Sports International purchased 1,600 shares of stock in The Gaming Warehouse for $20 per share. The investment is properly recorded using the equity method. By the end of the year, the stock price has increased to $22 per share. How would the change in stock price affect Sports International's net ncome under the equity method? Multiple Choice Increase net income by $35,200 Increase net income by $32,000 Increase net income by $3,200 No effect

Sports International purchased 1,600 shares of stock in The Gaming Warehouse for $20 per share. The investment is properly recorded using the equity method. By the end of the year, the stock price has increased to $22 per share. How would the change in stock price affect Sports International's net ncome under the equity method? Multiple Choice Increase net income by $35,200 Increase net income by $32,000 Increase net income by $3,200 No effect

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC purchases 118 shares of XYZ company at $38 per share in its margin account. ABC finances part of the purchase by borrowing $1967 at a rate of 9% per year. One year later the price of XYZ shares has changed by 22%. Therefore the return earned by ABC in its marging account is % (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places, e.g. 110.10)
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During the current year, Zenith Corp. generated $250,000 of net income from $4,000,000 of revenue. Zenith's stock price is $80 per share, with 20,000 shares of stock outstanding, and a book value of equity equal to $1,500,000. Compute Zenith's Price/Earnings ratio. Question 50 options: 16.0 6.4 31.3 2.5
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1.5000 shares of stock were purchased at $25 per share with a 5% broker commission. The following year they were sold for $28 per share with a 3% broker commission. What was the profit on this investment? You pay the commission both when buying and selling. Commission is added to the buying cost and subtracted from the selling amount. Total Cost of Investment $ Total Amount Received upon Sale $ Actual Profit on the Investment $
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