WHAT ARE SOME SERVICES PROVIDED BY RETAILERS TO CUSTOMERS AS WELL AS PRODUCERS?

Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio

Elanso [62]

Answer:

The price of the bond is $1000. Thus, option a is the correct answer.

Explanation:

The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.

The formula for the price of the bond is attached.

Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025] + 1000 / (1+0.025)^8

Bond Price = $1000

5 0

3 years ago

To be useful for decision making, information should possess the fundamental qualities of relevance and.

Nitella [24]

To be useful for decision making, information should possess the fundamental qualities of relevance and <u>Faithful representation</u>.

<h3>What is faithful representation?</h3>

Faithful representation can be defined as the financial accounting concept that stated a company financial position which they present should be correct with what the company has as their financial statement.

It is paramount that a company a financial statement is accurate to what they present in the financial statement and should not be compromise.

Therefore To be useful for decision making, information should possess the fundamental qualities of relevance and <u>Faithful representation</u>.

Learn more about Faithful representation here:brainly.com/question/14506917

#SPJ1

7 0

1 year ago

RJ Miller Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid

djverab [1.8K]

Answer:

$48

Explanation:

Contribution = Sales - Variable Costs

where,

Sales = $120

Variable Costs = $120 x 10% + $60 = $72

therefore,

Contribution = $120 - $72 = $48

The contribution margin per unit is: $48

6 0

2 years ago

Becky only eats out at Macaroni Grill and eats out three times per month. She receives a raise from $33,200 to $33,500 and decid

iragen [17]

Answer:

55.58

Explanation:

Data provided in the question;

Initial demand per month, Q₁ = 3

Final demand per month, Q₂ = 5

Initial price, P₁ = $33,200

Final price, P₂ = $33,500

Now,

elasticity of demand using midpoint method is calculated as :

= $\frac{\textup{percent change in demand}}{\textup{percent change in supply}}$

or

= $\frac{\frac{Q_2-Q_1}{\frac{Q_1+Q_2}{2}}}{\frac{P_2-P_1}{\frac{P_1+P_2}{2}}}$

on substituting the respective values, we get

= $\frac{\frac{5-3}{\frac{5+3}{2}}}{\frac{33,500-33,200}{\frac{33,200+33,500}{2}}}$

or

= $\frac{\frac{2}{4}}{\frac{300}{\frac{66,700}{2}}}$

or

= $\frac{0.5}{\frac{300}{33,350}}$

= 55.58

3 0

3 years ago

Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of

vesna_86 [32]

Answer:

Explanation:

From the given information: we are to:

a) Prepare an income statement for Ponzi for today and for each of the next three quarters. Ignore taxes. (LO1)

An income statement involves depicts the achievement of a certain business over a period of time .

The income statement for Ponzi for today and for each of the next three quarters is as follows:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales $0 $550 $600 $0

(-)

cost of goods 0 $500 $500 $0

sold

Net income 0 $50 $100 0

We will see that in the first and the fourth quarter ; the firm neither pay any cash to purchase goods nor collect cash for sales. Thus ; the cashflow will be zero in those instances and we will consider only the second and the fourth quarter for sales income and production cost.

SO:

Quarter 2 sales = 50 × 11 = $550

Quarter 3 sales = 50 × 12 = $600

(b) What are the cash flows for the company today and in each of the next three quarters?

Cash flow is like a database that helps to keep tracks and records the cash inflows and cash outflows of a financial instrument.

The cash flow in each month is as follows:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales $0 $550 $600 $0

(-)

cost of goods 0 $500 $500 $0

sold

Net income 0 $50 $100 0

Inventories $1000 $500 0 0

Account

Receivables 0 550 600 0

Net working

capital $1000 $1050 $600 0

Change in WC $1000 $50 $450 $600

CashFlow $1000 $0 $550 $600

Hint:

The Cash flow = net income - change in net working capital

The net working capital = Inventory + Account receivables

Quarter 2 sales = 50 × 11 = $550

Quarter 3 sales = 50 × 12 = $600

(c) What is Ponzi’s net working capital in each quarter? (LO1)

The net working capital in each quarter can be illustrated as :

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Inventories $1000 $500 0 $0

Account recei- 0 $550 $600 $0

vables

Net working $1000 $1050 $600 $0

capital

8 0

3 years ago