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3 years ago

Use the In the News to answer three questions

Business

1 answer:

Flauer [41]3 years ago

3 0

Answer:

2.5%

1.67%

Explanation:

The yield can be computed using the yield formula which coupon payment divided by price.

The coupon payment=face value*coupon rate

face value is $1000

coupon rate is 2%

coupon payment=2%*$1000=$20

when price is $1000:

yield =$20/$1000=2%

when price is $800

yield=$20/$800=2.5%

when price is $1,200

yield =$20/$1,200=1.67%

In essence ,the lower the price the higher the yield as lower amount is invested in order to receive the same amount of annual coupon of $20

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Describe a real or made up example of word of mouth promotion. Why do you think people were motivated to spread this message to

finlep [7]

If people like the message they want everyone to know. an example is referring someone to paint a friends house when they complain about not finding anyone.

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3 years ago

Read 2 more answers

Hulse Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Wade common stock (

kicyunya [14]

Answer:

(a)

Dr. Cr.

Feb 1

Investment $7,200

Cash $7,200

Jul 1

Cash $600

Dividend Income $600

Sep 1

Cash $4,300

Gain on sale $700

Investment $3,600

(b) Dividend will be shown as other income in the revenue section of Income statement. Gain on sale of common share will be reported on income statement after operating profit.

Explanation:

Per Share Purchase Price = 7200 / 600 = $12

300 Shares Purchase Price = $12 x 300 = 3,600

8 0

4 years ago

he 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $2.7 million, and the 2015 balance sheet showed long

ICE Princess25 [194]

Answer: $1,311,000

Explanation:

Operating Cashflow = Cashflow from Assets + Capital spending + changes in Net working capital

Cashflow from Assets = Cashflow to Creditors + Cashflow to Stakeholders

Cashflow to Creditors = Interest paid - Change in long term debt

= 140,000 - (2,950,000 - 2,700,000)

= -$110,000

Cashflow to Stakeholders

= Dividends paid - New equity issue

= 500,000 - ((500,000 + 3,500,000) - (460,000 + 3,200,000))

= $160,000

Cashflow from Assets = -110,000 + 160,000

= $50,000

Operating cashflow = 50,000 + 1,320,000 + (-59,000)

= $1,311,000

6 0

2 years ago

Indiana Co. bega n a construction project in 2018 with a contract price of $150 million to receive when the project completed in

Liula [17]

Answer: C) Recognized $9 million gross profit on the project in 2018.

Explanation:

Duration of construction project from 2018 to 2020 = 3 years

Cost incurred by Indiana co. in 2018 = $36 million

Estimated additional cost for the remainder of the project = $84 million

Total cost to be incurred over the duration of the project = $36 million + $84 million = $120 million

To calculate the percentage of the project completed, we use the cost figures;

Cost incurred so far (in 2018) ÷ Total cost to be incurred × 100

36,000,000/ 120,000,000 × 100 = 30%

Total revenue from contract (which is the contract price) = $150 million

Indiana Co. recognizes revenue according to the percentage of the project completed. Therefore, revenue recognized after 30% of the project is completed (which is the revenue for 2018) = 30% of $150,000,000

Revenue for 2018 = 30/100 × 150,000,000 = $45,000,000

Profit recognized on the project in 2018 = Revenue for 2018 - Cost incurred in 2018

Profit = $45,000,000 - $36,000,000

Gross profit recognized in 2018 = $9,000,000

5 0

3 years ago

Analyzing Financial Statement Effects of Bond Redemption Dechow, Inc., issued $750,000 of 8%, 15-year bonds at 96 on July 1, 200

Crank

Answer:

Dechow, Inc.

Journal Entries:

July 1, 2009: DebitCash $720,000

Debit Bonds Discount $30,000

Credit 8% Bonds Payable $750,000

To record the issuance of a 15-year bonds at 96 with semiannual interest payments.

July 1, 2016 Debit Bonds Payable $750,000

Debit Bonds Retirement Loss $27,942

Credit Unamortized discount $20,442

Credit Cash $757,500

To record the retirement of the bonds at 101.

Explanation:

a) Data and Analysis:

July 1, 2009: Cash $720,000 Bonds Discount $30,000 8% Bonds Payable $750,000 15-year bonds at 96 on July 1, 2009 with semiannual interest payments.

July 1, 2016 Bonds Payable $750,000 Bonds Retirement Loss $27,942 Unamortized discount $20,442 Cash $757,500 retired the bonds at 101.

Unamortized discount:

Discount on the bonds = $30,000 ($750,000 - $720,000)

Amortized bonds discount (9,558)

Unamortized bonds discount $20,442

3 0

3 years ago