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RoseWind [281]
3 years ago
11

On May 1, Year 1, Benz’s Sandwich Shop loaned $16,000 to Mark Henry for one year at 8 percent interest. Required a. What is Benz

’s interest income for Year 1?b. What is Benz’s total amount of receivables at December 31, Year 1?c. How will the loan and interest be reported on Benz’s Year 1 statement of cash flows?d. What is Benz’s interest income for Year 2?e. What is the total amount of cash that Benz’s will collect in Year 2 from Mark Henry?f. How will the loan and interest be reported on Benz’s Year 2 statement of cash flows?g. What is the total amount of interest that Benz’s earned on the loan to Mark Henry? (For all requirements, round your answers to the nearest dollar amount.)
Business
1 answer:
DaniilM [7]3 years ago
8 0

Explanation:

The computations are shown below:

a. Interest income for the year 1

= $16,000 × 8% × 8 months ÷ 12 months

= $853

b. Total amount of receivable

= Loan amount + interest income

= $16,000 + $853

= $16,853

c. The loan amount would be reported under the investing activities as a negative sign i.e $16,000 and the interest income is not shown anywhere in the cash flow statement

d.  Interest income for the year 2

= $16,000 × 8% × 4 months ÷ 12 months

= $427

e. Total amount of cash collection in the year 2

= Loan amount + interest income for year 1 + interest income for year 2

= $16,000 + $853 + $427

= $17,280

f. The loan amount would be reported under the investing activities as a positive sign i.e $16,000 and the cash collection i.e $17,280 is shown under the cash flow provided by operating activities

g. Total amount of interest earned is

= $427 + $853

= $1,280

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bezimeni [28]

Answer:

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2. $300,000

3. $1,680 Unfavorable

Explanation:

1. The computation of the standard hours allowed for actual production is shown below:

= Actual production × Standard hours allowed per unit

= 15,000 units × 4 hours

= 60,000 hours

2. The computation of the applied fixed overhead is shown below:

= Standard hours allowed for actual production × Standard fixed overhead rate

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3. The computation of the total fixed overhead variance is shown below:

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Explanation:

Economic growth is the increase in the total output of goods and services in the economy.

Gross domestic product (GDP) is the monetary value of the market value of all final goods and services produced in a country at a specific time period. The four components of the gross domestic product (GDP) are personal consumption, business investment, government spending, and net exports (difference between export and import)

GDP = C + I + G + (X - M).

where C = consumption

I = investment

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The items not included in the are

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2. Sales of used goods.

3. Black market i.e. the illegal sales of goods and services.

4. Intermediate goods.

Nominal GDP is measure of the monetary value of all the final goods and services that are produced within a country at current market prices while Real GDP is the measure of a country’s output using the value of its goods and services, investments, government spending and exports. Real GDP is the nominal GDP and adjustment in inflation or deflation.

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vlada-n [284]

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