Answer:
Stated interest rate
Explanation:
The stated interest rate is the rate of interest in which the value of the cash interest that has to paid on each date of interest
The value of the cash interest paid could be determined by applying the following formula
= Face value of the securities × Stated interest rate
Therefore as per the given situation, the stated interest rate is the answer and the same is to be considered
Answer:
Explanation:
a. Raw material needed to make one unit
Alpha = 25/5 = 5 Pound
beta = 10/5 = 2 Pound
b. Contribution margin per pound
Alpha Beta
Selling price 130 90
Direct material 25 10
Direct labor 22 21
Variable manufacturing overhead 17 7
Variable selling expenses 14 10
Contribution margin per unit 52 42
pound per unit 5 2
Contribution pound per pound 10.4 21
c. product mix
Pound Unit
Beta 62000*2 = 124000 62000
Alpha 38000 38000/5 = 7600
Total 162000
d. Maximum contribution margin = (62000*42+7600*52) = $2999200
e. Highest price = 10.4+5 = 15.40 per pound
Answer:
a) b.20,000
b) b.20,000
Explanation:
a) Number of common stocks issued = 200,000/10
= 20,000
So, 5000 stocks remain with company.
Number of common stocks outstanding = 20000
b) b. 20,000
Answer:
Ratio analysis
Explanation:
Financial statements are used to show the assets, liabilities, revenues, expenses, and owners equity of a business entity within a given time frame.
Income statement is revenue less expense within a given period. While the balance sheet shows the financial position of a business at a particular point, that is its assets, liabilities, and owner equity.
Information form financial statements are analysed by the use of ratio analysis to gain a better understanding of financial condition of an organisation.
Ratio analysis compares the magnitude of line items within financial statements to determine liquidity, profitability, solvency and operational efficiency of a business.
For example current ratio shows how well a business can use its current assets to settle its current liability, this is a liquidity ratio.
