For Accounting, I need help knowing how to journalize the following transaction:

Which of the following is one way the Federal Reserve Bank serves the government?

Andrews [41]

Answer:

making loans to the government

3 0

2 years ago

A proposed new project has projected sales of $132,000, costs of $66,000, and depreciation of $13,500. The tax rate is 30%. Calc

Verizon [17]

Answer:Operating cash flow $ _50,250__

Yes, the answer is same in each case

Explanation:

a) EBIT + Depreciation - Tax

= ($132,000-$66,000-$13,500) + $13,500 - Tax

= $52,500 + $13,500-(30% x $52,500)

=$52,500 + $13,500-15,750

EBIT + Depreciation - Tax=$50,250

b)Top down OCF = EBIT - (EBIT x Tax) + Depreciation

Top down OCF = $52,500 - ($52,500 x 30%) + $13,500

Top down OCF = $52,500 -15,750 + $13,500

Top down OCF =$50,250

Tax shield OCF =(Sales - Cost)(1-t) + Depreciation (t)

Tax shield OCF = ($132,000-$66,000) (1-0.30) + ($13,500 x0.30)

Tax shield OCF =$66,000 x 0.7 + 4,050

Tax shield OCF = 46,200+ 4,050

Tax shield OCF = $50,250

Bottom Up OCF = Net Income + Dep

Bottom Up OCF =($132,000-$66,000-$13,500 ) - Tax ) + Dep

Bottom Up OCF = $52,500-(0.3 x $52,500 )+ $13,500

Bottom Up OCF = $52,500 -15,750 + $13,500

Bottom Up OCF =$50,250

2. Yes, the answer is same in each case

4 0

3 years ago

An insurer hires an advertising agency to create an advertisement for a health insurance policy. The public complains that the w

OLga [1]

Answer:

The insurer shall be held liable

Explanation:

For any published or displayed content which relates to the insurer or it's products, the insurer shall be made liable for any inappropriate content.

In cases wherein the advertisement function has been assigned to an insurance agency, even in such a scenarios, the sole responsibility rests with the insurer and it's their primary responsibility to check upon the content advertised.

Thus, if any inappropriate content or misleading claims are made, it shall be assumed those have been issued by consent of the insurer and the insurer cannot escape this liability.

5 0

3 years ago

How many years are required for an investment to double in value if it is appreciating at the rate of 9% compounded continuous

Vesna [10]

Answer:

time required is 7.70 years

Explanation:

given data

interest rate = 9%

solution

we know with the compounded continuously rate r and time t amount is

A(t) = A(o) $e^{rt}$ .................1

and we have given amount is double so

A(t) = 2 A(o)

so from equation 1 put the value and we get here

2 A(o) = A(o) $e^{rt}$

ln(2) = 0.09 t

solve it we get time

time t = 7.70 years

so time required is 7.70 years

7 0

3 years ago

A company issued 5%, 20-year bonds with a face amount of $80 million. The market yield for bonds of similar risk and maturity is

natulia [17]

Answer:

n = 40

i = 3% (semiannual)

face value = $80 million

coupon payment = $2,000,000

market price:

PV of face value = $80 / (1 + 3%)⁴⁰ = $24.52 million

PC of coupon payments = $2 x 23.115 (PV annuity factor, 3%, 40 periods) = $46.23 million

market value = $70.75 million

7 0

2 years ago