Answer:
Good Guy Foods
The amount that the firm needs to contribute to the fund, assuming that only the interest income is to be distributed is:
d. $1,724,138
Explanation:
a) Data and Calculations:
Distributable Trust Fund = $125,000
Rate of interest or return = 7.25%
The distributable trust fund is a product of total trust fund multiplied by the rate of return.
The total trust fund = $125,000/7.25%
= $125,000/0.0725
= $1,724,138
Check:
7.25% of $1,724,138 = $125,000
b) Good Guy Foods needs to contribute $1,724,138 in funds that will earn 7.25% annually and equal the scholarship amount of $125,000 annually.
Answer:
The correct option is C,the investment decreases by $418,950.
Explanation:
The equity method of accounting for stock investment requires that the investor should increase its investment value by the share of net income in a year and decrease same by the amount of cash dividends received from the investee company.
However,the opposite would be the case of net loss recorded in the year under review(share of net loss would be deducted from investment value) as shown below:
Share of net loss ($1,602,000*25%) ($400,500)
share of cash dividends($73,800*25%)($18,450)
total reduction in investment value ($418,950
)
Answer:
true
Explanation:
the consumer price index measures the average prices of a basket of goods and services, it includes housing costs, food, medical care, transportation, educational expenses, etc.
The current price of the CPI basket can be used to measure inflation by comparing it to the price of last year's basket ,or if you go a little further, you can compare it to the base year's basket of goods.
Answer: 64.47%
Explanation:
Units produced in October = 17470
Units production in the most efficient way = 27,100
Therefore, the capacity utilization rate in October for the factory will be:
= Units produced in October / Units production in the most efficient way
= 17470 / 27100
= 0.6447
= 64.47%
The capacity utilization rate in October for this factory is 64.47%.
Your answer would be they offer Higher interest rates.
