Answer:
a. The price of the 4-year bond if its yield increases to 7.40%: $966.43
b. The price of the 8-year bond if its yield increases to 7.40%: $941.20
Explanation:
The price of the bond will be equal to the present value discounted at yield to maturity of all the cash flows generating by the bonds including annual coupon payments and face value repayment at the maturity.
a.
4-year bond has the cash flow as followed: 4 annual coupon repayments, $64 each and face value repayment of 1,000 at maturity.
=> Price of the bond = (64/0.074) x [ 1 - 1.074^-4 ] + 1,000/1.074^4 = $966.43
b.
8-year bond has the cash flow as followed: 8 annual coupon repayments, $64 each and face value repayment of 1,000 at maturity.
=> Price of the bond = (64/0.074) x [ 1 - 1.074^-8 ] + 1,000/1.074^8 = $941.20
Answer: The correct answer is empathy!
Explanation:
She put herself in the customers shoes and voiced that she was understanding. She was also patient but they emphasized how considerate she was in the example, so empathy is the answer ;)
Answer:
$197,000
Explanation:
Calculation for what were the firm's budgeted payments in March
Month Purchase Payment in month
January 200,000* 10% =20,000
February 180,000* 60%= 108,000
March 230,000 *30%= 69,000
Firm's budgeted payments in March $197,000
(20,000+108,000+69,000)
Therefore the firm's budgeted payments in March is $197,000
Answer:
The Company
The Impact of Each Transaction on the Accounting Equation:
1. Assets (Cash + $7,000) = Liabilities + Equity (Retained Earnings + $7,000)
2. Assets (Accounts Receivable + $5,500) = Liabilities + Equity (Retained Earnings + $5,500)
3. Assets (Cash -$2,150) = Liabilities + Equity (Retained Earnings -$2,150)
4. Assets (Cash +$2,750 Accounts Receivable -$2,750) = Liabilities + Equity
5. Assets (Cash -$1,000) = Liabilities + Equity (Retained Earnings -$1,000)
Explanation:
The Company applies the accounting equation, which states that Assets = Liabilities + Equity. With each transaction, the accounting equation is demonstrated as shown above. This means that each transaction that is properly recorded affects the accounting equation in two ways. Note that the accounting equation is the basis for the double-entry system of financial accounting.
Answer:
a. FIFO - Inventory Used: $39900 Remaining Inventory: $14700
b. LIFO - Inventory Used: $41700 Remaining Inventory: $12900
c. Weighted Average Cost - Inventory Used: $40950 Remaining Inventory: $13650
Explanation:
Jan 01. Beginning inventory = 40 x $165 = $6600
Aug 13. Purchases 200 x $180 = $36000
Nov 30. Purchases 60 x $200 = $12000
Ending inventory = 75 units
Inventory Used = 300 – 75 = 225
(a) First-In-First-Out (FIFO)
This is the method where the inventory first received is the one that is used first. Common method when the inventory is perishable and would be wasted if left too long.
Inventory Used:
40 x $165 = $6600
185 x $180 = $33300
Total = $39900
Remaining Inventory:
15 x $180 = $2700
60 x $200 = $12000
Total = $14700
(b) Last-In-First-Out
Method whereby the inventory received latest is used first. Common in goods that are bulky. the inventory on top (latest purchased) is used first.
Inventory Used:
60 x $200 = $12000
165 x $180 = $29700
Total = $41700
Remaining Inventory:
40 x $165 = $6600
35 x $180 = $6300
Total = $12900
(c) Weighted Average Cost
This is whereby you divide the cost of goods sold by the number of units available for sale.
54,600 / 300 = $182
Inventory Used: 225 x $182 = $40950
Remaining inventory = 75 x $182 = $13650