Answer: B) A loss of $200,000 on its income statement in the year the bonds are called.
Explanation:
The bonds were issued at Par. This means they were issued at 100 of par.
The bonds are now trading at 104 of par.
If Sand Inc calls the bonds then they will make a profit (loss) of,
= 5,000,000 * 104/100
= $5,200,000
Therefore their Profit (loss) will be the bond at par minus the Calling price
= 5,000,000 - 5,200,000
= -$200,000
That means they make a loss of $200,000 in the year the bonds are called.
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Answer:
D) visibly punish unethical acts
Explanation:
Ethics is the act of knowing what ia right and doing same. That is a good ethical act.
The ethical culture practised by Pam's company is to visibly punish unethical acts. This entails punishing any unethical act appropriately before others to see it.
This approach is really good because it will make others to sit up bearing in mind that they will get same punishment without hesitation if they err.
Pam's organization firing the three managers caught using the company's resources to fund their personal lifestyle pointed towards applying visible punishment for unethical acts.
Answer:
The initial outlay of this project is $270,000
Explanation:
According to the given data we have the following:
cost of new machine= $200,000
shipping cost=$5,000
installation cost=$15,000
working capital=$50,000
Therefore, in order to calculate the initial outlay of this project we would have to make the following calculation:
initial outlay of this project=cost of new machine+shipping cost+installation cost+working capital
initial outlay of this project= $200,000+$5,000+$15,000+$50,000
initial outlay of this project= $270,000
