There are 16 bits in two bytes
Answer: 5.36%
Explanation:
The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.
When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:
= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)
=5.36%
Answer:
On the balance sheet, the inventory would appear as:
Inventory $248,000
Explanation:
In the notes to the accounts, the method of determining the cost and the method of valuing the inventory would be disclosed. It is not disclosed on the balance sheet, but on the notes to the accounts.
It would make the balance sheet appear unorganized to include details that should have been included in the notes. The presentation of information is very important in order to ensure that those reading the information understand it. Understanding is not aided by including information that could be displayed elsewhere.
