Answer:
d. Some other amount - $11,000
Explanation:
Investing activities: It records those activities which include purchase and sale of the long term assets
. The purchase of long term assets is an outflow of cash and the sale of long term assets is an inflow of cash
The computation of the sale of plant assets is shown below:
= Sale value of equipment - accumulated depreciation + gain on sale of equipment
= $18,000 - $9,000 + $2,000
= $11,000
Answer and Explanation:
a. The computation of price (expressed as a percentage of the face value) is shown below:-
Price = Face value ÷ (1 + Yield to maturity)^Number of the compounding period
= $1,000 ÷ (1 + 0.0323)^1
= $1,000 ÷ 1.0323
= $968.71
Price expected as a percentage to a face value = Price ÷ Face value × 100
= $968.71 ÷ $1,000 × 100
= 96.87%
b. The computation of credit spread of AAA-rated corporate bonds is shown below:-
Credit spread = Yield of AAA-rated corporate bond - Yield of treasury bond
= 3.23% - 3.15%
= 0.08%
c. The computation of credit spread on B-rated corporate bonds is shown below:-
Credit spread = Yield of B-rated corporate bond - Yeld of treasury bond
= 4.94% - 3.15%
= 1.79%
d. The credit rating for a bond changes with its respective credit risk change. That implies the bond 's rating would be lower the lower risk, and likewise.
The investor is demanding higher returns on risky bonds for additional risk-taking. Hence the credit spread is widening as the rating of bonds falls with an increase in the risk.
Answer:
Cost per equivalent unit of materials=20 per unit
Cost per equivalent unit of conversion=50 per unit
Explanation:
The cost of direct materials in Mountain spring water company is $672,000
The conversion cost for that period in the bottling company is $365,000
The total equivalent unit for direct materials is 33,600 liters
The total equivalent unit for conversion is 7,300 liters
The cost per equivalent unit of materials can be calculated as follows
= Cost of direct materials/total equivalent unit for direct materials
= $672,000/33,600 liters
= 20 per unit
The cost per equivalent unit of conversion can be calculated as follows
= Conversion cost/total equivalent unit of conversion
= $365,000/7,300liters
= 50 per unit
Hence the cost per equivalent unit of materials is 20 per unit and the cost per equivalent unit of conversion is 50 per unit.
Answer:
Particulars Amount
Raw material used $18,600
Add: Direct labor $26,600
<u>Overhead costs</u>
Factory supplies $3,100
Plant depreciation $6,800
Indirect labor $8,600
Utilities ($10,600*80%) <u>$8,480</u>
Total overhead cost <u>$26,980</u>
Total manufacturing costs <u>$72,180</u>
