Explain the reasons for companies investing in securities.

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Answer 1

Question

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

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Chapter 18 Homework i Saved 15 Exercise 18-14 (Algo) Contribution margin income statement LO C2 1 points eBook Hint Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $628,000. The sales manager predicts that next year's annual sales of the company's product will be 39,800 units at a price of $198 per unit. Variable costs are predicted to increase to $138 per unit, but fixed costs will remain at $628,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement Units $ per unit 39,800 $ 198 Ask Sales Variable costs 39,800 Print Contribution margin 39,800 Fixed costs Income References Mc Graw Hill $ 7,880,400 138 5,492,400 2,388,000 628,000 $ 1,760,000 Help Save & Exit Submit Check my work

I want to correct answer general accounting

Answer 2

Question

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

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Answer 3

Question

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

Answer 6

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

Answer 7

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Answer 8

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.