The balance in investment in company s on the books

Assignment Help Financial Management
Reference no: EM132326120

Question

Company P purchased 100% of the outstanding common stock of Company S on 1/1/19 for $700,000 in cash and stock. Company P accounts for the income of Company S using the Simple Equity Method, and during the year Company S reported Net Income of $100,000 and declared and paid dividends of $70,000.

Assuming no other transaction between the two companies, the balance in "Investment in Company S" on the books of Company P on 12/31/19 will be?

Reference no: EM132326120

Questions Cloud

Processes of systems analysis and design : How the use of cloud computing will impact the processes of systems analysis and design, software development and project management?
Explain the strategies and thought processes : Create a code of ethics for you and your family, as well as to explain the strategies and thought processes that went into developing the code
Compute the standard cost of the ingredients for one gallon : Marigold manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon.
What extent do you feel the purpose of punishment : To what extent do you feel the purpose of punishment is to (a) protect society, (b) punish criminals, or (c) rehabilitate criminals?
The balance in investment in company s on the books : Assuming no other transaction between the two companies, the balance in "Investment in Company S" on the books of Company P on 12/31/19 will be?
Relationship between inefficiency and ethical behavior : What is the relationship between inefficiency and ethical behavior for leaders? How could the response to the Hurricane Katrina disaster
Determining the principles of management : What specific items from the principles of management will you use most in your professional and personal life?
Compute the annual lease payment : Three annual lease payments are due on January 1 of each year during the lease term, and the first payment is due at the inception of the lease term.
Complete a financial ratio analysis for dunkin donuts : Based on changes over time and a comparison with industry norms, evaluate the firm's strengths and weaknesses in terms of its financial position.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd