The use of planning techniques is an example of

The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows:

Simora [160]

Answer:

Patrick Corporation Group

a. The amount of total assets is:

= $1,544,000.

b. The amount of total stockholders' equity that should be reported is:

= $1,136,000.

Explanation:

a) Data and Calculations:

BALANCE SHEETS December 31, 2017

Patrick Sean Consolidated

Cash $70,000 $70,000 $140,000

Accounts receivable (net) 146,000 38,000 184,000

Inventories 100,000 46,000 168,000

Plant and equipment (net) 622,000 262,000 884,000

Investment in Sean 470,000 - -

Goodwill 168,000

Total assets $1,414,000 $424,000 $1,544,000

Accounts payable 176,000 90,000 266,000

Long-term debt 102,000 40,000 142,000

Common stock ($10 par) 340,000 64,000 340,000

Additional paid-in capital 14,000

Retained earnings 796,000 216,000 796,000

Total liabilities and

shareholders' equity $1,414,000 $424,000 $1,544,000

b) Total stockholders' equity after consolidation is calculated as:

Common stock ($10 par) 340,000

Retained earnings 796,000

Total equity = $1,136,000

5 0

3 years ago

True or false: While taxpayers benefit from government-provided programs and services, such as national defense and law enforcem

polet [3.4K]

Answer:

True

Explanation:

Taxes paid are NOT directly related to any specific benefit received by the taxpayer.

4 0

3 years ago

Whispering Winds Manufacturing has an annual capacity of 81,000 units per year. Currently, the company is making and selling 78,

svetoff [14.1K]

Answer:

Net loss from accepting the order $(56,200 )

Explanation:

Note that Whispering Winds Manufacturing currently has excess capacity

Excess capacity = 81,000 - 78,200 = 2800 units

The relevant cash flows associated with this special order are as follows:

The increase in contribution from meeting part of the offer from the excess capacity
Opportunity cost associated with meeting the part of the special order from existing sales.

Note that the special order would be met as follows

2800 from the excess capacity

2600 from existing sales

5400

$

Total contribution from special order:

(70-65) × 5400 27000

Contribution lost from selling 2,600

at a reduced price:

(102-70) × 2,600 (83,200)

Net loss from accepting the order (56,200 )

7 0

3 years ago

Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts

Lemur [1.5K]

Answer:

horizon value at year 5 = Div₆ / (Re - g)

Div₆ = ($2.75 x 1.143²) x 1.0372 = $3.726384483
Re = 12.4%
g = 3.72%

horizon value at year 5 = $3.726384483 / (12.4% - 3.72%) = $42.93

current value P₀ = $2.75/1.124³ + $3.14325/1.124⁴ + $46.52273/1.124⁵ = $1.937 + $1.969 + $25.932 = $29.838 ≈ $29.84

1) dividend yield = 0/$29.84 = 0%

capital gains yield = (P₁ - P₀) / P₀

P₁ = $2.75/1.124 + $3.14325/1.124² + $46.52273/1.124³ = $2.447 + $2.488 + $32.762 = $37.697 ≈ $37.70

capital gains yield = ($37.70 - $29.84) / $29.84 = 26.34%

2) Goodwin has yet to record a profit (positive net income). Is this statement a possible explanation for why the firm hasn't paid a dividend yet?

A. Yes

Since dividends must be paid out from net profits or retained earnings.

8 0

3 years ago

Resistance to change is a normal everyday aspect in the workplace. Note what happens to the organizational climate when this res

jolli1 [7]

Answer is given below :

Explanation:

Resistance to change occurs when there is a change in the way an organization operates. As the external environment is constantly changing, companies also need to change their strategy and internal environment to deal with the external market.
It is very difficult to understand how an organization’s employees respond to changes in the organization. They may react positively or negatively throughout the changes.
Changes in the organizational environment may involve simple steps such as planning, implementation, monitoring and review. Regular change in the organization is very healthy because it leads to success.
This situation leads to conflict, insecurity and creates a negative organizational environment that hinders employee development and productivity. Resistance to change is usually due to insecurity, fear of job loss, etc. due to the lack of adequate information provided by the employee about the new changes taking place in the organization.
There are actually various strategies to reduce negative perceptions that management employees can understand about the real need for change and the benefits that will occur after the change.

3 0

3 years ago