Answer :a obligation.
The word obligation means “to be bound to act in a certain way either morally or legally.”
Hence when one is in need of money to start a business, family members may lend the money because they are bound to help you in times of need.
Loans from family members are usually interest free.
However, if the loan is not repaid, relationships quickly turn sour.
Hence loans from family member must be treated with respect and care, in order to maintain relationships.
Pension expense of Harvey Hotels in its income statement for the year= <u>$9.7 million
</u>.
<u>Explanation</u>:
Service cost= $7.3 million
Interest cost= $2.5 million
Amortization of prior service cost= $2.2 million
Expected return on plan assets= $2.3 million
Pension expense=?
Pension expense is decreased by amortization of net gain.
Pension expense= (Service cost+ Interest cost- Expected return on plan assets+ Amortization of prior service cost
= (7.3+2.5+2.2)-2.3
= 9.7 million
Pension expense of Harvey Hotels in its income statement for the year= $9.7 million
Answer:
True.
Explanation:
True. The given statement is true because the domestic strategy refers to the strategy of a company to expand its business and find the new market for their products. So, the new market can be found by internationalizing the goods by the firm. Moreover, early-stage firms focus on the domestic market but as their business grows or production increases then it starts selling its goods and services in foreign markets.
Answer:
Specialty Manufacturing
The Estimated workers' compensation insurance premium is:
= $912.
Explanation:
a) Data and Calculations:
Estimated total payroll for the coming year = $456,000
Workers' compensation insurance premium rate = 0.2%
Estimated workers' compensation insurance premium = $912 ($456,000 * 0.2%)
b) The Insurance Premium is the charge or expense that is paid to the insurance company for the insurance services provided. It is usually calculated as the insured value multiplied by the premium rate.
Answer:
The present value of the cash flows is $ 786.
Explanation:
This problem requires us to calculate present value of cash flows given in the question. The present value can be calculated by discounting cash flows using interest rate (5%) as discount factor.
PV= (190* (1+5%)^-1)+(390* (1+5%)^-2)+(290* (1+5%)^-3)
PV = 181 + 354 + 251
PV = $ 786
(Discount factor = CF (1+interest rate)^-period)
