All categories

3 years ago

Interest is the cost of borrowing. a. True b. False

1 answer:

8 0

Interest is defined as the amount paid regularly at an agreed rate for the use of money lent. Depending on the agreement of both parties, interest is for the delayed repayment of a debt. So, to answer the question above: True.

You might be interested in

Alpha Co. is paying a $.64 per share dividend today. There are 158,000 shares outstanding with a par value of $1 per share. As a

muminat

Answer:

Dividend paid = $0.64 x 158,000 = $101,120. The dividend paid reduces retained earnings by $101,120.

The correct answer is C

Explanation:

Dividend is paid out of profit after tax. This reduces the retained earnings of the company since dividend involves outflow of cash.

3 0

2 years ago

If payments were made at the rate of $1183 per second, how many years would it take to pay off the debt, assuming that no intere

Neko [114]

Answer: 402 years

Explanation:

Debt is $15,000,000,000,000

Payment per second $1,183

Time taken to pay off = 15,000,000,000,000/1,183

= 12,679,628,064 seconds

Seconds in a year = 60 secs * 60 mins * 24 hours * 365 days

= 31,536,000‬ secs

Time taken in years = 12,679,628,064/ 31,536,000

= 402 years

6 0

2 years ago

Question 5 of 10

kogti [31]

Answer:

the first option is the correct one

8 0

2 years ago

Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's cash flow from operating activities for 201

Helen [10]

The firm's cash flow from operating activities for 2012 was D. $618000.

<h3>What Is the Definition of Cash Flow From Operating Activities (CFO)?</h3>

The cash flow from operating activities formula shows you whether or not your core business activities are successful. If your company generates a positive cash flow from operations, you may be able to fund expansion projects, launch new products, pay dividends, reduce debt, and so on.

The amount of money a company earns from ongoing, regular business activities such as manufacturing and selling goods or providing a service to customers is referred to as cash flow from operating activities (CFO).

It should be noted that the cash flow from operating activities is calculated thus:

= Operating Income + Depreciation – Taxes + Change in Working Capital

= $500000 + $140000 - $50000 + $28000

= $618000.

Learn more about cash flow on:

brainly.com/question/735261

#SPJ1

Flathead Lake Manufacturing Company has the following in it's financial statement:

Operating Income = $500000 Depreciation = $140000

Taxes = $50000

Change in Working Capital = $28000

The firm's cash flow from operating activities for 2012 was _______. $749,000$719,000$744,000$618,000

7 0

9 months ago

Mary traded furniture used in her business to a furniture dealer for some new furniture. Mary originally purchased the furniture

likoan [24]

Answer:

$24,000

Explanation:

From the time an asset is acquired until the time it is sold, an asset experiences a number of events which causes an increase or decrease of its total value. Th adjusted basis of a given asset, takes the base price of an asset and adjusts it for changes in value reflecting enhancements and or depreciation. For instance, a given asset purchased for $100, depreciates by $10 and has an improvement of $60 would have an adjusted basis of $100 - $10 + $60 = $150.

Now when Mary bought her furniture, the adjusted basis was $20,000. At the time of exchange, the fair market value of the furniture is $4,000 whereas Mary also gave $4,000 to the dealer in the transaction. This $4,000 changes the value ans is added to the previous adjusted basis of $20,000.

Mary's adjusted basis in the new furniture after the exchange is:

= $4,000 + $20,000

= $24,000

8 0

2 years ago