Answer:
Yield to Call: 12.68%
Explanation:
We will calculate the YTC
To do so we will list on exce lthe cash flow for the bond life:
0 -1000.0 (purchased at face value)
1 120.00 (coupon payment: 1,000 x 12%)
2 120.00
3 120.00
4 120.00
5 120.00
6 120.00
7 1190.00 (1,70 call price + 120 coupon payment)
below the cash flow we enter the IRR function and select the cash flow
this will give us the YTC: 0.126795
There is another way to calcualte the YTC but is done by approximation and is not an exact answer:
Coupon value = 120
Face value = 1,000
P = call = 1,070
n= 7 years
Result: 12.5603865%
as notice this differs with the excel answer as it is an aproximation nto an exact answer.
Answer:
There is a change of $27,500 (decrease)
Explanation:
Cash realizable value is the amount of money that the company expects to receive from their accounts receivable after deducting all uncollectible accounts.
First, we must compute the change in gross accounts receivable from the transactions happened during the year.
Sales on account less collections less write-offs = change in Gross accounts receivable.
$866,000 - ($522,000 + $42,500) = $301,500 (increase in gross accounts receivable)
Finally, we can now compute the change in cash realization value by deducting uncollectible accounts to gross accounts receivable.
$301,500 - $329,000 = ($27,500)
Answer:
The correct answer is: A
Explanation:
The velocity of money is a measurement of the rate at which money is exchanged in an economy. It is the number of times that money moves from one entity to another. The velocity of money is important for measuring the rate at which money in circulation is being used for purchasing goods and services.
Economies that exhibit a higher velocity of money relative to others tend to be more developed. The velocity of money is also known to fluctuate with business cycles.
Velocity of money formula:
Velocity of Money = GDP / Money Supply
According to the<em> </em><em>quantity theory of mone</em><em>y</em>, inflation occurs because there is too much money available to buy the same amount of goods and services produced in the economy. It relates the general price level, the total goods and services produced in a given period, the total money supply and the speed (velocity) at which money circulates in the economy in the following equation:
MV = PQ
M stands for money.
V stands for the velocity of money (or the rate at which people spend money).
P stands for the general price level.
Q stands for the quantity of goods and services produced.
If for some reason the money velocity declines rapidly, it can offset the increase in money supply and even lead to deflation instead of inflation.
When more transactions are being made throughout the economy, velocity increases and the economy is likely to expand. <u>The opposite is also true: Money velocity decreases when fewer transactions are being made; therefore the economy is likely to shrink.</u>
Answer:
January 31
Dr Salary expenses $ 1,650
Cr Salary Payable $ 1,650
February 9
Dr Salary expenses $ 5,850
Cr Salary Payable $ 1,650
Cr Cash $ 7,500
Explanation:
Preparation of the journal entries for January 31 and February 9
January 31
Dr Salary expenses $ 1,650
Cr Salary Payable $ 1,650
( To record actual salary payable )
February 9
Dr Salary expenses $ 5,850
($7,500-$1,650)
Cr Salary Payable $ 1,650
Cr Cash $ 7,500
(To record total salaries paid with accrued salary of January)
