Answer: B. The cash flow at year 3 is a negative $500.
Explanation:
When money is invested into a venture, it is denoted with a negative sign (-) to indicate that this is money leaving the investor as opposed to a positive sign (+) to show when money is coming back to the investor.
In year 3, the investor invested $500 so in year 3 the Cashflow was -$500.
Answer:
Price paid to the bondholder $1045
Explanation:
given data:
Par value = $1000
percentage of corporate coupon = 4.5%
call premium is for one year coupon payments
call premium = 1 year coupon
call premium = 1000 x 4.5% = 45
Price paid to the bondholder = Par value + call premium
putting all value to get the total price to be paid to bondholder
Price paid to the bondholder = 1000 + 45 = $1045
Answer:
A. increase
Explanation:
Liam has not been clearing his credit card as per the monthly statement. It means that every month, he carries a balance to the next month.
Credit cards charge an interest rate known as the Annual Percentage Rate APR. Credit cards APR is among the highest interest rate in the market today. On average, the APR rate is about 21 percent.
When Liam does not clear his balance for the month, it means the amount carried forward will be subject to the APR. His debts will include the interest and regular expenses. The interest on a credit card is calculated and applied every month. Carrying forward balances then means this month's balance plus interest becomes a new balance for the next month. Interest charged in the previous month will subject to attract interest in the coming month.
Answer:
(b) all are included in employer taxes
Explanation:
The following employer payroll taxes are involved
1. Social security tax with a maximum contribution of 6.2%
2. Medicare taxes with a maximum wages contribution of 1.45%
3. Federal unemployment taxes (FUTA)
4. State unemployment taxes (SUTA)
These four taxes are contributed by the employer for payroll taxes
Hence, the correct option is b.
Answer:
b) Debit Sales Returns and Allowances $2,300 and credit Accounts Receivable $2,300 in the general journal.
Explanation:
When goods were sold on account, Accounts receivables is debited, and Sales is credited. When goods are returned, Sales Return & Allowances is debited, and Accounts receivables is credited.
Thus, the entry will include Debit in Sales Returns and Allowances $2,300 and Credit in Accounts Receivable $2,300