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Leya [2.2K]
3 years ago
9

The Rasputin Brewery is considering using a public warehouse loan as part of its​ short-term financing. The firm will require a

loan of $ 500 comma 000. Interest on the loan will be 10.0 % ​(APR, annual​ compounding) to be paid at the end of the year. The warehouse charges 1.00 % of the face value of the​ loan, payable at the beginning of the year. What is the effective annual rate​ (EAR) of this warehousing​ arrangement?

Business
1 answer:
marusya05 [52]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the image below.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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Retained earnings $52,000 Accounts Payable $15,000 Supplies 37,000 Common stock 25,000 Equipment 72,000 Note payable (due in 18
Naddika [18.5K]

Answer:

$22,000

Explanation:

Current liabilities are debts that a company must pay within a twelve month period.

This company's current liabilities are:

  • Accounts payable  $15,000
  • Interest payable  $7,000

Total current liabilities = $15,000 + $7,000 = $22,000

Since the note payable is due in 18 months, it is not considered a current liability.  

8 0
3 years ago
Which of the following airlines does NOT employ a low-cost provider strategy? Airline 1 offers low prices on short-distance flig
Rainbow [258]

Answer:

Airline 2 offers low prices on long-distance flights and has long service times for its planes between flights.

Explanation:

Low Cost providing strategy is the strategy in which the services are provided at a lower cost and but the quality of service is acceptable, and is in fact good.

Where the price along with quality is decreased the low cost strategy is not followed.

As in the case of Airline 2 the cost is decreased for passengers and at the same time the service is also decreased.

As there is a long gap of time in between the flights.

3 0
3 years ago
What kind of risks can exist in a business?
andriy [413]
So many! Failing is the main one and losing everything
7 0
3 years ago
Read 2 more answers
An increase in the real money supply can result from ________.
slava [35]

Answer:

A change in the real money supply can result either from change in the nominal money supply through Federal Reserve policy ( holding the price level constant) or from a change in the price level( holding the nominal money supply constant).The change in the nominal money supply causes a shift of the aggregate demand curve, whereas a change in the price level causes a movement along the aggregate demand curve.

Explanation:

8 0
3 years ago
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Tweedie Company issues 11,500 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2014. The stock has a fair value
DENIUS [597]

Answer:

The journal entries are as follows:

(a) (i) on January 1, 2014

Unearned compensation A/c Dr. $5,75,000

       To Common stock (11,500 × 10)                $115,000                              

       To Paid-in Capital in Excess of Par - Common Stock $4,60,000

(ii) On December 31, 2015

compensation expenses A/c(575,000 × 1/5) Dr. $1,15,000

       To Unearned compensation                $1,15,000

(To record the restricted stock)

(b) On July 25, 2018,

common stock A/c Dr. $1,15,000

Paid-in Capital in Excess of Par - Common Stock A/c Dr. $4,60,000

     To compensation expenses  $4,60,000

     To unearned compensation   $1,15,000

(To record the forfeiture)

8 0
3 years ago
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