3.

Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 20X1, is summarized as

damaskus [11]

Answer:

b. capital stock, $800,000

Explanation:

a. Non-controlling interest, $65,000 is incorrect

Reason: The Non-controlling interest would be 10% of the net assets

Net assets = 650,000 - 30,000 =620,000

The Non-controlling interest would be 10% of the net assets

= $620,000 *10% = $62,000

b. b capital stock, $800,000 is Correct

Company will show the capital stock as $800,000 in the consolidated balance sheet. In consolidated financial statements of any company, the amount will be reflected for the equity that with the outside shareholders, and in other company share purchased are not shown under the capital stock account

c. investment in Sioux, $558,000 is incorrect

Reason: investment in Sioux will not be shown in the consolidated balance sheet and will be eliminated in consolidation

d. Retained earnings, $1,078,000 - Incorrect

Reason: Retained earning as summarized in the Balance sheet carry the value of $1,758,000 + $650,000

7 0

4 years ago

The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% co

Irina-Kira [14]

Answer: See explanation

Explanation:

Based on that attachment given, we should note that the following was gotten as:

1. Inventory in process beginning:

This was gotten as:

= 2,400 × 65%

= 2400 × 0.65

= 1,560

Started and completed:

= 10,800 - 2,400

= 8,400

Inventory in process ending

= 1,900 × 60%

= 1900 × 0.6

= 1,140

8 0

3 years ago

On the basis of the following production possibilities tables for two countries, North Cantina and South Cantina.

insens350 [35]

Answer:

A

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

To determine which country has a better technology in production, the opportunity cost has to be calculated. The country with the lower opportunity cost has the better technology

At point B for North Cantina:

The opportunity cost of producing one 4 units of capital good = 10/4 = 2.5 units of consumer goods

The opportunity cost of producing 10 units of consumer good = 4/10 = 0.4 units of capital goods

At point B for South Cantina

The opportunity cost of producing one 4 units of capital good = 8/4 = 2units of consumer goods

The opportunity cost of producing 8 units of consumer good = 4/8 = 0.5 units of capital goods

South Cantina has a lower opportunity cost in the production of capital goods while North Cantina has a lower opportunity cost in the production of consumer goods

3 0

3 years ago

Louis Petit, a manager of Doggone Gorgeous, Inc., was reviewing the water bills of a dog daycare and spa. He determined that its

Sergeeva-Olga [200]

Answer:

Fixed cost = $1100

Explanation:

given data

Highest bill = $3,800

lowest bills = $2,000

dog washed in May = 600

dog washed in November = 200

to find out

fixed cost associated with the company's water bill

solution

first we get here variable cost that is express as

variable cost = (Highest bill - Lowest bill) ÷ ( Dogs washed may - Dogs washed November ) ...........1

put here value we get

variable cost = $\frac{3800-2000}{600-200}$

variable cost = $4.5 per dog

so fixed cost will be here as

Fixed cost = Total cost to wash 600 dogs - Variable cost to wash 600 dogs

Fixed cost = $3800 - $4.5 × 600 dogs

Fixed cost = $3800 - $2700

Fixed cost = $1100

7 0

3 years ago

Hughes Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth

Oksana_A [137]

Answer: $53.94

Explanation:

Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.

Terminal value = D₄ / ( required return - growth rate)

= (2.35 * 1.22³ * 1.05) / (12 % - 5%)

= $64

D₁ = 2.35 * 1.22 = $2.867

D₂ = 2.867 * 1.22 = $‭3.49774‬

D₃ = ‭3.49774‬ * 1.22 = $‭4.2672428‬

Share price = (2.867 / (1 + 12%)) + (‭3.49774‬ / 1.12²) + (‭4.2672428‬ / 1.12³) + (64/1.12³)

= $53.94

7 0

3 years ago