Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, w
1 answer:
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Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) Semiannually Rate of interest = 11% ÷ 2 = 5.50% = 0.055
Number of years (half yearly) = 4 × 2 = 8 years
PVIF Value = 1 ÷ (1 + Interest Rate)^Number of years
=1 ÷ (1 + 0.055)^8
= 1 ÷ 1.5347
= 0.65160
PVIFA Value = [1 -1 ÷ (1 + Interest Rate)^Number of years ÷ Interest Rate
= [1 - 1 ÷ (1 + 0.055)^8] ÷ 0.055
= [1 - 0.65160] ÷ 0.055
= 6.33457
Particular PV table value Multiply Amount ($) PV value
Principle value 0.65160 × 640,000 $417,024
Annually interest Value 6.33 × 32,000 $202,706
($640,000 × 6 ÷ 12 × 10%)
Present Bond’s Price $619,730
2).
Journal Entry
On Jan.1,2021
Cash A/c Dr. $619,730
Discounts on bond payable A/c Dr. $20,270
To Bond payable A/c $640,000
(Being bond issued at discount is recorded)
3. The amortizable schedule is presented on the attachment below
4).
Journal Entry
June 30,2021
Interest expense A/c Dr. $34,085
To Cash A/c $32,000
To Discount on bond payable A/c $2,085
(Being interest expenses is recorded)
5) On December 31,2021 Amount of bonds reported = $624,015
6). Interest expenses reported in income statement
= $34,085 + $34,200
= $68,285
7).
Journal Entry
On Dec. 31,2024
Interest expense A/c Dr. $35,032
To Cash A/c $32,000
To Discount on bond payable A/c $3,032
(Being interest expense is recorded)
On Dec.31,2024
Bond payable A/c Dr. $640,000
To Cash A/c $640,000
(Being interest expense is recorded)
Answer:
Their order quantity will rise but the time between orders will fall.
Explanation:
Let's analyse the EOQ formula:
If Demand increases
The dividend increase, so the quotient increase.
EOQ will rise.
<u>Only options b and c are correct on that statment.</u>
Now let's check the time between order:
If we analyze the increase in demand:
√(2xΔDxS/H)/ ΔD
everything else is keep constant so we have:
√(CxΔD)/ ΔDx
If we use L'Hopital we can conclude this function limit is zero.
Anyway a more easy way to do it will be calculate with a demand of 1000
and then with a demand of 50,000 to notice how much the time between order decrease.
√(1000) / 1000 = 0.031622776
√(51000)/ 51000 = 0.004428074
<u>so we have EOQ increase and days between order decrease.</u>
Now only option B is correct !