Answer:
c. Parent company total assets equals consolidated total assets
Explanation:
- The equity method is a process of treating investment in an associated companies and is usually applied where the investor holds about 50% of the companies stocks and this has a significant influence in the later management.
- They are recorded in the balance sheets and are associated with the companies net incomes and investments. If 80% of the investment is accounted for the subsidiary then the parent company total assess will not be equal o the total assets as it involves taxes.
Answer:
$196448
Explanation:
Since the central bank has increased the money supply by $231115 but the reserve ratio is maintained at 15%, this means that 85% of the money is being injected in the form of money supply.
Hence, the maximum increase in money supply, the 85% of $231115 is: $196448.
Hope this helps.
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Answer:
Department Y $9000
Department Z $5000
Explanation:
Delivery expense can be calculated using the allocation and apportionment method for Y and Z.
<u>Step 1. Allocation</u>
The costs that are directly attributable to the departments would be allocated to its relevant department. Here, $1500 are the direct expenses for the deliveries for the department Y, so at the first step,
Department Y Cost = $1500
For the department Z, their are no direct expenses for the deliveries,so at the first step,
Department Z Cost = $0
<u>Step 1. Apportionment</u>
The indirect cost of $12500 ($14000 - $1500) would be apportioned among department Y and Z.
So
Department Y = $1500 + $12500 x 60% = $9000
Department Z = $12500 x 40% = $5000
Answer:
The total amount that Louies spends on advertising=$13,650
Explanation:
To calculate the total amount Louies sporting goods spends on advertising, we express the total expenditure as follows;
Total expenditure=Cost per day×number of days
Cost per day=cost per spot×number of spots in a day
Cost per day=(650×3)=$1,950
Number of days in a week=7 days
replacing;
Total expenditure=Cost per day×number of days
Total expenditure=(1,950×7)
Total expenditure=$13,650
The total amount that Louies spends on advertising=$13,650
Answer:
6.4%
Explanation:
For computing the minimum yield on investment, first we have to find out the combined ratio which is shown below:
= Projected loss percentage + expense ratio + dividend percentage
= 77.5% + 23.9% + 5%
= 106.4%
So, the minimum yield on investment required is
= 106.4% - 100%
= 6.4%
The 100% is the percentage value
We simply applied the above formula
