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3 years ago

2. In 2016; the cost of a market basket of goods was $2,000. In 2018, the cost of the same market basket of goods was

Business

1 answer:

GREYUIT [131]3 years ago

7 0

Answer:

105

Explanation:

base year = 2016

cost of market basket of goods in base year = $2,000

CPI for base year = 100

year 2018

cost of market basket of goods in 2018 = $2,100

CPI for 2018 = (cost of basket of goods in 2018 / cost of basket of goods in base year) x 100 = ($2,100 / $2,000) x 100 = 105

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Which one of the following terms is defined as a loan wherein the regular payments, including both interest and principal amount

Harrizon [31]

Answer:

C. Balloon loan

Explanation:

Balloon loans are loans that can not fully amortize over its term. They are loans that are paid of with a large single final payments. A lump sum amount. It involves the borrower paying back a lower monthly percentage in exchange for paying a large one time payments at the end of the loan term. Either fixed or flexible interest rate structure can be used on it. Ballon loans are usually reserved for conditions when a business has to wait until a specific period before receiving payment from a client for its product or services.

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3 years ago

Read 2 more answers

revorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets a

nlexa [21]

Answer:

$9,906 F

Explanation:

Calculation as follows:

Budget Income Statement

<u>Particular</u> $

Revenue (28.4 x 7,000) 198,800

Direct Labor (2.8 x 7,000) (19,600)

Direct Material (10.7 x 7,000) (74,900)

Manufacturing Overheads

(38,000 + [1.5 x 7,000] ) (48,500)

Selling and administrative Expenses

(23,600 + [0.3 x 7,000] ) (25,700)

Net Operating Income 30,100

Actual Income Statement

<u>Particular</u> $

Revenue 205,320

Direct Labor (18,974)

Direct Material (72,252)

Manufacturing Overheads (48,320)

Selling and administrative Expenses (25,768)

Net Operating Income 40,006

Activity variance for net operating income = Net operating income actual - Net operating income budgeted

Activity variance for net operating income = 40,006 - 30,100

Activity variance for net operating income = $9,906 F

8 0

3 years ago

The corporate charter of Imp Company authorized the issuance of 10 million, $1 par common shares. During 2021, its first year of

lesantik [10]

Answer:

Paid -in Excess capital as on December 31, 2021 $124 million

Explanation:

The computation of the amount reported as a additional paid-in capital is shown below

For Jan 1, 8 million × $15 $120 million

For June 3, 2 million × $18 ($36 million)

For December 28, 2 million × $20 $40 million

Paid -in Excess capital as on December 31, 2021 $124 million

7 0

3 years ago

Johnny Cake Ltd. has 30 million shares of stock outstanding selling at $40 per share and an issue of $40 million in 8 percent, a

erma4kov [3.2K]

Answer:

WACC = 0.16637 OR 16.637%

Explanation:

WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,

WACC = wD * rD * (1-tax rate) + wE * rE

Where,

w represents the weight of each component based on market value in the capital structure
r represents the cost of each component
D and E represents debt and equity respectively

To calculate WACC, we first need to calculate the Market value an cost of equity.

The market value of equity = 30 million shares * $40 per share

MV of equity = $1200 million

The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.

P0 = D1 / (r - g)

40 = 4 / (r - 0.07)

40 * (r - 0.07) = 4

40r - 2.8 = 4

40r = 4+2.8

r = 6.8 / 40

r = 0.17 or 17%

MV of debt = 40 million * 96.5% => $38.6 million

Total MV of capital structure = 38.6 + 1200 = 1238.6 million

WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17

WACC = 0.16637 OR 16.637%

4 0

3 years ago

Jones company lends Alabater Inc. $85,000 on August 6, 2018. This loan was memorialized with a signed note receivable with a rep

Tju [1.3M]

Answer:C) $2,125.

Explanation:

Interest = Principal x rate x time (period)

using days in a year = 360 days

Interest = $85,000 X 10% x 90/360

=$2,125

Therefore, Alabaster Inc, must repay the $85,000 principle and $2,125 in interest

8 0

3 years ago