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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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Answer and Explanation:

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So that it is the right answer.

5 0
3 years ago
Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2013. Its inventory at that date w
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Answer: $603,500

Explanation:

Ending inventory in 2014;

= Ending inventory balance 2013 + ((\frac{Inventory current price 2014}{Price index 2014} * 100) - ending inventory 2013)) * Price index 2014/100

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3 0
2 years ago
Each of the following statements describes how the political and legal environment encourages productivity EXCEPT: A. Well-defin
natita [175]

Answer:

C. Price changes in markets provide suppliers incentives to supply goods to markets.

Explanation:

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With increase the retailers expect to earn more, and with decrease the retailers expect to earn less.

This is a normal market condition and scenario, this does not link to any kind of political or legal environment, although the change in price might be due to political or legal policies, but the increase or decrease in productivity, is not related to any political or legal influence.

6 0
3 years ago
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The foreign policy actually used are largely dependent on a nation's foreign policy agenda.


1) Foreign Aid

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I hope that's help :0

8 0
3 years ago
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At a higher wage, people will be able to work for shorter hours as such a job will still give them the same amount of money as working longer in lower paying jobs.

After they get a certain level of payment from the higher paying job, they will then substitute the remaining hours for leisure. This creates a backward-bending curve because labor hours are reducing past a certain level of wages.

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