Payment dates on march 25, the following invoices were issued for a $500 pur- chase on credit. indicate the meaning of each credit term. a. 2/10 net 30 date of invoice. b. 2/10 net 40 eom. c. 2/10 net 20 eom. d. 2/10 net 60 date of invoice.
Answers
The credit terms listed in this question refer to discounts that can be applied to the $500 purchase if paid within a certain timeframe.
a. 2/10 net 30 date of invoice means that the buyer can receive a 2% discount if payment is made within 10 days of the invoice date, and the full amount is due within 30 days.
b. 2/10 net 40 eom means that the buyer can receive a 2% discount if payment is made within 10 days of the invoice date, and the full amount is due within 40 days after the end of the month in which the invoice was issued.
c. 2/10 net 20 eom means that the buyer can receive a 2% discount if payment is made within 10 days of the invoice date, and the full amount is due within 20 days after the end of the month in which the invoice was issued.
d. 2/10 net 60 date of invoice means that the buyer can receive a 2% discount if payment is made within 10 days of the invoice date, and the full amount is due within 60 days.
Overall, these credit terms provide incentives for the buyer to pay the invoice promptly, which can benefit both the buyer and seller.
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Related Questions
According to the article, which of the following describe the symptoms of the Dutch Disease? Check all that apply. Investment in research to develop new technologies Redistribution of the revenues from the resource sector to the manufacturing sector Short-run economic decline followed by long-run, sustained economic growth Resource revenues used to increase spending rather than to invest in future growth
Answers
The article describes the symptoms of the Dutch Disease as a short-run economic decline followed by long-run, sustained economic growth. It also mentions that resource revenues are often used to increase spending rather than investing in future growth.
However, there is no mention of investment in research to develop new technologies or redistribution of the revenues from the resource sector to the manufacturing sector as symptoms of the Dutch Disease. The Dutch Disease refers to a situation where a country's economy becomes overly reliant on one particular sector, such as the natural resource sector. This can cause the value of the country's currency to appreciate, which in turn makes other sectors less competitive in the global market. As a result, the manufacturing and other sectors may experience a decline, leading to a short-term economic downturn. However, in the long run, sustained economic growth may occur due to increased investment in the resource sector and the development of new industries. The challenge is to ensure that resource revenues are invested wisely to promote long-term economic growth rather than simply increasing current consumption. In summary, the symptoms of the Dutch Disease include short-term economic decline followed by long-term, sustained economic growth and a tendency to use resource revenues to increase spending rather than investing in future growth.
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anyone please i need a h.w for business and its about the chocolate m&m and i have to one of the factor of production which is labor
Answers
M & M is an American brand of button-shaped chocolates available in a variety of colors.
About M & M ?An American company called M & M produces button-shaped chocolates in a range of hues. The chocolate was originally only little buttons, but now it also comes in peanut-filled varieties. There were also new flavors of peanut butter, almond, crispy pretzel, dark chocolate, etc. Since its introduction in the US in 2003, M & M has been sold in about 100 different nations.
The design of the candy allowed for a hard, multicolored surface and firm chocolate inside. Different hues make up the hard coating, some of which have evolved over time. The design was created so that soldiers could transport it without worrying about melting it.
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If the risk-free rate is 2.2 percent, the inflation rate is 1.9 percent, and the market rate of return is 6.8 percent, what is the amount of the risk premium on a u.s. treasury bill? multiple choice 0% 2.8% .5% 1.7% 4.3%
Answers
In this case, the risk-free rate is 2.2 percent and the market rate of return is 6.8 percent. The risk premium is therefore 4.3 percent. The risk premium on a US Treasury bill is the difference between the market rate of return and the risk-free rate.
This means that investors are willing to accept a higher yield on a US Treasury bill to compensate them for taking on the risk associated with investing in the market. The risk premium is calculated by subtracting the risk-free rate from the market rate of return, which in this case is 6.8 percent - 2.2 percent = 4.3 percent. This means that if an investor wants to buy a US Treasury bill, they will have to accept a yield of 6.8 percent, which is 4.3 percent higher than the risk-free rate of 2.2 percent.
