Answer: a. $485
b. $15
c. 32.28%
Explanation:
a. how much will Jill save by paying within the discount period?
3% × $500 = 3/100 × $500 = 0.03 × $500 = $15
The amount saved will be:
= $500 - $15.
= $485
b) what will it cost Jill to retain the use of credit for 45 days?
This will be:
= 3% × $500
= 3/100 × $500
= 0.03 × $500
= $15
c) what is the annual interest rate of the "loan" (ie. what is the annual rate of 3/10, net 45)?
c) The annual interest will be calculated using:
= P x R x T
where,
I = interest = $15
P = principal = $485
R= rate of interest = Unknown
T= time factor = 15/365 = 0.0958
Then, annual Interest rate will be:
R = 15/ (485 x 0.0958)
R = 32.28%
Annual Interest rate is 32.28%
Answer:
The correct answer is:
The organization is called
Financial Accounting Standards Board.
The guidelines are called
Generally accepted accounting principles
that the CPA will use to prepare Wholly Shirts financial statements.
Explanation:
The FASB is an organization that provides guidelines for financial reports. The mission of the Council for Financial Accounting Standards (FASB) is to establish and improve financial accounting standards and the way of reporting; using public education, including issuers, auditors and other users of financial information.
The generally accepted accounting principles are a set of rules and norms that serve as an accounting guide to formulate criteria related to the measurement of equity and to the information of the patrimonial and economic elements of an entity.
<span>In order to calculate the cost, 785000, the number of candles per year is multiplied times six, for the number of minutes it takes to mold them. That number is then divided by 60 because there are 60 minutes in an hour. Then that number is multiplied by 18 because that is the cost of molding per hour. Doing this gives the labor cost for a year, $1,413,000. To calculate materials cost, multiply 487125, the cost of wax needed by 1.25, the cost per pound. The cost of materials for the year is 608,906.25.</span>
Answer:
Firm's cash coverage ratio = 9.64
Explanation:
We know,
Cash coverage ratio = Cash and Cash equivalents ÷ current liabilities
However, as there is no such information regarding cash and cash equivalents and liabilities, we have to use alternative formula,
Firm's cash coverage ratio = (EBIT + Depreciation Expense) ÷ Fixed charges
Given,
EBIT = $400,000
Depreciation Expense = $24,000
Fixed charges = $44,000
Therefore,
Firm's cash coverage ratio = ($400,000 + 24,000) ÷ $44,000
Firm's cash coverage ratio = $424,000 ÷ $44,000
Firm's cash coverage ratio = 9.64