Net worth is the value of all the non-financial and financial assets
owned by an institutional unit or sector, minus the total of all its
outstanding liabilities. The value of all of the Worthingtons assets
Worthingtons have a net worth of $412,700. The Answer is b.
Answer:
a. Compute the current yield on both bonds.
Current yield = Annual coupon payment / current market price of bond
Bond A current yield = $80 / $800 = 0.1
Bond B current yield = $85 / $900 = 0.09
b. Which bond should he select based on your answer to part a?
Bond A, because it has a higher current yield.
What is the approximate yield to maturity on Bond B?
Approximate Yield to Maturity (YTM) = [C+ (F-P) / n] / [(F+P) / 2]
Where:
C = Coupon payment
F = Face value
P = Price
n = years to maturity
Because the face value is not specified in the question, we will assume is the same as the price.
Bond B YTM = [85 + (900-900) / 2] / [(900+900) / 2]
= 0.09
d. Has your answer changed between parts b and c of this question in terms of which bond to select?
Under the assumption that the price and face value of Bond b are the same, we can see that the YTM and the current yield are the same, so the choice of the bond (bond A) has not changed.
However, if the face value was higher or lower than the price, the YTM would be different to the current yield, for that reason, it is always best to check Yield to Maturity instead of current yield when choosing which bond to invest in.
Answer:
<h2>Mama's Pizza Shoppe</h2>
Adjusting Entry on June 30, 2021:
Debit Interest Expense $144
Credit Interest Payable $144
To accrue interest expense for the year (2 months).
Explanation:
a) Calculation: The interest on the borrowing is $144 ($7,200 x 12%)/12 x 2
b) Adjusting entries are prepared at the end of the accounting period in order to recognize non-cash expenses and revenue, prepaid expenses, and revenue received in advance, and depreciation expense for the period. It is in accordance with the accrual concept and matching principle of generally accepted accounting principles. These require that expenses and revenue are recognized on the accrual basis whether cash is paid or received for them or not. And that expenses and revenue are matched to the period they occur.
Answer: Sales to unaffiliated customers and intersegment sales
Explanation:
A segment refers to a business component of a business which generates its own revenues.
Revenue of a segment includes the sales to unaffiliated customers and intersegment sales. Therefore, the correct option is B.
Answer:
B.
C.
Explanation:
Option A is incorrect because; it is not clear who is he and what he grabbed form the air. Further, it is also not clear who's her.
Option D is incorrect because; it is not clear who are they. And it is a grammar rule that, do not use “they” when referring to unspecified persons.