The lower the market price,

On the last day of October, Wicker Company borrows $120,000 on a bank note due in 90 days (3 months) at %11 percent. Interest is

rodikova [14]

Answer:

interest expense 3,000 debit

interest payable 3000 credit

Explanation:

We will recognize the accrued interest for the period Nov 1st to Dec 31th

principal x rate x time

120,000 x 11%/12 x 3 months = 3,000

We divide the rate by 12 as there is express as annual rate and we need to match with time, which is months.

The entry will recognize interest expense for 3,000

and interest payable for 3,000

3 0

3 years ago

Statement of cash flows

likoan [24]

Answer:

a.

Palmetto Statement of Cashflows

For the Year Ended December 31, 2013

Cashflow from Operating Activities

Net Cashflow from Operaing Activities $15,600

Cashflow from Investing Activities

Net Cashflow from Investing Activities ($23,000)

Cashflow from Financing Activities

Net Cashflow from Financing Activities ($4,500)

Net Increase (Decrease) ($11,900)

Add: Beginning of Period Cash balance $32,000

Ending Cash Balance $20,100

b. Operating Cash flow relates to the normal business operations of the business. A Net Cash Inflow from this therefore means that the business made a profit from its normal operations of selling fast food during 2013.

c. Investing Activities relate to transaction involving Fixed Assets as well as the stocks and bonds of other companies. The Net Cash flow was probably caused by Palmetto buying more Fixed Assets than they disposed of in the year 2013.

d. Financing activities relate to how the business is financed in terms of Equity and debt. The payments of Dividends therefore fall under here as they relate to Equity. A net cash outflow here therefore probably means that Palmetto paid out dividends to shareholders. They might have also repaid some loans but judging by how small the outflow is, the loans were either small or it was only dividends that were paid out.

4 0

3 years ago

Bob has a $50,000 stock portfolio with a beta of 1.2, an expected return of 10.8%, and a standard deviation of 25%. Becky also h

4vir4ik [10]

Answer:

Combined Beta = 1

Combined return = 10%

Explanation:

given data

stock portfolio = $50,000

beta = 1.2

expected return = 10.8%

beta = 0.8

expected return = 9.2%

standard deviation = 25%

to find out

combination

solution

we get here first Combined Beta that is express as

Combined Beta = 1.2 × 50% + 0.8 × 50%

Combined Beta = 1

and

Combined return will be here

Combined return = 10.8 × 50% + 9.2 × 50%

Combined return = 10%

5 0

3 years ago

. Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontroll

GalinKa [24]

Answer:

B. Controllable costs

Explanation:

There are some costs that are expended by a company during the cost of carrying out their business operations. These costs such as labor costs and marketing budgets are incurred because the company has full authority over them. They are costs that can be altered in short term based on a business decision.

In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.

5 0

3 years ago

In a pure market economy, the "What to produce?" question is ultimately answered by:

Genrish500 [490]

In a pure market economy, the "What to produce?" question is ultimately answered by : consumer sovereignty.

Explanation:

Market autonomy is a two-way economic concept. Market autonomy in production applies to what finished products should be produced from these materials to the control power of the customers over those with scarce resources.

For example, the highest levels of consumer autonomy occur of consumers on the free market. The customer can buy any product in any quantity he wants. But the state or central government decides what to manufacture in a command economy.

8 0

3 years ago