On July 1, 2014, as a Long-Term Investment in Available-For-Sale

question 58

Multiple Choice

On July 1, 2014, as a long-term investment in available-for-sale securities, Wildlife Supply Company purchased 6,000 of the 18,000 outstanding shares of the nonvoting preferred stock of Nature Company for $30 per share. The records of Nature Company reflect the following: $\begin{array}{lr}2014 \text { net income } & \$ 60,000 \\\text { Dividends declared and paid during December, } 2014 & \$ 6,500 \\\text { December } 31,2014 \text { market price per share } & \$ 27\end{array}$ The amount reported on the balance sheet by Wildlife Company for its investment at December 31, 2014 would be which of the following?

• A) $179,800.
• B) $162,000.
• C)$182,000.
• D)$197,800.

Appreciate the utility of financial analysis tools in making comparative evaluations across companies or time periods.

Understand the concept of solvency and profitability in businesses.

Ability to analyze financial statements to assess a company’s financial health.

Know how to calculate key financial ratios and understand their implications.

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Definitions:

Sigmund Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Looking-glass Self

A concept in sociology that suggests individuals form their sense of self based on how they believe others perceive them, as proposed by Charles Horton Cooley.

Charles Cooley

He is renowned for his contribution to the concept of the primary group, such as families and close-knit groups, which play an essential role in shaping individuals' social nature and ideals.

Sense of Self

The collection of thoughts and feelings an individual has about their own identity, including self-awareness and self-image.