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2 years ago

The simple rate of return focuses on accounting net operating income rather than on cash flows. Group starts

1 answer:

jeka942 years ago

3 0

Simple returns focus on accounting for net operating income, not cash flow. The simple method of revenue focuses on cash flow rather than accounting for net operating income.

A simple rate of return is calculated by subtracting the initial value of the investment from the current value and dividing it by the initial value. To output as%, multiply the result by 100.

Under the simple rate of return method, a dollar you receive 10 years later is considered to be worth the $ 1 you receive today. Therefore, the simple yield method can be misleading if the alternative cash flow patterns under consideration are different.

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<em>Your question is incomplete. please read below to find the full content.</em>

The Simple Rate Of Return Focuses On Accounting Net Operating Income Rather Than On Cash Flows.

A) TRUE

B) FALSE

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Benton Company issues $10,000,000 of 10-year, 9% bonds on April 1, 2017 at 95 plus accrued interest. The bonds are dated January

dexar [7]

Answer:

$9,725,000

Explanation:

The total cash received on the issue date is made of 95% of the bond's face value of $10,000,000 plus the three-month interest up to April 1 2017.

95% of face value=95%*$10,000,000=$9,500,000

three month interest accrued=$10,000,000*9%*3/12=$225,000

Total cash proceeds from bond issue=$9,500,000+$225,000

Total cash proceeds from bond issue=$9,725,000

8 0

3 years ago

You have been given the following information and data from the last sample taken: Lower control limit for the range chart: 0 Up

wariber [46]

Answer:

b. The sample is out of specification

Explanation:

In the given situation, the sample data contains of 13, 12, 12, and 11 and the mean of the sample is 12.

Moreover, The lower control limit is zero and the upper control limit is 10.6.

So these both values does not came from the inside of the sample data so it cant be calculated

Therefore the option b is correct

5 0

3 years ago

What is the true income tax rate on interest income if the nominal interest rate is 8 percent a year, the inflation rate is 5 p

g100num [7]

Answer:

66.67%

Explanation:

First, we need to calculate the Interest paid

Tax Paid = 25% x 8% = 2%

Tax paid is the nominal rate, now we need to calculate the real rate.

Before-tax real interest rate = Nominal Interest rate - Inflation rate

Before-tax real interest rate = 8% - 5% = 3%

True Income Tax rate = Tax paid / Before-tax real interest rate

True Income Tax rate = 2% / 3%

True Income Tax rate = 66.67%

3 0

3 years ago

What type of estimate is a cost estimation tool that involves estimating individual work items or activities and summing them to

Travka [436]

The answer is Bottom-Up estimates.

Bottom-up estimating involves the estimation of work at the lowest possible level of detail.

The estimates so calculated are then aggregated to arrive at summary totals. The probability to meet the estimated amounts improves substantially by building detailed cost and time estimates for a work package.

In other words, bottom-up estimating approximates an overall value by approximating values for smaller items and using the sum of these values as the overall value.

This cost estimation tool is often used when detailed information is available about lower-level activities. It can be especially useful when estimating projects that are similar to ones that were completed in the past.

Hence, a Bottom-Up estimate is a cost estimation tool that involves estimating individual work items or activities and summing them to get a project total.

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6 0

2 years ago

This is a classic retirement problem. A time line will help in solving it. Your friend is celebrating her 35th birthday today an

xeze [42]

Answer:

a. $21,725.65

b. $19,385

c. 27,421.32

Explanation: