9. A producer's profits are maximized when marginal costs are

X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $31,

Lady_Fox [76]

Answer:

C: 4

Explanation:

The computation of the payback period is shown below:

Incremental investment in truck 2 is

= $44,000 - $31,000

= $13,000

Now

Year Cash saving in cost Cumulative

1 -$1,000 -$1,000

2 $4,000 $3,000

3 $5,000 $8,000

4 $5,000 $13,000

5 $3,000 $16,000

6 $3,000 $19,000

7 $2,000 $21,000

7 0

3 years ago

Suppose warren buffet withdraws $1 million from his checking account at chase manhattan bank. if the required reserve ratio is 2

AnnZ [28]

Answer:

-$5 million

Explanation:

In this question, we are asked to calculate the maximum change in banking system deposits as a result of a withdrawal.

mathematically;

change in checking deposits = Change in Reserves * 1/Reserve Requirement

From the question, the reserve requirement is 20% = 20/100 = 0.2

The change is thus -1 million * 1/0.2

-1 million * 5 = -$5 million

4 0

3 years ago

Which of the following occupations is the most likely to require working weekends and night shifts?

Zanzabum

C-computer support specialist

8 0

3 years ago

Read 2 more answers

John Den Bear Company had a $450,000 beginning balance in Accounts Receivable and a $18,000 credit balance in the Allowance for

vlada-n [284]

Answer:

The net amount of receivables included in the current assets at the end of the year is $462,000

Explanation:

Beginning Balance of Accounts Receivable = $450,000

Add: Credit sales for the period = $1,800,000

Less: Cash collected = $1,770,000

Less: Amounts Written Off = $12,000

Ending Balance of Accounts Receivable = $468,000

Beginning Balance of Allowance Account = $18,000

Less: Amounts Written off = $12,000

Ending Balance = $6,000

Net amount receivable included in current assets

Accounts receivable = $468,000

Less: Allowance account = $6,000

Net Receivables = $462,000

8 0

4 years ago

On January 1, Sharp Company purchased $50,000 of Sox Company 6% bonds, at a time when the market rate was 5%. The bonds mature o

lana [24]

The journal entries to record the transactions for Sharp Company are as follows:

a) January 1, 2020:

Debit Bonds Receivable $50,000

Debit Bonds Premium $2,165

Credit Cash $52,165

To record the purchase of the debt investment.

b) December 31, 2020:

Debit Cash $3,000

Credit Interest Revenue $2,608

Credit Bonds Premium Amortization $392

To record the receipt of interest.

c) December 31, 2020:

Debit Fair Value Loss $1,000

Credit Bonds Receivable $1,000

To adjust the investment to fair value.

<h3>What is a bond's premium?</h3>

The bonds premium, in this case, refers to the excess cash that Sharp Company paid for the purchase of the bonds when the effective market rate is 5% with a coupon rate of 6%.

The implication is that Sharp Company paid more for the bonds than the market value.

<h3>Data and Calculations:</h3>

Purchase of Sox Bonds = $50,000

PV = $52,165

Premium on bonds = $2,165

Interest rate = 6%

Market rate = 5%

Maturity period = 5 years

Interest payment = annually on December 31

<h3>Transaction Analysis:</h3>

a) January 1, 2020: Bonds Receivable $50,000 Bonds Premium $2,165 Cash $52,165

b) December 31, 2020: Cash $3,000 Interest Revenue $2,608 Bonds Premium Amortization $392

c) December 31, 2020: Fair Value Adjustment $1,000 Bonds Receivable $1,000

Learn more about the amortization of bonds premium at brainly.com/question/25652725

4 0

2 years ago