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kipiarov [429]
3 years ago
11

Explain the most probable reason why the market price of these bonds has declined, even though Clear-Air‘s credit rating has imp

roved.
Business
1 answer:
andriy [413]3 years ago
3 0

Answer:

The information about old and current bond prices is missing, but the answer is probably the same with or without it. The reason why bonds' prices increase or decrease even if their credit rating remains the same is that market rates change. For example, if the market interest rates decrease, the price of bonds will increase. But on the other hand, if the market rates increase, the price of bonds will decrease. Market rates give are determined by averaging the returns of similar investments, and if an investor believes that he could earn more money somewhere else, he will sell the bonds and invest in that other security.

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In its first year of business, Borden Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Borden expects r
Iteru [2.4K]

Answer:  Please see answers in explanation column

Explanation:

Accounts title and explanation            Debit          Credit

Sales returns and allowances       $121,200      

Sales refund payable                                               $121,200

Calculation

Expected Sales returns and allowances = sales x expected percentage

= 2,020,000 x 6%=   $121,200

Accounts title and explanation            Debit              Credit

Inventory returns estimated               $72,600

Cost of goods sold                                                     $72,600

Calculation

expected Cost of goods sold =  Cost of goods soldx expected percentage

= 1,210,000 x6%=$72,600

7 0
3 years ago
Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system.
Zanzabum

Answer:

Campus Stop, Inc.

Partial Income Statement

Sales revenue                              $323,300

Sales returns                                    ($1,730)

Sales discounts and allowances <u>  ($2,270)</u>

Net sales                                       $319,300

Cost of goods sold                      <u>($172,870)</u>

Gross profit                                   $146,430

Gross profit margin = $146,430 / $319,300 = 45.86%

8 0
3 years ago
Boxer Company owned 16,000 shares of King Company that were purchased in 2016 for $440,000. On May 1, 2018, Boxer declared a pro
Serjik [45]

Answer:

By 110,000 the retained earnings reduced by the property dividend.

Explanation:

Retained Earnings: The retained earnings is that earnings which is left after all payments relating to the business expenses, shareholder dividend. The earnings which is to be retained so that it can come in use in near future.

For retained earning calculation, the stock market value is recorded when the date is declared not on distribution date.

So, the calculation is computed below:

As the 50,000 shares is given for every 10 shares. So, first we have to compute for 1 share which comes by dividing shares to number of shares i.e.  50,000 shares ÷ 10 shares = 5,000 for 1 share.

Now, multiply by market value which comes = 5,000 × $22 = $110,000.

So, by 110,000 the retained earnings reduced by the property dividend.

4 0
3 years ago
Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor
patriot [66]

Answer:

The contribution margin per unit is $5.1

Explanation:

The contribution margin per unit is the amount from selling price per unit after deducting all the related variable costs per unit. This is the amount that each product contributes towards covering the fixed costs.

<u />

<u />

<u>Contribution margin per unit:</u>

Selling price per unit                              18.7

<u>Less : Variable cost per unit</u>

Direct material                                       (7.05)

Direct labor                                             (3.5)

Variable manufacturing Overhead       (1.65)

Sales commission                                  (1.00)

Variable Admin expense                     <u>  (0.40)</u>

Contribution margin per unit                  5.1

3 0
3 years ago
Which type of contract is not assignable?
Margarita [4]

Answer:

(b) purchase contract with no contingencies.

4 0
1 year ago
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