Answer:
We should discontinue Product B
Explanation:
We should check if Product B generates a contribution or not:
We subtract from the sales revenues the variable cost:
revenue 39,500
variable cost of goods sold (25,500)
variable selling expenses <u> (16,500) </u>
Contribution (2,500)
<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.
Answer:
Defense, military spendings.
Explanation:
Answer: get a lil side job a save until you have enough
Explanation:
Answer:
It was raised $236,009.52
Explanation:
The YTM is 6.43
so we need to calculate the market price of the bond using this rate.
Market price will be equal to the cash raised from the sale.
1st annuity of 20 years semiannual payment of
275,000 x 0.0599/2 = 8236.25
PV = 183,932.289662
2nd we have to calculate the prsent value of the redeemption of the bond
PV = 79,0773.23051
Now we add both values to get the cash proceeds from the bond
79,0773.20351 + 183,932.289662 = 236,009.52
Answer and Explanation:
The preparation of the operating activities section is presented below:
Net income $409,000
Add: Accounts receivable decrease $37,300
Add: Depreciation expense 46,800
Add: Inventory decrease 44,500
Add Amortization expense 7,700
Less: Prepaid expenses increase -6,900
Less: Gain on sale of plant assets -6,300
Less: Accounts payable decrease -10,000
Add: Salaries payable increase -2,000
Net cash flow from operating activities $524,100