Answer:
Interest Expense $39,600
Cash Flow from Operating Activities $39,600
Explanation:
Payment of Interest Expense is the cash expense paid during the year which is deducted from the operating profit in the calculation of net income which is used to determine the cash flow from operating activities.
Interest on the Bond = $660,000 x 6% = $39,600
At the time of payment Journal Entry will be as follow
Dr. Interest Expense $39,600
Cr. Cash $39,600
As the cash is paid against the operating activities.
Answer:
b. all development cost are expensed as incurred
Answer:
Option (a) is correct.
Explanation:
France can produce four phones or three computers:
Opportunity cost of producing one phone = (3 ÷ 4)
= 0.75 computers
Opportunity cost of producing one computer = (4 ÷ 3)
= 1.33 phones
Sweden can produce one phone or two computers:
Opportunity cost of producing one phone = (2 ÷ 1)
= 2 computers
Opportunity cost of producing one computer = (1 ÷ 2)
= 0.5 phones
Therefore,
France has a comparative advantage in producing phones because of the lower opportunity cost of producing it than Sweden. France should specialize in producing phones and import computers from Sweden.
Sweden has a comparative advantage in producing computers because of the lower opportunity cost of producing it than France. Sweden should specialize in producing computers and import phones from France.
Answer:
a commercial bank
Explanation:
A commercial bank is a deposit accepting institutions regulated by the central bank of a country. The banks play a crucial role in availing capital to businesses. They accept deposits in the form of savings from customers. They keep a small fraction(reserves) in their custody to cater for withdrawal and loan out the rest. Banks, therefore, pool resources together for businesses and households to borrow.
Since banks have a wide customer base, they are able to mobilize huge amounts of resources to loan out. Commercial banks are the best institution to issue a loan to Glenn and Maggie. Saving and loan, credit unions have a limited membership and may not have sufficient resources to issue a loan to Glenn and Maggie.
Answer:
$43.19
Explanation:
Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.
P0 = D1/(r-g)
P0 = Current price
D1 = Next year's dividend = $3.11
r = investors' required return = 11.4% or 0.114 as a decimal
g = dividend growth rate = 4.2% or 0.042 as a decimal
P0 = 3.11/(0.114 - 0.042)
P0 = $43.19
Therefore, this stock price is $43.19
