What are the three basic types of issues that arise in business finance?

On January 1, 2020, Sandhill Co., a calendar-year company, issued $1840000 of notes payable, of which $460000 is due on January

mezya [45]

Answer:

The correct answer is Option C.

Explanation:

Current liabilities are those liabilities that become due and payable within a year or less than a year while long-term liabilities become payable after a year.

At the instance of the question, the note payable is a liability. Since $460,000 becomes payable on January 1 for each of the next four years out of the total of $1,840,000, it means $460,000 is a current liability while the remaining balance of $1,380,000 is long-term.

3 0

3 years ago

The cumulative average labor hours to assemble the first five units of product A were 15.882 hours. If the learning curve, based

velikii [3]

Answer:

Estimated time required to assemble the 20th unit= 8.836 hours

Explanation:

The learning curve theory states that as the cumulative output doubles the cumulative average time taken till date is reduced to a certain percentage of the previous time. This percentage is called learning rate; and is given as 85% in this question.

The cumulative average time is determined using the formula below:

Y= aX^b

a - time taken for the first unit produced

b = log LR/Log 2

X- cumulative units till date

Y - cumulative average time taken for X units

LR- Learning rate

<em>So we can apply this formula to our question</em>

b = Log 0.85%/Log 2 = -0.23446

15.882 = a * 5^(-0.23446)

15.882 = a * 0.685671

a =15.882/0.685671

a =23.16271007

Time taken for the first unit =23.16 hours

Estimated time taken to assemble 20th units:

= Total time for 20units -Total time for 19units

= (23.16×(20^-0.23446)×20) - (23.16×(19^-0.23446)×19)

= 229.4949 -229.4949

= 8.836 hours

Note: total time = Cumulative average time × Cumulative number of units

Estimated time required to assemble the 20th unit= 8.836 hours

6 0

3 years ago

A company reported net income available to common stockholders of $2,000,000 for the year ended December 31, year 2. The company

bekas [8.4K]

Answer:

$1.12

Explanation:

Basic earnings per share is the standard calculation of the portion of a company's income that is earned or returned on one share of its common stock.

The formula for Basic Earnings Per Share is = Net Profit - Preference Dividend / Weighted Average Number of Shares

Weighted average number of shares can be obtained by multiplying the number of outstanding shares by the portion of the reporting period those shares covered.

Therefore applying the above to the scenario we have: 2000000/ [1500000+(500000*7/12)] = 2,000,000/1,791,667 = $1.12

7 0

3 years ago

If, as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, w

zalisa [80]

Answer:

The correct answer is option D.

Explanation:

The law of demand states that keeping other things constant there is an inverse relationship between quantity demanded and price.

According to the law of increasing marginal opportunity cost with each additional output the marginal opportunity cost to produce next unit of output increases.

While the law of supply states that keeping other things constant there is a direct relationship between price and quantity supplied.

According to the law of diminishing marginal utility, the marginal utility derived from the consumption of each additional unit of good keeps declining as more and more unit of goods is consumed.

So, option D is the correct answer.

8 0

3 years ago

From 1991 to 2000, the U.S. economy had an annual inflation rate of around 2.76%. The historical annual nominal risk-free rat

azamat

Answer:

2.95% and 2.87%

Explanation:

The computation of the approximate real rate and the estimated real interest rate is shown below:

The Approximate real rate is

= Historic annual nominal risk free rate - Annual inflation rate

= 5.71% - 2.76%

= 2.95%

And, the estimated real interest rate is

= (1 + historical annual nominal risk free rate) ÷ (1 + annual inflation rate) - 1

= (1 + 0.0571) ÷ (1 + 0.0276) - 1

= 2.87%

We simply applied the above formulas so that each one could be determined

3 0

3 years ago

What are the three basic types of issues that arise in business finance?​

What are the three basic types of issues that arise in business finance?