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ivann1987 [24]
3 years ago
7

On July 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends Jul

y 31. Using the 360-day year in your calculations, what is the amount of interest expense recognized by Alton in the current fiscal year? a. $1,200.00 b. $106.67 c. $306.67 d. $400.00
Business
1 answer:
shtirl [24]3 years ago
8 0

Answer:

$306.67          

Explanation:

The accrued interest is of 23 days which must be accounted for in the books of accounts.

The interest for 120 days = $80,000 * 6% * 120 / 360 = $1600

Now we will find interest for 23 days (July 31 MINUS 8 July).

Interest for 23 days = $1600 * 23 / 120 = $306.67

So the interest that has accrued at the end of the year is of 23 days and is $306.67.

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Price. It is the sum of all values that buyers exchange for the benefits of having or using a good or service. can be defined very narrowly as the amount of money charged for a product or a service. However, the price is really more than that.

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tuttle enterprises is considering a project that has the following cash flow and weighted average cost of capital (wacc) data. w
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Tuttle enterprises are considering a project that has the following cash flow and the weighted average cost of capital (WACC) data. The projected net present value is 074.36.

A project's net present value is the sum of the destiny values of the net coin flows compounded at the desired fee of going back minus the net funding. if safety gives a series of coin flows with an NPV of $50,000 and an investor will pay exactly $50,000 for it, then the investor's NPV is $0. It method they'll earn something the cut price charge is on the security.

Net present value or NPV is the sum of the prevailing value of coins inflows and outflows. In other phrases, it's far the distinction between the present values of cash inflows and the prevailing value of cash outflows over a while.net gift cost shows how a lot of money an assignment or investment will advantage or lose in terms of the present-day budget. future coins drift would not carefully mirror the current cash drift of an undertaking because of the impact of factors along with inflation and lost compound hobby so NPV adjusts for this reason.

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8 0
2 years ago
A theory of strategic factor markets suggests that the resources a firm possesses might give it an advantage versus competitors
dybincka [34]

Explanation:

Organizations are integrated systems that use resources to achieve certain objectives and goals and become profitable and competitive.

Globalization was a phenomenon that contributed to an increase in the flow of information and changes in technologies and paradigms that contributed to a greater speed in consumer trends, and in the number of companies competing in the market.

Therefore, to achieve competitive advantage, it is not enough for the organization to use its resources in a conventional way, it is necessary to use strategies to add value to its processes. Considering the current business scenario, it can be said that the human resource in companies is the one that will give it a sustainable competitive advantage, since the knowledge acquired is one of the main resources used for the company to position itself in relation to competitors, each time more companies are promoters of social responsibility, so prioritizing knowledge and its stakeholders will always be the most advantageous option for creating value and competitive advantages.

4 0
3 years ago
In a market economy, a high price will usually cause
Talja [164]

Answer:

C) producers to supply more and consumers to buy less.

Explanation:

The typical supply curve is upward-sloping (higher price leads to higer quantity supplied) and the typical demand curve is downward sloping (higher price lower quantity demanded).

Price is a measure of how much one good can be exchanged for other things. Production incurred cost (tend to rise as more resources become harder to obtain) so to supply more suppliers will demand higher price. Purchasing higher price good means consumers have less money (less of other goods can be bought) consumer will buy less good at higher price.

6 0
3 years ago
AK Inc. is paying 5% coupon rate for its bondholders over the next 8 years. Your required rate of return is 7 percent, how much
ratelena [41]

Answer: $880.57

Explanation:

Assuming Par value of bond is $1,000.

Value of bond = (Coupon * Present value interest factor of annuity, no. years, required return) + Par Value/ (1 + required return)^ no. of years

Coupon = 5% * 1,000 = $50

Value of bond = (50 * 5.9713) + 1,000 / (1 + 7%)⁸

= ‭298.565‬ + 582

= $880.57

6 0
3 years ago
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