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by transforming flour and sugar into cookies, nabisco is adding value by providing
Answers
Answer: form utility
Explanation:
Nabisco adds value to the basic resources by making cookies out of flour and sugar by combining convenience, flavor, and perhaps some nutritional benefits. Here option D is the correct answer.
Firstly, Nabisco's cookies offer convenience to consumers who are looking for a quick and easy snack option. Instead of having to make cookies from scratch, which requires measuring and mixing ingredients, Nabisco provides a ready-made option that can be enjoyed straight from the package.
Secondly, Nabisco's cookies offer a tasty treat for those who enjoy the combination of flour and sugar. The company's recipes are designed to appeal to a wide variety of tastes, from chocolate chip to oatmeal raisin and beyond.
Finally, while cookies are not typically considered a healthy food, Nabisco's cookies may offer some nutritional value, depending on the specific recipe. For example, some of Nabisco's cookies may contain whole grains or other ingredients that offer fiber, protein, or other nutrients.
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Complete question:
By transforming flour and sugar into cookies, Nabisco is adding value by providing
A) Convenience
B) Taste
C) Nutritional value
D) All of the above
Josie is trying to figure out how to implement her investing strategy. She wants to compare online
brokers, financial advisors and robo-advisors. What are 2 questions that she should consider during
her research? Note: You don't need to answer the questions, only ask them.
Answers
Considering the situation described above, the 2 questions that Josie should consider during her research include "In your respective industry, what is the most important advice you can give to a first-time investor.?"
The other question Josie should consider during her research include:
Considering the current pandemic period, which line of investment has stood the test of time?
These questions is expected to yield answers that would guide Josie on how to implement her investment strategy to yield desired results.
Hence, in this case, it is concluded that Josie needs to ask the right questions to give her informative answers that can be used in the investment implementation.
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please help me quick :( (sorry meant to put chem not business)
Answers
After you are done taking notes from a speaker, you should _____. A. Let them know your opinion b. Put your notes away quickly c. Type up your notes for everyone d. Review your notes and clarify.
Answers
After one is done taking notes from a speaker, one's should review your notes and clarify them also.
What are notes?Notes are the short record of particulars or statements written down as support to memory. It provides all the relevant and necessary information in a brief way.
Amended or improved notes will permit a person to recognize thoughts, develop significant learning skills, and acquire a sounder knowledge of a topic.
It is important for the reader to review and clarify their notes, after taking the notes from the speaker.
Therefore, option D is correct.
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Answer:
d
\
Explanation:
The concession stand at a ballpark makes $0. 43 profit from each hot dog sold. It also makes a profit of $0. 65 from each pretzel sold and $1. 31 from each drink sold. Which expression represents the total profit, in dollars, that the stand will make on a day when they sell h hot dogs, p pretzels, and d drinks? 2. 39 (h p d) 0. 43 h 0. 65 p 1. 31 d (0. 43 h) (0. 65 p) (1. 31 d) (0. 43 h) (0. 65 p) (1. 31 d).
Answers
The correct expression is (0.43 * h) + (0.65 * p) + (1.31 * d). The expression that represents the total profit made by the concession stand is (0.43 * h) + (0.65 * p) + (1.31 * d), where h represents the number of hot dogs sold, p represents the number of pretzels sold, and d represents the number of drinks sold.
The expression that represents the total profit, in dollars, that the concession stand will make on a day when they sell h hot dogs, p pretzels, and d drinks is:
Total profit = (0.43 * h) + (0.65 * p) + (1.31 * d)
This expression calculates the profit from selling h hot dogs, p pretzels, and d drinks individually, and then sums them up to obtain the total profit.
The terms (0.43 * h), (0.65 * p), and (1.31 * d) represent the profits made from selling the respective items, and the addition of these terms gives the total profit.
Therefore, the correct expression is (0.43 * h) + (0.65 * p) + (1.31 * d).
Overall, the expression that represents the total profit made by the concession stand is (0.43 * h) + (0.65 * p) + (1.31 * d), where h represents the number of hot dogs sold, p represents the number of pretzels sold, and d represents the number of drinks sold.
