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alexdok [17]
3 years ago
5

Testbank Multiple Choice Question 86 Bonita Industries is constructing a building. Construction began on January 1 and was compl

eted on December 31. Expenditures were $6300000 on March 1, $5260000 on June 1, and $8450000 on December 31. Bonita Industries borrowed $3180000 on January 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 8%, 3-year, $6410000 note payable and an 9%, 4-year, $12150000 note payable. What are the weighted-average accumulated expenditures? $8318333 $9720000 $20010000 $11560000
Business
1 answer:
eimsori [14]3 years ago
4 0

Answer:

$8,318,333

Explanation:

The computation of the weighted average accumulated expenditure is shown below:

Date Amount       Capitalization period Weighted Average Accumulated Expenditures  

Mar 1 $6,300,000 10 months                  $5,250,000  ($6,300,000 × 10 months ÷ 12 months)

Jun 1 $5,260,000 7 months                   $3,068,333.33   ($5,260,000 ×  7 months  ÷ 12 months)

Dec 31 $8,450,000 0 months                    $0

Total                                                             $8,318,333

We simply multiplied the amount with the capitalization period so that the weighted average accumulated expenditure could come

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The musical instrument store estimates costs of $18,750.00 annually to carry inventory of musical instruments and accessories. t
guapka [62]
To find the value of the inventory to the nearest cent: 
Estimated costs are: $18,750
Storage costs: 12%
Interest costs: 12%
Transportation costs: 5%
Let's add the costs up: 12% + 12% + 5% = 29%  

We are solving for the value of inventory so in this case we will make that X.
X = estimated costs/interest amounts 
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X = $64,655.17

The value of the inventory is $64,655.17

To check your work you can take $64,655.17 and multiply it by 29%
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3 years ago
Suppose that there are no storage costs for crude oil and the interest rate for borrowing or lending is 5% per annum. How could
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Answer:

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The opportunity cost is the benefit the person would have gotten if he would have invested the money elsewhere. For example, if the person has an extra $50. He can either invest it in the business or he can invest it in the bank and get the interest. The interest money that the person has to forgo is called the opportunity cost.

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2 years ago
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Earnings refer to a company's earnings in a given quarter or fiscal year. Earnings are a key figure used to select a stock's value. A company's profits are used in many standard ratios. Payments have a big influence on stock price, and as a consequence, the numbers are subject to potential manipulation.

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