What are goods or services state taxes provides

Three-year Treasury securities currently yield 6%, while 4-year Treasury securities currently yield 6.5%. Assume that the expect

Reptile [31]

Answer:

The correct answer is 8%.

Explanation:

According to the scenario, the computation of the given data are as follows:

Let 1 year Treasury securities = t

So, Four year Treasury = [(Yield of 3 years Treasury × No. of year) + ( t × No. of year)] ÷ Number of year

So, by putting the value, we get

6.5% = [(6% × 3) + ( t × 1)] ÷ 4

[(6% × 3) + t] = 6.5% ×4

t = 8%

So, the rate on 1-year Treasury securities three years from now is 8%.

4 0

3 years ago

Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 14,000 Selling price per unit $ 16

DanielleElmas [232]

Answer:

Results are below.

Explanation:

First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 12,000 + 87,000 - 23,000

COGS= $76,000

Traditional format income statement:

Sales= 14,000*16= 224,000

COGS= (76,000)

Gross profit= 148,000

Total selling expense= (20,000 + 14,000*1)= (34,000)

Total administrative expense= (13,000 + 14,000*1)= (27,000)

Net operating income= 87,000

Contribution format income statement:

Sales= 14,000*16= 224,000

Total variable cost= (76,000 + 14,000 + 14,000)= (104,000)

Contribution margin= 120,000

Total fixed selling expense= (20,000)

Total fixed administrative expense= (13,000)

Net operating income= 87,000

5 0

3 years ago

The best way to achieve significant increases in interest accrual in a savings account is through

loris [4]

Compounding. If you compound your interest, then your interest rate will go up, and you get more interest.

6 0

3 years ago

Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $59 to buy from farmers and $2

snow_lady [41]

Answer:

Financial disadvantage from further processing = $(9)

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.

Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .

$

Sales revenue after crushing 55

Sales revenue at the split-off point 81

Additional sales revenue 26

Further processing cost (35)

Net income after further processing (9)

Financial disadvantage from further processing = $(9)

Kindly note that the allocated joint costs( cost of sugar and crushing) are irrelevant. This implies that whether or not the intermediate products are processed further the joint costs are irrelevant to the decision to process the beet juice further.

4 0

3 years ago

A new aerated sewage lagoon is required in a small town. Earlier this year, one was built on a similar site in an adjacent city

zysi [14]

Answer:

value of new lagoon will be $4.05 million

Explanation:

We have given cost = $2.3 million

It is given that new lagoon will be 65% larger

So size of lagoon will be 1+0.65 =1.65

Sizing exponent for this project is given 1.13

So x = 1.13

New lagoon is given by $New\ lagoon=cost\times size^x$

So new lagoon will be equal to $=2.3\times 1.65^{1.13}=2.3\times 1.76=4.05$ $ million

So value of new lagoon will be $4.05 million

6 0

2 years ago