On January 1, 2024, Nana Company paid $100,000 for 8, 100 shares of Papa Company common stock. Theownership in Papa Company is 10%. Nana Company does not have significant influence over PapaCompany. Papa reported net income of $55,000 for the year ended December 31, 2024. The fair value ofthe Papa stock on that date was $55 per share. What amount will be reported in the balance sheet of NanaCompany for the investment in Papa at December 31, 2024? A: $400, 500B: $445, 500C: $385,500D: $370, 500

Securities which are held to trading purpose are reported at fair value. Any gain or losses which is…

Answered: wnership in Papa Company is 10%. Nana…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

There are two companies (Heart and Apt). Here is financial data from the past year. All dollar amounts for sales, total assets and net income are in millions. The risk free rate (UST securities) = 4%. hearts: Sales $ 9,350 $ 8,930 Net Income $ 902 $ 1,460 ROA 8.8% 7.6% ROE 30.2% 13.96% Current ratio 1.88x 2.17x Shares outstanding 238m 219m Beta 2.58 0.98 Stock price $18.79/sh. $159.00/sh. P/E ratio 4.97 23.9 (S&P 500 is…
Quincy Martin Manufacturing has assets of $5 million and liabilities of $3 million. The company has also issued 400,000 shares of common stock. What is the company's book value per share? Select one: O a. $10.25 O b. $7.50 O c. $5 O d. $2.50 O e. $1.00
General: As part of the C-Suite team you are being asked to report to the CEO directly in regard to financial matters. Crunch the following numbers and report back to the CEO: X Company accounts for its 40% investment in Y Company using the equity method of accounting. The investment cost $760,000 on 1/1/X1. During X1, Y reported net income of $400,000 and paid total dividends of $80,000 during X1. On December 31, 20X1, X sold its investment for $800,000. What amount of gain or loss is on X income statement? A. $120,000 loss B. $ 88,000 loss C. $ 72,000 gain $ 88,000 gain D. E. $120,000 gain ONE CORRECT ANSWER
At August 1, Sadaf Oman Company reported equity of RO 70,000. During August, capital shares of RO 10,000 were issued and the company posted a net income of RO 6,000. If equity at August 31 totals RO 70,000, what amount of dividends were paid during the month? Select one: Oa RO 16,000 Ob.RO 14,000 OE RO B0,000 Od. RO 4,000
Lake Incorporated and River Incorporated reported net incomes of $275,000 and $231,000, respectively, for the most recent fiscal year. Both companies had 55,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $58, while River's sold for $62 per share. Required a. Determine the P/E ratio for each company. b. Based on the P/E ratios computed in Requirement a, which company do investors believe has the greater potential for growth in income? Complete this question by entering your answers in the tabs below. Required A Required B Determine the P/E ratio for each company. Note: Do not round intermediate calculations. Round your answers to the nearest whole number. Company Lake, Incorporated River, Incorporated P/E Ratio
anapparel manufacturer, reported net income (amounts in thousands) for Year 4 of $58,615 onsales of $1,460,235. It declared preferred dividends of $21,122. Preferred shareholders’ equitytotaled $264,746 at both the beginning and end of Year 4. Common shareholders’ equitytotaled $296,157 at the beginning of Year 4 and $364,026 at the end of Year 4. Phillips-VanHeusen had no noncontrolling interest in its equity. Total assets were $1,439,283 at the beginningof Year 4 and $1,549,582 at the end of Year 4. Compute the rate of ROCE for Year 4 anddisaggregate it into profit margin for ROCE, assets turnover, and capital structure leverage ratiocomponents.
Shareholders' equity in a firm is $500. The firm owes a total of $400 of which 75 percent is payable this year. In addition, credit sales to customers total 5000 of which 80 percent is due this year The firm has net fixed assets of $600. What is the amount of the net working capital? Options : a. $0 b. $3200 c. $3700 d. -$4200 e. -$4100
Zach Ltd. produced the following data for the year 2015 –o Interest Income $4,650,000o Capital Gain realized $50,000o Dividend Income from company’s 25% ownership in XYZ Ltd. $65,000o Corporate tax rate 40%Calculate the tax on Interest Income, tax on Capital Gain and tax on Dividend Income.
Maxwell Communications Corporation has after-tax earnings of $1,508,000 after paying $45,000 in dividends to its 10,000 preferred stockholders. If Maxwell has 500,000 common stockholders, its earnings per share are a. $3.05. b. $3.02. c. $4.50 d. $4.50
During the year, ChemClean Corporation has $280,000 in revenues, $130,000 in expenses,and $10,000 in dividend declarations and payments. Net income for the year was:a. $140,000.b. $150,000.c. $160,000.d. $280,000
P6-4. Bebe Co. declared dividends of Php2 per share for their performance last year after the declaration of dividends the market value per share increased to Php45 per share. What is the dividend yield ratio of Bebe Co.?
A corporation using the equity method of accounting for its investment in a 80%–owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 100,000$ ? Select one: a. 112,000 b. 115,000 c. 120,000 d. 100,00

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

wnership in Papa Company is 10%. Nana ompany. Papa reported net income of $55, e Papa stock on that date was $55 per sha company for the investment in Papa at Dece 70,500