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Dima020 [189]
3 years ago
8

On February 1, Light Co. received a $20,000, 120 day, 9% note from Dark Co.

Business
1 answer:
kotykmax [81]3 years ago
7 0

Answer:

The answer is C.

Explanation:

The year is 360 days.

Annual rate is 9%

Therefore, interest rare for the 120-day is 3%[(120/360) x 9%]

So, the interest on the rate is:

3% x $20,000

$600.

The total amount collected from Dark Co. will be principal + interest

$20,000 + $600 = $20,600

According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.

So we have:

Dr Cash $20,600

Cr: Receivable $20,000

Cr: Interest Revenue $600.

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Classified ads are printed only in newspapers. True False
katovenus [111]
The answer is false i hope this helps :3
4 0
3 years ago
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Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net ne
VladimirAG [237]

Answer:

$1,269.46

Explanation:

Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.

To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)

Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)

= $75 + $418 = $493 - This represents a partial net income

The next step is to calculate the taxable income as follows:

The net income is $493, and the Tax rate is 35%

Taxable Income = $493/ (1-0.35) = $758.46

Earnings before interest and tax therefore =

Interest paid + Taxable Income

= $511 + $758.46 = $1,269.46

7 0
3 years ago
Madelyn’s parents paid for her first two years of college, but her dad lost his job, and now they can’t pay for her final year.
valentinak56 [21]

Answer:

Student loan.

Explanation:

Student loans are given to assist students pay for university education. Loans can cover turion, living expenses, and books.

Interest rate charged is very low and repayment can be deferred till after the student graduates.

The most common type of student loan are federal loans(offered by the federal government). They have a lower interest rate than student loans offered by private institutions like banks, schools and credit unions.

8 0
2 years ago
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"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o
JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

Download docx
7 0
3 years ago
What is sub-optimization and what organizational characteristics tend to lead to larger sub-optimization problems?
solong [7]

An organizational characteristics that tend to lead to larger sub-optimization problems is continuous focus on optimizing a unit of a business rather than the results of the entire business

<h3>What is Sub-optimization?</h3>

In a firm. the term "Sub-optimization" occurs when there is reduced level of output as a result of an an inefficient or ineffective process or system.

The problem associated with Sub-optimization is that when there is an optimization of outcome for a subsystem, it may not generally optimize the outcome for the system as a whole.

In conclusion, the organizational characteristics that tend to lead to larger sub-optimization problems is continuous focus on optimizing a unit of a business rather than the results of the entire business

Read more about Sub-optimization

<em>brainly.com/question/17083176</em>

7 0
2 years ago
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