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2 years ago

Amber Corporation reported the following summarized balance sheet data on December 31, 20X6:

Business

1 answer:

taurus [48]2 years ago

8 0

Answer:

A. Give the journal entries recorded by Purple on its books during 20X7 if it accounts for its investment in Amber using the equity method.

January 1, 20x7, investment on Amber Corporation

Dr Investment on Amber Corporation 500,000

Cr Cash 500,000

Date, 20x7, dividends distributed by Amber Corporation

Dr Cash 20,000

Cr Investment on Amber Corporation 20,000

December 31, 20x7, Amber Corporation reports net income

Dr Investment on Amber Corporation 50,000

Cr Investment revenue 50,000

B. Give the elimination entries needed on December 31, 20X7, to prepare consolidated financial statements.

Since there are no intercompany sales reported, the only consolidation entry necessary is to eliminate investment account:

December 31, 20x7, consolidation entry

Dr Common stock 300,000

Dr Retained earnings 230,000

Cr Investment on Amber Corporation 530,000

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Employees who have difficulty performing efficiently on the job often have poor _____ skills, are confused about their prioritie

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Answer: The correct answer is "Organizational".

Explanation: Employees who have difficulty performing efficiently on the job often have poor <u>organizational</u> skills, are confused about their priorities (what is most important), and may be slow in making decisions.

Organizational skills allow us to distinguish which are our priorities, short, medium and long term objectives to be met and the steps to follow to fulfill these. Once focused on that, decision-making aimed at meeting these objectives tends to be much faster, which as a result demonstrates more efficient work.

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2 years ago

The managers of a car dealership have decided to utilize the Hawthorne effect to increase productivity, which means using camera

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Answer:

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Explanation:

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Hawthornian studies began around 1924 at the western Electric plant in Illinois, Chicago.

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2 years ago

A person who is currently unemployed is probably in which level of Maslow's Hierarchy?

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They most likely need to fulfill the security need of Maslow’s Hierarchy of needs. Employment and financial stability fall under the umbrella of the security need, in order to ensure the physiological needs can be met in the future.

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2 years ago

Read 2 more answers

The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable cos

Effectus [21]

Answer:

In order to maximize average daily profit, optimal number of reservations = 100 rooms.

Explanation:

As for the provided information, we have

Total number of rooms = 100

Chances of guests not arriving = 5%

Therefore, guests to arrive = 95%

Thus, bookings = 100/95% = 105.26

Rounding off we have 105 rooms,

Let us assume, all rooms are booked and no cancellation is done, in that case,

Total revenue = $150 $\times$ 100 = $15,000

Less: Overbooked charges = $200 $\times$ 5 = ($1,000)

Less: Variable Cost = $30 $\times$ 100 = ($3,000)

Thus total revenue will be $11,000

In case of booking of 100 rooms the net revenue in case of 5% cancellations, shall be:

Rooms booked = 100 - 5% = 95

Revenue = 95 $\times$ $150 = $14,250

Less: Variable Costs = 95 $\times$ $30 = ($2,850)

Thus total revenue = $11,400

Since profit in case of booking 100 rooms is more in any case, even in case of least cancellation the revenue will increase.

Thus, this is the optimal number of reservations = 100

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2 years ago

House of Haddock has 5,000 shares outstanding and the stock price is $140. The company is expected to pay a dividend of $20 per

Alenkinab [10]

Answer & Explanation:

(a) Gordon growth model:

Gordon growth model is a type of dividend discount model in which not only the dividends are factored in and discounted but also a growth rate for the dividends is factored in and the stock price is calculated based on that.

Formula:

P = D1 / (r − g)

where:

P = Current stock price

g = Constant growth rate expected for

dividends, in perpetuity

r = expected return in the stock

D1 = Value of next year’s dividends

As House of Haddock has 5,000 shares outstanding and the stock price is $140 and the company is expected to pay a dividend of $20 per share next year and thereafter the dividend is expected to grow indefinitely by 5% a year.

Therefore by putting the values in the above formula, we get

140 = 20 / ( r - .05 )

r = .192857

As the stock price is $140

So total value of the company = 140 * 5,000

total value of the company = 700,000

If the dividend growth rate is cut to 2.5%

P = 20/(.192857-.025)

P (one share) = 119.14

So the total value of the company becomes 595,745.

(b)

The expected stream of dividends per share for an investor who plans to retain his shares rather than sell them back to the company can be found be multiplying the previous dividend per share with 1.025

Expected stream of dividends per share = 20 * 1.025

= 20.5

Expected stream of dividends per share = 20.5 * 1.025

= 21.01

Expected stream of dividends per share for an investor = 20, 20.50, 21.01, 21,54 and so on.

8 0

2 years ago