Answer:
Negative cash balance of $210,000.
Explanation:
Given that,
cost of equipment = $200,000
Inventory purchased = $12,500
Cash balance = $2,000
Accounts payable = $4,500
Net cash flow at time zero:
= (cost of equipment) + (Increase in working capital)
= ($200,000) + (Inventory purchased + cash balance - Accounts payable)
= ($200,000) + ($12,500 + $2,000 - $4,500)
= ($200,000) + ($10,000)
= ($210,000)
Note: Negative values are in the parenthesis.
On their classified balance sheet, Mason Corporation would classify this land as <u>"a long term investment".</u>
A long-term investment refers to an account on the asset side of an organization's monetary record that speaks to the organization's speculations, including stocks, bonds, land and money, that it expects to hold for over a year. The long-term investment account varies to a great extent from the short-term investment in that the transient speculations will no doubt be sold, while the long haul speculations may never be sold.
Answer:
a) ≈ 9.6 years
b) Modified duration is a better measure because Modified duration consider the concept of negative convexity
c) i) coupon of bond = 4%
Modified duration will increase since the coupon rate of payment decreased
ii) Maturity of bond = 7
Modified duration will decline as Maturity period has declined to 7 years
Explanation:
A) Calculate modified duration using the preceding information
modified duration = Macaulay duration / ( 1 + (yield to maturity / 2 ))
= 10 / ( 1 + ( 0.08 / 2 ))
= 9.615 years
B) Modified duration is a better measure because Modified duration consider the concept of negative convexity while Macaulay methods shows the inverse relationship between the duration of the bond and coupon payment .
<u>C) Determine Direction of change in modified duration if </u>
i) coupon of bond = 4%
Modified duration will increase since the coupon rate of payment decreased
ii) Maturity of bond = 7
Modified duration will decline as Maturity period has declined to 7 years
Answer: True, if the employee provides good work history
Explanation:
Answer:
Single Column revenue journal is given below
Explanation:
<u> Single Column Revenue Journal</u>
Date No. Account Dr A/c Receivable Dr / Fee earned Cr
Mar.2 512 Santorini Co. $ 715
Mar.8 513 Gabriel Co. $250
Mar.12 514 Yarnell Co. $ 630
Mar.20 515 Electronic Central Inc. $135
<u>Cash Receipts Journal</u>
Date No Accounts Cr Fee earned A.c Rec. Cr Cash Dr
Mar.4 CMI $ 180 $ 180
Mar.19 Yarnell Co. $ 480 $ 480
Mar.28 Fee Earned $ 100 $100
Mar.28 Santorini Co. $715 $ 715
Mar.31 Fee Earned $75 $75
