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3 years ago

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On November 1, 2018, A-1 Products borrowed $64,000 on a 5%, 5-year note with annual installment payments of $12,800 plus interes

t due on November 1 of each succeeding year. On November 1, 2020, what is the balance of the Long-Term Notes Payable account

1 answer:

Ahat [919]3 years ago

6 0

Answer:

The balance of the Long-Term Notes Payable account on November 1, 2020, is $44,320

Explanation:

The loan will be paid together with interest using the computation below;

2018

November 1, 2018 borrowed $ 64,000

Add Interest payable in 2018 (5% X 64,000) $3,200

less 1st instalment payment <u>-$12,800</u>

Balance in November 1, 2019 $54,400

Add Interest payable in 2019 (5% X 54,400) $2,720

less 1st instalment payment <u>-$12,800</u>

Balance in November 1, 2020 $44,320

to be sure of our computation we continue to the end of loan payment

Balance in November 1, 2020 $44,320

Add Interest payable in 2019 (5% X $44,320) $2,216

less 1st instalment payment <u>-$12,800</u>

Balance in November 1, 2021 $33,736

Add Interest payable in 2019 (5% X $33,736) $1,686.8

less 1st instalment payment <u>-$12,800</u>

Balance in November 1, 2022 $22,622.8

Add Interest payable in 2019 (5% X $22,622.8) $1,131.14

less 1st instalment payment <u>-$12,800</u>

Balance in November 1, 2023 $10,953.94

Add Interest payable in 2019 (5% X $10,953.94) $547.69

less 1st instalment payment <u>-$11,501.63</u>

Balance in November 1, 2024 $0

note that the last year instalment is not up to $12,800 because the interest rate of 5% is not the correct IRR

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Answer:

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Explanation:

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The dividend will be $4.015

<u>Explanation:</u>

The given data is: Initial dividend given is = $3 and growth rate given is = 6%

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The price of a large pizza decreased from $18.00 to $14.00. As a result, the quantity demanded of skateboards increased from 330

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Answer:

a. The percentage change in pizza prices is -25.00%.

b. The percentage change in pizza prices is 5.88%.

c. The cross elasticity of demand for pizza and skateboards is -23.53%.

We follow these steps to arrive at the answer.

<h3>a. Percentage change in price of pizza</h3>

The percentage change in price of pizza using the midpoint formula is:

$percentage change in price = ({\frac{P_{2} - P_{1}}{Average price})*100$

$Average Price = \frac{P_{2} + P_{1}}{2}$

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Substituting the values in the formula above we get,

$Average Price = \frac{14 + 18}{2}$

$Average Price = \frac{32}{2}$

$Average Price = 16$

$percentage change in price = (\frac{14 - 18}{16})* 100$

$percentage change in price = (\frac{-4}{16}) * 100$

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<h3>b. Percentage change in quantity demanded of skateboards</h3>

The percentage change in quantity of skateboards using the midpoint formula is:

$percentage change in quantity = (\frac{Q_{2} - Q_{1}}{Average Quantity})*100$

In this question, Q₁ is 330 and Q₂ is 350

Substituting the values in the formula above we get,

$Average quantity = \frac{Q_{2} + Q_{1}}{2}$

$Average quantity = \frac{350 + 330}{2}$

$Average quantity = 340$

$percentage change in quantity = (\frac{350 - 330}{340})*100$

$percentage change in quantity = (\frac{20}{340})*100$

$percentage change in quantity = 5.8823529$ %

<h3>c. Cross Elasticity of demand of skateboards and pizza</h3>

We calculate the cross elasticity of demand as follows:

$Cross Elasticity Demand = \frac{percentage change in quantity of skateboards}{percentage change in price of pizza}$

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ser-zykov [4K]

Answer:

Happy Trails

Income statement using variable costing

$ $

Sales 1,900,500

Less: Variable costs:

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Direct labour (27,000 units x $15) 405,000

Variable overhead (27,000 units x $3) <u>81,000 </u>

891,000

Less: Closing stock (8,000 units x $33) <u>264,000</u>

627,000

Add: Variable selling and administrative <u>133,000</u> <u>760,000 </u>

Contribution 1,140,500

Less: Fixed cost:

Fixed production cost (27,000 x $25) 675,000

Fixed selling and administrative expenses 300,000 <u>975,000 </u>

Net profit <u>165,500</u>

Profit reconciliation statement

Closing stock Net profit

$ $

Absorption costing 464,000 365,500

Less: Marginal costing <u>264,000</u> <u>165,500 </u>

Difference <u>200,000</u> <u> 200,000</u>

The difference of $200,000 in net profit is as a result of $200,000 difference in closing inventory.

Explanation:

In variable costing, variable costs are deducted from sales so as to obtain contribution margin. Net profit is the difference between contribution and fixed costs. Closing stock is the difference between production units and sales units. Closing stock is valued at marginal cost per unit in variable costing. Marginal cost per unit is the aggregate of all variable cost per unit.

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