Answer: Interest expense = $45500
Cash outflow = $45500
Explanation:
Based on the information that were given in the question, the amounts of interest expense and cash flows from operating activities, that will be reported in the financial statements for the year ending December 31, Year 1 will be calculated thus:
Interest expense = $700,000 × 6.50%
= $700,000 × 0.065
= $45500
The interest expense of $45500 will be reported on December 31, Year 1 in the income statement and will also be reported in the cash outflow as well. Therefore,
Interest expense = $45500
Cash outflow = $45500
Answer:
The correct answer is <em>a pioneer product.</em>
Explanation:
Pioneer advertising refers to the campaign to launch a new product category, unlike marketing a new product only within a developed market. The purpose of this advertising is to inform consumers of the arrival of a totally new concept and explain its benefits.
Example: Sony's campaign to introduce the Walkman brand in the late 70's or Apple's marketing action when the first iPad was launched in 2010, are two good examples of pioneer advertising. Both products had 100% market share when they were presented, and created new product categories that spawned many imitators.
B. Command
What your describing sounds a lot like communism which would be found under a command economic system
Answer: Loss of $22,000
Explanation:
Gain (loss) = Net Carrying Value of Bonds recalled - Price bond called at
Net Carrying Value of Bonds
= Par value - Unamortized discount
= 300,000 - 10,000
= $290,000
Gain (loss) = 290,000 - (300,000 * 104)
= ($22,000)
Answer: adverse selection
Explanation:
From the question, we are told that an
insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.
The idea above is called adverse selection. This is a situation whereby either the seller or the buyer believes that he or she has more information than the other person regarding a particular product.