Answer:
Inventory= $5,040
Explanation:
Giving the following information:
March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200
Purchases:
Mar. 10 600 gals @ $ 7.25
Mar. 16 800 gals @ $ 7.30
Mar. 23 600 gals @ $ 7.35
Sales:
Mar. 5 400 gals
Mar. 14 700 gals
Mar. 20 500 gals
Mar. 26 700 gals
Total units= 3,000
Total sales= 2,300
Ending inventory= 700 units
LIFO (last-in, first-out)
Inventory= 700*7.20= $5,040
Answer:
The Correct option is <u>"B"</u>
Explanation:
Any person who by arguments verbal or written or by behavior characterize himself, or wittingly documents himself to be drawn, to be a companion in a very secure, is responsible as a companion in this organization to any person who has on the religion of one such illustration specified credit to the organization, whether or not the individual signifying himself or drawn to be a companion will or doesn't understand that the illustration has extended the individual therefore providing credit.
Credit Unions are not profit fiancial cooperatives whose earnings are paid back to members in the form of higher saving rates and lower rates Banks are for profit business with earning paid to stockholders only. Hope this Helps?
Answer:
E. Allows savers to spread their money among many financial investments.
C. Provides an easy method of exchanging a financial security for money.
D. Collects and communicates information about borrowers to savers
Explanation:
The financial system provides several key services to both borrowers of funds as well as the lenders of funds apart from transfering excess funds from lenders/households to the firms in need of those funds (borrowers). These include-
The facility of allowing savers or lenders to invest their funds among many different financial investments instead of just one.
It provides information about the borrower to the lender.
A financial security can be easily exchanged in terms of money by these financial institutions in favour of the customer.
Therefore, E, C and D are correct
Answer:
a. A 20 year, 10% coupon bond
Explanation:
Reinvestment risk refers to the risk of earning lower rate of return than the return earned on current investments.
For example, a $1000, 6% callable bond is issued. The lender earns 6% i.e $60 per annum. Suppose the market interest rates drop to 4% and the issuer redeems these bonds. Then, the lender has to invest his proceeds at 4% and not unlike 6% in previous case.
This means, his rate of return has reduced on reinvestment. This is reinvestment risk.
Bond term is directly related to reinvestment risk. Higher the term, higher the reinvestment risk.
In the given case, 20 year 10% coupon bond bears the most reinvestment risk since the term is more. Higher the term of the bond, higher the possibility that interest rates would be lower than the interest rate at the time of purchase.
