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horrorfan [7]
3 years ago
7

Annapolis Company purchased a $1,000, 6%, 5-year bond at 97 and held it to maturity. The straight line method of amortization is

used for both premiums & discounts. What is the net cash received over the life of the bond investment? (all money received minus all money paid, round to nearest whole dollar)
Business
1 answer:
Roman55 [17]3 years ago
5 0

Answer: $330

Explanation:

The Net cash received is the Total Money received minus the Total money paid.

The total money paid is calculated as such,

= $1,000 x 97%( this a DISCOUNT bond meaning that it was sold for less than Par. This number signifies how much in percentage of Par it was purchased for)

= $970

$970 is the Total Amount paid.

The Total Amount Received would be,

= Principle on Maturity + Interest for 5 years

= 1,000 + 1,000(0.06) * 5 years

= $1,300

Net Cash Received is therefore,

= Total Amount Received - Total Amount Paid

= 1,300 - 970

= $330

$330 is the net cash received over the life of the bond investment.

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Suppose you have $10,000 in your checking account. You withdraw $500 cash from your account and hide it under your pillow for fu
trapecia [35]

Answer:

The Money supply will decrease by $4,500

Explanation:

What will be the maximum impact on money supply today as a result of your action is that the Money supply will decrease by $4,500.

Since we assumed that you have $10,000 in your account in which you withdraw $500 cash from your account and hide it under your pillow for future use, therefore based this scenario or actions carried by you it means that your bank have fewer or lesser funds available to make loans which means the decrease will tend to affect the money supply.

Hence, you can easily calculate the effect by using the simple money multiplier.

8 0
3 years ago
Suppose two economists are debating a tax reform bill. Both economists agree that the bill would increase the after-tax income o
valentina_108 [34]

Answer:

d) Differences in values.

4 0
2 years ago
Majestic Corporation manufactures wheel barrows and uses budgeted machine hours to allocate variable manufacturing overhead. The
andre [41]

Answer:

$409185

Explanation:

Given: Budgeted output units: 28,475 units

Budgeted machine-hours: 17,085 hours

Budgeted variable manufacturing overhead costs for 28,475 units: $358,785

Actual output units produced: 32,475 units

Actual machine-hours used: 15,000 hours

Actual variable manufacturing overhead costs: $384,060.

First, we will find Budgeted machine hour per unit produced.

Budgeted machine hour per unit produced=  \frac{Budgeted\ machine\ hour}{Budgeted\ units}

⇒Budgeted machine hour per unit produced= 17085\div 28475= 0.6

∴Budgeted machine hour per unit produced= 0.6

Budgeted machine hours allowed for 32475 units= 32475\times 0.6= 19485

Budgeted variable overhead rate per machine hour= \textrm {Budgeted variable manufacturing overhead costs}\div Budgeted\ machine\ hours

Budgeted variable overhead rate per machine hour= 358785\div 17085= \$ 21

Now, lets find out flexible budget amount.

Flexible budget amount= \textrm{Budgeted machine hours allowed}\times \textrm{Budgeted variable overhead rate}

Flexible budget amount= 19485\times \$ 21= \$ 409185

∴Flexible budget amount for variable manufacturing overhead= $409185

6 0
3 years ago
Key differences exist when an integrated Enterprise Resource Planning system (ERP) replaces an existing AIS or legacy system. Fo
Olin [163]

Answer:

Inventory records

Explanation:

Key differences exist when an integrated Enterprise Resource Planning system (ERP) replaces an existing AIS or legacy system. For example, inventory records are more accurate and timely, enabling sales order entry staff to provide customers more accurate information about delivery dates.

Systems Enterprise Resource Planning (ERP) information systems that integrate applications to manage all departments and functions of as production, sales, purchasing, logistics, accounting, project management, and inventory control warehouses, orders, payroll, etc.

Legacy systems can be difficult to integrate in a newer system because of their unique structure.

7 0
3 years ago
A subsidiary can pay only 50% of its profits to its parent company unless the subsidiary's accumulated retained earnings have be
Aleks [24]

Answer:

False

Explanation:

There is no restriction that prohibits the payment of dividends from a subsidiary to a parent company. The parent company has to report the subsidiary's profit as taxable income, so the subsidiary must pay its dividends to the parent company. To avoid multiple layers of taxation, parent companies can use the dividends-received deduction to reduce their taxes on the dividends received. Then the parent company must itself distribute dividends to its shareholders.

7 0
3 years ago
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