Question

I don't get the three question!!!

6. Would the sale of the building be an operating, financing or investing type transaction for the Hudson's Bay company?

9.. Briefly describe how the statement of financial position (Balance sheet) would change after the sale. Dollar amounts are not required, just describe the accounts impacted and the direction of the change.

12. What was the impact of the announcement of the planned sale on the company's share price? why do you think this happened?

http://www.theprovince.com/business/commercial-real-estate/hudson+reportedly+sells+flagship/17388228/story.html

Answer 1

Answer -

6. The sale of the building be an operating transaction for the Hudson's Bay company because Hudson Bay is a real estate investment trust fund. Hence, buying and selling of real estate is part of their regular business activity.

9. Retained earning would increase in the balance sheet as the profit from the sale is a regular profit of the company.

12. The share would increase because of the planned sale as the stock holders would feel more and more profits in future.