Answer:
PV= $37,204.70
Explanation:
Giving the following information:
Interest rate= 6% compounded semiannually= 0.03
Future value= $50,000
Number of periods= 5*2= 10
To calculate the initial investment to reach the objective, we need to use the following formula:
PV= FV/(1+i)^n
PV= 50,000/(1.03^10)
PV= $37,204.70
The net income is $32,961
<u>Explanation</u>:
To calculate the net income, we will classify the transaction into income and expenses, and compute the difference between their totals;
Income;
Merchandise inventory Sept. 1 = $ 7,740
Merchandise inventory Sept. 30 = $ 11,372
Sales = $ 50,575
Total = $ 69,687
Expenses;
Purchases = $ 33,114
Selling expenses = $ 677
Administrative expense = $ 665
Rent Revenue = $ 1,118
Interest expense = $ 1,152
Total = $ 36,726
Net income = Total income - Total expenses
= 69,687 - 36,716
= $ 32,961
Answer:
c. decreases the value of its bonds
Explanation:
There is a significant decrease in the value of the bond if the firm declares bankruptcy.
School district administrators
The answer is True. Hope this helps
