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Lelu [443]
2 years ago
7

Boats R Us requires $800,000 in financing over the next 2 years. The firm can borrow the funds for 2 years at 12% interest per y

ear. The owner, Boaty McBoaterson, decides to do forecasting and predicts that if he utilizes short term financing instead, he will pay 7.00% interest the first year, and 13.95% interest the second year. Determine the total 2-year interest cost under each plan. Which plan is less costly
Business
1 answer:
a_sh-v [17]2 years ago
4 0

Answer: Short term is less costly

Explanation:

Total interest cost under long term financing = 800,000 × 12% × 2

= 800000 × 0.12 × 2

= $192,000

Total interest cost under short term financing = (800,000 × 7% ×1)+ (800,000 × 13.95% × 1) =

= (800000×0.07×1) + (800,000×0.139×1)

= $167,600

Based on the above solution, Short term financing is less costly.

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Saskatchewan Forestry Company purchased a timber tract for $225,000 and estimates that it will be depleted evenly over its 10-ye
ale4655 [162]

Answer:

generally you need to determine the cost per unit, but in this case you are given a percentage of depletion = 10% x $225,000 = $22,500  which determines the inventory value (or depletion expense if the timber is sold) during the year.

the journal entry should be:

December 31, 20xx

Dr Timber inventory 22,500

    Cr Accumulated depletion - timber tract 22,500

5 0
2 years ago
Who among the following is an operational leader? a. Joanna, who is firm and dependable with respect to delivering results b. Ke
mihalych1998 [28]

Answer:

The correct answer is letter "A": Joanna, who is firm and dependable with respect to delivering results.

Explanation:

Operational leaders are those who analyze the strengths and weaknesses of their group to allocate the duties in a way that produces the most efficient outcome. In front of problems, this type of leader studies the impact and what is going to be needed to solve it. Operational leaders are mostly <em>results-driven</em>.

3 0
2 years ago
The average erp project takes​ ___________ months to complete.
stealth61 [152]
Actually, the time frames of ERP projects would actually depend on different scenarios taking place. These scenarios are as follows:

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For financial modules, sales, and inventory functionality: 5 - 7 months
4 0
3 years ago
The aicpa's statements on auditing standards can be described as
sasho [114]
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8 0
3 years ago
the us government gave land to the railroads to help them expand. what impact did these land grants have on industries in the we
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Due to the grants' encouragement of settling and the creation of new industrial prospects, the West's industries were able to expand.

<h3>What to you understand by Industries? </h3>

An industry is a collection of businesses that are connected by their main lines of activity. There are numerous categories of industries in contemporary economies. Sectors are generally used to combine together bigger groups of industry classifications.

The processing and transformation of natural resources (raw materials) into other finished and semi-finished products is the primary function of industry in each nation's economy.

Industries have a significant role in the economic activities of modern man. Any nation's industrial growth is a major factor in determining its economic development. The main components of contemporary civilization are industries, which give us access to the things we need and job possibilities.

To learn more about the Industries, Visit: brainly.com/question/2839443

#SPJ4

6 0
1 year ago
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