1

LA Laboratories has a defined benefit retirement plan. The companys annual financial statements include the following excerpt about these plans (in millions).

Plans' assets at fair value, January 1	$10,158
Actual return on plan assets	947
Company contributions	873
Benefits paid	(363)
Other, including foreign currency translation	(302)
Plan assets at fair value, December 31	$11,313

What was the pension-related cash flow for the company during the year?

Select one:

a. $947 million cash inflow

b. $873 million cash outflow

c. $873 million cash outflow

d. $363 million cash outflow

e. $947 million cash inflow

2)

Significant influence is often presumed when the investor owns:

Select one:

A. Greater than 20% of the voting stock of the investee

B. Greater than 50% of the voting stock of the investee

C. Between 20% and 50% of the voting stock of the investee

D. Greater than 20% of the voting stock or of the fair value of the investee

E. None of the above

3)

EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all scooters. During the year, the company recorded net sales of $1,900 million. Historically, about 4% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 30% of retail value. Assume that at the start of the year EZ Wheels balance sheet included an accrued warranty liability of $16.3 million and at the end of the year, the accrued warranty liability balance was $12.4 million. What was EZ Wheels Corporations warranty expense for the year?

Select one:

a. $26.7 million

b. $22.8 million

c. $76.0 million

d. $12.4 million

e. None of these are correct.

4)

The equity carve-out in which the parent company distributes the subsidiarys shares as a dividend to shareholders is called which of the following?

Select one:

A. Sell-Off

B. Spin-Off

C. Split-Off

D. Stock Split

E. None of the above