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koban [17]
4 years ago
6

Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen

t fee of 0.5% of the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 3.25% during the year. If the firm borrowed $6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar annual cost of the revolver?
Business
1 answer:
Kaylis [27]4 years ago
5 0

Answer:

Total dollar Annual Cost = $300,000

Explanation:

  • Total loan Commitment = 9000000
  • Borrowed Fund (Used Portion) = 6000000
  • Unused Portion (9000000 - 6000000) = 3000000
  • Annual Commitment Fee for unused Portion = 0.50%
  • Commitment Fee = 3000000 x 0.05% = 15000
  • Borrowed Fund (Used Portion) = 6000000
  • Interest Rate (3.25% + 1.5%) = 4.75%
  • Interest Cost (6000000 x 4.75%) = 285000

Total dollar Annual Cost (15000 + 285000) = $300,000

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Transactions for the Sheldon Cooper Company, which provides welding services, for the month of June are presented as follows.
dem82 [27]

Answer:

June 1 Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business.

Account Debited: Cash

Account Credited: Common Stock capital

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Account Credited: Accounts Payable

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Account Debited: Rent expense

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12 Bills P. Leonard $300 after completing welding work done on account.

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3 years ago
It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, ope
Hoochie [10]

Answer:

D) The supply of the output from the hydroelectric power plants to increase

Explanation:

The externality here is a negative one where the hydroelectric plants has to bear the cost of pollution as the paper mills operates.

Correcting means to make the paper mills pay for the external costs of their production and compensate the power plant for the additional cost that incurred as they have to clean up the water.

As the cost of production reduces, the power plant will be more willing to supply electricity at similar prices, ie. their supply curve will shift to the right. It will intersect with the demand curve of the consumers at a point with higher quantity (and maybe lower price)

In other words, they will supply more electricity.

3 0
3 years ago
According to gordon allport, personality should be described in terms of:
Gelneren [198K]
The answer to that question is <span>traits
</span><span> gordon allport became famous because he's one of the first to pursue psychological study on personality.
According to Allport, Each individuals have different levels of traits that they develop from the interaction within society that will determine those individuals' overall behavior.</span><span />
5 0
3 years ago
MW Company manufactures down-filled comforters and uses an activity-based costing system. During the current period, the company
Scilla [17]

Answer:

MW Company

Activity rate for order process = $54,120/660

= $82 per order

Explanation:

a) Data and Calculations:

Production = 16,500 units

Direct labor = 19,800 hours

Machine hours = 21,450 hours

No. of orders = 660

No. of shipments = 165

Order-processing cost pool = $54,120

Shipping cost pool = $14,025

Assembly cost pool = $71,280

Activity rate for order process = $54,120/660

= $82 per order

b) MW Company uses an activity-based costing system to identify its activities into cost pools and assign the cost of each activity pool to the products and services according to their actual consumption of the activities.  The activity-based costing technique provides a more accurate method for determining the costs of products and services.  As a more accurate method for pricing decisions than other traditional methods, activity-based costing technique increases management's understanding of overheads and cost drivers and makes activities that are costly and non-value adding to become more visible, allowing managers to reduce or eliminate them, because these activities add costs to the production system.

3 0
3 years ago
The interest cost component of NPPBC is the_______________.
san4es73 [151]

Answer: D

Explanation: Interest cost reflects the change in the APBO throughout the period which arise simply from a passage in time.

It is usually equal to the APBO at the start of the period times, the supposed discount rate which is used to regulate present value of future cash outflows currently expected or needed to satisfy the commitment or duty.

7 0
3 years ago
Read 2 more answers
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