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RideAnS [48]
4 years ago
9

On January 1, 2016, Ott Company sold goods to Fox Company. Fox signed a noninterest-bearing note requiring payment of $60,000 an

nually for seven years. The first payment was made on January 1, 2016. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows: Ott should record sales revenue in January 2016 of a. $214,200 b. $261,600 c. $292,600 d. $321,600Table:Business figures are shown
Business
1 answer:
inessss [21]4 years ago
3 0

Answer:

D. 321,600.

Explanation:

Present value is the current value of a future amount that is to be received or paid out.

Given:

Present value, P = $60000

Present value of ordinary annuity for the remaining 6 years = 4.36

The Present value, PV of the note is equal to the first payment + the Present value of ordinary annuity (all at 10%) of the remaining six payments

Sales revenue = $60000 + (60,000 × 4.36)

= $60000 + $261,600

= $321,600

Thus, sales revenue of $321,600.

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Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide alloca
IgorC [24]

Answer:

Option (D) is correct.      

Explanation:

Total Overhead Cost:

= (Overhead × Number of cases) for all products

= (20 × 350) + (25 × 550) + (17 × 650)

= 31,800

Total Machine Hours:

= Machine hours × Number of cases

= (5 × 350) + (3 × 550) + (4 × 650)

= 6,000

Overhead Rate:

= Total Overhead Cost ÷ Total Machine Hours

= 31,800 ÷ 6,000

= 5.30

Total product cost per case for Product GC:

= Direct Material + Direct Labor + Overhead

= 80 + 30 + (Machine hours × Overhead Rate)

= 80 + 30 + (3 × 5.3)

= 80.00 + 30.00 + 15.90

= $125.90

4 0
3 years ago
The market for plywood is characterized by the following demand and supply equations: QD = 800 – 10P and QS = 50P – 1,000, where
Sunny_sXe [5.5K]

Answer:

$3,750

Explanation:

at $25 per sheet of plywood:

total demand = 800 - (10 x 25) = 800 - 250 = 550

total supply = (50 x 25) - 1,000 = 1,250 - 1,000 = 250

the equilibrium price is:

800 - 10P₁ = 50P₁ - 1,000

1,800 = 60P₁

P₁ = 1,800 / 60 = 30

the equilibrium quantity (Q₁) is:

Q₁ = 800 - (10 x 30) = 800 - 300 = 500

at 250 units, the price should be:

250 = 800 - 10P₂

10P₂ = 550

P₂ = $55

total deadweight loss = 0.5 x  (P₂ - P₁)  x (Q₂ - Q₁) = 0.5 x  ($55 - $25)  x (250 - 500) = 0.5 x $30 x -250 = -$3,750

7 0
4 years ago
Clothing boutiques and specialty shops often start because there is a need for a particular product but large retailers like wal
finlep [7]

The best way to describe how that idea was recognized is <u>"finding a gap in the marketplace".</u>


Numerous organizations need to find the gap in the market. The gap in the market is a particular region. A zone where you can command. A region where are little conceivable outcomes for another person to surpass your mastery. On the off chance that you prevail to discover a specialty where you are the just a single, at that point it is extraordinary for your enterprising profession. But, likewise it is extraordinary on the off chance that you can discover a space where you will be the one of a kind player in an established  market. The market where competition  is low.

7 0
3 years ago
What does it mean if there is an asterisk next to the PSAT Selection Index score?
Kobotan [32]
You do not meet NMSC's requirements
8 0
3 years ago
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1000, and a coup
lisabon 2012 [21]

Answer:

Ans. The price of the bond immediately after it makes its first coupon payment is $1,068.02

Explanation:

Hi, we have to bring to present value the remaining cash flows, that is 9 coupons and its face value, so we need to use the following equation.

Price=\frac{Coupon((1+YTM)^{n}-1) }{YTM(1+YTM)^{n} } +\frac{FaceValue}{(1+YTM)^{n} }

Where:

Coupon = 0.07*$1,000=$70

YTM = Yield to maturity, in our case 6% or 0.06

n = 9 (since the bond is paying every year and there are 9 years left until maturity)

Face Value= $1,000.

Everything should look like this

Price=\frac{70((1+0.06)^{9}-1) }{0.06(1+0.06)^{9} } +\frac{1,000}{(1+0.06)^{9} }

Therefore:

Price=476.12+591.90=1,068.02

So, the price of this bond right after paying its first coupon is $1,068.02

Best of luck.

8 0
3 years ago
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