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Photo Finish Corporation Bought a 40% Interest in Click-It Corporation's

question 7

Multiple Choice

Photo Finish Corporation bought a 40% interest in Click-It Corporation's $1 par value voting common stock on March 31, 2017. On that date, Click-It paid $20 million for 2 million shares at a $10 market price per share. On December 31, 2017, Click-It paid a $1 million cash dividend declared earlier in 2017, and reported net income for the year ended 2017 of $10 million. On December 31, 2017, Click-It's stock was trading at $11.50 per share. At what amount will the Click-It investment be reported on Photo Finish's December 31, 2017 balance sheet?

Grasp the importance of aligning logistics and supply chain metrics with corporate strategy for achieving service quality, efficiency, or low-cost objectives.

Understand financial metrics and calculations relevant to supply chain and logistics, such as Gross Margin, Strategic Profit Model (SPM), and Earnings Before Interest and Taxes (EBIT).

Distinguish between metric, measure, and index, and understand the concept of order cycle time (OCT) and its implications.

Appreciate the importance of involving customers and suppliers in the development of metrics.

Definitions:

Entire System

A holistic view that considers all the components and interactions within a system, rather than focusing on individual parts alone.

Resistance To Change

The opposition or pushback by individuals or groups within an organization when faced with new policies, practices, or environments.

Incongruent Organizational Systems

Systems within an organization that are misaligned or do not work well together, potentially leading to inefficiencies or conflicts.

Breaking Routines

The process of changing or abandoning established habits or procedures to improve efficiency or adapt to new situations.