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2 years ago

Why is it important to start with temporary investments that lead to permanent investments

1 answer:

4 0

These investments are commonly used when a business has a short-term excess of funds on which it wants to earn interest, but which will be needed to fund operations within the near future. These types of investments are usually very safe, but also have quite a low rate of return.

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Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000

777dan777 [17]

Answer:

correct option is b. $22,000

Explanation:

given data

reported revenues = $810,000

expenses = $630,000

annual amount of amortization = $15,000

solution

we get here net income 2019 is

net income 2019 = revenue - expenses - amortization ........1

put here value

net income 2019 = $810,000 - $630,000 - $15,000

net income 2019 = $165,000

and

as here acquired stock on September

so we get here income for September to December that is

net income = $165,000 × $\frac{4}{12}$

net income = $55000

and

non controlling interest is

non controlling interest = 40% of $55000

non controlling interest = $22,000

so correct option is b. $22,000

5 0

3 years ago

Crane Enterprises reported cost of goods sold for 2020 of $1,290,700 and retained earnings of $4,708,100 at December 31, 2020. C

Grace [21]

Answer:

Adjusted Cost of Goods sold = $1,206,860
Adjusted Retained Earnings = $4,675,190

Explanation:

An overstated opening inventory would overstate Cost of Goods sold. The overstatement should therefore be removed from the Cost of goods sold.

An overstated closing inventory would understate Cost of Goods sold. The overstatement should therefore be added to the Cost of Goods sold.

Adjusted Cost of Goods sold 2020 = Cost of Goods sold + 2020 ending inventory - 2019 opening inventory

= 1,290,700 + 32,910 - 116,750

= $1,206,860

Adjusted Retained earnings

The retained earnings would have to be adjusted for the overstatement of the current inventory by $32,910 because this understated Cost of Goods sold.

= Retained earnings - Overstatement of inventory

= 4,708,100 - 32,910

= $4,675,190

8 0

2 years ago

Refer to the table. what is the total amount of producer surplus (per barrel of oil) earned by all four producers if the market

PolarNik [594]

Hello! Sorry this is a little late.

I believe the correct answer to your question is $87.75.

I hope this helps, and have a great rest of your day!

4 0

3 years ago

Read 2 more answers

Bond J has a coupon rate of 3 percent and Bond K has a coupon rate of 9 percent. Both bonds have 13 years to maturity, make semi

noname [10]

Solution :

Given :

Coupon rate for Bond J = 3%

Coupon rate for Bond K = 9%

YTM = 6 %

Therefore,

The current price for Bond J = $ 718.54 =PV(6%/2,13x2,30/2,1000)x -1

The current price for Bond K = $ 1281.46 =PV(6%/2,13x2,90/2,1000)x -1

If the interest rate by 2%,

Bond J = $ 583.42 = -18.80% (change in bond price)

Bond K = $ 1083.32 = -15.46% (change in bond price)

6 0

3 years ago

What is the effect of a 10 percent price increase on quantity demanded if elasticity is infinite?

Julli [10]

Answer:

Demand drops to zero

Explanation:

Infinite elasticity of demand is also called perfect elasticity of demand.

In this scenario the demand for a product is attached to it's price.

There is an infinite change in the quantity demanded as a result of change in price.

Graphically it is a horizontal demand curve as represented in the attached

Even a small increase in price will cause demand to fall to zero.

Examples are luxury goods such as high end cars and expensive jewelry.

4 0

3 years ago