gains =  $7,635

Gross unrealized losses = $33,123

to find out

What amount does Homer report for available for sale securities

solution

we know  here that sale investment is report at fair value on balance sheet

so that available for sale  security is report as

available for sale  security = cost of sale securities+ Gross unrealized gains -   Gross unrealized losses   ..............................1

available for sale  security = $231,312 + $7,635 - $33,123

available for sale  security =$205,824 million as of 2012

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Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating inc
Nady [450]

Answer:

1.  $425,000

2. 10.49%

3. 1.25

4. 13.11%

Explanation:

The computations are shown below:

1. For Average operating assets

=  (Beginning Operating Assets + Ending Operating Assets) ÷ 2

= (390,000 + 460,000) ÷ 2

= $425,000

2. For margin:

= Net Operating Income ÷ Sales × 100

= $55,750 ÷ $531,250 × 100

= 10.49%

3. For turnover:

= Sales ÷ Average Operating Assets

= $531,250 ÷ $425,000

= 1.25

4. For return on investment:

= Net Operating Income ÷ Average Operating Assets

= $55,750 ÷ $425,000

= 13.11%

3 0
3 years ago
Aluminum maker Alcoa has a beta of about 1.85​, whereas Hormel Foods has a beta of 0.39. If the expected excess return of the ma
Nady [450]

Answer and Explanation:

The computation is shown below:

As we know that

According to the Capital Asset Pricing Model (CAPM) formula

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

And, the market rate of return - Risk-free rate of return is also known as the market risk premium

As we can see that the Alcoa contains high beta as compared to Hormel Foods so the Alcoa has a higher equity cost of capital

And, the higher rate is

= (Excess return of the market) × (Alcoa beta - Hormel foods beta)

= (3%) × (1.85 - 0.39)

= 3% × 1.46

= 4.38%

8 0
3 years ago
Discuss the pros and cons of four performance appraisal tools​
Tresset [83]

Answer:

Pros and cons are for every method listed below. A person can only see his strength and power during self assessment and he may ignore all his mistakes as it can be his over confidence in himself. Graphic rating may be disappointing as many employees can get same rating and there will not be any difference among them in the pay rise.

Explanation:

There are four major performance appraisal tools

1. Self assessment

2. Graphic Rating

3. Behavioral Checklist

4. 360 degree feedback

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2 years ago
If it costs $100000 to put on an event for four weeks (28 consecutive nights) how much revenue per night is needed to make $2000
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Answer:

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8 0
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Read 2 more answers
Explain how the accounting for a fair value hedge differs for the hedged item and for the hedging item compared to the accountin
igomit [66]

A cash flow hedge is accounted for differently than a fair value hedge.

<h3>What is a Fair Value Hedge?</h3>

Fair price hedges may be used to mitigate the danger of modifications withinside the truthful marketplace price of liabilities, belongings, or different company commitments. Generally, truthful price hedges pass withinside the contrary route of the hedged object so they may be used to cancel out your losses. As a result, derivatives like alternatives and futures are fantastic examples of truthful price hedges.

<h3>What is a Cash Flow Hedge?</h3>

Cash go with the drift hedges can assist to mitigate the dangers which are related to surprising modifications in coins flows of belongings or liabilities, instead of the asset or legal responsibility itself. There are many various factors that could result in those kinds of modifications, inclusive of increases/decreases in forex rates, modifications in hobby rates, modifications in asset prices, and so on.

<h3>What’s the distinction among Cash Flow Hedge and Fair Value Hedge?</h3>

As you could see, the important thing distinction among a coins go with the drift hedge and a truthful price hedge is the hedged object. With a coins go with the drift hedge, you’re hedging the modifications in coins influx and outflow from belongings and liabilities, while truthful price hedges assist to mitigate your publicity to modifications withinside the price of belongings or liabilities. So, at the same time as truthful price hedges are first-rate acceptable to constant price items, the blessings of coins go with the drift hedges lead them to perfect for variable price items.

Learn more about Hedging on:

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