Answer:
a). The amount of the short-term loan=$128,181.82
b). The amount of the long-term loan=$156,666.67
Explanation:
The total annual interest to be paid can be expressed as;
I=PRT
where;
I=annual interest
P=principal amount of the note
T=number of years
a). For the short-term note's case;
I=$14,100
P=unknown
R=11%
T=1 year
replacing;
14,100=P×(11/100)×1
0.11 P=14,100
P=14,100/0.11
P=128,181.82
The amount of the short-term loan=$128,181.82
b). For the long-term note's case;
I=$14,100
P=unknown
R=9%
T=1 year
replacing;
14,100=P×(9/100)×1
14,100=P×0.09
0.09 P=14,100
P=14,100/0.09
P=156,666.67
The amount of the long-term note=$156,666.67
Answer:
B. Best would be considered the parent entity.
Explanation:
When a company owns another companies stock of 90% or more it would be considered as parent entity. The parent entity can control the the subsidiary. The financial statements will be consolidated into parents companies accounts.
Answer:
To find Earning per share, we can find this by the following formula:
Increase in Earnings Per Share = Net profit of new products / Number of shares
and
Net Profit of new products = 5% * $4,898,300 = $244,915
Increase in Earnings Per Share = ($244,915) / 1,456,800 = 16.81%
Answer:
change; over-estimates
Explanation:
Substitution bias refers to a tendency in which economic index numbers don't include information about the changes in consumer spending when they switch expensive products for cheaper ones or buy less units as prices change. This changes are not reflected in the market basket from which the CPI is built which can cause inflation rates to be over-estimated.