Answer:
(a) 6.206%
(b) 6.54%
(c) 6.58%
Explanation:
Given that,
Commercial paper value = $3 million
Currently selling at 97.50 percent of its face value.
Days from maturity = 145
(a) Discount yield:
= 
= 
= 0.025 × 2.4827
= 0.06206 or 6.206%
(b) Bond equivalent yield:
= 
= 
= 0.026 × 2.52
= 0.0654 or 6.54%
(c) Effective annual return:
Future value = Present value × 
$100 = $97.50 × 
1.0658 = 1 + r
0.0658 or 6.58% = r
Answer:
Quota is preferred by the Chinese apparel manufacturers.
Explanation:
The reason is that the China has an competitive advantage of less costly workers and also that they are highly competitive in terms of prices. Usually the quality of American’s products are far much better in quality and technology. This means if the tariffs are imposed on Chinese products then their are huge revenue losses to Chinese apparel manufacturers. Whereas quota will enable them to sale their products to America which shows lower revenue losses.
So quota is far much better for Chinese manufacturer’s in case if America decides to use protectionist approach, I mean America decides to imposed trade barriers for Chinese companies to protect American companies.
Answer and Explanation:
As given in the question, percentage of estimated warranty expense is 4% of Lynx, 7% of Puma and 6% of Jag sales.
Therefore, estimated warranty expense for the current year for Arctica will be:
4% × 80000 = 3200
7% × 60000 = 4200
6% × 105000 = 6300
Total 13700
2. Adjusting entry:
Warranty expense Dr. 13700
To Warranty expense Liability 13700
( Being estimated liability recorded)
3. Warranty Expense Liability Dr. 700
To Inventory 700
( Being replacement cost recorded)
Your answer would be Fair Credit Billing Act
