The use of slang creates which type of communication barrier?

Assessing Financial Statement Effects of Passive and Equity Method Investments On January 1, Ball Corporation purchased shares o

olga2289 [7]

Answer:

(a) See part a of the attached excel file.

(b) See part b of the attached excel file

Explanation:

(a) Assume that the stock acquired by Ball represents 15% of Leftwich's voting stock and that Ball has no influence over Leftwich's business decisions.

Note: See part a of the attached excel file for the Financial Statement Effects.

Under each transaction, the following calculations are made:

Transaction 1: Amount = Number of shares * Price per share = 10,000 * $17 = $170,000

Transaction 2: No calculation is needed as Ball has no influence over Leftwich's business decisions.

Transaction 3: Amount = Number of shares * Dividend per share = 10,000 * $1.20 = $12,000

Transaction 4: Amount = Number of shares * (Year-end market price per share - Acquisition price per share) = 10,000 * ($19 - $17) = $20,000

(b) Assume that the stock acquired by Ball represents 30% of Leftwich's voting stock and that Ball accounts for this investment using the equity method since it is able to exert significant influence.

Note: See part b of the attached excel file for the Financial Statement Effects.

Under each transaction, the following calculations are made:

Transaction 1: Amount = Number of shares * Price per share = 10,000 * $17 = $170,000

Transaction 2: Percentage of voting stock * Annual net income reported by Leftwich = 30% * $80,000 = $24,000

Transaction 3: Amount = Number of shares * Dividend per share = 10,000 * $1.20 = $12,000

Transaction 4: Amount = No calculation is needed as Ball has influence over Leftwich's business decisions.

Download xlsx

6 0

3 years ago

If Brazil can produce 5 shirts or 4 pounds of beef in a day, and Uruguay can produce 10 shirts or 2 pounds of beef in a day, the

dsp73

Well overall no but for this question yes Brazil is the leader in meat otherwise the question would be garbage because its exactly half.

7 0

3 years ago

Waterstone Industries is setting standard costs for one of its products. The main material is fiber board sold by the square foo

Fiesta28 [93]

Answer:

Direct materials cost per square foot= $4.25

Explanation:

Direct material costs represent the costs of all materials which are used essentially and wholly for the purpose of production of goods. These materials usually are those which form part of the product.

For example, flour and sugar are direct materials used for the purpose of producing of bread.

Direct material costs are charged directly to the product.

Direct labour cost : Direct workers are those who are actively engaged exclusively for the production of goods. They include machine operators in the factory, bakers in a bakery, e.t.c. Direct labour costs are charged directly to the product cost

Direct material cost per standard square foot

=$4.00 + $0.25

= $4.25

Direct materials cost per square foot= $4.25

5 0

3 years ago

Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off

Ksivusya [100]

Answer: $3000

Explanation:

Based on the information given, the amount of loan that Milly needs will be the addition of the down payment and the cash allowance and this will be:

= Down payment + Cash allowance

= $2500 + $500

= $3000

Molly needs a loan of $3000

4 0

3 years ago

Read 2 more answers

Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.95 Direct labor

Paraphin [41]

Answer:

The correct answer is $27,675.

Explanation:

According to the scenario, the given data are as follows:

Variable manufacturing OH = $1.75

Fixed manufacturing OH = $19,800

Units = 4,500 units

So, we can calculate the total amount of manufacturing overhead cost by using following formula:

Total manufacturing OH = Total variable OH + Total fixed OH

Where, Total variable OH = $1.75 × 4,500 = $7,875

By putting the value, we get

Total Manufacturing OH = $7,875 + $19,800

= $27,675

7 0

3 years ago