All categories

3 years ago

Which of the following types of businesses might have an operating cycle longer than one year?

Business

1 answer:

rjkz [21]3 years ago

6 0

Answer: E. Commercial airplane manufacturer.

Explanation:

An operating cycle refers to the amount of time it will take a company to produce or purchase goods, sell them and receive cash for the goods.

A Commercial airplane manufacturer might have an operating cycle longer than a year as it takes time to manufacture planes and then to sell them due to their high prices and even at that with the huge amounts involved, the payments might not come all at once.

You might be interested in

A corporation has the following account balances: Common Stock, $1 par value, $80,000; Paid-in Capital in Excess of Par Value, $

Nitella [24]

Answer:

b. number of shares issued is 80,000

Explanation:

In the question, the common stock par value and the total amount is given. Moreover, paid-in capital is also given.

So, if we compute it, then it gives the number of shares issued because it contains a formula which is shown below:

Number of shares issued = (Common stock ÷ Par value)

= ($80,000 ÷ $1)

= 80,000 shares

So, paid-in capital is not relevant in the computation part, and therefore, the other options are wrong except b. option.

7 0

3 years ago

Myriad Solutions, Inc. issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021, for $375,505,45

faust18 [17]

Calculation

Period Cash Interest Bond Interest Discount Carrying

End paid Expense Amortization Value

01-Jan-21 $375,505,452

30-Jun-21 $25,200,000 $26,285,38 $1,085,382 $376,590,834

1-Dec-21 $25,200,000 $26,361,358 $1,161,358 $377,752,192

Total $50,400,000 $52,646,740

3 0

3 years ago

Read 2 more answers

Mercy Hospital is considering a project that is expected to reduce the hospital's annual operating costs by $250,000 per year be

gizmo_the_mogwai [7]

Answer:

$650,000

Explanation:

The computation of the expected net cash flow for the year 1 is shown below:

= Annual operating cost reduced + expected revenue generated per year in the year 1

= $250,000 + $400,000

= $650,000

By adding the annual operating cost, and the expected revenue generated we get the project expected net cash flow for the year 1

5 0

3 years ago

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yiel

kiruha [24]

Answer:

7.84%

Explanation:

Given:

Bond's par value (FV) = $1,000

Maturity (nper) = 25 × 2 = 50 periods (since it's semi-annual)

YTM (rate) = 0.0925÷2 = 0.04625 semi annually

Price of bond (PV) = $875

Calculate coupon payment (pmt) using spreadsheet function =pmt(rate,nper,-PV,FV)

PV is negative as it's a cash outflow.

So semi- annual coupon payment is $39.20

Annual coupon payment = 39.2×2 = $78.40

Nominal Coupon rate = Annual coupon payment ÷ Par value

= 78.4 ÷ 1000

= 0.0784 or 7.84%

4 0

3 years ago

if, after one year, the yield to maturity on a multiyear coupon bond that was issued at par is lower than the coupon rate, what

maw [93]

When the YTM is lower than the bond's coupon rate, the bond's market value exceeds its par value (premium bond). Bonds are selling at a discount if their coupon rate is smaller than their YTM. A bond is trading at par if its coupon rate is equal to its yield to maturity (YTM).

<h3>What is the cost of a $1,000 par value, three year, zero-coupon bond?</h3>

(a) A three-year zero-coupon bond with a face value of $1,000 would have a present value (or price) of 874.69 with a yield of 4.564 percent.

<h3>What is the yield to maturity on a discount bond with a $1000 face value that will mature in a year and sell for $800?</h3>

The yield to maturity is determined using the following formula with the current price of $800: 800 = 1000 / (yield to maturity plus one) Yield to maturity Equals 1 plus yield. Yield until maturity equals 25%

To Know more about coupon rate

brainly.com/question/16913107

#SPJ4

5 0

1 year ago