Answer:
Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.
Explanation:
The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.
On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.
This is because dividend are seen as a reduction in investment account under the equity method. This means that dividends received cannot be taken as income in this method, hence C and D are wrong.
Answer:
danger is used for the most severe hazards
Explanation:
Answer:
Project A
Explanation:
There are two things to consider here when deciding on the project selection. First, the manager requirement to select the project which at least earns 12%.
Second, maximum return that could be generated from the project. This could be confirmed when determining which project has the highest Net present value (NPV). As NPV, is the difference between the present value of cash outflow (investment) and present value of cash inflow (returns) which is discounted at present time. If positive NPV is calculated then this means project is worthwhile.
Assessing the information given in the question, both projects earn at least 12%, therefore they both meet manager's requirements. While in case of Net present value Project A has the highest NPV and therefore suggest a better return on the project's investment in comparison to project B.
Hence, manager will likely choose Project A.
Answer:
Two examples of important things that financial planning skills can help us do are:
- Acquire a strong savings habit
- Set realistic goals
Explanation:
Acquire a strong savings habit: This is achievable when a person has a clear understanding of how much are their expenses and how much is needed to be save in order to acquire capital goods or to construct a fund for unexpected costs.
Set realistic goals: When a person knows how much its income is and has a realistic financial planning he knows what goals are achievable and which are not.
Answer:
$234,615.38
Explanation:
The computation of the break-even in sales dollars for Division Q is shown below:
Contribution Margin Ratio for the Division Q is
=Contribution Margin ÷ Sales × 100
= $187,720 ÷ $361,000
= 52%
ANd, Traceable fixed expenses = $122,000
Now
break-even in sales dollars for Division Q is
= Traceable Fixed Cost of Division Q Contribution Margin Ratio for the Division Q
= $122,000 ÷ 52%
= $234,615.38
