Long-term assets 1 425 000
275 000
Total assets
$ 2 000 000
$750 000
Current liabilities
350 000
212 500
950 000
300 000
Long term liability
Shareholders' equity
Total liabilities and equity
700 000
237 500
$ 2 000 000
$750 000
Assume imputed interest charge of 12%.
Required:
a) Explain why Mr. Viliame may be reluctant to acquire B Co.. Show calculations to support your
explanation.
(7 marks)
b) What would you recommend
the CEO of ABC Group in terms of measuring and evaluating

Who is not spending wisely? erika goes shopping and saves her receipts. she totals how much she spent and writes it down. mia needs to buy a new pair of shoes because she joined the soccer team. she looks at newspaper ads to find the best price. lauren has been thinking about getting a puppy for a long time. she walks by the pet store at the mall and decides to get a puppy. erin makes a purchase online using a credit card. she knows that she can pay the entire bill when it arrives.

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period

Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will add to the overall costs if they pursue their own self-interests. what does this best illustrate? a. diseconomies of scale b. principal-agent problem c. experience-curveeffects d. information asymmetries