Answer: 1. $218750 ; 2. $231, 250 ; 3. $11562.50
Explanation:
1. The bonds with a par value of $250,000 and implied selling price of 87 ½.
Cash proceed = 250,000 × 87.5%
= $218,750
2. Since it's semiannual interest payments, the total amount of bond interest expense that will be recognized over the life of these bonds will be:
[20 × (250,000 × 8% × 6/12)]+ $250,000 - $218,750
= $200,000 + $250,000 - $218,750
= $231, 250
3. The amount of bond interest expense recorded on the first interest payment date will be:
= Total bond interest expense/number of payments
= $231,250/20
= $11562.50
Answer:
Smart display campaign
Explanation:
This is an automated program that is highly effective in locating old and new customers , create a capturing advertisement on its own and also provide the right bids.
In other words , it automates the process of bidding ,targeting and creating advert.
Even though the initial set up can be costly , but it reduces the effort of advertisers to the minimum as the whole process is programmed to self controlling.
As such , it is recommended for Sierra's business.
Answer:
Prime cost = $94,000
<em>Conversion cost</em> = $135,400.
Explanation:
<em>Prime cost is the addition of direct material cost , direct labor cost and direct expenses.</em>
<em>Conversion cost is the cost of converting raw materials into finished product. It s the sum of direct labour cost and production overheads.</em>
For Bento Engineering,
<em>Prime cost = direct labour cost (since no figure is given for direct material and direct expenses.)</em>
Prime cost = $94,000
Conversion cost = Direct labour cost + overheads
<em>Conversion cost</em> = $94,000 + 126,000
= $135,400.
Prime cost = $94,000
<em>Conversion cost</em> = $135,400.
Answer: True
Explanation:
Yes, the given statement is true that the employing capital rationing is one of the process in which it placing some restriction on the investment amount of the project in an organization.
In the capital rationing strategy, if the company accepts less amount from all its prospective projects along with some positive net profit value (NPVs) the it is evaluated on the basis of their own risk.
The employ capital rationing helps in making various types of decisions related to investment for the company and in this system only limited projects are taken due to the limitation of the resources.
Therefore, The given statement is true.
Answer: Restructuring cost
Explanation:
Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.
