Which type of rubric contains a rating scale?

During a certain year, the nominal interest rate was 7 percent, the real interest rate was 4 percent, and the CPI was 198.3 at t

Dima020 [189]

Answer:

CPI at the beginning of the year = 192.52

Explanation:

given data

nominal interest rate = 7 percent

real interest rate = 4 percent

CPI = 198.3

to find out

CPI at the beginning of the year

solution

we know that according to fisher equation

1 + r = $\frac{1+n}{1+i}$ ....................1

and for smaller values is equivalent to r

r = n - i .....................2

here r is real interest rate and n is nominal interest rate and i is inflation rate

so from equation 2

4 = 7 - inflation rate

inflation rate = 3 percent

so

Rate of inflation = (CPI at the end of the year - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

put here value

3% = (198.3 - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

CPI at the beginning of the year = $\frac{19830}{103}$

CPI at the beginning of the year = 192.52

7 0

2 years ago

When changing from the average cost method to FIFO, the company:

Lesechka [4]

Answer: B. Revises comparative financial statements.

Explanation:

When switching from a median Cost method to FIFO method. this sort of switch can always yield a major impact on all financial statements. Any organization which wishes to change would settle on the requirement to scrutinize whether it has to restate its financial data for previous years to reflect the new method or only apply the new method to the present and future years.

7 0

2 years ago

XYZ Corporation 10-year bonds paid its annual coupon of $110 yesterday. There are seven (7) annual coupons remaining. The bond h

Brums [2.3K]

Answer:

Price of the bond is $1,215.57

Explanation:

Price of the bond is actually the present value of all cash flows of the bond. Price of the bond is calculated by following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = $110 x [ ( 1 - ( 1 + 7% )^-7 ) / 7% ] + [ $1,000 / ( 1 + 7% )^7 ]

Price of the Bond = $592.82 + $622.75

Price of the Bond = $1,215.57

4 0

2 years ago

A hamburger factory produces 60,000 hamburgers each week. The equipment used costs $10,000 and will remain productive for four y

Liono4ka [1.6K]

Answer:

A. 195 hamburgers

B. Yes

Explanation:

The computation is shown below:

A. Productivity measure = (Annual output) ÷ (Annual labor cost + annual equipment cost)

where,

Annual output = 60,000 × 52 weeks = $3,120,000

Annual labor cost = $13,500

Annual equipment cost

= $10,000 ÷ 4

= $2,500

So, the productivity measure is

= ($3,120,000) ÷ ($13,500 + $2,500)

= 195 hamburgers

B. Productivity measure = (Annual output) ÷ (Annual labor cost + annual equipment cost)

where,

Annual output = 60,000 × 52 weeks = $3,120,000

Annual labor cost = $11,000

Annual equipment cost

= $13,000 ÷ 5

= $2,600

So, the productivity measure is

= ($3,120,000) ÷ ($11,000 + $2,600)

= 229 hamburgers

Since the productivity is increased from 195 hamburgers to 229 hamburgers so the equipment should be purchased.

7 0

2 years ago

Wildhorse Company provides the following information about its defined benefit pension plan for the year 2017.

GrogVix [38]

Answer:

Pension Expense = $104,730

(See explanation for worksheet)

Explanation:

Pension worksheet inserting January 1, 2017, balances, showing December 31, 2017.

Computation of pension expense:

Service cost ------------------------------------ $91,100

Interest cost ($694,300 x 10%) --------- $69,430

Expected return on plan assets ------ ($65,100)

Prior service cost amortization ----------- $9,400

Pension expense for 2017 is then calculated by:

Service Cost + Interest Cost + Prior Service Cost Amortization - Expected Return on Plan Assets

Pension Expense = $91,000 + $69,430 + $9,400 - $65,100

Pension Expense = $104,730

4 0

2 years ago