Answer: A. incorrect because part of each payment is to principal and to interest. Therefore, only a portion of the payment goes to interest, so the full amount should not be included when computing the rate of interest paid.
Explanation:
When paying back a loan, there are two components to the periodic interest payment. The first component is the interest payment. This is the payment to compensate the borrower for loaning out the money and is based on the interest rate and the principal left to be repaid.
The second component goes towards repaying the principal of the loan which in this case is $10,000. When computing the periodic interest rate therefore, the entire amount paid per period should not be used as it would inflate the interest rate.
Answer:
Stuart Manufacturing Company
Assets = $107,200
Explanation:
a) Data and Calculations:
Cash Account
Common stock $89,000
Furniture (32,000)
Equipment (40,000)
Salaries (12,000)
Wages (21,000)
Raw materials (26,000)
Sales 72,000
Cash balance $30,000
Inventory:
Cost = $26,000
Units produced = 10,000 units
Cost per unit = $2.60 ($26,000/10,000)
Cost of goods sold = 8,000 * $2.60 = $20,800
Ending inventory = 2,000 * $2.60 = $5,200
Sales Revenue = 8,000 * $9 = $72,000
Assets:
Cash $30,000
Ending inventory 5,200
Furniture 32,000
Equipment 40,000
Total $107,200
b) An asset is something that brings in future cash flows to the business entity. It is made up of Cash and Cash Equivalents, Inventories, Property, Plant, Equipment, and other business investments. Assets are funded from finance provided by creditors and the equity owners, and they generate economic values.
Answer:
Using LIFO:
TOTAL Sales : $19,875,500
COGS = $11,021,250
GROSS PROFIT = $8,853,750
Explanation:
KINDLY CHECK ATTACHED PICTURE
Answer:
The cash flow mark to market proceeds = $754.45
Explanation:
The current index value after 12 months = current stock index * (1 + risk free - dividend yield)^12
= 1800 * (1 + 0.50% - 0.20%)^12
The current index value after 12 months = 1865.88
The future index value after 12 months = future stock index * (1 + risk free - dividend yield)^12
= 1820 * (1 + 0.50% - 0.20%)^11
The future index value after 12 months= 1880.97
The cash flow mark to market proceeds = (future index future value - current index future value) * multiplier
= (1880.97 - 1865.88) * 50
The cash flow mark to market proceeds = $754.45
The answer is Corporation. Corporations is a legal entity of a group of investors/shareholders as governed by the Securities and Exchange Commission. In the event of shortage of capital, the shareholders votes and agrees to sell some stocks in order to gain more capital.
