Answer:
Journal Entry
01 July Debit Investment $240 million Credit Bank $200 million Credit Discount on investment $40 million
31 Dec Debit Bank $7,2 Million Debit Discount on Bond $0.8 million Credit Interest Income $8 million
Debit Fair Value loss on investment $30 million Credit Investment $30 million
Explanation:
Interest is received semiannually
6%/2 = 3%
interest = $240 million * 3% =7,200,000
8%/2 = 4%
Interest market $200 million * 4% =8,000,000
Fair value loss = 240 million - 210 million
= 30 million loss because cost is greater than fair value
Answer:
Return on Investment is 12%.
Explanation:
Net income = Dividend = $0.60
Current Value = $33
Original Value = #30
Formula for Return on Investment:
Return on Investment = (Net Income + (Current Value - Original Value)) / Original Value x 100
ROI = (($0.60 + ( $33 - $30 ) ) / $30 ) x 100
ROI = (($0.60 + $3 ) / $30 ) x 100
ROI = ( $3.60 / $30 ) x 100
ROI = 0.12 x 100
ROI = 12%
So Return on Investment is 12% for the given investment.
The right answer for the question that is being asked and shown above is that: "TRUE." <span>The value of a cash budget is that it helps you predict and supply your future cash needs. This statement is true as far as the value of a cash is concerned.</span>
Traditionally, small businesses tended to be concentrated in the retail or retailing industry.
The retail industry involves a business that sells good or services to a consumer. The sell these items based on the demand of the good or service. Even today, the retail industry is growing fast and still one of the main focuses of small businesses.
Answer:
C. ≈2,413 gallons
Explanation:
For computing the average inventory, first we have to determine the economic order quantity which is shown below:
=
= 
= 4,827.1079 gallons
The carrying cost is
= Price of fuel × holding cost per unit
= $3.09 × 30%
= $0.927
Now the average inventory of fuel is
= Economic order quantity ÷ 2
= 4,827.1079 gallons ÷ 2
= 2,413 gallons
