Answer:
First National Bank = 14.6%
First United Bank.= = 14.8%
Explanation:
<em>Effective annual rate is the equivalent annual rate o where interest rate is compounded at an interval shorter than a year.</em>
It can be calculated as follows:
EAR = ( (1+r)^(n) -1) × 100
r -interest rate per period
n- number of period
EAR - Effective annual rate
First National Bank
r - interest rate per month = 13.7%/12 = 1.141%
number of period = 12 months
EAR =( (1+011141)^(12) - 1) × 100
= 0.145938395 × 100
= 14.59
= 14.6%
First United Bank.
r- interest rate per quarter - 14%/4 = 3.5% per quarter
n- number of quarters = 4
EAR = ((1+0.035)^(4)- 1) × 100
= 0.147523001 × 100
= 14.8%
A wage paid based on the ability to sell a product or service is called commission. This is usually given to sales person in particular because they are the one who are facing the clients and trying to persuade them purchase their products of services.
Answer:
Ease of entry into the market
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services.
In the long run, perfect competition make zero economic profit because if firms are making economic profits in the short run , new firms would enter into the industry in the long run. This is made possible because of the ease of entry into the market.
I hope my answer helps you
Answer: $3000
Explanation: Allowance for doubtful accounts is the contra account to accounts receiveable when all the bad debts need to be accounted for. The bad debts reduces the accounts receivable line but all bad debts are actually deducted from the allowance for doubtful accounts.
The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.
This means that bad debts for that year is:
8000 (balance before bad debts have been accounted for)
- 5000 (balance after bad debts have been accounted for)
= $3000.
Answer:
The answer is 20.55 days
Explanation:
Solution
Given that:
Annual sales =$627,200
Average accounts receivable =$35,300
Now
The accounts turnover ratio (receivable) = Sales/Average accounts receivable
Accounts receivable turnover ratio = $627,200/$35.300
=17.76 times
Thus
Number of days payment receives = 365/ Accounts receivable turnover ratio =365 days/17.76 times
=20.55 days
Therefore The company takes 20.55 days to get payment for its services
