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3 years ago

Name one way establishing credit

1 answer:

6 0

Trade credit. or credit card where there is a specified deadline for the payment to be made for the item bought on credit

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The Green Fiddle is considering a project with sales of $86,800 a year for the next four years. The profit margin is 6 percent,

-Dominant- [34]

Answer:

This project should be rejected because the AAR is 10.68 percent.

Explanation:

The accounting rate of return of the project needs to computed,compared with the required accounting rate of return in order to decide whether the project should accepted or rejected:

Profit margin=$86,800*6%=$5208

Average operating assets=($97,500+$0)/2=$48.750

Accounting rate of return=profit margin/average operating assets*100

Accounting rate of return=$5,208/$48,750*100=10.68%

The project accounting rate of return is lower than the required accounting rate of return,hence the project should be rejected.

8 0

3 years ago

When an alternative decision rule disagrees with the net present value (npv), the npv should be followed?

marta [7]

Yes the npv should always follow as it represents

5 0

3 years ago

Compared to a barter economy, using money increases efficiency by reducing.

marishachu [46]

Answer:

Compared to a barter economy, using money increases efficiency by reducing: transaction costs. Barter is the: direct exchange of goods and services.

7 0

2 years ago

1. When the price of fresh fish increases 5%, quantity demanded decreases 10%. The price elasticity of demand for fresh fish is

mafiozo [28]

Answer:

1. When the price of fresh fish increases 5%, quantity demanded decreases 10%. The price elasticity of demand for fresh fish is elastic.

2. The determinants of elasticity include d) all of the above.

3. Cross-price elasticity of demand measures the response in the d) quantity of one good demanded to a change in the price of another good.

4. A value of price elasticity of demand equal to 2 means that b) quantity demanded falls by two times the amount of an increase in price.

Explanation:

Price elasticity of demand = % change in quantity demanded of a good / % change in price of the good. Value greater than 1 implies quantity demanded is price elastic, equal to 1 implies quantity demanded is price unitary elastic and smaller than 1 implies quantity demanded is price inelastic.

Cross Price Elasticity of demand = % change in quantity demanded of a good / % change in price of another good.

For rest, refer to the answer.

3 0

3 years ago

Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually.

guajiro [1.7K]

Answer:

The interest rate of the bond issued it's 6%, so the company always pays the same amount of interest, $300,000 (3%) each period because it's semiannually, total year of $600,000.

Explanation:

The difference lies on the rate interest accepted by the market, the information indicates that the market requires a higher interest rate to lend the money to the company at this moment.

It the moment of the bond issued the company register:

Debit $8,640,967 Cash

Debit $1,359,033 Discount on Bonds Payable

Credit $10,000,000 Bonds Payable

At the moment of record the first interest payment

Debit $345,639 Bond Interest Expense

Credit $45,639 Discount on Bond Payable

Credit $300,000 Cash

At the moment of record the second interest payment

Debit $347,464 Bond Interest Expense

Credit $47,464 Discount on Bond Payable

Credit $300,000 Cash

5 0

3 years ago