Answer:
Explanation:
What is given:
FV=1000
PV=887.52
n=11
PMT(coupon) = 0.055*1000 = 55 or C in the formula
Need to find YTM?
Formula to be used is YTM = [C+ (F-P) / n] / [(F+P) / 2]
YTM = [55 + (1000-887.52)/11]/[(1000+887.52)/2)] = [55+10.225]/[943.76]=0.069=6.9%
Answer:
Option C. The highest NPV is always the best option.
Explanation:
The reason is that IRR assumes that the reinvestment rate is also at IRR which is not a realistic assumption. The Net Present Value resolves this as it assumes that the reinvestment rate is cost of capital and hence is more better than IRR to appraise the project.
The decision rule in the Net present value method is that the project which has higher positive Net present value is regarded as best project among two mutually exclusive projects.
Answer:
D) corporate-level strategies.
Explanation:
The six steps in the strategy formulation process are:
- Setting organizations’ objectives
- Evaluating the organizational environment
- Setting quantitative targets
- Aiming in context with the divisional plans
- Performance analysis
- Choose your strategy: As the final step in the process, you should be able to decide the course of action that you want your company to follow, considering the company's strengths, potential, limitations and objectives. You should also pay attention external opportunities and how they can help your company grow and expand.
Answer:
The correct option is C which is $3,800
Explanation:
The final balance of Rahul in the allowance for uncollectible accounts on December 31, 2018 is computed as:
Allowance for uncollectible accounts on December 31, 2018 = Allowance for uncollectible accounts ( beginning balance) - Accounts receivable written off + Bad debt expense
= $2,100 - $2,340 + $4,040
= - $240 + $4,040
= $3,800
Working Note:
Bad debt expense = Credit Sales × 1%
= $404,000 × 1%
= $4,040
Answer:
1. Wages of $13,000 are earned by workers but not paid as of December 31.
Account Debit Credit
Wages Expense $13,000
Wages Payable $13,000
2. Depreciation on the company’s equipment for the year is $11,560.
Account Debit Credit
Depreciation Expense $11,560
Accumulated Depreciation $11,560
3. The Office Supplies account had a $490 debit balance at the beginning of the year. During the year, $4,582 of office supplies are purchased. A physical count of supplies at December 31 shows $508 of supplies available.
Account Debit Credit
Supplies Expense $4,582
Cash $4,582
Supplies Expense $4,564
Supplies $4,564
4. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,200 of unexpired insurance benefits remain at December 31.
$1,800 worth of insurance have been spent, out of the initial $5,000 prepaid insurance balance. ($5,000 - $1,800 = $3,200)
Account Debit Credit
Prepaid Insurance $1,800
Insurance Expense $1,800
5. The company has earned (but not recorded) $950 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
Account Debit Credit
Interest Receivable $950
Interest Revenue $950
6. The company has a bank loan and has incurred (but not recorded) interest expense of $3,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
Account Debit Credit
Interest Expense $3,000
Interest Payable $3,000
