Answer:
A
Explanation:
To answer the question, we look at an extreme scenario of 0% interest rate and see the minimum repayment Jade will make on the loan taken
Therefore,
Interest Rate = 0%
This means that the loan to be paid will be calculated as follows
Monthly payments x 12 Months x 14 Years
= $195 x 12 months x 14 years = $32, 760
The meaning of this outcome is that the lower the interest rate to be paid, the higher the size of the loan, because at 2.9% the loan= $26,898.98 and at 0% rate the loan= $32, 760.
The conclusion therefore is a 2.7% interest rate which is lower than 2.9% but not as low as the extreme 0% will cause the loan amount to be higher than $26,898.98. This affirms option A.
Options B and C are wrong because 2.5% and 2.3% are lower than 2.9%, therefore, the loan amount will be higher. Option D is also wrong because a 3.1% interest rate is higher than 2.9%, therefore, the amount should be lower not higher than $26,898.98
Answer:
The firm's cash flow to creditors during 2016 was -$131,000.
Explanation:
Cash flow to creditors
= Interest expense - (Ending LT Debt - Beginning LT Debt)
= $99,000 - ($1,680,000 - $1,450,000)
= -$131,000
Therefore, The firm's cash flow to creditors during 2016 was -$131,000.
Answer:
The material cost of the work in process at March 31 is d. $0
Explanation:
Note: Equivalent unit of Work in process of Material is 0 as material are added at the end of process which leads to total cost of material of work in proccess = 0.
Answer: Law of diminishing marginal utility
Explanation: In simple words, law of diminishing marginal utility states that as a consumer consume more of a good or service then the marginal benefit he or she receives from the additional consumption keeps on decreasing.
In the given case, Jenny's excitement keeps on decreasing with every chocolate she receives after a certain point of time.
Hence we can conclude that the given case illustrates law of diminishing marginal utility.
Answer:
a.Operating Cycle = Inventory Conversion period + Days Sales Outstanding = 100 + 35 = 135 Days
Cash Conversion Cycle = Inventory Conversion period + Days Sales Outstanding - Days Payables Outstanding
= 100 + 35 - 11 = 124 Days
b.If Carraway were to decide to take full advantage of its credit terms and delay payment until the last possible date , their cash conversion cycle is 100 + 35 - 51 = 84 Days
c.Carraway should take its suppliers offer to finance its inventory with the interest free 35 Day loan
