Answer:
The average return of the project is 15%
paybakc 6.67 years
Explanation:
Sean should divide the anual profit over the project cost ot get the average return
30,000 / 200,000 = 0.15
0.15 = 15%
Sean may also want to know the payback period:
so we do investment / income:
200,000 / 30,000 = 6.67
The firm will recover the cost of 200,000 after 6.67 years
This business risk is known as the operational risk. The operational risk is a possibility of loss resulting from a failed operational procedures, systems, and policies. Adequate procedures, systems, and policies must have been made to control and monitor the flow of a company's business operation<span>.</span>
Answer:
C) The federal budget deficit is the year-to-year short fall in tax revenues relative to government spending (T < G + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.
Explanation:
Budget Deficit by definition is the shortfall in the budget as spending exceeds the budgeted tax revenues for the governments. They are indeed funded by government borrowing by issuing of bonds and borrowing money from the federal reserve.
The federal government debt or also called the national debt is the net accumulation of all the borrowed amount that is used by the government to deficit finance the budget in the current year and the previous years.
In return if a budget in a year turns surplus, that is the spending is less than revenue, it can help lower the national debt if the government policies allow.
Hope that helps.
Answer:
$142,209
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $122,700
Adjustment made:
Add : Depreciation expense $7,730
Add: Patent amortization expense $4,908
Less: Gain on disposal of plant assets -$4,417
Add: Decrease in accounts receivable $7,362 ($25,767 - $33,129)
Add: Increase in accounts payable $3,926 ($11,288 - $7,362)
Total of Adjustments $19,509
Net Cash flow from Operating activities $142,209
Answer:
June 30, 2020 Bond Interest expense Debit $5,756.25
Discount on Bonds payable Credit $506.25
Cash Credit $5,250
Explanation:
We have to calculate the interest expense. The bond interest expense = Cash payment + bond amortization discount
Given,
Bond price = $150,000
Interest = 7%
Number of period, n = 10 years × 2 (As it is a semiannual bond) = 20
Cash payment for semiannual interest = $150,000 × 0.07 × (1÷2)
Cash payment for semiannual interest = $5,250 (Credit)
Amortized bond discount (discount on bonds payable) = $10,125 ÷ 20 (as it is a semiannual payment and $10,125 is for 10 years)
Discount on bonds payable = $506.25 (Credit)
Therefore, bond interest expense = $5,250 + $506.25 = $5,756.25 (Debit)
