Question Completion:
A. More than the effective interest.
B. Less than the effective interest.
C. Equal to the effective interest.
D. More than if the bonds had been sold at a premium
Answer:
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
B. Less than the effective interest.
Explanation:
This cash payment is the product of the bond's face value multiplied by the coupon rate. The interest expense is increased by the amortized portion of the discount for the particular period. This means that the interest expense will be higher than the cash payment for interest because of the discount granted at issuance. And the interest expense is the product of the outstanding debt multiplied by the effective interest rate.
Answer:
country of origin.
Explanation:
Banks have a set of requirements that borrowers need to meet to qualify for a bank loan. The banks will ask questions to determine if the customer is eligible for a loan. Most of the questions pertain to the purpose of the loans and the customer's ability to repay.
The bank will ask about employment history, credit history, tax information, personal information, the purpose of the loan, collateral, and other questions related to the ability to repay. A person's country of origin is unnecessary and may elicit elements of discrimination.
Answer:
hope it helps
Explanation:
A Financial Manager, or Finance Manager, builds financial strategies and reports to help companies improve their financial health and meet their long-term goals. Their main duties include preparing an organizations’ activity reports, creating financial forecasts and brainstorming ways to maintain or reduce company costs
Answer:
PV= $230,148.09
Explanation:
Giving the following information:
You will receive 27 annual payments of $22,500. The first payment will be received 7 years from today and the interest rate is 5.1 percent.
First, we need to calculate the final value of the payments. We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual pay= 22,500
n= 27
i= 0.051
FV= {22,500*[(1.051^27)-1]}/ 0.051
FV= $1,248,819.52
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 1,248,819.52/ (1.051^34)
PV= $230,148.09
Answer:
d. $44,700
Explanation:
The preparation of the Cash Flows from Operating Activities - Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $40,000
Add : Depreciation expense $8,000
Less: Decrease in accounts payable -$1,800
Add: Decrease in merchandise inventory $2,500
Less: Increase in accounts receivable -$4,000
Net cash flows from operating activities $44,700
The long term liabilities and the common stock is not relevant. Hence, ignored it
