1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
murzikaleks [220]
3 years ago
10

Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on Janu

ary 1, 2019. Alden financed $37,908,000, and the note agreement will require $10 million in annual payments starting on December 31, 2019 and continuing for a total of four more years (final payment December 31, 2023). Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually. Upon the first payment of the note on December 31, 2019, the amount of interest expense to be recorded is:
Business
1 answer:
pantera1 [17]3 years ago
6 0

Answer:

The multiple choices are:

A. $1,000,000.

B. $2,790,800.

C.$3790, 800.

D.$4,000,000

The correct optio is C,$3790, 800.

Explanation:

The interest expense on the loan is usually the opening balance multiplied by the market rate interest which is 10% in this question.

In addition,we can deduct the annual repayment in order to know the closing balance of the loan.

Year   opening bal                interest expense at10% repayment   closing bal.

2019    $37,908,000      $3,790,800                $4,000,000

The closing balance is $37,908,000+  $3,790,800-$4000,000

The interest expense is 10% of the present value of $37.908,000 that is  $ 3,790,800.00  

You might be interested in
Which of the following statements is true of​ just-in-time (JIT)​ purchasing? A. Only disadvantage of JIT purchasing is the high
m_a_m_a [10]

Answer:

B. In JIT​ purchasing, raw materials​ (or goods) are purchased so that products are delivered just as needed for production or sales.

Explanation:

JIT stands for Just in time management.  It is an inventory management approach that advocates for the purchase of materials just when they are needed for production. In JIT, there is no storing of materials for use for future production. The purchase of materials is aligned with the production process.

The success of JIT is dependent on management ability to forecast sales volumes accurately.  Management must work with reliable suppliers to ensure that materials are available when required. JIT lower's the cost of inventory management by eliminating the need to store huge quantities of materials. It reduces wastage by doing away with losses that arise due to the storage of bulk materials.

8 0
3 years ago
much to the chagrin of established firms, one clear supertrend is that products and services must get to market faster because
Anton [14]

Much to the chagrin of established firms, one clear super trend is that products and services must get to market faster because "more competitors are offering targeted products."

This is because it has been observed that several start-ups firms offer similar products to what the established firms are had as a business idea. Not only that, but they also target the same group of consumers.

Therefore, to remain top of the game and beat the startups out of business, the established firms must ensure their business ideas are quickly turned into products or services and get to the market faster.

Otherwise, the startups will take over their business ideas and a huge part of their targeted consumers.

Hence, in this case, it is concluded that the established firms must be proactive if they want to remain above the rest of their competitors.

Learn more here: brainly.com/question/17557971

5 0
3 years ago
a college in a metropolitan area wishes to increase its evening offerings of business-related courses such as marketing, account
SSSSS [86.1K]

Answer:

Target markets are management and business students looking forward for employment and full year courses.

Explanation:

  • The target market can be those who are working full time in the day and may also include the small and medium business owners that intend to provide some sort of online cloud computing set up for the college, and
  • It may be the students that want to continue their higher education and pursuing a full degree. These may also include the off-campus students that are interested in doing professional courses.
5 0
3 years ago
Which of the following costs do not vary with the amount of output a firm produces? a. average fixed costs b. fixed costs and av
Harrizon [31]

Answer:

d. fixed costs

Explanation:

The fixed cost is the cost which does not change if there is a change in the level of production i.e if the production level is increased or decreased it the fixed cost would remain the same as it is previous before

Therefore according to the given situation, since the fixed does not vary with the amount of firm output

Hence, option d is correct

4 0
3 years ago
The accounting department of your company has just delivered a draft of the current year's financial statements to you. The summ
marishachu [46]

Answer and Explanation:

The computation is shown below:-

Incorrect

ROA = Net Income ÷ Average assets

= $101,900 ÷ (($550,000 + $573,000) ÷ 2)

= $101,900 ÷ $561,500

= 0.18

ROE = Net Income ÷ Average equity

= $101,900 ÷ (($340,000 + 356,000) ÷ 2)

= $101,900 ÷ $348,000

= 0.29

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000) ÷ 2)

= $217,000 ÷ $561,500

= 0.39

EPS = Net Income ÷ Number of Common Shares

= $101,900 ÷ 22,000

= $4.63

Correct

ROA = Net Income ÷ Average assets

= ($101,900 - $8,500) ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $93,400 ÷ $557,250

= 0.17

ROE = Net Income ÷ Average equity

= ($101,900 - $8,500) ÷ (($340,000 + 356,000 - $8,500) ÷ 2)

= $93,400 ÷ $343,750

= 0.27

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $217,000 ÷ $276,500

= 0.78

EPS = Net Income ÷ Number of Common Shares

= ($101,900 - $8,500) ÷ 22,000

= $4.25

5 0
3 years ago
Other questions:
  • You have taken a job as an entry-level analyst, and your boss has asked you to find the expected value of Adams Furniture’s stoc
    9·1 answer
  • Choose the correct statement regarding the structure of the plasma membrane. Multiple Choice
    15·1 answer
  • Current information for the Healey Company follows:
    13·1 answer
  • Which of the following should you study for a career in the legal field? Select All that Apply,(2)
    14·2 answers
  • As of March 12, 2020 the yield to maturity on 30 year US Treasury Bonds was 1.44%. On the same date, the yield to maturity on 30
    8·1 answer
  • A system that is used for trading contracts for future delivery of cattle is known as
    11·1 answer
  • The transportation mode with the highest dollar value of freight in the united states is
    14·1 answer
  • What is an advertising allowance
    6·1 answer
  • Microsoft is an example of a company using a(n) _____ strategy. The company produces the majority of its work in its U.S. headqu
    7·1 answer
  • Use the graph to answer the question that follows.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!