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Tamiku [17]
3 years ago
5

Cash receipts $40,000Beginning cash balance $10,000Cash Payments $48,000Desired ending cash balance $7,000If there is a cash sho

rtage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments. Interest is paid monthly on the first day of the following month. The interest rate is 1% per month. The company had no debt before January 1st. What is the amount of interest paid in February? Please show all work and explanation
Business
1 answer:
Advocard [28]3 years ago
7 0

Answer:

$50

Explanation:

For computing the interest amount, first we have to determine the how much cash is available and how much funding is required which is shown below:

The cash available would be

= Beginning cash balance + expected cash receipts - expected cash disbursements

= $10,000 + $40,000 - $48,000

= $2,000

Now the funding amount would be

= Ending cash balance - cash available

= $7,000 - $2,000

= $5,000

So, the interest would be

= $5,000 × 1%

= $50

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Shahia Company bought a building for $89,000 cash and the land on which it was located for $107,000 cash. The company paid trans
kramer

Answer:

Explanation:

The net book value of the property(land and building) at the end of year 2

Building(89,000 + 7,000 + 16,000)            112,000  

Less; Depreciation for 2 years(10,200*2)  (20,400)          91,600

Land(107,000 + 3,000)                                                  110,000

Net book value of property                                        201,600

8 0
3 years ago
When the price of a good increases, the quantity demanded ______. when the price of a good decreases, the quantity demanded?
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When the price of a good increases, the quantity demanded decreases. When the price of a good decreases, the quantity demanded increases.
4 0
3 years ago
Suppose the U.S. Treasury offers to sell you a bond for $687.25. No payments will be made until the bond matures 5 years from no
pantera1 [17]

Answer:

6%

Explanation:

Data provided as per question is as given below:-

Redeemed amount = $1,000

Sale value of Bond = $687.25

Number of year = 5

The computation of interest rate is as shown below:-

Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1

= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1

= (1.338) ^ (0.2) - 1

= 0.06

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3 years ago
Studying business ethics will not necessarily
Serga [27]

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3 years ago
Which of the following is a deductible loss for income tax purposes?
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Answer:

d. Net long-term capital losses in excess of $3,000.

Explanation:

A net long-term capital losses in excess of $3,000 is a deductible loss for income tax purposes.

For instance, in a tax year, if an individual has up to $3,000 of net long-term capital losses, this would be considered a form of income rather than a capital gain.

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6 0
3 years ago
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