Answer:
$620,000
Explanation:
the total cash received (dirty price) = clean price + accrued interest = (1.02 x $600,000) + ($600,000 x 8% x 2/12) = $612,000 + $8,000 = $620,000
the clean price of a bond refers to the price of the bond without any type of accrued interest, i.e. the price that the issuer would receive if it sold them at the same date that they were issued.
The dirty price includes both the clean price plus any accrued interest
Answer:
Hi there!!
$159,936
Explanation:
Sales proceeds $475,000
Less: book value
Cost $383,500
Accumulated depreciation <u> $(68,436) </u> <u> $315,064 </u>
Gain $159,936
Since Sylvio has maintained its investment for more than a year, the tax law allows reducing the tax on capital gain although the form of calculation of the profit is the same as for common cases.
In this case tax rate drops from 39.6% to 20%.
After a company has invested in the assets required to support continued operations, cash flows become available for distributions to stockholders including debt holders.
<h3>Why is free cash flow important?</h3>
A business's free money flow can reveal information about its health. If you have a lot of free cash flow, you could have sufficient money to cover your operational costs plus some. The balance may be distributed to investors, reinvested in the company, or used for stock buybacks.
<h3>What causes free cash flow to rise?</h3>
debt restructuring to reduce interest rates and improve repayment terms. restricting, postponing, or cutting back on capital expenditures. hiring a CFO or part-time CFO to use management accounting to enhance financial strategy and overall operations.
To know more about Free cash flow visit:
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Answer:
Total direct material variance= $1,000 favorable
Explanation:
Giving the following information:
Company had a favorable direct materials price variance of $3,000 and an unfavorable direct materials usage variance of $2,000.
<u>To calculate the total direct material variance, we need to use the following formula:</u>
<u></u>
Total direct material variance= price variance +/- quantity variance
Total direct material variance= 3,000 - 2,000
Total direct material variance= $1,000 favorable
Answer:
$56,600.00
Explanation:
The amount the company spent on purchase of additional equipment during year 1 can be ascertained using the formula below:
amount spent on additional equipment=ending balance of equipment-(beginning balance-cost of equipment sold)
ending balance of equipment is $304,700
beginning balance is $341,200
cost of equipment sold is $93,100
amount on additional equipment=$304,700-($341,200-$93,100)=$56,600.00
