The break-even point is the sales level at which a company?

Even though many bonds have deferred sinking funds, the sinking fund has the following effects on bondholders: I) provides extra

Vladimir [108]

Answer: I) provides extra protection to bondholders as both an early warning system and perhaps some collateral cash

II) ) provides an option to the firm to buy bonds at the lower of market or face value.

Explanation:

A sinking fund is typically an amount of money that is being set aside by a company in order to either pay a bind or pay off a particular debt that the company has incurred.

The effect of the sinking bond on bondholders is that it provides extra protection to bondholders as both an early warning system and perhaps some collateral cash and tabt is also provides an option to the firm to buy bonds at the lower of market or face value.

Therefore, option I and II are correct.

3 0

3 years ago

Simplex Healthcare had net income of $5,411,623 after paying taxes at 34 percent. The firm had revenues of $20,433,770.Its inter

Agata [3.3K]

Answer:

$9,032,853

Explanation:

Given:

Net income = $5,411,623

Taxes rate = 34% = 0.34

Revenues = $20,433,770

Interest expense for the year = $1,122,376

Depreciation expense = $2,079,112

Now,

Earnings before taxes (EBT) = $\frac{\textup{Net income}}{\textup{1-tax rate}}$

or

Earnings before taxes (EBT) = $\frac{\textup{5,411,623}}{\textup{1-0.34}}$

or

Earnings before taxes (EBT) = $8,199,428.78

EBIT = Earnings before taxes + Interest expenses

or

EBIT = $8,199,428.78 + $1,122,376

or

EBIT = $9,321,804.78

EBITDA = EBIT + Depreciation expense

or

EBITDA = $9,321,804.78 + $2,079,112

or

EBITDA = $11,400,916.78

Therefore,

The operating expenses = Revenue - EBITDA

or

The operating expenses = $20,433,770 - $11,400,916.78

or

The operating expenses = $9,032,853.22 ≈ $9,032,853

3 0

4 years ago

Teeny toys inc., a chain of toy stores, has decided to donate free toys to orphanages across the united states. this scenario il

8_murik_8 [283]

This scenario illustrates that the company is aiming at fulfilling its "discretionary responsibility".

Discretionary responsibilities are those that are voluntarily expected by a business association. They incorporate advertising exercises, great citizenship, and full corporate social obligation. Through advertising exercises, chiefs endeavor to improve the picture of their organizations, items, and administrations by supporting noble purposes. This type of discretionary obligation has a self-serving measurement.

5 0

3 years ago

If the amount of gasoline available for sale suddenly drops for some reason, but the amount people want to consume remains uncha

GREYUIT [131]

If supply decreases and demand remains stable, the price mechanically moves up since richer people are ready to pay more to get gasoline.
Of course companies selling gasoline want to maximize their profit so they will increase the price.
Right answer is A.

4 0

3 years ago

Read 2 more answers

Concord Company had bonds outstanding with a maturity value of $311,000. On April 30, 2017, when these bonds had an unamortized

Dmitrij [34]

Answer:

Redemption of Old Bonds

4-30-17 Bonds Payable $311000 Dr

Loss on Bond Redemption $26550 Dr

Discount on Bonds Payable $11000 Cr

Cash $326550 Cr

Issuance of New Bonds

3-30-17 Cash $314110 Dr

Premium on Bonds Payable $3110 Cr

Bonds Payable $311000 Cr

Explanation:

Redemption of Bonds Payable

The maturity value for bonds payable is equal to the face value of these bonds. This means that the face value of old bonds was $311000.

The bonds were carrying a discount. Thus, the carrying value of bonds was

Carrying value = Face value - Discount

Carrying value = 311000 - 11000 = $300000

Bonds with a carrying value of $300000 were redeemed at 105% of the face value. The cash paid for redemption is,

Cash paid = 311000 * 105% = 326550

Thus, there was a loss on redemption of = 326550 - 300000 = $26550

Issuance of Bonds Payable

The bonds were issued at 101% of the face value which means they were issued at a premium.

The amount of premium on these bonds is,

Premium = Carrying value - Face value

Premium = 311000 * 101% - 311000

Premium = $3110

3 0

4 years ago