Answer:
$110,000 on maturity
Interest of $6,050 semiannually
Explanation:
Jordan will pay $110,000 at maturity date with 20 payments of $6050 as interest
11% bonds at par value = $110,000
Interest paid = Semiannually
Market rate = 10%
At maturity, the par value will be paid as the par value of Jordan issued bonds is 110,000, therefore, Jordan will pay 110,000 on the maturity date.
As the bonds are issued for 10 years with semiannual payments that will be like 20 payments of $6,050 (110,000 x 10% x 6/12)
Answer:
The value of disposable income is $4,207
Explanation:
Dispossable income refers to the addition of income of an individual minus his taxes.
Therefore, the value of the value of disposable income can be calculated as follows:
Disposable income = Proprietors income + Compensation of employees + Rental income + Net interest + Transfer payments - Social insurance taxes - Personal taxes = $150 + $4,080 + $31 + $147 + $66 - $222 - $45 = $4,207
Therefore, the value of disposable income is $4,207.
Answer:
Explanation:
Operating activities : It includes all activities related to the changes in the working capital or changes in the current assets and current liabilities.
The increase in current liabilities increase the cash and decrease in current liabilities decrease the cash, so the adjustment is made accordingly. But it is opposite with the current assets.
The Net cash in operating activities under indirect method is shown below:
= Net income + Depreciation expense - decrease in accounts payable + decrease in inventory - increase in accounts receivable
= $65,000 + $19,000 - $3,500 + $4,000 - $6,500
= $78,000
The other effect like increase in bond payable, sale of common stock for cash is classified under financing activities. Thus, it is not considered in computation part.
Hence, the Net cash in operating activities under indirect method is $78,000
Answer:
The after-tax MARR is 13.26%
Explanation:
After - tax MARR = Before tax MARR*(1 - tax rate)
= 17%*(1 - 22%)
= 13.26%
Therefore, The after-tax MARR is 13.26%
