Question Completion:
A. More than the effective interest.
B. Less than the effective interest.
C. Equal to the effective interest.
D. More than if the bonds had been sold at a premium
Answer:
When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
B. Less than the effective interest.
Explanation:
This cash payment is the product of the bond's face value multiplied by the coupon rate. The interest expense is increased by the amortized portion of the discount for the particular period. This means that the interest expense will be higher than the cash payment for interest because of the discount granted at issuance. And the interest expense is the product of the outstanding debt multiplied by the effective interest rate.
Answer:
(The data is missing so we cannot prepare the complete cash budget but lets see how it is prepared. The data given in the question has only been added in cash budget)
Cash Budget is prepared in same way as statement of cashflow. The detail cash budget format is given below.
Poster Company
Cash budget
1st and 2nd quarter
Cash from operations
Sales xxxx
Purchase (xxxx)
Other expenses paid (xxxx)
Net cash from operation xxxx
Cash from Investment activities
Sale of Assets (10,000+4,500) $ 14,500
Any investment made (xxxxxx)
Net Cash from investing activities xxxxxx
Cash from Finance Activities
Financial Charges paid ( xxxxxxx)
Dividednd paid $ 4,500
Net Cash from Financing activities xxxxxxxx
Net cash increase/ decrease xx/ (xx)
Opening balance $60,359
Cash balance at end xxxxx
(xxx represents missing values)
Answer:
EAC of Scion xA= 12,429.24
EAC of Toyota = $11,922.02
The Toyota should selected because it has a lower EAC
Explanation:
Equivalent Annual cost = PV of cost/Annuity factor
<em>Scion xA</em>
PV of OCF= A × (1- (1+r)^(-n)/n
= 2,900 × (1 -(1.13)^(-3))/0.13=6847.342534
PV of total cost = 22,500 + 6847.34 = 29,347.34253
EAC = 29,347.34/ 2.361152598= 12429.24433
EAC = 12429.24
<em>EAC Toyota</em>
PV of OCF = 1500×(1 -(1.13)^(-4))/0.13= 4461.706988
PV of total cost = 31,000 + 4461.7069= 35,461.70699
EAC = 35,461.706/ 2.9744 = 11,922.02
EAC = $11,922.02
EAC of Scion xA= 12429.24
EAC of Toyota = $11,922.02
A weaker Yuan against the US dollar makes Chinese exports cheaper, increases demand, and makes US exports to China more expensive, thereby reducing the demand for US exports.
<h3>What is international trade?</h3>
International trade is the global exchange of goods and services among countries of the world, involving the use of the foreign exchange.
The three types of international trade are:
- Export Trade
- Import Trade
- Entrepot Trade.
Thus, by manipulating the Yuan, the Chinese government ensures that it has a more competitive advantage over the United States in international trade.
Learn more about Chinese Yuan Manipulation at brainly.com/question/27858412
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Answer:
Foley will probably win because he didn't do anything wrong, and he had an implied employment contract with Interactive that stated that he could be fired only after a seven step pre-termination procedure. The handbook guidelines that were given to Foley represent the implied contract, and management assured him that that his performance was adequate.
