Answer: B) A loss of $200,000 on its income statement in the year the bonds are called.
Explanation:
The bonds were issued at Par. This means they were issued at 100 of par.
The bonds are now trading at 104 of par.
If Sand Inc calls the bonds then they will make a profit (loss) of,
= 5,000,000 * 104/100
= $5,200,000
Therefore their Profit (loss) will be the bond at par minus the Calling price
= 5,000,000 - 5,200,000
= -$200,000
That means they make a loss of $200,000 in the year the bonds are called.
If you need any clarification do react or comment.
Answer:
$ 2 per unit on average
Explanation:
Calculation for what the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
First step is to calculate the Relevant cost of making
Relevant cost of making = 9 + 7 + 1 + ( 5 * 80 % ) Relevant cost of making= $ 21
Now let calculate the Financial advantage of buying
Financial advantage of buying = ( 21 - 19 )
Financial advantage of buying= $ 2 per unit on average
Therefore the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:$ 2 per unit on average
<u>Answer:
</u>
Violations of security policies are considered to be a law enforcement issue upon which proper disciplinary actions must be taken.
<u>Explanation:
</u>
- The security policies put into place by the organization actually serve as the first wall of protection for the organization.
- The organization makes it clear through its security policies what actions would be deemed as an attempt to breach the security and what actions are prohibited within and outside the premises of the organization as an employee of the organization:
Answer:
12 weeks
Explanation:
The computation of the needs period is shown below":
= Number of weeks inventory counts once + number of order cycles takes + number of the week taken for arrive
= 4 weeks + 2 weeks + 6 weeks
= 12 weeks
We simply added the total number of weeks that is mentioned in the question so that the needs period could be computed
Answer:
a) 17.5%
Explanation:
The computation of the simple rate of return on the investment is shown below:
Simple rate of return = Annual net income ÷ Initial investment
where,
Annual net income is
= Sales revenue - cash operating expenses - depreciation expenses
= $250,000 - $100,000 - ($400,000 ÷ 5)
= $70,000
And, the initial investment is $400,000
So, the simple rate of return is
= $70,000 ÷ $400,000
= 17.5%
Dividing the annual net income by the initial investment we can get the simple rate of return
