Answer:
Lets see what are the double entries of borrowings and purchase of new manufacturing equipment and their implications:
Double Entry for borrowings:
Dr Bank $500,000
Cr Notes Payable $500,000
The above double entry shows that the total assets and Notes Payable are increased due to this transaction. Furthermore, in the Statement of Cash flow we see an increase in Cash from Financing activities and decrease in the Cash from investing activities.
The second transaction is purchase of new manufacturing equipment. It must be accounted for as under:
Dr Manufacturing Equipment $500,000
Cr Bank $500,000
This transaction shows that net impact on the total assets is same as one asset has been increased by spending the other asset. This transaction also has no impact on Cash for financing, inventories and notes payable balances. However, their is increased negative balance in cash from investing activities.
Don’t keep food near cleaning liquids
Don’t spray sanitizer near any food items
(May be wrong, don’t hate)
Answer:
Face value of bond = 100
Years of maturity = 4
Market value = 106
Coupon frequency = 2
Semi annual coupon = 12
1. Current yield = Semi-annual * Coupon frequency / Market value
Current yield = 12 * 2 / 106
Current yield = 0.2264150943396226
Current yield = 22.64%
2. YTM = 2*Rate(Years of maturity*Coupon frequency, Semi annual, - market value, FV, 0)
YTM = 2*Rate(4, 2, 12, -106, 100,0)
YTM = 0.2168
YTM = 21.68%
3. Capital yield = Current yield - YTM
Capital yield = 21.68% - 22.64%
Capital yield = -0.96%
Answer:
The correct answer is option b.
Explanation:
The law of supply states that other things being constant, the price of the product and its supply are positively related. This means that an increase in price will cause the quantity supplied to increase and vice versa.
In a perfectly competitive market, the firms are price takers. So a decrease in the price of the product will cause its quantity supplied to decline. Or in other words, when the price falls, the firms will reduce output.
