1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
evablogger [386]
3 years ago
6

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300

million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%.
Assuming that Auerbach issued the bonds for $255,369,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022, rounded up to the nearest thousand?
a) $256,369,000
b) $252,369,000
c) $257,030,000
d) $256,300,000
Business
1 answer:
Kipish [7]3 years ago
4 0

Answer:

C) $257,030,000

Explanation:

Auerbach's net bond liability on March 31, 2022:

  • we start with the beginning liability $255,369,000
  • plus interest accrued for six months = $255,369,000 x 6% x 6/12 = $7,661,070
  • minus cash paid = $300,000,000 x 4% x 6/12 = $6,000,000

net bond liability = $255,369,000 + $7,661,070 - $6,000,000 = $257,030,070 ≈ $257,030,000 rounded to the nearest thousand

You might be interested in
The business earns $700 of consulting revenue. How would these earnings affect the total equity of a business?a. Liabilities are
Sliva [168]

Answer:

d. Revenues increase, so total equity is increased.

Explanation:

Consulting Revenue of $700 will increase the total revenue of the business and total equity of the business as the revenue will increase the net profit which will ultimately be added to the equity balance. Increase in revenue will result in increase in equity and Increase in expenses will decrease the equity.

3 0
2 years ago
Read 2 more answers
EBay's customers enrich the Web site by giving their reviews after every purchase. These reviews are used by buyers to evaluate
Tatiana [17]

The options are:

A) reverse engineeringB) value chain extensionC) focused strategyD) niche market

Answer:

Value chain extension.

Explanation:

Value chain extension are the steps a company takes to extend the reach of their products to customers, and multiple relationships are built that impacts the bottom line.

In this instance eBay customers write a review after each purchase and the reviews are now used by buyers to evaluate the seller's.

EBay in turn gives special privileges. This is eBay creating an extended value chain in delivering it's products to customers.

4 0
3 years ago
The management of supply chain inventories focuses on: No Answer Selected
Dennis_Churaev [7]

Answer: both internal and external inventories

     

Explanation: In simple words, supply chain inventories refers to the  raw material, finished goods and work in process inventories like factors that together constitutes a supply chain.

Management of supply chain refers tot he process in which the organisation tries to control and maintain the flow of inventories from on stage to the other with the ultimate objective of keeping the supply of finished goods smooth throughout the period.

It starts from procuring the suitable raw materials in right quantity and right time after that it monitors the manufacturing unit so that production is done in appropriate time period and finally makes sure that finished goods will be supplied to the market as per the time period specified by the wholesalers or retailers.

7 0
2 years ago
Contemporary governments promote 4 development by: Answer increasing 4 regulations. providing government ownership of 4es. permi
padilas [110]
Contemporary governments promote development by establishing a currency that's tradable in world markets. 
3 0
2 years ago
Which is not a responsibility of a human resources manager? Choose the answer.
Ivanshal [37]

Answer:

maintaining company employee contact information

8 0
2 years ago
Other questions:
  • Applicants for positions at a product distribution site are required to demonstrate the ability to drive a forklift and operate
    14·1 answer
  • If neither party is satisfied with the national labor relations board's decision, the parties can take the case to the _____ for
    7·1 answer
  • Which function(s) of money informs the consumer what currency to use to obtain a good or service?
    7·2 answers
  • If an advertisement is affiliated with a website's content, what might that suggest?
    9·1 answer
  • Consider the market for coffee beans. Suppose that the prices of all other caffeinated beverages go up 30 percent while at the s
    12·1 answer
  • Ivory Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrela
    9·1 answer
  • Which of the following statements is most accurate? Multiple Choice In process costing, estimating the degree of completion of u
    14·1 answer
  • 20. WACC and NPV [LO3, 5] Sommer, Inc., is considering a project that will result
    8·1 answer
  • Ferret boy names NO HUMAN NAMES (chase, rick, bob, george, etc)
    14·2 answers
  • a publisher has orders for 600 copies of a certain text from san francisco and 400 copies from sacramento. the company has 700 c
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!