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jekas [21]
3 years ago
13

Sterling Inc. has two long-term notes outstanding. One is a five-year note for $50,000. An equal amount of principal must be rep

aid each year of the loan. The other is a seven-year note for $210,000. In the next calendar year, the company will pay $21,000 of the principal. What is total amount of the notes that will be reported as current liabilities on its balance sheet
Business
1 answer:
kumpel [21]3 years ago
3 0

Answer:

The question is missing the below options:

a.$40,000

b.$71,000

c.$229,000

d.$31,000

$31,000 ,option D is the correct answer as explained below.

Explanation:

The first long-term loan notes provides that an equal amount of principal is repayable every year,which implies that the amount of principal amount repayable is loan value divided by 5 years.

In other words, the principal amount repayable on the first loan notes is $10,000 ($50,000/5 years) per year.

The total amount repayable next year on both loan notes that should be classified as current liabilities this year is $31, 000 ($21000+$10000), since the principal repayment on this second loan notes is $21000

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The person may not have options due to age and distance and disabilities.

Explanation

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Banks use a large percentage of their checkable deposits for the purpose of __________.
KiRa [710]

Answer:

B. giving loans

Explanation:

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The percentage of reserve requirement ranges from 3% to 10%. It would hardly get to 20%. The rest other bigger percentage ( over 80%) is available to be used to create loans.

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You want to invest $37,000 today to accumulate $41,650 to buy a car. If you can invest at an interest rate of 3% compounded annu
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Answer:

4 years

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It takes 4 years to accumulate the required amount.

5 0
3 years ago
In each of the following scenarios, explain and categorize the cost of inflation.a) Because inflation has risen, the J.Crew clot
Kazeer [188]

Answer:

Consider the following explanation

Explanation:

a) J. Crew is issuing its catalogs monthly in response to inflation. This will incur cost and it is known as 'Menu Cost'.

b) Grandpa has bought annuity which has promised $10,000 a year for the rest of his life. However, higher than expected inflation means grandpa has lesser purchasing power. This is loss of purchasing power and also 'redistribution cost'. In higher inflation borrower tends to get benefit. Here insurance company is at the gain.

c) Maria is witnessing loss of purchasing power because of hyper inflation. In such scenario, cost keeps rising and product's price could be higher a few hours later. This was witnessed in Germany as well as in Zimbabwe. People run to the stores as soon as they get cash or salary. It is known as 'shoe leather cost'. People make frequent trips to banks or stores but do not keep cash in fear of losing value.

d) Gita actually earned only 5% on her portfolio but as her income is in taxable bracket so she has to pay 20% tax. Her income from portfolio not even compensated inflation. This is a redistribution cost and also known as fiscal drag. More people fall into bracket because higher nominal income but real income is neglected which makes people worse off.

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3 years ago
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Oxana [17]

Answer:

The correct answer is D

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