Dakota Mining Company pays its bills and employees with checks drawn on a bank from another part of the country. Float is the advantage gained during the check-clearing time.
<h3>What is float?</h3>
Generally, The float is money in the banking system that is momentarily counted twice owing to time delays in reporting a deposit.
In conclusion, the advantage gained during the check-clearing time is called float
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Answer:
a. 22,400 units
b. 27,600 units
Explanation:
Break even point is the level of Activity where a firm neither makes a profit nor a loss.
<em>Break -even (units) = Fixed Costs / Contribution per unit</em>
<u>Contribution per unit</u>
Contribution per unit = Sales per unit <em>less</em> Variable Cost per unit
= $66 - $44
= $22
Break -even (units) = $492,800 / $22
= 22,400 units
<em>Sales units to reach a target profit = (Target Profit + Fixed Costs) / Contribution per unit</em>
= ($114,400 + $492,800) / $22
= $607,200 / $22
= 27,600 units
Answer:
D) No impact on the accounting equation.
Explanation:
- Nothing would happen since the amount to be received would remain the same i-e $20,000, so there is no chance for increase in liabilities. Moreover, the there is no new services so that asset should be impacted.
- What there has been done is just classifying the payment which the Delta thought that they would receive earlier, but now it is being realized that it will take long, so just to not make any mistake or confusion for future this was done.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Refurbishing materials:
Variable cost= $600
Fixed costs= $18,800
Estimated cost= 600*35 + 18,800= $39,800
Actual cost= 600*32 + 18,800= $38,000
Refurbishing activity variance= Estimated - actual cost
Refurbishing activity variance= 39,800 - 38,000= 1,800 favorable
Answer: 7.24%
Explanation:
From the question, we are told that:
3 years treasury securities have an interest rate = 1.92%
10 years treasury security has an interest rate = 5.62%
Let the 7 year treasury security interest in 3 years be represented by z.
Based on the expectation theory
( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10
(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10
(1.0192)^3 (1 + z%)^7 = (1.0562)^10
1.05871(1 + z%)^7 = 1.72767
Divide both side by 1.05871
(1 + z%)^7 = 1.72767/1.05871
(1 + z%)^7= 1.6319
1 + z% = 1.6319^1/7
1 + z% = 1.6319^0.1429
1 + z% = 1.0724
z% = 1.0724 - 1
z% = 0.0724
We then convert the decimal to percentage
z = 7.24%
The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .
