Answer: $80,000
Explanation:
Given that,
Annual interest rate = 6%
Lease term = Eight month
Monthly payment at the end of each month = $10,000
King cones earning reduced by $10,000 per month.
Therefore,
Lease Expense = Monthly payments × Lease term
= $10,000 × 8
= $80,000
Above is the lease expense for the eight month term, ignoring taxes.
Answer:
$101,639.34
Explanation:
Given the above information,
Product A Product B Total
Sales revenue $59,000 $51,000 $110,000
Contribution margin $47,600 $19,500 $67,100
Overall contribution margin ratio 61%
Fixed cost + Target profit [$42,000 + $20,000] $62,000
Break even dollars in sales = $62,000 / 61% = $101,639.34
Answer:
The answer is 5.96%
Explanation:
This is a semiannual paying coupon, meaning it makes payment twice a year.
N(Number of periods) = 40 years ( 20years x 2)
I/Y(Yield to maturity) = ?
PV(present value or market price) = $958.56
PMT( coupon payment) = $28 ( [5.6percent÷ 2] x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 40; PV = -958.56 ; PMT = 28; FV= $1,000; CPT I/Y
I/Y = 2.98%. Please note that this is for semiannual.
Therefore, annual YTM = 5.96%(2.98% x 2).
Answer:D - $5,000
Explanation: The company has an estimated warranty cost of 5% of sales which is $30,000. This can be recorded as a warranty payable provision in the books of the company as it gives a 3years warranty on its products. As stated in the question, out of the $30,000 warranty provision, only $5,000 was expensed in the current year leaving a bal of $25,000 for the remaining 2 years which the company has given to its customers. So only $5,000 warranty expense will be recorded in the current year.
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