Answer:
effective interest rate
Explanation:
The effective interest rate is the rate that an investor actually earns from investing in a bond. The effective interest rate is usually different than the interest rate stated on a bond (e.g. coupon rate).
It is also called market interest rate because bonds are sold in secondary markets at a different price than face value (usually bonds are sold at a premium or at a discount). That price at which the bonds are sold determine if the effective interest rate will be higher or lower than the stated interest rate of the bond.
Answer:
The answer is $160,000
Explanation:
Please refer to the attached file
C. Distribution of a small percentage of profits to shareholders.
Answer: $1.3 million
Explanation:
Based on the information given in the question, if this change delayed check clearing by 1 week, then the annual savings that were realized will be:
= Weekly payroll × Cost of short term funds
= $10 million × 13%
= $10 million × 0.13
= $1.3 million
Annual savings realized is $1.3 million.
Answer:
$392,400
Explanation:
The computation of correct balance for ending inventory on December 31 is shown below:-
Correct balance for ending inventory = Ending inventory – Office supplies
= $416,000 - $23,600
= $392,400
Therefore for computing the correct balance for ending inventory we simply deduct the office supplies from ending inventory and ignore all other amounts as they are not relevant.
