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Xelga [282]
3 years ago
5

Jane's Donut Co. borrowed $200,000 on January 1, 2021, and signed a two-year note bearing interest at 12%. Interest is payable i

n full at maturity on January 1, 2023. In connection with this note, Jane's should report interest expense at December 31, 2021, in the amount of: Group of answer choices $50,880. $0. $24,000. $48,000.
Business
1 answer:
Katen [24]3 years ago
7 0

Answer:

$24,000

Explanation:

The computation of the interest expense is shown below:

= Borrowed amount × rate of interest

= $200,000 × 12%

= $24,000

We simply multiplied the borrowed amount with the rate of interest so that the interest expense could come

hence, the third option is correct

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A company purchased factory equipment on April 1, 2022 for $69600. It is estimated that the equipment will have a $12000 salvage
goldfiish [28.3K]

Answer:

$4,320

Explanation:

Calculation for the amount to be recorded as depreciation expense at December 31, 2022

Using this formula

Depreciation expense at December 31, 2022=[(Factory equipment - Salvage value) ÷ 10]× 9/12

Let plug in the formula

Depreciation expense at December 31, 2022=[($69,600 - $12,000) ÷ 10] × 9/12

Depreciation expense at December 31, 2022=$5,760×9/12

Depreciation expense at December 31, 2022=$4,320

Note that 1 April 2022 to 31st December 2022 will give us 9months

Therefore Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2022 is:$4,320

3 0
3 years ago
If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in disposable income, she will use _____
Hatshy [7]

Answer:D $750

Explanation:

This is a way an individual optimise his consumption and his savings habit for their future.

It has to do with the future of any individual and plans are made for the future.

An individual can plan to spend more now and save a little or spend a little now and safe for the future.

3 0
4 years ago
It has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets ra
jok3333 [9.3K]

Answer: Limited marketing  

                         

Explanation:  Limited marketing strategy refers to the marketing strategy in which the organisation tries to target a specific set of customers from a target market rather than everyone.

These are opted by organisation that have unique features in the product they are offering or have specialization in a specific product among others.

      In the given case, Shelly has expertise in making bakery products but her cupcakes gets special attention from the customers.

Thus, we can conclude that the decision of Shelly to open a cupcake shop is an example of limited marketing.

4 0
3 years ago
uppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A thr
Ivenika [448]

Answer:

WACC for A: 9.05%

WACC for B: 9.50%

WACC for C: 12.20%

WACC for D: 12.65%

Explanation:

WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)

Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%

Thus WACC for a division will be equal:  3% + 50% x ( 4% + beta of each Division x 9%).

Substitute beta of each Division from A to D provided in the question, we have: WACC for A: 9.05%; WACC for B: 9.5%; WACC for C: 12.2%; WACC for D: 12.65%.

7 0
4 years ago
Jasper Furnishings has $225 million in sales. The company expects that its sales will increase 10% this year. Jasper's CFO uses
lions [1.4K]

Answer:

$75,637.5

Explanation:

Sales = $225 million

Growth in sales = 10%

Inventory = $15 + 0.245(Sales)

(sales) S1 = $225,000,000 × 1.10

   = $247,500,000

Inventory = $15 + 0.245 ($247.5)

                = $15 + 60.6375

                = 75.6375

Since this relationship is expressed in thousands of dollars,

Inventory = $75.6375 x $1000

                = $75,637.5

7 0
3 years ago
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