Livingston Co

question 32

Multiple Choice

Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston's expected cash flows from domestic business are $100,000 and the Korean subsidiary is expected to generate 100 million Korean won at the end of the year. The expected value of won is $.0012. What are the expected dollar cash flows of Livingston Co.?

• A) $100,000
• B) $200,000
• C) $160,000
• D) $60,000

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Definitions:

Deposition

the geological process by which sediments, soil, and rocks are added to a landform or land mass.

Unconformity

A joining line between two mismatched rock layers, representative of an era where there was either erosion or a halt in deposition.

Sandstone

A sedimentary rock formed by the compaction and cementation of sand-sized mineral particles or rock fragments.

Conglomerate

A coarse-grained sedimentary rock composed of rounded clasts (rock fragments) cemented by finer-grained materials.