Answer:
the amount of the annual interest tax shield = $7437.5
Explanation:
First we need to ckeck the vaelus given on the problem.
$340,000 bond issue outstanding
rate of 6.25%
sell at 101.2% of face value
tax rate is 35 percent
pay interest semiannually
so the amount of the annual interest tax shield will be given by:
Coupon amount paid in a year = $340000 x 6.25 / 100 = $21250
amount of the annual interest tax shield = $21250 x 35 / 100 = $7437.5
therefore we have that the amount of the annual interest tax shield is $7437.5
Answer:
option C
Explanation:
In simple words, refers t the written statement that depicts the availability of funds in hand for a firm and hope they are gonna use it in future. Every organisation makes a budget so that they can use their resources in the most efficient way.
Budgets are made for the upcoming period but are based on the predictions made by the management and on the basis of past experiences. Thus, budgets should be made flexible and should be distributed to all the stakeholders as the real variable might diverge from the assumed variables. However budget should be in a realistic approach as they work as a major statement for evaluation.
The contribution margin approach helps managers in short-tern decision making because it reports costs and revenues at their current value.
The contribution margin ratio/approach allows companies to determine their profits they can make from a product minus variable costs.
Current assets, or possessions used up within a year, are generally used to settle current liabilities.
<h3>Why do you use the term "current liabilities"?</h3>
- Current liabilities are debts or commitments that fall due within a year or during the regular business cycle. Additionally, current obligations are paid off by using a current asset, either by generating a fresh current liability or by using cash.
- In accounting, current liabilities are frequently interpreted as all debts owed by a company that must be paid in cash within the fiscal year or the operational cycle of that particular company, whichever is longer.
- Current assets, or possessions used up within a year, are generally used to settle current liabilities. Accounts payable, short-term loans, dividends, and notes payable are a few examples of current liabilities, along with any outstanding income taxes.
To learn more about Current assets refer to:
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Answer:
572 Favorable
Explanation:
Direct Labour efficiency Variance:
= (Standard Labour Hour - Actual Labour Hour) × Standard Rate
= [(78 connectors × 3 hours of direct labor per connector) - (190 hours)] × $13 per hour
= [234 hours of direct labor - 190 hours] × $13 per hour
= 44 hours × $13 per hour
= $572 Favorable
Therefore, Banner's direct labor efficiency variance for August is $572 Favorable.
