Answer:
$9,800
Explanation:
The computation of the supplemental operating cash flow for the first year is shown below:-
For computing the supplemental operating cash flow for the first year first we need to follow some steps to reach the answer which is here below:-
Total Inflows = Annual savings in cost + Increase in earning
= $5,000 + $6,000
= $11,000
Earnings before tax = Total Inflows - Depreciation
= $11,000 - $8,000
= $3,000
Tax = Earnings before tax × 40%
= $3,000 × 40%
= $1,200
Earning after tax = Earnings before tax - Tax
= $3,000 - $1,200
= $1,800
Cash flow in year 1 = Earning after tax + Depreciation
= $1,800 + $8,000
= $9,800
So, for computing the cash flow in year 1 we simply added earning after tax with depreciation.
Answer:
C. Variable inflation is associated with high transaction costs
Explanation:
Because of uncertainty about future inflation, it may not uncertain relative to its price change. Therefore, option A is not correct.
In order to maximize financial position, inflation harms borrowers and helps lenders, so option B is also incorrect.
Option C is correct because variable inflation is associated with high transaction costs in order to maximize the financial position. For example, if the inflation rate is 5% during first quarter, the price level is not much to disrupt the financial position. Again, in the next quarter, if the inflation rate changes to 4%, the position will be effective more. However, if it increases, it will not affect too much.
Answer:
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<span>10,718.63 ± .1%
To find the price of this bond, we need to find the present value of the bond's cash flows. So, the price of the bond is:
P = $145(PVIFA1.25%,48) + $10,000(PVIF1.25%,48)
P = $10,718.63</span>
Answer:
1.
Dr Purchases 30,070
Cr Accounts payable 30,070
2.
Dr Accounts payable 30,070
Cr Cash 30,070
3.
Dr Accounts payable 30,070
Dr Interest expense 930
Cr Cash 30,000
Explanation:
Meteor Co. Journal entry
1.
Dr Purchases 30,070
($31,000 x .97)
Cr Accounts payable 30,070
2.
Dr Accounts payable 30,070
Cr Cash 30,070
3.
Dr Accounts payable 30,070
Dr Interest expense 930
(31,000-30,070)
Cr Cash 30,000
Since the company purchased merchandise at a price of $31,000 in which it was been subject to credit terms of 3/10 that means 100%-3% credit term will give us 97% credit term ×$31,000 which enabled us to arrived at 30,070.