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faust18 [17]
3 years ago
15

The Marx Company issued $98,000 of 8% bonds on April 1 of the current year at face value. The bonds pay interest semiannually on

January 1 and July 1. The bonds are dated January 1, and mature in five years, on January 1. Determine the total interest expense related to these bonds for the current year ending on December 31.
Business
1 answer:
Fed [463]3 years ago
8 0

Answer:

$4,800

Explanation:

Interest Expense of the bond is calculated by multiplying Face value and Coupon rate. Any discount or premium is amortized over the life of the bond and added or deducted from the interest payment in order to record the interest expense.

As per given data

Face value of Bond = $80,000

Coupon Rate = 8%

Interest Expense = Face value x Coupon rate

As on July 1 interest of only 3 months has been accrued, so we will record the interest expense of 3 months only.  

On July 1

Interest Expense = $80,000 x 8% x 3/12 = $1,600

6 month period Expense will be recorded.

On December 31

Interest Expense = $80,000 x 8% x 6/12 = $3,200

Total Expense = $1,600 + $3,200 = $4,800

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pav-90 [236]

Answer:

C.

Explanation:

A forecast is an estimate of the future level of some variable.

It is important to forecast because:

-Asses long-term capacity needs

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There are types of forecast

Demand, depend on the firm level or the market level.

Supply, depend on number of current producers and suppliers, projected aggregate supply levels, and technological and political trends.

Price, depend on cost of supplies and services, market price for firm´s product or service.

There are 4 laws of forecasting, that help to avoid misapplication or misrepresentation of forecast results:

1-Forecast are almost always wrong by some amount (but they are still useful). Even under the best of conditions, no forecasting approach can predict the exact level of future demand, supply, or price.

2-Forecast for the near term tend to be more accurate. This law recognizes that in the near term, the factors that affect the forecast variable are not likely to change greatly.

3-Forecast for group of products or services tend to be more accurate. Many businesses have found that it is easier and more accurate to forecast for groups of products or services than it is to forecast for specific ones.

4-Forecast are no substitute for calculated values.

3 0
3 years ago
Managers are well-advised to consider whether the company can operate more profitable by selling some/all of its plant capacity
trasher [3.6K]
The answer is when global demand for exclusive and private-label footwear is so far under global plant volume that it will be intolerable for most all companies to cost-effectively operate their plants at full volume for many years to come. If the prediction shows that global demand is far under global volume, then it isn't conceivable for everyone to sell everything. In this circumstance the most liquid and solvent company will appear ahead, maybe a company could hold onto volume and ferociously hold onto market share.
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The fed is often considered the bankers' bank because it:
miss Akunina [59]
Hello there,
[]_________________________________________________________[]

First of all this is a easy one! The "Federal Reserve" is considered the bankers' bank because it <span>holds bankers reserves, provides banks with currency and loans, and clears their checks. Therefore cannot be touched by civilians / citizens.
[]_________________________________________________________[]

Hope I was able to help!
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U forgot to add the picture
6 0
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Ipatiy [6.2K]

Answer:

Discovery of new oil reservoirs and technological developments on oil extraction.

Explanation:

The world has not run out of oil by two reasons. First, the discovery of new oil reservoirs and, second, the development of new technologies that increased extraction efficiency in a feasible way.

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