The Following Selected Information Is Available from the Financial Statements

question 68

Essay

The following selected information is available from the financial statements of a large global company:

Required:
Use the financial information above to answer the following questions:
1.Based on the information given above,what journal entries did this company make to record its share of the net income of its equity-basis companies and the receipt of dividends from these companies?
2.What was the dollar amount of the company's interest in equity-based companies that were sold during 2014?
3.Estimate the average percent ownership of the company in its equity-basis companies based on the company's share of the net incomes of these equity-based companies for the years 2013 and 2014.
4.From your results in question 3 above,is the direction of change in ownership consistent with the increasing or decreasing investment in equity-based companies?

---

Definitions:

Marketing Effort

The combined activities and strategies used by a company to market its products or services and achieve its marketing objectives.

SWOT Analysis

A strategic planning tool that evaluates the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

Luxury Motors

High-end automotive brands or vehicles that offer premium features, design, and performance, targeting a demographic that seeks exclusivity and prestige.

Upscale Auto Dealership

A dealership that specializes in selling luxury or high-end vehicles, often offering premium services and amenities to attract affluent customers.