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3 years ago

Newark Company has provided the following information:

Business

1 answer:

djverab [1.8K]3 years ago

7 0

Answer:

$1829000.

Explanation:

Given: Cash sales, $540,000.

Credit sales, $1,440,000.

Sales returns and allowances, $99,000.

Sales discounts, $52,000

Now, computing net sales of Newark.

Net sales= $Cash\ sales+ Credit\ sales- Sales\ discount- Sales\ return$

Net sales= $540000+ 1440000- 99000-52000$

⇒ Net sales= $1980000- 151000$

∴ Net sales= $\$ 1829000$

Hence, Newark´s net sales is $1829000.

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Stech Co. is issuing $9 million 12% bonds in a private placement on July 1, 2017. Each $1,000 bond pays interest semi-annually o

STALIN [3.7K]

Answer:

Expected selling price =$ 1,271.81

Explanation:

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.

These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

coupon rate - 12%, yield - 8%, years to maturity- 10 years

Semi-annual coupon rate = 12%/2 = 6%

Semi-annual Interest payment =( 6%×$1000)= $60

Semi annual yield = 8%/2 = 4%

PV of interest payment

= A ×(1- (1+r)^(-n))/r

A- interest payment, r- yield - 4%, n- no of periods- 2 × 10 = 20periods

= 60× (1-(1.04)^(-10×2))/0.04)

= 60× 13.59032634

=$815.41

Step 2

PV of redemption value (RV)

PV = RV × (1+r)^(-n)

RV - redemption value- $1000, n- 2×10 r- 4%

= 1,000 × (1+0.04)^(-2×10)

= $456.38

Step 3

Price of bond = PV of interest payment + PV of RV

= $815.41 + $456.38

= $ 1,271.81

Expected selling price =$ 1,271.81

5 0

3 years ago

1. The Cozy Company manufactures slippers and sells them at $ 10 a pair. Variable manufacturing cost is $ 5.75 a pair, and allo

nadya68 [22]

Answer:

(b) $ 43,750 increase

Explanation:

The computation of the effect on operating income is shown below:

= Contribution margin per unit × special order

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $7.50 - $5.75

= $1.75

And, the special order is of 25,000 pairs

Now put these values to the above formula

So, the value would equal to

= $1.75 × 25,000 pairs

= $43,750

The fixed cost would remain unchanged.

6 0

3 years ago

A company implementing a(n) ____ strategy would demonstrate the greatest willingness on the part of the company to meet or excee

Allushta [10]

The answer would be : Proactive strategy

Proactive strategy is carried out to prevent the occurrence of challenging behavior from the society towards the company. Company with proactive strategy tend to do a lot of Corporate social Responsibilities to win the crowd's favor.

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3 years ago

Issuing a pre-approval letter means that borrowers have completed the loan application and provided their debt, total income, an

stiks02 [169]

Answer: underwriter

Explanation:

The loan underwriter is responsible for verifying the information provided by a borrower. They will then use this information to assess the risk that the lender is going to incur if they lend money to the borrower.

When this is done, a pre-approval letter is issued which shows the amount that the lender is willing to lend to the borrower.

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3 years ago

Expand Your Critical Thinking 24-2 (Part Level Submission)Ana Carillo and Associates is a medium-sized company located near a la

Natasha_Volkova [10]

Answer:

total budgeted costs = $141,570

budgeted production = 1,000 units

standard rate = $141,570 / 1,000 = $141.57 per unit

total actual costs = $135,810

actual production = 850 units

actual rate = $135,810 / 850 = $159.78 per unit

total fixed overhead variance = actual overhead costs - budgeted overhead costs = $135,810 - $141,570 = -$5,760 favorable. The actual overhead expense was lower than budgeted.
controllable variance = (actual rate - standard rate) x actual units = ($159.78 - $141.57) x 850 units = $15,478.50 unfavorable. The actual overhead rate was higher than the standard rate, that is why the variance is unfavorable (more money was spent than budgeted).
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5 0

3 years ago