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soldi70 [24.7K]
3 years ago
8

2. The Jasmine Tea Company purchased merchandise from a supplier for $43,338. Payment was a noninterest-bearing note requiring J

asmine to make six annual payments of $8,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement
Business
1 answer:
cestrela7 [59]3 years ago
4 0

Answer:

3%

Explanation:

Given the following :

Purchased merchandise = $43,338

Number of payments required = 6

Payment per period = $8,000

PV factor (PVIFA) = (purchased merchandise / payment per period)

PVIFA = (43,338 / 8000) = 5.41725

Using the PVIFA table, we locate the interest rate on PVIFA factor of 5.41725 for a period of 6 years.

For PVIFA of 5.4172, the interest rate is 3%

Hence the implicit Interest t rate = 3%

PVIFA = [1 - (1+r)^-n] ÷ r

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Calculating the price elasticity of supply.
alekssr [168]

Answer:

Explanation:

W1= 30             W2 =50

Q1 = 6              Q2 = 16

Elasticity of supply = (16-6) / (50-30) * (50+30) / (6+16)

 = (10/20) * (80/22) =80/44= 1.82

5 0
3 years ago
The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of m
fomenos

Answer:

Results are below.

Explanation:

Giving the following information:

January $2,700 300

February $3,000 350

March $3,600 500

April $4,500 690

May $3,200 500

June $5,500 700

<u>To calculate the variable and fixed costs, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (5,500 - 2,700) / (700 - 300)

Variable cost per unit= $7

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 5,500 - (7*700)

Fixed costs= $600

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,700 - (7*300)

Fixed costs= $600

4 0
3 years ago
Consider the following partially completed income statements for merchandising companies and compute the missing​ amounts under
Helen [10]

Answer:

e. Purchases & freight= 60,000

f. Cost of goods sold= 88,800

d. Sales= 202,800

g.Operating income= 28,000

Explanation:

Calculation for the missing amounts for Flynt Corp.

e. Computaion for Purchases & freight-in

Using this formula

Purchases & freight-in= Cost of Goods Available for Sale - Beginning Merchandise Inventory

Let plug in the formula

Purchases & freight= 91,000 - 31,000

Purchases & freight= $ 60,000

f. Computation for Cost of goods sold

Using this formula

Cost of goods sold = Cost of Goods Available for Sale - Ending Merchandise Inventory

Let plug in the formula

Cost of goods sold= 91,000 - 2,200

Cost of goods sold= 88,800

d. Computation for Sales

Using this formula

Sales = Gross profit + Cost of goods sold

Let plug in the formula

Sales= 114 000 + 88,800

Sales= 202,800

g. Computation for Operating income

Using this formula

Operating income = Gross profit - Selling and Administrative Expenses

Let plug in the formula

Operating income= 114,000 - 86,000

Operating income= 28,000

Preparation for the Income statement for Flynt Corp.

Flynt INCOME STATEMENT

Sales 202,800 (i)

Cost of good sold :

Beginning Merchandise Inventory 31,000

Purchases and Freight In 60,000

Total Cost of goods available for sale 91,000

(60,000+31,000)

Less Ending Merchandise Inventory 2,200

Cost of goods sold 88,800 (ii)

(91,000-2,200)

Gross profit 114,000

(202,800 - 88,800)

Less Selling & Administrative expenses 86,000

Operating income 28,000

3 0
3 years ago
Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. T
yuradex [85]

Answer:

The spending variance for plane operating costs is closest to $282,394

Explanation:

The spending variance is the difference between the budgeted amount for an expense to be made and the actual amount that was spent on the expense. It is said to be favorable when the budgeted amount is less that the amount finally spent, and unfavorable when the budgeted amount is less than  the actual amount. To solve this, we will categorize the entries into budgeted amount and actual amount, find their respective sums, and find the difference between them, this will form the spending variance. It is shown below:

cost per flight = $3,072

cost per passenger = $14

Budgeted amount

Plane operating cost                        = $   58,190

cost of 88 flights = 88 × 3072         = $ 270,336

cost of 262 passengers = 262 × 14 = $      3,668

Total budgeted cost =                         $ 332,194

Actual Amount

Plane operating cost                         = $ 331,340

cost of 91 planes = 91 × 3072            = $ 279,552

cost of 264 passengers = 264 × 14   = $     3,696

Total Actual Cost                                = $ 614,588

Cost Variance = Total actual cost - Total budgeted cost

= 614,588 - 332,194 =$282,394. The cost variance is unfavorable because the actual cost was more than the budgeted cost

5 0
2 years ago
The fossil specimen known as "lucy" select one:
stepan [7]
B.) saw it @ chgo.science n tech. in the year 2000
3 0
3 years ago
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