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1 year ago

On January 1, 20X4, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at underlying book value.

Business

1 answer:

ArbitrLikvidat [17]1 year ago

4 0

Answer:

Explanation:

The first step is to determine the income to be carried forward:

The diagram is attached.

Therefore, the amount of consolidated retained earnings is (a.) $235,000

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A fast-growing form of foreign direct investment is sovereign wealth funds (SWFs). Why do these investments by governments with

PolarNik [594]

Answer:

Large firm can gain control of natural resources.

Explanation:

Investments by governements with surplus cash flows do worry trade expert as believe as investing in large firm by goverment will take away control of natural resouces by government and corporate will have more control on natural resources, sensitive technologies of nation and management control.

Generally, sovereign wealth funds (SWFs) is governement funded investment to improve economy and develop nation and it´s citizen, however, a fast-growing form of foreign direct investment is sovereign wealth funds will have adverse affect on country´s citizen and resources nation have.

5 0

1 year ago

Jaxon Markets currently has credit terms of net 30, an average collection period of 29 days, and average receivables of $211,410

Fudgin [204]

Answer: $50,301

Explanation:

If they offered the new terms of 2/10, net 30 then 45 percent of their customers would pay on day 10 with the remainder paying on average in 32 days.

The collection period would therefore be;

= 0.45 * 10 + 0.55 * 32

= 22.1 days

Currently the Average Daily sales are;

= Average Receivables/ Average collection period

= 211,410/29

= $7,290

With the new collection period their Average receivables would be;

= 7,290 * 22.1

= $‭161,109‬

Potential cash to be freed up = Current Receivables - New receivables

= 211,410 - 161,109

= $50,301

7 0

1 year ago

An investment pays you $30,000 at the end of this year, and $15,000 at the end of each of the four following years. What is the

Stella [2.4K]

Answer:

Present value of the cashflow discounted at 5% per year 76,815.65

Explanation:

First, we calculate the present value of the 4 years 15,000 dollar annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 15,000.00

time 4

rate 0.05

$15000 \times \frac{1-(1+0.05)^{-4} }{0.05} = PV\\$

PV $53,189.2576

Now, we discount two more year as lump sum as this is two year after the invesmtent:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 53,189.26

time 2.00

rate 0.05000

$\frac{53189.2575624354}{(1 + 0.05)^{2} } = PV$

PV 48,244.2245

Finally we also discount the 30,000 by one year

30,000 / 1.05 = 28571.43

<em><u>We add up both to get the present value:</u></em>

48,244.22 + 28,571.43 = 76,815.65

8 0

2 years ago

Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was appro

Katen [24]

Answer:

bond's selling price is $6154

Explanation:

given data

face value = $5,000

interest = 8 % of face value

rate = 6.5 %

to find out

bond's selling price

solution

we find interest that is

interest = 8 % of face value

interest = 8 % × 5000

interest = 400

so we consider bond selling price is x

bond selling equation will be

interest = rate × bond selling price

400 = 0.065 × x

x = 6154

so bond's selling price is $6154

8 0

1 year ago

Madrid Company has provided the following data (ignore income taxes): 2018 revenues were $77,500. 2018 net income was $33,900. D

Gennadij [26K]

Answer:

C. Retained earnings increased $28,200 during 2018.

Explanation:

Total liabilities = Total assets - Total equities

= $217,000 - $123,000

= $94,000

Common stock as at December 31, 2018 = Total equity - Total retained earnings

= $123,000 - $83,000

= $40,000

Retained earnings at year end =

Opening retained earnings + net income - dividend paid

$83,000 = Opening retained earnings + $33,900 - $5,700

$83,000 = Opening retained earnings + $28,200

Opening retained earnings = $54,800

Change in retained earnings = Closing retained earnings - Opening retainer earnings

= $83,000 - $54,800

= $28,200

Therefore, Option 'C' is the correct option.

8 0

2 years ago