Current date in the top right-hand corner in most cases, you’ll use today’s date.On the line that says pay to the order of write the name of the person or organization you’re paying. Write the amount of your payment in the small box on the right hand side. Write out the amount using words to avoid fraud and confusion. Sign the check legibly on the line in the bottom-right corner. If you like include a note
General Rule: Daily compounding gives a higher yield
Compounding works like this:
6.025% per quarter
Quarter 1: $100 x 6.025% = $6.025
Quarter 2: $106.025 x 6.025% = $6.388
Quarter 3: $112.413 x 6.025% = $6.7729
Quarter 4: $119.186 x 6.025% = $7.4491
Etc…
6% per day
Day 1: $100 x 6% = $6
Day 2: $106 x 6% = $6.36
...
Day 365: $193.47 x 6% = $11.96
(a) Debt ratio = 0.82
Debt/ Assets = 0.82
Debt/(Debt + Equity) = 0.82
Debt = 0.82Debt + 0.82 Equity
0.18Debt = 0.82 Equity
Equity = 0.18Debt/0.82
Debt/Equity = Debt/(0.18Debt/0.82) = 4.5556
Debt/Equity = 0.82/0.18 =4.5556
Debt-Equity ratio = 4.56 times
(b) Equity Multiple = 1 + Debt-equity ratio
Equity multiplier = 1+4.56 = 5.56
Equity multiplier = 5.56 times
Answer:
$2,140
Explanation:
When a commercial substance exists in the course of the exchange of an old asset for a new one , the gain or loss on this assets is recognized,
Commercial substance can be said to exist when the exchange assets impact the future cash flow. The extended useful life of the involved assets in the question the the newly acquired asset through exchange support this.
<u>Workings</u>
Cost of the fixed assets = 52,025
Accumulated depreciation = 44,221
Book value = 7,804
Trade in allowance = 5,664
loss = 7,804 - 5664 = 2,140
