Kelvie Inc. is a manufacturing company and held the following investments during 2012. Show how each investment would impact/change Kelvie’s 2012 year-end financial statements using the template provided on Blackboard. Indicate the type of activity for each line reported on the Statement of Cash Flows. Kelvie Inc. purchased Mao & Co.’s 5-year, 5%, $100,000 bond. The bond was purchased on January 1, 2012 for $95,788 to yield 6% interest. The bond pays annual interest on December 31. Kelvie intends to hold the bond to maturity. At December 31, 2012, the bond had a fair market value of $96,500.Kelvie Inc. purchased 6,000 shares of Dalton Ltd. common stock at a cost of $255,000 on July 31, 2012. These shares do not give Kelvie significant influence over Dalton. On October 31, 2012, Dalton Ltd. paid a $2 per share cash dividend. At December 31, 2012, Dalton Ltd. was trading at $40 a share. On January 1, 2012, Kelvie Inc. invested in ASP Industries by acquiring 30% of ASP’s outstanding stock for $21,500,000. During 2012, ASP Industries reported net income of $5,000,000 and paid cash dividends totaling $1,000,000. At December 31, 2012, ASP Industries had a market value of $75,000,000. Note: Ignore any excess price issues.
Answers: 3
Another question on Business
Business, 22.06.2019 07:00
Imagine you own an established startup with growing profits. you are looking for funding to greatly expand company operations. what method of financing would be best for you?
Answers: 2
Business, 22.06.2019 19:40
The common stock of ncp paid $1.35 in dividends last year. dividends are expected to grow at an annual rate of 5.30 percent for an indefinite number of years. a. if ncp's current market price is $22.57 per share, what is the stock's expected rate of return? b. if your required rate of return is 7.3 percent, what is the value of the stock for you? c. should you make the investment? a. if ncp's current market price is $22.57 per share, the stock's expected rate of return is
Answers: 3
Business, 22.06.2019 19:40
Your father's employer was just acquired, and he was given a severance payment of $375,000, which he invested at a 7.5% annual rate. he now plans to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. how many years will it take to exhaust his funds, i.e., run the account down to zero? a. 22.50 b. 23.63 c. 24.81 d. 26.05 e. 27.35
Answers: 2
Business, 22.06.2019 22:00
Acontractor was awarded a purchase order for commercial items for $1.5 million under the authority of far subpart 13.5. the purchase order was issued in november 2010 and containedall applicable clauses that were current as of the date of the purchase order. under the purchase order, the contractor is required to comply with a small business subcontracting plan that contains all of the required elements. which of the following is true? a.the contractor must submit a standard form 294, subcontracting report for individual contracts. b.the contractor must submit an individual subcontracting report through the electronic subcontracting reporting system (esrs). c.the contractor may submit either an sf 294 or report its subcontracting through esrs. d.the contractor is not required to submit any subcontracting reports.
Answers: 1
You know the right answer?
Kelvie Inc. is a manufacturing company and held the following investments during 2012. Show how each...
Questions
Mathematics, 03.12.2019 13:31
History, 03.12.2019 13:31
History, 03.12.2019 13:31
English, 03.12.2019 13:31
Biology, 03.12.2019 13:31
Social Studies, 03.12.2019 13:31
