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2 years ago

6

8. Allen took out a three-year, 8%, $100,000 loan on March 31, 2021. Interest is due upon maturity of the loan. How much interes

t will Allen pay in 2021.

1 answer:

Oksi-84 [34.3K]2 years ago

3 0

Answer:

Debit Interest Expense and credit Interest Payable for $6,000.

Explanation:

$100,000 × 8% × 9/12 = $6,000.

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A purely domestic firm that sources and sells only domestically, Multiple Choice should never hedge since this could actually in

Oksana_A [137]

Answer:

faces exchange rate risk to the extent that it has international competitors in the domestic market.

Explanation:

Exchange rate risk is defined as the risk that exists when a company engaged in transactions that are denominated in a foreign currency rather than the domestic currency.

So if a purely domestic firm that sources and sells only domestically has international competitors in its local market, and the exchange rate is favouring the competitors there will be a risk for them.

For example if international competitors can source raw materials cheaper because of the exchange rate of a foreign country, it will be a disadvantage to local firms that cannot reduce their prices.

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3 years ago

Joe wants to be able to purchase a dream car on January 1,2004, just after he graduates from college. Joe has had a part time jo

Bad White [126]

Answer:

FV= $46,031.45

Explanation:

Giving the following information:

Monthly deposit= $450

Number of months= 59

Interest rate= 0.21/12= 0.0175

To calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {450*[(1.0175^59) - 1]} / 0.0175 + 450

FV= $46,031.45

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3 years ago

Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hou

Masteriza [31]

Answer:

The incremental cost is ($10,360)

Explanation:

<u>Analysis of total cost over the 5 year period</u>

Retain Old Machine Buy New Machine

<em>Variable / Incremental Operating</em>

<em>Costs</em>

Old Machine 124,750

New Machine 97,800

<em>Old Machine Book Value</em>

Retain: Annual depreciation 8,430

Buy : Lump sum written off 8,430

Old Machine Disposal (8,490)

Purchase Cost of New Machine 25,080

Total Cost 133,180 122,820

The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)

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3 years ago

Catherine, a senior project manager, has advance knowledge of the projects that her team will be handling in the next six months

labwork [276]

Answer:

The correct answer is letter "C": one of the satisfactions of being a leader.

Explanation:

The satisfaction of being a leader implies all those benefits employees with high rank and influence in the companies have. Those satisfactions are not merely monetary but also include having a wider knowledge of what the purposes of the firm are in the short and long term.

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3 years ago

Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $1,350 per

Sergio039 [100]

Answer:

(a) $33750000 (b) $11250000 (c) $22500000

Explanation:

Solution

(a) How much would Ziegler Inc. total income of operating increase.

Now,

Units * (Cost of purchased from outside supplier - Variable cost)

Thus,

75000 * ($1350 - $900) = $33750000

(b) How much would the Instrument Division's operating income increase

Now,

The Units * (Cost of purchased from outside supplier - Transfer Price)

So,

75000 units * ($1350 - $1200) = $11250000

(C) How much would the Components Division's operating income increase?

Now,

Units * (Transfer Price - Variable cost)

75000 units * ($1200 - $900) = $22500000

3 0

3 years ago