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3 years ago

What is the effective rate of a $25,000 interest-bearing simple discount 10%, 90-day note?

1 answer:

5 0

The effective interest rate on a discounted note is
.. 1/(1-r) = 1/0.9 ≈ 11.11%

_____
The amount and time have nothing to do with it for simple interest.

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For the past year, Kayla, Inc., has sales of $46,382, interest expense of $3,854, cost of goods sold of $16,659, selling and adm

grandymaker [24]

Answer:

$15,266

Explanation:

Sales $46,382

Less: Cost of goods sold $16,659

Gross profit $29,723

Less: Selling & administrative expense $11,766

Less: Depreciation $6,415

Earnings before interest and tax (EBIT) $11,542

Less: Interest expenses $3,854

Earnings before tax (EBT) $7,688

Less: Tax expenses (7688*35%) $2,691

Earnings after tax $4,997

Operating cash flow = EBIT + Depreciation expenses - Tax expenses

Operating cash flow = $11,542 + $6,415 - $2,691

Operating cash flow = $15,266

3 0

3 years ago

A major conflict of interest between top executives and owners, is that top executives wish to diversify the firm in order to ,

lutik1710 [3]

For the answer to the question above, I think the answer is because they want " to reduce their employment risk; increase the company's value" that's why they want to diversify
I hope my answer helped you. Have a nice day!

6 0

3 years ago

If a country's economy is to sustain long-run economic growth, the business environment must be conducive to the consistent prod

Aliun [14]

Answer:

True

Explanation:

One of the significant advantages of development is its commitment to monetary development. Basically, advancement can prompt higher profitability. As profitability rises more commodities and are delivered which improves the economic growth. Financial development just originates from expanding quality and amount of the fundamentals of generation, which comprise of four wide types: land, labour, capital, and entrepreneurship. The components of generation are the assets utilised in producing goods and services.

5 0

3 years ago

An unexpected frost in the orange groves of California would causea. a decrease in the supply of orange juice, increasing the eq

rodikova [14]

Answer:

The correct answer is option a.

Explanation:

Unfavorable weather in the orange groves of California will adversely affect the production of oranges. This will cause a reduction in the supply of oranges. As a result, the price of oranges will decline.

Now, these oranges are used as input in making orange juice. The increase in input price will lead to an increase in the cost of production. This will further lead to a decrease in the supply of orange juice. Consequently, the equilibrium price of orange juice will increase.

8 0

4 years ago

At the beginning of 2018, Midway Hardware has an inventory of $310,000. Because sales growth was strong during 2018, the owner w

nalin [4]

Answer:

$1,625,000

Explanation:

For computing the purchase amount first we have to determine the cost of goods sold which is shown below;

As we know that

Cost of goods sold = Sales revenue - gross profit

= $2,100,000 - $2,100,000 × 25%

= $2,100,000 - $525,000

= $1,575,000

Now the purchase amount is

Cost of goods sold = Beginning inventory + purchase - ending inventory

$1,575,000 = $310,000 + purchase - $360,000

So, the purchase amount is $1,625,000

4 0

3 years ago