Answer:
See explanation section.
Explanation:
A) Accounts Receivable $8,780
Sales Revenue $8,780
<em>Sarasota Company sold its specialty shelving to Elkins Office Supply Co. on account.</em>
(b) Sales Returns and Allowances $215
Allowances for Sales Returns and Allowances $215
<em>To record an additional $215 in allowances to Elkins. </em>
(c) Allowance for Sale Returns and Allowances $706
Accounts Receivable $706
<em>To record an allowance of $706 when some of the shelving does not meet exact specifications. It means the products were damaged or defected.</em>
Answer:
Times interest earned ratio = Net operating income/Interest expense
= $551,000/$512,000
= 1.08 times
Explanation:
Times interest earned is the ratio of net operating income to interest income. Net operating income = $551,000 and interest expense = $512,000. The division of net operating income by interest expense gives times interest earned ratio.
Answer:
a. Payback period:
Board game:
= Year before payback + Amount left / Cashflow in year of payback
= 1 + (1,200 - 690) / 950
= 1.54 years
Game DVD:
= 1 + (2,700 - 1,750) / 1,570
= 1.61 years
b. NPV
Board Game
= 690 / 1.12 + 950 / 1.12² + 210 / 1.12³ - 1,200
= $322.88
Game DVD
= 1,750 / 1.12 + 1,570 / 1.12² + 800 / 1.12³ - 2,700
= $683.52
c. IRR
Look at attached picture
Board Game IRR = 29%
Game DVD IRR = 28%
d. Incremental IRR
Look at attached picture
= 27%
Answer:
<u>will</u>, <u>would like </u>
Explanation:
Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.
The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.
Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.
When coupon rate of payment is higher than YTM, such bonds are priced at a premium.
