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3 years ago

Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.

Business

1 answer:

Alenkinab [10]3 years ago

4 0

Answer: Check attachment

Explanation:

Note that, in the attachment, the total expense was calculated as the addition of the selling expense and the general and administrative expenses. This will be:

= $49700 + $34110

= $83810

Operating income was calculated as:

= Gross profit - Total expenses

= $107200 - $83810

= $23390

Check the attachment for further details.

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The Fed's control over interest rates, quantitative easing, and direct lending to financial institutions are some of the tools o

AlexFokin [52]

Answer:

Monetary Policy

Explanation:

The Fed is the shortened term for the Federal Reserve or the United State's Central Bank and Tools of Monetary Policy are communications, actions and tools employed by the Fed to regulate the activities of the economy by regulating the activities of the its member financial institutions.

Specifically, the Federal Reserve has three economic goals as directed by the Congress and they include, moderate long-term interest rates, stable prices and maximum employment. By controling interest rates, making direct lending or buying the treasury bill sof financial institutions among others, the Fed carries out these three economic goals.

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3 years ago

Brandon Ramirez wants to set up a scholarship at his alma mater. He is willing to invest $320,000 in an account earning 11 perce

sukhopar [10]

Answer:

$35,200

Explanation:

Given that

Invested amount = $320,000

Rate of interest = 11%

So by considering the above information, the amount of annual scholarship that can be given from this investment is

= Invested amount × Rate of interest

= $110,000 × 11%

= $35,200

By multiplying the invested amount with the rate of interest we can find out the annual scholarship amount

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3 years ago

Which of the following is not a prohibited escrow-related activity? An escrow agent cannot disburse a real estate broker's commi

11111nata11111 [884]

Answer:

The correct option is escrow licensees may not solicit or accept escrow instructions containing any blank to be filled in after signing or initialing.

Explanation:

Escrow agreement involves a third party managing funds belonging to two or more parties in a transaction before the funds are disbursed to them.

One of the prohibited escrow related activity is that the agent cannot disburse the commission on real estate to beneficiaries prior to closing the escrow account.

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3 years ago

The Allowance for Doubtful Accounts account has a year-end credit balance, prior to adjustment, of $600. The bad debts are estim

taurus [48]

Answer:

$26,600

Explanation:

Bad debts expense based on a percentage of credit sales requires an adjusting entry equal to the percentage of credit sales; no consideration is given to the ending balance of the allowance account when computing the adjustment.

The adjusting entry will include a credit to the Allowance for Doubtful Accounts account for $26,000 (or $650,000 x .04).

Note, however, that this question asks for the ending balance in the allowance account.

Since there is a $600 credit balance prior to adjustment, the balance in the allowance account after adjustment will be $26,600

(the credit balance of $600 + a credit of $26,000 will yield an ending credit balance of $26,600).

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3 years ago

Read 2 more answers

An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months. the investor plans to hold

irinina [24]

Answer: The investor should be willing to pay <u>$927.68 </u>for the bond today.

We in need to compute the price at which the investor can sell the bond in year 10 (Y10).

The price of the bond in year 10 will be the present value of the coupons over the remaining life of the bond and the maturity value of the bond after 20 years.

We have

Coupon Value (C ) $50.00

No. of coupons remaining (n) 20

Expected YTM in year 10 0.08

Expected semi annual YTM in year 10 $\frac{0.08}{2} =0.04$

Face (Maturity) Value of the bond (MV) $1,000.00

The bond price in year 10 will be

$\mathbf{Bond Price_{Y10}=C*\left ( \frac{1-(1+r)^{-n}}{r}\right )+\frac{MV}{(1+r)^{n}}}$

Substituting the values we get,

$Bond Price_{Y10}=50*\left ( \frac{1-(1+0.04)^{-20}}{0.04}\right )+\frac{1000}{(1+0.04)^{20}}$

$Bond Price_{Y10}=50*\left (13.59\right )+\frac{1000}{2.19}$

$\mathbf{Bond Price_{Y10}= 679.52+ 456.39 = 1,135.90}$

<u>Hence the investor can expect to sell the bond in year 10 at $1,135.90.</u>

Now, we'll calculate the price the investor is willing to pay for the bond. The investor can expected to pay the Present Value of the coupons she'll receive over 10 years and the selling price of the bond 10 years from now. We discount the cash flows at the rate of return the investor expects.

We have

Coupon Value (C ) $50.00

No. of coupons remaining (n) 20

Expected rate of return 0.12

Expected semi annual rate of return $\frac{0.12}{2} =0.06$