Follow lockout/tagout procedures in this situation.

On December 31, Leann Corp. paid $5,120 on an installment note that requires annual payments. The outstanding loan balance on Ja

OleMash [197]

Answer:

Dr Interest expense $4,000

Dr Notes payable $1,120

Explanation:

The $5,120 repaid comprised of both interest and principal repayments,hence there is need for the amount to be split into the two appropriate accounts.

The interest payable on the loan on yearly basis ,based on the outstanding loan balance of $50,000 is $4,000(8%*$50,000),hence the balance of $1,120($5,120-$4,000) represents the actual repayment of principal,as a result the notes payable account should be debited with $1,120.

3 0

4 years ago

Compute the new national income given MPC = 0.9, and an autonomous injection of $100B from federal government stimulus spending.

Helen [10]

Answer:1200

Explanation:

8 0

3 years ago

The information content of a dividend increase generally signals that:_________ a) the payer has few, if any, net present value

mars1129 [50]

<u>Answer:</u>Option C

<u>Explanation:</u>

Dividend means the portion of profit which the company plans to distribute it to the shareholders of the company. When there is a dividend increase it signals that the company will have future positive results. The dividend increase is a forecast of the company's future profitability.

The shareholders will also know that company will have positive performance in the future. The information is useful for the investors as this also indicate a positive cash flow in the company's financial statements.

6 0

3 years ago

What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000? Assume the m

Finger [1]

Answer:

a. The real GDP increases by $200,000.

a. The real GDP increases by $150,000.

Explanation:

a. What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000?

Eventual effect on real GDP = Amount of increase in government spending * (1 /(1 - MPC)) = $50,000 * (1 / (1 – 0.75)) = $200,000

Therefore, the real GDP increases by $200,000.

a. What is the eventual effect on real GDP if the government, instead of changing its spending, increases transfers by $50,000?

Eventual effect on real GDP = (Amount of increase in government transfers * (1 /(1 - MPC))) - Amount of increase in government transfers = ($50,000 * (1 / (1 – 0.75))) - $50,000 = $150,000

Therefore, the real GDP increases by $150,000.

3 0

3 years ago

Catering Corp. reported free cash flows for 2008 of $8.17 million and investment in operating capital of $2.17 million. Catering

gtnhenbr [62]

Answer:

$11.59 million

Explanation:

The computation of earning before interest and tax is shown below:-

Free cash flow = Operating cash flow - Investment in operating cash flow

$8.17 million = Operating cash flow - $2.17 million

Operating cash flow = $10.34 million

For calculating the earning before interest

Operating cash flow = Earning before interest - Taxes + Depreciation

$10.34 million = Earning before interest - $2.17 million + $0.92 million

= $10.34 million = Earning before interest - $1.25 million

Earning before interest = $11.59 million

5 0

3 years ago