Answer:
b. $65,000
Explanation:
Particulars Amount
Revenues
Service Revenue $390,000
Less: Sales Return and allowance $10,000
Less: Sales Discount <u>$5,000 </u>
Net Sales Revenue $375,000
Less: Cost of Goods Sold <u>$200,000</u>
Gross Profit $175,000
Less: Operating Expenses <u>$110,000</u>
Operating Income <u>$65,000</u>
Thus, income from operation is $65,000
Answer:
Option A
Total interest = 9.5% x $1,000 x 3 years = $285
Option B
total interest = 7.25% x $1,000 x 4 years = $290
Option C
Total interest = 5.5% x $1,000 x 8 years = $440
Option D
Total interest = 6% x $1,000 x 6 years = $360
Option c will cost the company the most in total interest over the life of the bond
Explanation:
In this case. the total interest over the life of the bonds is calculated. The total interest is a function of interest rate, par value of the bonds and number of years to maturity. A par value of $1,000 is assumed in this respect.
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When the Fed buys bonds in open-market operations, it increases the money supply. If the Fed reduces the reserve requirement, the money supply increase as well.
When the Fed increases the interest rate it pays on reserves, the money supply will <u>reduce</u>. When the FOMC increases its target for the federal funds rate, the money supply will <u>reduce</u>.
If bankers decide to hold more excess reserves because they are fearful of bank runs, the money supply reduce. All the above scenarios are activities that can occur when the Federal Government is using Monetary Policy.
<h3>What is monetary policy?</h3>
Monetary policy is a collection of acts designed to govern a country's total money supply and promote economic growth.
<h3>What are Bonds?</h3>
A bond is a fixed-income product that reflects an investor's debt to a borrower (typically corporate or governmental).
A bond may be regarded of as an I.O.U. between the lender and the borrower that includes the loan information and payments.
Learn more about bonds at;
brainly.com/question/2054375
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