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You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of 1.4, a debt-to-equity ratio of 0.3, and a tax rate of 30 percent. Assume a risk-free rate of 4 percent and a market risk premium of 7 percent. Lauryn's Doll Co. had EBIT last year of $40 million, which is net of a depreciation expense of $4 million. In addition, Lauryn's made $5 million in capital expenditures and increased net working capital by $3 million. Assume the FCF is expected to grow at a rate of 3 percent into perpetulty. What is the value of the firm? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
Answers
To value Lauryn's Doll Co. using the FCF model, we need to calculate the free cash flow (FCF) and discount it to find the firm's value.
First, let's calculate the FCF:
1. Calculate the earnings before interest and taxes (EBIT) by adding back the depreciation expense: EBIT = $40 million + $4 million = $44 million.
2. Calculate the taxes by multiplying the EBIT by the tax rate: Taxes = $44 million * 0.3 = $13.2 million.
3. Calculate the net operating profit after taxes (NOPAT) by subtracting the taxes from the EBIT: NOPAT = $44 million - $13.2 million = $30.8 million.
4. Calculate the net working capital (NWC) by subtracting the increase in net working capital from the capital expenditures: NWC = $3 million - $5 million = -$2 million.
5. Calculate the FCF by adding the NOPAT and the net change in working capital: FCF = $30.8 million + (-$2 million) = $28.8 million.
Next, let's calculate the discount rate:
1. Calculate the cost of equity using the equity beta, risk-free rate, and market risk premium:
Cost of equity = Risk-free rate + (Equity beta * Market risk premium)
Cost of equity = 4% + (1.4 * 7%) = 4% + 9.8% = 13.8%.
2. Calculate the cost of debt using the debt-to-equity ratio and the cost of equity:
Cost of debt = Cost of equity * (1 - Tax rate) * Debt-to-equity ratio
Cost of debt = 13.8% * (1 - 0.3) * 0.3 = 13.8% * 0.7 * 0.3 = 2.754%.
3. Calculate the weighted average cost of capital (WACC) using the cost of equity and the cost of debt:
WACC = (Equity / Total capital) * Cost of equity + (Debt / Total capital) * Cost of debt
WACC = (1 - 0.3) * 13.8% + 0.3 * 2.754% = 9.66% + 0.8262% = 10.4862%.
Finally, let's calculate the value of the firm:
1. Divide the FCF by the WACC to get the value of the firm: Firm value = $28.8 million / 10.4862% = $275.04 million.
Therefore, the value of Lauryn's Doll Co. is $275.04 million.
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El Niro Inc. is automating processes so the company can meet its demand with a smaller workforce. The CEO asks Megan, the vice president of human resources, for advice on how to address the resulting labor surplus. Megan studies the workforce and observes that many employees are in their 50s and 60s. Furthermore, these employees are the highest-paid workers in every job category. Based on this information, what should Megan suggest as the most effective way of addressing El Niro's labor surplus?
Answers
Answer:
Since the highest paid employees are over age 40, they cannot be simply fired since that would represent age discrimination at work, which is strictly prohibited by the Age Discrimination in Employment Act (ADEA).
But Megan can offer different type of early retirement incentives to these employees so that they retire by their own will, e.g. pay them 1 or 2 weeks salary for every year that they worked for the company, age credits so that the employees can benefit from a pension plan, etc.
Jake Olsen has decided to put $1,000 in the bank. List several questions Jake might want to ask before ch whether to put the money in a checking or a savings account.
Answers
Answer:
look at my comment
Explanation:
a currency swap deal enables companies to insure themselves against foreign exchange risk.
T/F
Answers
False. A currency swap deal is not the same as a foreign exchange hedge. A currency swap is an agreement between two parties to exchange a set of currencies at certain predetermined dates.
The purpose of a currency swap is to take advantage of different interest rates on a specific currency. It is not used to manage foreign exchange risk.
A foreign exchange hedge is used to manage foreign exchange risk. It is a transaction that is entered into to protect against the risk of adverse movements in exchange rates.
For example, a company may enter into a hedge if it is expecting to receive payments in a foreign currency and is worried about the exchange rate movement. The hedge will protect the company from any losses the exchange rate may experience.
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The act of starting and creating a business on one's own is called?
