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Andreas93 [3]
4 years ago
9

On January 1, 2011, Sauder Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for S

auder to make annual payments of $50,000 at the beginning of each year for five years with title to pass to Sauder at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Sauder uses the straight-line method of depreciation for all of its fixed assets. Sauder accordingly accounts for this lease transaction as a capital lease. The minimum lease payments were determined to have a present value of $208,493 at an effective interest rate of 10%.
In 2011, Sauder should record interest expense of
a. $15,849
b. $16,600
c. $10,700
d. $15,808.
Business
1 answer:
Alik [6]4 years ago
5 0

Answer:

a) 15,849

Explanation:

($208,493 - $50,000) * .10 = $15,849

Interests expense is a non-operating expense shown on the income statement. Represents the interest payable on any borrowings.

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At the beginning of the year, a firm has current assets of $327 and current liabilities of $231. At the end of the year, the cur
nata0808 [166]

Answer:

Change in the Net working capital is $124

Explanation:

Working Capital can be define as the net amount between the Current Asset and Current liability of a particular year

It is better written as Working capital = Current Asset - Current Liabilities.

At the beginning of the year, the working capital is = $327 - $231 = $96

At the end of the year, the working capital is = $491 - $271 = $220

Change in Net working capital = $96 - $220

Change in Net working capital = $124

7 0
4 years ago
The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree o
Anuta_ua [19.1K]

Answer: Option (B) is correct.

Explanation:

Given that,

Total population of group = 28.19 million

Employed = 11.73 million

Unemployed = 1.04 million

Total labor force = Employed + Unemployed

                            = 11.73 million + 1.04 million

                            = 12.77 million

Labor-force participation rate = \frac{Total\ Labor\ Force}{Total\ Population} \times 100

                                                  = \frac{12.77}{28.19} \times 100

                                                  = 45.29%

                                                   = 45.3%

Unemployment rate = \frac{Unemployed}{Total\ Labor\ Force} \times 100

                                  =  \frac{1.04}{12.77} \times 100

                                  = 8.14%

3 0
3 years ago
What makes buying a foreclosed property risk
navik [9.2K]

Answer:

You can not check the property beforehand for damages, which is a risk.

Explanation:

A foreclosure property is that property which is being sold off by a lender in order to payoff default.

There are a number of risks involved in buying such property. The process of buying is lengthy and complicated.

Buyers are not allowed to check the property before auction. Often these properties are damaged because the owners can not afford to manage. Or the angry owners may damage the property purposely in order to punish the lenders.

4 0
4 years ago
The form of ownership that gives one person sole control all business decisions is the
KiRa [710]

The answer to that is Proprietorship

7 0
4 years ago
While setting the price of a product, what must managers consider? A cost of the whole marketing mix B) buying capacity of the c
Naddik [55]

Answer:

While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company

Explanation:

Key factors in calculating the sale price can be:

  • Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;
  • Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
  • Competition as a pricing factor refers to alternatives that customers can choose from, and competition allows them to do so;

Cost-based pricing has its sub-methods such is Cost plus method

The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.

Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.

Formula: price = Direct costs + Indirect costs + Rate of profit

5 0
3 years ago
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