Two types of multitasking are:

Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p

Flauer [41]

Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

Cost of equipment; the PV = 400,000

Next, calculate the rate of return using Net operating cashflow per year and the equipment cost. You can do this with a financial calculator;

N =5

PMT = 150,000

FV = 0

PV = -400,000

then CPT I/Y = 25.41%

Therefore the return is closest to 25.5%

8 0

3 years ago

Chiller Company has credit sales of $5.60 million for year 2013. Chiller estimates that 1.32% of the credit sales will not be co

dsp73

Answer:

$59,045.80

Explanation:

The following information was missing:

Accounts Receivable total $1,565,170

Assuming the company uses the percent of accounts receivable method, what is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

total uncollectible debt = $1,565,170 x 4% = $62,606.80

since the account balance of the allowance for doubtful accounts is $3,561 (credit), the adjusting entry should be:

December 31, 2013, bad debt expense

Dr Bad debt expense (= $62,606.80 - $3,561) 59,045.80

Cr Allowance for doubtful accounts 59,045.80

7 0

3 years ago

Present three examples that illustrate how all decisions involve trade-offs

satela [25.4K]

It is probably safe to say that most if not all decisions involve trade-offs. For example a person may be offered a job that pays well but requires 7 days per week for a month and while this is good for a younger person with no other commitments it may not work for an older person with his own family commitments and other projects. Another decision could be that for support, a husband decides to not take on major time consuming projects while his wife is doing intensive studying to become certified in a field of her choosing so that he can support her. Another example is that when one cannot drive one's son with a disability to a beach to swim because it is too far and uses too much car gas, the money saved on gas some of it could be spent on his groceries.

7 0

4 years ago

Read 2 more answers

Kasey Corp. has a bond outstanding with a coupon rate of 5.87 percent and semiannual payments. The bond has a yield to maturity

Viktor [21]

Answer:

Quoted price of bond = $1825.05

Explanation:

The quoted price or price of the bond can be calculated by taking adding the present value of the annuity payments in form of interest made by the bond and the present value of the face value of the bond. The formula for the price of bond is attached.

The interest is payed semi annually, thus the semi annual coupon payment (C) is,

C = 2000 * 5.87% * 6/12 = 58.7

The semi annual YTM is = 6.9%/2 = 3.45%

Total semi annual periods are = 13 * 2 = 26

Bond Price = 58.7 * [(1 - (1+0.0345)^-26) / 0.0345] + 2000 / (1+0.0345)^26

Bond Price = $1825.051207 rounded off to $1825.05

4 0

3 years ago

Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the followin

Jet001 [13]

Answer:

<u>income statement using an absorption income statement format.</u>

Sales ( 480 × $1,960) 940,800

Less Cost of Sales ( 480×$1,350) (648,000)

Gross Profit 292,800

Less Operating Expenses

Variable selling and administrative expenses (480×$40) (19,200)

Fixed selling and administrative expenses $225,000 (225,000)

Interest Expense ($12,000)

Net Income $36,600

Explanation:

Absorption Costing Considers BOTH variable and fixed costs in product cost.Non-Manufacturing are treated as period costs.

<u />

8 0

3 years ago