Answer:
b. Financial statements are frequently the basis used for performance evaluations.
Explanation:
The financial statements are the accounting reports of an organization, through these documents it is possible to analyze what is the financial situation of a company in the internal and external environment, what are its greatest strengths and weaknesses.
They are instruments for evaluating organizational performance because they provide essential information about the general accounting situation of a company, which ensures greater reliability for a manager to make a decision directed to correct a problem or strategic implementation to achieve a certain result. It also allows stakeholders to analyze essential data and information when deciding to invest or do business with a particular company.
Answer:
Present value (PV) = $100,000
Number of years (n) = 12 years
Future value (FV) = $240,000
FV = PV(1 + r)n
$240,000 = $100,000(1 + r)12
<u>$240,000</u> = (1 + r)12
$100,000
2.4 = (1 + r)12
12√2.4 = 1 + r
1.0757 - 1 = r
0.0757 = r
r = 0.0757 = 7.57% = 8%
Explanation:
In this case, we need to apply the formula for future value of a lump sum (single investment). The present value, future value and number of years have been provided in the question with the exception of interest rate. Thus, interest rate becomes the subject of the formula,which implies that we will solve for interest rate.
Answer:
Explanation:
The journal entry is shown below:
On July 1
Prepaid Insurance A/c Dr $10,480
To Cash A/c $10,480
(Being prepaid insurance is paid)
On December 31
Insurance expense A/c Dr $2,620
To Prepaid Insurance $2,620
(Being prepaid insurance is adjusted)
The computation is shown below:
= $10,480 ÷ 2 years × 6 months ÷ 12 months
= $2,620
Answer:
The price of King Noodles' bonds is $970.66
Explanation:
Coupon payment = 1000 x 7.5% = $75 per year = 75/4 = 18.75 per quarter
Number of periods = n = 8 years x 4 quarter each year = 32 quarter
Yield to maturity = 8% per year = 8% / 4 = 2% per quarter
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = $18.75 x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$18.75 x [ ( 1 - ( 1 + 2% )^-32 ) / 2% ] + [ $1,000 / ( 1 + 2% )^32 ]
Price of the Bond = $18.75 x [ ( 1 - ( 1.02 )^-32 ) / 0.02 ] + [ $1,000 / ( 1.02 )^32 ]
Price of the Bond = $440.03 + $530.63
Price of the Bond = $970.66
B. demand and supply both decrease, leaving price essentially unchanged.
