Skidmore Music Company had the following transactions in March:
1 answer:
Answer: Check attachment
Explanation:
A cash basis income statement is simply referred to as an income statement which contains revenues and expenditures for the company whereby cash has either being received or paid by the company.
For accrual basis income statement, revenue and expenditures are recorded when they're either earned or made.
Check the attachment for more analysis.
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Answer:
4.82 percent
Explanation:
We use the Rate formula in this question that is shown in the attachment
The NPER is the period of time.
Provided that,
Present value = $1,000 × 101% = $1,010
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 7.5% ÷ 2 = $37.5
NPER = 30 years - 6 years = 24 year × 2 = 48 years
The formula is presented below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 7.41%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.41% × ( 1 - 0.35)
= 4.82%