Answers
Answer:
Entrepreneurship is the act of starting or creating a business or businesses whilebuilding and scaling it to generate a profile.
Answer:Entrepreneurship
Explanation:
ROI stands for return on investment. It is the ratio of incremental profit from an activity over the cost of the activity times 100. If the incremental profit from your ad campaign is $5,000 and the cost of the campaign is $7,500, what is the ROI?
Answers
Answer:
66.7%
Explanation:
ROI stands for return on investment. It is the ratio of incremental profit from an activity over the cost of the activity times 100. If the incremental profit from your ad campaign is $5,000 and the cost of the campaign is $7,500, the ROI is 66%.
What is return on investment?The return on investment estimates the loss and gain generated on the amount of money that is invested. The return on investment) is the percentage to analyze an organization’s profit or the earnings of different investment.
The return on investments estimates what we will receive back as compared to what we have invested. It can be used by a company to estimate inventory investments, pricing policy, capital equipment investments, etc.
If the incremental profit from your ad campaign is $5,000 and the cost of the campaign is $7,500, the ROI is 66%.
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Need help with this one.
Anton's gross monthly pay is $1,058.00. If his employer withholds 11% for the monthly federal income tax, how much will be deducted from his paycheck?
Group of answer choices
$941.62
$11.00
$116.38
$11.64
Answers
Anton's gross monthly pay is $1,058.00. If his employer withholds 11% for the monthly federal income tax, $116.38 will be deducted from his paycheck.
Define tax?A tax is a mandatory payment or charge levied on individuals or businesses by local, state, and national governments to cover the costs of general government services, goods, and activities.It is derived from the Latin taxare, which means 'to assess'. Previously, English used the related word 'task,' which was derived from Old French.For a time, the terms 'task' and 'tax' were interchangeable, with the first requiring labor and the latter requiring money.The term 'tax' then came to mean something tedious or difficult.Governments levy fees on citizens and businesses to generate revenue, which is then used to meet budgetary demands.This includes financing government and public projects as well as improving the country's business environment to promote economic growth.To learn more about tax refer to:
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Hannah owns a house, a car, furniture, and a few valuable art pieces that she acquired while traveling in Europe. However, she also has a mortgage, a car loan, and student loan debt. Using her personal balance sheet, she determines that the total value of her personal assets is $350,000 and the total value of her unpaid debts is $200,000. Based on these numbers, what is her personal net worth
Answers
Hannah's personal net worth is $150,000.
Hannah's personal net worth can be calculated by subtracting her total liabilities (unpaid debts) from her total assets.
Total assets = $350,000
Total liabilities = $200,000
Net worth = Total assets - Total liabilities
Net worth = $350,000 - $200,000
Net worth = $150,000
Therefore, Hannah's personal net worth is $150,000.
Net worth is a measure of an individual's financial health and is calculated by taking into account all of their assets and liabilities.
A positive net worth indicates that an individual's assets are greater than their liabilities, while a negative net worth indicates the opposite.
A higher net worth typically suggests greater financial stability and security, as it indicates the ability to pay off debts and weather financial setbacks.
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When a firm evaluates how other companies react to the firm’s marketing activities, it is attempting to understand what aspect of the immediate environment?.
Answers
Answer:
It depends
Explanation:
It depends on if the companies are part of suppliers, competitors, marketing intermediaries, customers and publics. If they are then yes. But in general I would agree.
When using the High Rate method to pay down debt, which debt do you focus on first after you have made all of your minimum monthly payments? a The card with the lowest interest rate b The card with the highest interest rate c The card with the highest balance d The card with the lowest balance
Answers
When using the High-Rate method to pay down debt, you should focus on the debt with the highest interest rate first, after making all of your minimum monthly payments.
What is debt?Debt refers to amount of money that an individual, company, or government owes to another entity. It is a form of borrowing that involves receiving funds from a lender with the expectation of repaying it at a later date with interest. Debt can take many forms, such as loans, credit card balances, mortgages, and bonds. It is typically used to finance investments or expenditures that an entity cannot afford to pay for outright. While debt can be useful in providing financial flexibility and allowing for the realization of long-term goals, it can also be a burden if the borrower is unable to meet the repayment obligations, leading to financial difficulties and potential legal consequences.
