1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lesya [120]
3 years ago
8

On May 1, Year 1, Benz’s Sandwich Shop loaned $18,000 to Mark Henry for one year at 9 percent interest. Required a. What is Benz

’s interest income for Year 1? b. What is Benz’s total amount of receivables at December 31, Year 1? c. How will the loan and interest be reported on Benz’s Year 1 statement of cash flows? d. What is Benz’s interest income for Year 2? e. What is the total amount of cash that Benz’s will collect in Year 2 from Mark Henry? f. How will the loan and interest be reported on Benz’s Year 2 statement of cash flows? g. What is the total amount of interest that Benz’s earned on the loan to Mark Henry?
Business
1 answer:
ehidna [41]3 years ago
7 0

Answer:

a) $1080

b)$19080

c) Loan given | -$18000

d)$540

e)$19620

f)loan | 18000

Interest received | $1620

g)  $1620

Explanation:

a) Year 1 : a) Interest income = $18000*9%*8/12 = $1080

b) The total receivable at december 31,Year = 18000+1080 = $19080

c)  Year 1  :Statement of cash flow

Loan given | -$18000

d) Interest income Year 2 = $18000*9%*4/12 = $540

e) Total cash collect in 2017 = $18000+$1080 + $540 = $19620

f) Cash flow from investing activities :

           loan | 18000

           Interest received | $1620

g)Total interest earned = 18000*9% = $1620

You might be interested in
Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting machine, but in the long ru
Ber [7]

Answer:

1- a. A stock's intrinsic value is based on true investor return.

2- a. Most investors prefer companies that can rise prices beyond reasonable levels.

b. Successful companies can avoid raising external funds in the financial markets.

Explanation:

Intrinsic value of a company's stock is the real value of stock which is based on systematic factors affecting the company. The factors affecting the intrinsic value of company are usually internal factors. The performance of company management, employee satisfaction and its operational efficiencies are the factor which drive intrinsic value of a company.

6 0
3 years ago
Country A and country B produce the same consumption goods and capital goods and currently have identical production possibiliti
yuradex [85]

it should be yes since it come out true

3 0
3 years ago
"If the option will cost the investor an additional $10,000, should the investor purchase the option? Enter your answer in thous
kykrilka [37]

Answer:

“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.

Explanation:

An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.

If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.

Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.

6 0
3 years ago
Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable wit
anygoal [31]
Ddkhkgakgatkitajaita
6 0
3 years ago
What will increase the current value of a stock?
GrogVix [38]
Increase in capital gains yield
8 0
3 years ago
Other questions:
  • Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is
    9·1 answer
  • Who is my father on a love story and the three purple hearts?
    5·2 answers
  • A rational economic decision: a) may or may not result in the largest economic payoff. b) is concerned with efficiency but not w
    8·1 answer
  • Adam smith believed the invisible hand would do what for the economy?
    8·1 answer
  • This question compares the effects of a tax cut on aggregate demand and aggregate supply. A tax cut of 150 is targeted to busine
    9·1 answer
  • Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes. What type of term life
    14·1 answer
  • An adjustable rate mortgage originator is adversely affected by _______ interest rates while the borrower is adversely affected
    9·1 answer
  • Carlos works as a tutor for an hour and as a waiter for an hour. This month, he worked a combined total of hours at his two jobs
    8·1 answer
  • Which of the following is a term for physical goods that are bought and<br> sold?
    15·1 answer
  • lisa lives next to a vacant plot that belongs to carol. carol has never visited the plot in the last 20 years during which perio
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!