Principal (P) = $13300
Rate of interest (r) = 3.7%
Number of times compounded in a year (n) = 2
Number of years (t) = 18 years
Then
Amount = P(1 + r/n)^nt
= 13300[1 + (0.037/2)]^36
= 13300[1 + 0.0185]^36
= 13300(1.0185)^36
= 13300 * <span>1.9346
= 25730.54 dollars
From the above deduction, it can be concluded that the correct option among all the options that are given in the question is the third option or option "C".</span>
Answer:
retention ratio
Explanation:
Retention ration is the portion of net income retained by a firm to grow its business rather than being declared and paid as dividened.
When a company makes profit at the end of financial period, the company can either retain part of its earning for business expansion, declare part as dividends paid to shareholder or combine both.
Where a firm now reinvest the portion of the profit earned in itself, it is called retention ratio.
Answer:
$62,500
Explanation:
As we know that cash flow statement records the cash inflow and cash outflow and ignored all other transactions which are not made in cash
Since in the question it is given that $62,500 is cash collected from account receivable and the same is to be shown in the operating activities in a positive sign that indicates an inflow of cash
Answer:
Debit Unearned Rent Revenue, $3660; credit Rent Revenue, $3660
Explanation:
Cash collected in advance results in the debit in cash account and a credit to Unearned Rent Revenue.
To recognized revenue when it is earned, the entries required are credit revenue and debit Unearned Rent Revenue with the amount earned.
Revenue earned by Novak Corp
= 1/6 × $21,960
= $3,660
Entries required are debit Unearned Rent Revenue, $3660; credit Rent Revenue, $3660
Answer:
warrrents are more desirable than convertible securities for creating new common stock.
Explanation:
The exercise of a warrant changes the capital structure of the company by reducing the degree of leverage by virtue of the issuance of new common shares without the debt experiencing any change. If a bond is converted, the decrease in the level of leverage would be even more pronounced, as common shares would be issued in exchange for a reduction in debt. In addition, the exercise of a warrant represents a new capital inflow; With convertible securities, new capital is captured when they are originally issued and not when they are converted. The entry of new contribution capital resulting from the exercise of a warrant does not occur until the company has achieved a certain degree of success, which is reflected in a higher price of its shares.
Hope this helps!
