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Zarrin [17]
2 years ago
6

Norton Corporation received cash from issuing 10-year $200,000 bonds at face value. Interest of $10,000 is paid annually to the

bondholders on December 31. How do the issuance of the bonds and the payment of the interest affect Norton's financing activities section of the statement of cash flows for
Business
1 answer:
Jobisdone [24]2 years ago
5 0

Answer:

Issuance of bonds is a cash inflow

Payment of interest is a cash outflow

Explanation:

The issue of the bond at $200,000 face value would be a cash inflow under the financing activities of the cash flow when issued since more cash was received from the bondholders.

However,the payment of bond interest of $10,000 yearly is a cash outflow under the financing activities section of the statement of cash flows,since Norton Corporation would be parting with the amount on yearly basis till the bonds are retired.

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"An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of
aliina [53]

Answer:

$1,531,286.40

Explanation:

The computation is shown below:

Given that

Acquisition cost of an asset = $5,400,000

Sale value of an asset = $1,700,000

Tax rate = 22%

So the after tax salvage value of the asset is

= $1,700,000 - ($1,700,000 - $5,400,000 × (11.52% + 5.76%)) × 22%

= $1,531,286.40

Refer to the MACRS table for the depreciation rate i.e 11.52% and 5.76%

4 0
3 years ago
A bonds price and its yield to maturity are inversely related because:________.
xenn [34]

Answer: increase in the yield to maturity will lower a bond's coupon rate and hence its price.

Explanation:

The yield to maturity is the percentage of return that'll be paid on a bond as long as the investor holds the security till it matures.

It should be noted that the price of a bond moves inversely with the yield to maturity as a rise in the yield to maturity leads to a reduction in the bond's price and a reduction in the yield to maturity will bring about increases in price of a bond

6 0
3 years ago
A _______ is an organization that is NOT presently in a task environment but has the resources to enter if it so chooses. potent
Kisachek [45]

Answer: Potential competitor

 

Explanation:

Potential competitor is a competitor

who offers the same product and works in the field.

who has the potential to compete with you.

they could be a direct competitor, but either they don't try or don't have infrastructure.

Hence, A p<u>otential competitor</u> is an organization that is NOT present in a task environment but has the resources to enter.

On the other hand, as a supplier is a party or organization that provides a product or service and distributor distributes them.

7 0
3 years ago
A producer of felt-tip pens has received a forecast of demand of 31,000 pens for the coming month from its marketing department.
atroni [7]

Answer:

  • a. <em>Break-even quantity:</em> <u>28,000 pens</u>

  • b<em>. Price</em>: <u>$1.51 per pen</u>

Explanation:

1. Break-even quantity

<u>a) Revenue, R(x)</u>

The  monthly revenue is the product of the price by the number of units sold in the month.

Naming x the number of pens sold in the month:

  • R(x) = $1 × x = x

<u>b) Cost, C(x)</u>

<u />

The monthly cost is the sum of the fixed cost per month plus the variable costs:

  • C(x) = $21,000 + 0.25 × x = 21,000 + 0.25x

<u>c) Break-even</u>

Break-even is the point when the revenue and the total costs are equal, this is, when the profit is zero. Write the equation and solve:

  • x = 21,000 + 0.25x
  • x - 0.25x = 21,000
  • 0.75x = 21,000
  • x = 21,000 / 0.75
  • x = 28,000

Hence, the break-even quantity is 28,000 pens.

2. Price pens must be sold to obtain a monthly profit of $18,000

Profit = Revenue - Total cost

  • P(x) = R(x) - C(x)

  • P(x) = x.p - [ 0.25x + 21,000]

Where p is the price.

  • P(x) = x.p - 0.25x - 21,000

Substitute the quantity demanded, x, with 31,000, and the profit, P(x) with 18,000:

  • 18,000 = 31,000p - 0.25(31,000) - 21,000

Solve for p and compute:

  • 31,000p = 18,000 + 7,750 + 21,000

  • 31,000 p = 46,750

  • p = 1.51

That is $1.51 per pen.

4 0
2 years ago
How can you change your city
Mice21 [21]

Answer:

cleaning up trash off the side of the road...

8 0
2 years ago
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