Answer:
7%
Explanation:
Interest income if Curtis invested
250,000 x 9% = 22,500
After tax interest income = 22,500 - (22,500 x 24%)
= 17,100
After tax rate of return = 17,100/250000
0.068
Approximately 7%
Answer:
D. All of the above
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
2. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
3. Cash-flow from financing activities: it represents the cash flow from debt or equity. Basically, the costs used in a financing a business.
<em>The purposes of the statement of cash flows are to;</em>
A. Predict future cash flows.
B. Evaluate management decisions.
C. Determine ability to pay debts and dividends.
Answer:
$4 advantage
Explanation:
In this question we need to compare the cost between the relevant cost and the outside supplier cost
The relevant cost is
= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit
= $8 + $5 + $3 + $5 × 80%
= $8 + $5 + $3 + $4
= $20
Since 80% of the fixed manufacturing cost above is eliminated so we considered the same
And, the outside supplier cost is $16
So based on the above calculation, the financial advantage is
= $20 - $16
= $4 advantage
This shows the company should purchased from outside supplier as it saves $4
Answer:
Self selection.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Advertisement refers to the promotional multimedia messages designed and developed to make the products or services of a company known to its customers and potential customers.
In this scenario, advertising relies on self selection.
Answer and Explanation:
The journal entries are shown below;
a. Investment Dr $37,282
To Cash $37,282
(being the investment in bonds is recorded)
b.
Cash (($1,000 × $40) × 0.07 × 6 ÷ 12) $1,400
Investment $91
To interest revenue ($37,282 ×8% × 6 ÷ 12) $1,491
(Being the first interest payment is recorded)
