Exercise 1 (LO 1) Investment recording methods. Santos Corporation is considering investing in Fenco Corporation, but is unsure about what level of ownership should be underta- ken. Santos and Fenco have the following reported incomes: Sales Costofgoodssold Grossprofit Selling and administrative expenses . . . Netincome Santos $700,000 300,000 $400,000 120,000 $280,000 Fenco $450,000 300,000 $150,000 80,000 $ 70,000

What is the most important type of decision that the financial manager makes?

What are six resources for you decide which type of business to start and how to start it?

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?