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3 years ago

The loan amount (principal) is $50,000 and the annual interest paid is $5,500. What is the annual interest rate

Business

1 answer:

Mumz [18]3 years ago

5 0

Answer:

The interest rate is 11%

Explanation:

The loan amount = $50000

Interest amount = $5500

Since the annual interest amount and the principal amount is given so we have to find the interest rate by using the given information. Below is the formula to find the interest rate.

Let the interest rate = x

Principal × interest rate = Interest amount

$50000 × r = $5500

r = $5500 / $50000

r = 0.11 or 11%

The interest rate is 11%

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The entry to record the use of direct materials in production would include a A. credit to Finished Goods Inventory. B. debit to

earnstyle [38]

Answer:

B. debit to WIP inventory

Explanation:

The journal entry to record the usage of direct material in production is

Work in Process Inventory Dr.

To Raw Material Inventory

(Raw materials consumed recorded)

Raw material inventory is an asset. It's consumption should reduce it's balance. A debit increases an asset's balance while a credit reduces it's balance.

Work in process, like raw material is an inventory account i.e an asset. A debit increases their balance whereas a credit reduces it.

Here, raw materials i.e direct material have been issued for production, which would reduce their balance and increase the balance of work in process as finished goods are yet to be made.

3 0

4 years ago

In a marketing context, receivers are only those:_______. a. consumers who read, hear, or see a message about a product or servi

makvit [3.9K]

Answer: B. consumers who read, hear, or see the message sent by a source during the communication process.

Explanation: Marketing messages receivers as those consumer who will received the marketing messages either by reading it, hear it or see it through a source channel.

These receivers need not to interpret it with their beliefs or promote the message, the aim objective in marketing messages is that receivers gets the message.

3 0

3 years ago

When Suddenlink Communications offers its customers a discount when they order their television, Internet, and phone service all

pishuonlain [190]

Answer:

Price bundling

Explanation:

Price bundling -

It is the practice of selling a combined package of goods and services at a much lower price , than selling it individually , is known as price bunding .

The practice is beneficial as it increases the sale of goods and services .

For example ,

package of TV channels , new mobile phone with some data plans , getting something free on the purchase of a particular commodity , is an example of bundle pricing .

Hence , the example shown in the question , is about price bundling .

5 0

3 years ago

Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $

dezoksy [38]

Answer:

For first year, we have:

Cumulative preferred dividend per share = $0.30 per share

Common dividend per share = $0

For second year, we have:

Cumulative preferred dividend per share = $0.50 per share

Common dividend per share = $0

For third year, we have:

Cumulative preferred dividend per share = $1.60 per share

Common dividend per share = $0.73 per share

For fourth year, we have:

Cumulative preferred dividend per share = $0.80 per share

Common dividend per share = $2.48 per share

Explanation:

Cumulative preferred stock has a clause that mandates the corporation to pay all dividends, including those that were previously missed, before common shareholders can get their dividend payments.

Annual cumulative preferred dividend = 20,000 * $20 * 4% = $16,000

Therefore, we have:

For First Year

Distributed dividends = $6,000

Cumulative preferred dividend paid = Distributed dividends = $6,000

Common dividend paid = $0

Cumulative preferred dividend per share = Cumulative preferred dividend paid / Number of cumulative preferred shares outstanding = $6,000 / 20,000 = $0.30 per share

Common dividend per share = $0

Cumulative preferred dividend carried forward = Annual cumulative preferred dividend - Cumulative preferred dividend paid = $16,000 - $6,000 = $10,000

For Second Year

Distributed dividends = $10,000

Cumulative preferred dividend payable = Annual cumulative preferred dividend + Cumulative preferred dividend brought forward = $16,000 + $10,000 = $26,000

Cumulative preferred dividend paid = Distributed dividends = $10,000

Common dividend paid = $0

Cumulative preferred dividend per share = Cumulative preferred dividend paid / Number of cumulative preferred shares outstanding = $10,000 / 20,000 = $0.50 per share

Common dividend per share = $0

Cumulative preferred dividend carried forward = Cumulative preferred dividend payable - Cumulative preferred dividend paid = $26,000 - $10,000 = $16,000

For Third Year

Distributed dividends = $50,250

Cumulative preferred dividend paid = Annual cumulative preferred dividend + Cumulative preferred dividend brought forward = $16,000 + $16,000 = $32,000

Common dividend paid = Distributed dividends - Cumulative preferred dividend paid = $50,250 - $32,000 = $18,250

Cumulative preferred dividend per share = Cumulative preferred dividend paid / Number of cumulative preferred shares outstanding = $32,000 / 20,000 = $1.60 per share

Common dividend per share = Common dividend paid / Number of common shares outstanding = $18,250 / 25,000 = $0.73 per share

For Fourth Year

Distributed dividends = $78,000

Cumulative preferred dividend paid = Annual cumulative preferred dividend = $16,000

Common dividend paid = Distributed dividends - Cumulative preferred dividend paid = $78,000 - $16,000 = $62,000

Cumulative preferred dividend per share = Cumulative preferred dividend paid / Number of cumulative preferred shares outstanding = $16,000 / 20,000 = $0.80 per share

Common dividend per share = Common dividend paid / Number of common shares outstanding = $62,000 / 25,000 = $2.48 per share

3 0

3 years ago

Which of the following statements is CORRECT?a. Assume that two firms are both following generally accepted accounting principle

ludmilkaskok [199]

Answer:

Letter D is correct

Explanation:

d. The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the firm's future earnings and dividends, and the riskiness of those cash flows

7 0

4 years ago