Answer:
B. an interest rate paid on Eurodollar loans in the London market.
Explanation:
London InterBank Offered Rate (LIBOR)
This is simillar to the federal funds rate.
It is a rate at which banks offer fonds to other banks, thus "interbank", for short-term loans.
It is generallyaccepted to evaluate and compare interest rate and indicate the borrowing cost between banks.
<u> It is based on five currencies:</u>
- the US dollar
- the euro
- the British pound
- the Japanese yen
- and the Swiss franc
<u>Also, there are LIBOR for different maturities:</u>
- overnight,
- one week,
- one month,
- two months,
- three months,
- six months
- and a year.
Answer:
The correct option is b. $3,918.
Explanation:
This can be calculated using the simple present value (PV) formula as follows:
PV = FV / (1 + r)^n ............................ (1)
Where;
PV = Present value of the amount = ?
FV = Future value of the amount = $5,000
r = Discount rate = 5%, or 0.05
n = number of years = 5
Substituting the values into equation (1), we have:
PV = $5,000 / (1 + 0.05)^5
PV = $5,000 / 1.05^5
PV = $5,000 / 1.2762815625
PV = 3,918
Therefore, the correct option is b. $3,918.
Answer:
$268,500
Explanation:
When you use the indirect method to calculate net cash flows, you start with net income and then adjust it by:
- adding the amount by which accounts receivable decreased = ($17,000 - $10,500) = $6,500
- deducting the amount by which accounts payable increases = ($21,000 - $29,000) = -$8,000
net cash flow from operating activities = $270,000 + $6,500 - $8,000 = $268,500
Answer:
Variable overhead rate variance = $ 875 favorable
Variable overhead efficiency variance = $ 4,185 favorable
Variable overhead cost variance = $5,060 Favorable
Explanation:
Standard hours = 1 hr x 2600 units = 2600 hours
Standard rate = $3.10
Actual hours = 1,250 hours
Actual rate = $2.40
Variable overhead rate variance = ( Standard Rate - Actual Rate ) x Actual Hrs
= ( $ 3.10 - $2.40 ) x 1250 Hrs
= $0.7 x 1250
=$ 875 favorable
Variable overhead efficiency variance = (Standard hours - Actual hours) x Standard Rate
= (2600 - 1250 ) x $ 3.10
= $ 4,185 favorable
Variable overhead spending variance = Variable overhead rate variance + Variable overhead efficiency variance
= $875 + $4,185
= $ 5,060 favorable
Variable overhead cost variance = Standard cost - Actual Cost
= (2600 X 3.10) - (1250 X 2.40) = 8,060 - 3000
= $5,060 Favorable
