<h2>Answer:</h2>
The price of goods represents a crucial role in managing an effective distribution of supplies in a market system. Price serves as a signal for deficits and surpluses which help firms and customers respond to changing market conditions.
Answer:
a- Parts - (asset) Dr $54000
Note payable Cr $54000
b- Note payable Dr $4500
Cash/Bank Cr 4500
c- Interest expense for the year end= $2700
Explanation:
The entry to record the purchase of parts from SUPPLY Corp will result in, an increase in asset and liability because ACE Corp isn't settling the purchase via a cash/bank payment rather it's issuing a 1-year installment note. Therefore the entry is as follows:
Parts - (asset) Dr $54000
Note payable Cr $54000
Now the payments on the 1-year note are installment based which means the $54000 note payments would have to be split between twelve months (i.e one year). The monthly payment would be $4500 against note payable.
The entry to record first installment payment on august is as follows:
Note payable Dr $4500
Cash/Bank Cr 4500
Moreover, along with payment of $4500 ACE Corp is also liable to pay interest on the payments made. Therefore, interest shall be calculated on monthly payment of $4500 at the rate of 12% as follows:
Interest on payment = $4500×12%
Interest on monthly payment = $540
The interest expense to be reported by ACE in its income statement for the year ended 12/31/2016 is of Five months (i.e from Aug till Dec), see as follows:
Interest expense for the year end= $540×5
Interest expense for the year end= $2700
Zero percent financing is nothing more than a really good marketing tool. This is a <u>true statement</u>.
<u>Explanation</u>:
Zero percent financing refers to loan with zero interest for short period of time. This is one of the strategies followed by many organizations to sell their products.
Marketing is the process of promoting the product. Marketing helps the customer to know about the product. Buying or selling of the product is increased with the marketing.
Some of the marketing strategies followed by the marketing team are: personal selling, financing, repetition and product positioning.
It is mandatory for every organization or business to have a marketing team. The marketing team engages in promoting the product or service provided by their company. Marketing plays an important role in deciding the success or failure of the product.
Answer:
The Decrease in cash -$11,000
Explanation:
The computation of the net increase or decrease in cash is shown below:
Cash inflows from operating activities $31,000
Less:
Cash outflows from investing activities -$26,000
Cash outflows from financing activities -$16,000
The Decrease in cash -$11,000
Hence, the decrease in cash is -$11,000 as they are two cash outflows activities and one inflow activities