Answer:
Explanation:
The yield to maturity on a bond is the same thing as the required return. The YTM and the coupon rate is a totally different thing. The coupon rate is the interest which is computed on the principal amount whereas yield to maturity is a rate which is held at the maturity and its rate is also generated in maturity date.
So, in the given case, the Coupon rate is 10% and the YTM is 8% as it reflects the maturity i.e two years from now
If the company calls these bonds at a price of $201,000, the gain or loss on the retirement would be $2,000.
Here, $203,000 is the net carrying value of the liability - $201,000 is the price the bonds were called at and the price that Chang industries paid to retire the bonds and the associated liability.
Therefore, $203,000 - $201,000 = $2,000
The gain or loss on the retirement would be $2,000.
A bond retirement occurs when an organization repurchases bonds that it had previously issued to investors. Thus, the issuer retires the bonds at the scheduled maturity date of the instruments.
Hence, bond retirement involves the cashing out of a bond that has been invested in.
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Answer:
Results are below.
Explanation:
Giving the following information:
Break-even point in sales= $960,000
Actual sales= $1,200,000
<u>To calculate the margin of safety in dollars and as a percentage, we need to use the following formulas:</u>
Margin of safety= (current sales level - break-even point)
Margin of safety= (1,200,000 - 960,000)
Margin of safety= $240,000
Margin of safety ratio= (current sales level - break-even
point)/current sales level
Margin of safety ratio= 240,000 / 1,200,000
Margin of safety ratio= 0.2 = 20%
Answer:
Income statement using absorption costing.
Sales $756,000
Less Cost of Goods Sold
Opening Stock $0
Total Manufacturing Costs $655,000
Less Closing Stock ($104,800) ($550,200)
Gross Profit $205,800
Less Operating Expenses
Selling and administrative expenses:
Variable $35,000
Fixed $10,500 ($45,500)
Net Income $160,300
Explanation:
The Product cost is the to total of all manufacturing costs.
Answer:
a. True
Explanation:
An informational report is a type of report in business that simply provides facts and data about a particular situation without supporting these details with an in-depth analysis and recommendation for improvement. An analytical report however has three of these characteristics. It provides facts and data, analyzes them, and makes the needed recommendation. The statement of purpose in an informational report is simple when compared to the statement of purpose in an analytical report which is more comprehensive. An infinitive phrase begins both reports.
For example, if in an organization, an employee named Adams John is told to prepare a report that evaluates the effect of new government regulations in the importation of parts needed for production, an informational statement of purpose would go thus:
To identify the effects of new governmental regulations on the importation of parts.
An analytical statement of purpose would go thus:
To identify the new governmental regulations limiting the importation of parts, analyze the effects of these regulations, and provide recommendations on better ways to adapt to the current situation.
The above shows a more detailed analytical statement of purpose.
