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Annette [7]
3 years ago
7

An investor company owns 30% of the outstanding common stock of an investee company, which allows the investor to exercise signi

ficant influence over the investee. The Equity Investment was reported at $500,000 as of the end of the previous year. During the year, the investor received dividends of $60,000 from the investee. The investee reports the following income statement for the year:
Business
1 answer:
kodGreya [7K]3 years ago
5 0

Answer:

Note: The full question is attached as picture below

a. Equity income that the investor should report in its income = Net income * Investor share = 400,000 * 30% = $120,000

b. Particulars                                 Amount

Equity investment opening           500,000

Add: Equity income                        120,000

Less: Dividend paid                        <u>60,000</u>

Equity investment at end of year  <u>560,000</u>

c. The fair value of the Investee company will remain at adjusted cost. and the investment is not adjusted to fair value

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Answer: Marketing Mix

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iragen [17]

Answer:

So the amount of sales needed will be $144000

Explanation:

We have given selling price per unit =$8

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Target profit= $18600

Required Sales amount to earn the desired profit = \frac{Fixed costs + Target net income}{Contribution Margin Ratio}

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3 0
3 years ago
1. Identify and describe two incremental cash flows from a proposed project such as expanding a product line or launching a new
Mazyrski [523]

Answer:

Explanation:

1. Incremental cash flow is the potential increase or decrease in cash flow from an investment this could be positive or negative.

In this case in expanding a product line or launching a new project incremental cash flow could be.

a. Positive: this is the increase in cash flow due to the product launch and expansion.

b. Negative: this is the decrease in cash flow due to the product launch and expansion

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profit gotten from an initial investment equal to what was initially invested

b. Net Present Value(NPV)

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6 0
4 years ago
A business organization needs to make up a 5 member fund-raising committee. The organization has 10 accounting majors and 8 fina
miss Akunina [59]

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The fund raising committee can be organized in 3,276 different ways.

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The committee can have the following structures:

Accounting majors            Finance majors

        0                                          5

        1                                           4

        2                                          3

C(10,0) x C(8,5) = (10! / 10!) x (8! / 3!5!) = 1 x 56 = 56

C(10,1) x C(8,4) = (10! / 9!1!) x (8! / 4!4!) = 10 x 70 = 700

C(10,2) x C(8,3) = (10! / 8!2!) x (8! / 5!3!) = 45 x 56 = 2,520

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6 0
3 years ago
Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net in
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<h2>Answer: $78,00</h2>

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?

Explanation:

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