Answer:
The discount will not affect the net income as no gain is recognize nor expense.
the cash flow statemetn will decrease by 3,960 which is the cash used.
the balance sheet after the series of trasnactions, will show inventory for 3,960
Cash would have decrease by 3,960
No change on equity.
Explanation:
inventory 5,000 debit
accounts payable 5,000 credit
account payable 1,000 debit
inventory 1,000 credit
Account payable 4,000 debit
Inventory 40 credit
Cash 3,960 credit
Answer:
Came as a result of:an increase in the international gold supply .
Answer:
$11,230
Explanation:
The city of Springvale imposed a net income tax on all businesses
Each business will make a payment of 1% for any amount up to $100,000 and 1.5% for any amount above $100,000
The net income generated by Springvale Bar and Grill is
= $782,000- $100,000
= $682,000
Therefore, it's city income tax is calculated as follows
(1/100+100,000) + ( 1.5/100+682,000)
( 0.01+100,000) + ( 0.015+682,000)
= 1000 + 10,230
= $11,230
Hence, Springvale Bar and Grill will pay a net income tax of $11,230
Answer:
The company's earnings per share is $3.25.
Explanation:
Earnings per share (EPS) refers to a financial metric that shows an indication of the amount of money that is made a company for each share of its stock.
The earnings per share of Mayan Company can be calculated using the formula for calculating earnings per share as follows:
Earnings per share = Net income / Weighted-average common shares outstanding ..................... (1)
Where;
Net income = $32,500
Weighted-average common shares outstanding = 10,000
Substituting the values into equation (1), we have:
Earnings per share = $32,500 / 10,000
Earnings per share = $3.25
Therefore, the company's earnings per share is $3.25.
Answer:
a.
3.51%
b.
0%
Explanation:
a.
First, we need to calculate the YTM of 6 months zero-coupon bond by using the following formula
Price = Face value / ( 1 + YTM )^numbers of years
96.79 = 100 / ( 1 + YTM )^1
1 + YTM = 100 / 96.79
1 + YTM = 1.0331646
Now calculate the YTM of 1 Year zero-coupon bond
93.51 = 100 / ( 1 + YTM )^1
YTM = 1.0331646 - 1
YTM = 0.0331646
YTM = 3.31646%
YTM = 3.316%
1 + YTM = 100 / 93.51
1 + YTM = 1.06940
YTM = 1.06940 - 1
YTM = 0.06940
YTM = 6.940%
YTM = 6.94%
Hence the forward rate is calculated as follow
Forward rate = [ (1 + YTM of 1 year zero coupon bond ) / ( 1 + YTM of 6 months year zero coupon bond ) ] - 1 = ( 1 + 6.94% ) / ( 1 + 3.316% ) = [ 1.0694 / 1.03316 ] - 1 = 1.03508 - 1 = 0.03508 = 3.508% = 3.51%
b.
At the time of inception the formward rate is 0.