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3 years ago

What is the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied

Business

1 answer:

jeka57 [31]3 years ago

8 0

Answer:

$1,609,000

Explanation:

Calculation to determine the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied

First step is to calculate the Unrecorded Patents Amortization

Unrecorded Patents Amortization

=$1,400,000-[($6,400,000 - $3,000,000)×30%] /10 years

Unrecorded Patents Amortization

=$1,400,000- ($3,400,000 × 30%)/10 years

Unrecorded Patents Amortization

=$1,400,000 - $1,020,000/10 years

Unrecorded Patents Amortization = $380,000 / 10 years

Unrecorded Patents Amortization= $38,000

Now let determine the Investment

Investment=$1,400,000 + $180,000 + $225,000 - $60,000 - $60,000 - $38,000 - $38,000

Investment= $1,609,000

Therefore the Investment in Mopsy Co. balance as of December 31, 2020, if the equity method has been applied is $1,609,000

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Below is information from the financial statements of Greenwich Company: Accounts receivable (net) 2016: $2,400 Accounts receiva

ra1l [238]

Answer:

32.44 days

Explanation:

The computation of the average collection period is shown below:

But before that we have to determine the account receivable turnover ratio

So, the account receivable turnover ratio is

= (net sales) ÷ (average of account receivables)

= $25,875 ÷ ($2,400 + $2,200) ÷ 2

= $25,875 ÷ $2,300

= 11.25 times

Now the average collection period is

= Total no of days in a year ÷ account receivable turnover ratio

= 365 ÷ 11.25

= 32.44 days

We assume that the no of days that should be considered is 365 days

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3 years ago

Which of the following is true about investors who buy preferred stock?

raketka [301]

I think the correct answer is A. Investors who buy preferred stock receive dividends after the common stock shareholders. Preferred stock is a stock type that gives right to the owner a fixed share of the company's profit or fixed dividend.

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3 years ago

Read 2 more answers

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a

Elis [28]

Answer:

The company should be willing to invest the cost of $3 million to complete the development of the new product.

Explanation:

First, the correct completion of the question

If it would cost $3 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete the development?

Answer

To determine the cost: It is important to critically consider which costs are already sunk and which are still to come.

First, and foremost, $5 million already invested into the new product represents a sunk cost or a cost that has already been spent. This means that to stop the project or continue the project ,either options will still mean that $5 million has been spend already. It will not affect the future decision.

Therefore, if you decide to stop the production, the cost of the entire project of development is already $5 million

However, if you decide to continue the project

Sunk Cost = $5 million

Cost of continuation = $3 million (This is current relevant cost to consider against the sales).

Expected Sales of the finished product = $4,500,000

Therefore $4,500,000- $3,000,000= $1,500,000

If stopped, the loss to the company is $5 million

If continued, removing the sunk cost, the company can still make a profit of $1,500,000 of the cost of continuation.

The company should finish development and make the product.

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3 years ago

The direct method of reporting operating cash flows: ________

nalin [4]

Answer:

e. Is not recommended by the FASB, but is commonly used.

Explanation:

A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.

The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;

1. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.

2. Cash-flow from financing activities: it represents the cash flow from debt or equity. Typically, it's the costs used in a financing a business.

3. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.

Generally, the statement of cash flows provides financial information about an organization's operating profitability and how it use its operating cash flow.

Financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining financial accounting and reporting standards for general guidance of individuals or capital providers such as investors, issuers and auditors.

In Financial accounting, the direct method of reporting operating cash flows uses actual cash inflows and outflows from the operating activities of a company by generating data from the income statement (cash receipts and cash disbursements/payments).

However, the direct method of reporting operating cash flows is not recommended by the FASB, but it's commonly used.

This ultimately implies that, it's a recommended accounting method, but it's not an accounting standard required by the financial accounting standards board (FASB).

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3 years ago

The Stinson family owns a farm. Three alternatives exist for how to use the farm: a) Grow wheat. Wheat yield would be 70 bu/acre

Lesechka [4]

Answer:

Following are the solution to the given questions:

Explanation:

Please find the complete question in the attached file.

In this question, the Stinsons would prefer the most profitable alternative

Formula:

$Profit = Income - Costs = (price \times amount) - Costs \ of \ production$