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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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During 2020, Dyrdek’s Skate Shop, Inc., had a cash flow to creditors of –$60,000 and the cash flow to stockholders for the year
sukhopar [10]

Answer:

$1,271,000

Explanation:

Calculation for What was the firm’s 2020 operating cash flow, or OCF

First step is to calculate the Cash flow from assets using this formula

Cash flow from assets=Cash flow to creditors + Cash flow to stockholders

Let plug in the formula

Cash flow from assets=–$60,000 + $70,000

Cash flow from assets = $10,000

Now let calculate the operating cash flow using this formula

Operating cash flow=Cash flow from assets-Reduction in Net working capital investment+Net capital spending

Let plug in the formula

Operating cash flow=$10,000-$59,000+$1,320,000

Operating cash flow=$1,271,000

Therefore the firm’s 2020 operating cash flow, or OCF will be $1,271,000

8 0
3 years ago
Which country has an absolute advantage for producing books
MAVERICK [17]

The correct answer is Singapore. For Plato!

6 0
3 years ago
The general ledger shows a balance of $ 66 comma 200 in the Merchandise Inventory account at the end of the period. The physical
madam [21]

Answer:

The adjusting entry includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200

Explanation:

Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately

The adjusting entry is calculated by subtracting the physical inventory account from the merchandise inventory account

Given

Physical Inventory Account= $63,000

Merchandise Inventory Account= $66200

Adjusting Entry = Merchandise Inventory Account - Physical Inventory Account

Adjusting Entry = $66,200 - $63,000

Adjusting Entry = $3200

6 0
3 years ago
What is in dynamic equilibrium ??????? I need it for my physical education exam​
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Answer:

A dynamic equilibrium is a chemical equilibrium between a forward reaction and the reverse reaction where the rate of the reactions are equal.

Explanation:

8 0
3 years ago
2. Which of the following is an example of the globalization of production? a. Pepsico sells the same brand of pringles in multi
Katen [24]

Answer: Ford manufactures a car in Michigan, but uses parts sourced from 27 countries

Explanation:

Globalization is the process by which businesses or organizations develop international influence or a situation whereby they start operating on international scale.

Globalization of production has to do with the producers of final finished goods relocating and moving to other parts of the world in order to source for the necessary raw materials or equipments needed to complete a product and assemble all of them at their facility.

Based on this definition, Ford manufactures a car in Michigan, but uses parts sourced from 27 countries is the right answer.

8 0
3 years ago
Read 2 more answers
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