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MrMuchimi
3 years ago
11

On December 31, Year 1, Jet Co. received two $10,000 notes receivable from customers in exchange for services rendered. On both

notes, interest is calculated on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Hart Corp., made under customary trade terms, is due in nine months and the note from Maxx, Inc. is due in five years. The market interest rate for similar notes on December 31, Year 1 was 8%. The compound interest factors to convert future values into present values at 8% follow:
Business
1 answer:
Rama09 [41]3 years ago
4 0

Answer:

Hart's note should be reported at $10,000 and Maxx's note should be reported at $7,820

Explanation:

Since Hart's note is a current note (due within one year) it should be reported at future value = $10,000

Marxx's note must be reported at present value:

present value =  future value x discount factor = {$10,000 [1 + (3% x 5)]} x 0.68

present value = $11,500 x 0.68 = $7,820

*we use simple interest to calculate the future value of Marxx's debt since Jet Co. doesn't charge compound interest

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An investor buys a property for $608,000 with a 25-year mortgage and monthly payments at 8.10% APR. After 18 months the investor
vesna_86 [32]

Answer:

$71,520

Explanation:

we must first determine the monthly payment:

monthly payment = present value / annuity factor

  • present value = $608,000
  • PV annuity factor, 0.675%, 300 periods = 128.46

monthly payment = $608,000 / 128.46 = $4,732.99

Then I prepared an amortization schedule using an excel spreadsheet. After the 18th payment, the principal balance is $596,005.

The investor will have $667,525 - $596,005 = $71,520

Download pdf
6 0
3 years ago
Balance of payments
NemiM [27]

Answer:

Option (D) is correct.

Explanation:

Balance of payment is defined as the difference between the total value of payments to the rest of the world and total value of receipts from the rest of the world over a period of time.

Balance of payments includes all the transactions take place between a nation with the rest of world.

Balance of trade is a sub-part of balance of payments which includes all the transactions of goods and services between the nations.

A country has either a negative balance of payment, balanced balance of payment or positive balance of payment.

8 0
3 years ago
Say that Thailand has a workforce of 35,709,487 people, each of whom earns an average salary of (equivalent USD) $8,630 annually
My name is Ann [436]

Answer:

Ans. c) Income tax rate must be 23%

Explanation:

Hi, the total income of Thailand´s workforce is:

Total Income=35,709,487 people*\frac{8,630}{person} = 308,172,872,810

Since Thailand´s government needs to raise $70,000,000,000, the tax rate has to be:

TaxRate=\frac{70,000,000,000}{308,172,872,810} =0.23

So Thailand´s tax rate must be: c. 23%

Best of luck.

4 0
3 years ago
Read 2 more answers
Which senior managers may assume a greater deal of transferability between domestic and international HRM practices?
astraxan [27]

Answer: d. All of the Above

Explanation:

All the above senior managers are more likely to apply more Domestic HRM practices to make them International HRM practices when they are put into a situation where International practices will be needed.

This is because they have been with the Domestic companies for much of their time and so know more about Domestic practices than international.

The first options refers to senior managers in firms with large domestic markets. To be a senior manager demands experience in the market they are in so it is not far fetched to say that they are more knowledgeable in domestic practices than international.

The second option speaks of managers with little International experience meaning they are more likely to engage in transferability between domestic and International practices.

The third option speaks of managers who built their careers on domestic experience. They will find it hard letting go of what has brought them such success so will more likely apply domestic practices on an international scale.

7 0
3 years ago
Widget Inc. manufactures widgets. The company has the capacity to produce​ 100,000 widgets per​ year, but it currently produces
gayaneshka [121]

Answer:

$62,100

Explanation:

Given that,

Sales price per unit = $ 40

Variable costs per​ unit:

Manufacturing = $ 23

Marketing and administrative = $ 8

Total fixed​ costs:

Manufacturing = $ 76,000  

Marketing and administrative = $24,000

Total incremental costs:

= Variable manufacturing + Variable marketing and administrative

= (6,900 × $23) + (6,900 × $8)

= $158,700 + $55,200

= $213,900

Incremental income:

= Incremental revenue - Total incremental costs

= (6,900 × $40) - $213,900

= $276,000 - $213,900

= $62,100

Therefore, the operating income increases by $62,100.

7 0
3 years ago
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