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3 years ago

Use the following chart to explain how the amount of principal affects the total cost of the loan

Business

1 answer:

german3 years ago

7 0

Answer: The higher the principal, the higher the total cost of the loan

Explanation:

From the chart shown we can see that the loan with a higher principal has a higher total cost than the loan with the smaller principal.

This happens because the interest rate attached affects larger figures more than smaller ones. 6.47% of $6,000 is $389 which is larger than 6.47% of $5,000 which is $324 (calculating the cost of a loan is more cumbersome than this but this shows the effect as well).

When compounded overtime, this difference will be even more and thus shows that larger principals cause larger total costs.

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How was everyone's day?

RUDIKE [14]

It was good, I just despise homework

3 0

3 years ago

Read 2 more answers

Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income fo

tankabanditka [31]

Answer:

$726,100

Explanation:

Preparation of the operating activities section of the 2021 statement of cash flows.

Cash Flow from Operating Activities

Net Income $634,000

Adjustments:

Depreciation and amortization $89,000

Changes in operating asset and liabilities

Decrease in Account receivable $24,000

Increase in Inventory $ (9,400)

Increase in Prepaid expenses $ (8,700)

Increase in Salaries payable $10,200

Decrease in Income tax payable $ (13,000)

Operating activities $726,100

Therefore the operating activities section of the 2021 statement of cash flows will be $726,100

6 0

3 years ago

International business differs from domestic business in that a firm operating across borders must deal with: Group of answer ch

Novosadov [1.4K]

Answer: A firm operating across borders must deal with both foreign and international environment. Options A and B

Explanation:

International Business is a kind of business between two or more countries, that involves the trade of products and services across national borders or on a global level.

An example is the oil industry in which oil is produced by one country and sold to another. Both countries deal with both Foreign and International environments.

5 0

3 years ago

At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000

Dima020 [189]

Answer:

Predetermined manufacturing overhead rate= $1.961 per direct material dollar

Explanation:

Giving the following information:

At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,220,000/1,020,000

Predetermined manufacturing overhead rate= $1.961 per direct material dollar

5 0

3 years ago

Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. T

Margaret [11]

Answer:

<em>Incomplete question is "2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021?"</em>

1. Gross accounts Receivable = Allowance Account balance at beginning / 10%

= $30,000 / 10%

= $300,000

2. Year Account Title Debit Credit

2021 Bad debt expense $105,000

($500,000*10% + $55,000)

To Allowance for Doubtful Accounts $105,000

3. Accounts receivable written off = Beginning balance of Allowance Account - Ending Balance of Allowance account

= $30,000 - (- $50,000)

= $30,000 + $50,000

= $80,000

4. Bad debt expense for 2021 (direct write off method) = Amount written off = $80,000

4 0

3 years ago