Answer:
The financial statement will report the note receivable of the amount of $9,000 and interest receivable of $300
Explanation:
Calculation for what Cushion's financial statements report for this situation at December 31
Based on the information given we were told that the Corporation has the amount of $9,000 as note receivable from a customer with an Interest of 4% which has accrued for 10 months on the note which mean that the financial statements will report will report the note receivable of the amount of $9,000 and interest receivable of the amount of $300 at December 31 which was calculated as :
Interest receivable =$9,000×0.04×10/12
Interest receivable =$300
Therefore the financial statement will report the note receivable of the amount of $9,000 and interest receivable of $300
Answer: B. Hold
Explanation: the Oakland A's baseball team has a very low payroll budget which means the team received low income as pay. So Beane the general manager created a successful "hold strategy" to retain talents created in the team. It is a good business management strategy to keep your best guys, but with low pay you can not keep them for long.
Answer:
ROI 15%
Residual Income $1,350,000
Explanation:
Residual Income is the difference between net income of the company and the required rate of return. It determines the excess of income generate than the minimum return. The formula to calculate the residual income is,
RI = Net operating Income - (Required rate of return * Cost of operating assets)
RI = $4,500,000 - (21% * $15,000,000 )
RI = $1,350,000
ROI = 
Capital Employed = Sales - Average operating assets
ROI = 15%
Residual income is positive when the department has meet the minimum return requirement. Minimum return is the return that is required by the company stakeholders. The particular projects and activities are selected on the basis of residual income.
Since the problem assumes annual compounding, then the
relationship of forward rate and spot rates is given in the equation:
f1,2 = ((s2^2 / s1) - 1)
Therefore,
f1,2 = ((1.069^2 / 1.063) - 1)
f1,2 = 0.075 = 7.5%
Forward rate is 7.5%.
