Business, 04.04.2020 14:31 jaileen84

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.

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Answer from: Shobhoob

Explanation:

Investments Impact in Type of activity

financial statement

1 Purchase of Mao &Co's Increase the investments Investing

bond of $ 100,000 in Balance sheet activity

Cost of bond $ 95788 Debit to the investments

account $ 95,788

Annual interest on Credit to the income account

Bond of $ 5000 - interest income

No impact of fair market value

in financial statement

2 Purchase of 6000 Debit $ 255,000 to the Investing activity

shares of Dalton ltd investment account

Receipt of dividend Credit $ 12,000 to the

dividend income account

3 Acquisition of 30% Debit $ 21,500,000 to the Investing activity

ASP's outstanding stock investment account

Receipt of dividend Credit $ 1,000,000 to the

dividend income account

Answer from: Quest

answer; ///the correct answer is (ftc) federal trade commission;

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The advantage of administering personality tests on employees is that it will allow the employer to know the mindset and personality of the employee. this will allow the employer to at least have an idea as to how the employee works and how his attitude in the workplace. the disadvantage is that it may make the employee a little anxious as to whether he would meet the personality requirements of the employer and whether he would be able to retain the job or not.

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Kelvie Inc. is a manufacturing company and held the following investments during 2012. Show how each...