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Tom would like to take out a secured loan to help pay for a vacation this summer. he has offered his car as collateral. his car is worth $3,500. his bank can offer loans for 80% of collateral value. the vacation he has planned will cost $4,750. approximately how much additional collateral will tom need to offer in order to borrow enough to go on his vacation as planned? a. $1,000.00 b. $1,362.50 c. $2,437.50 d. $2,800.00
Answers
$2,437.5 additional collateral tom will need to offer in order to borrow enough to go on his vacation as planned.
Given: Tom would like to take out a secured loan to help pay for a vacation this summer. He has offered his car as collateral. His car is worth $3,500. His bank can offer loans for 80% of collateral value. The vacation he has planned will cost $4,750.
To Find: Approximately how much additional collateral will Tom need to offer in order to borrow enough to go on his vacation as planned
a. $1,000.00 b. $1,362.50 c. $2,437.50 d. $2,800.00
Solution:
car is worth $3,500.
additional collateral Tom need = P
Total collateral value. = P + 3500
His bank can offer loans for 80% of collateral value.
=> loan = (80/100) (P + 3500)
=> loan = 0.8P + 2800
Loan required = 4,750.
0.8P + 2800 = 4,750.
=> 0.8P = 1950
=> P = 2,437.5
$2,437.5 additional collateral Tom need to offer in order to borrow enough to go on his vacation as planned
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Helpp
Tri-county Supply budgets 5% of the previous year's total revenue for utilities. The receipts from
the last year showed revenue of $4,500,000.00 How much will be budgeted for utilities for the
year?
Answers
Answer:
$225,000
Explanation:
The utility budget is 5% of the previous year's total revenue.
The previous year revenue was $4,500,000.00
The utility budget will be 5% of $4,500,000.00
=5/100 x $4,500,000.00
=0.05 x $4,500,000
=$225,000
The Galindo family plans to start a small business in our neighborhood. The father
borrows $10,000 from the bank at an annual interest rate of 7.5% rate for 42
months. What is the amount of interest he will pay on this loan?
$26.25
$26,250
$262,500
$2,625
Answers
Answer:
$2,625
Explanation:
Interest is calculated using the formula
I = p x r x t
For Galindo family
I= interest,
P = principal amount : $10,000
r= Interest rate: 7.5 % or 0.075
t= times in years : 3.5 years( 42 months /12)
I= $10,000 x 0.075 x 3.5
I=750 x 3.5
I=$2,625
stephanie has been driving for 4 years without any major auto accidents until today
Answers
In January 2022, the management of Crane Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Purchased 800 shares of Muninger common stock for $40,000. Mar. 1 Purchased 1,000 shares of Tatman common stock for $25,000. Apr. 1 Purchased 30 of $1,100,7% Yoakem bonds for $33,000. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.60 per share on the Muninger common stock. Aug. 1 Sold 266 shares of Muninger common stock at $60 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $31,800. At December 31, the fair value of the Muninger and Tatman common stocks were $51 and $24 per share respectively. These stock investments by Crane Company provide less than a 20% ownership interest. Prepare the adjusting entry at December 31, 2022, to report the investment securities at fair value. All securities are considered to be trading securities. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Unrealized Gain or Loss-Income Fair Value Adjustment
Answers
To prepare the adjusting entry on December 31, 2022, to report the investment securities at fair value, we need to calculate the unrealized gain or loss for each investment and record it in the appropriate accounts.
1. Muninger common stock:
Fair value at December 31, 2022: 800 shares * $51 per share = $40,800
Cost of investment: 800 shares * $40 per share = $32,000
Unrealized gain: $40,800 - $32,000 = $8,800
2. Tatman common stock:
Fair value at December 31, 2022: 1,000 shares * $24 per share = $24,000
Cost of investment: $25,000
Unrealized loss: $24,000 - $25,000 = -$1,000 (loss)
3. No adjustment is needed for the Yoakem bonds since they were sold on October 1, 2022.
Now, let's record the adjusting entry:
Date Account Titles and Explanation Debit Credit
Dec. 31 Unrealized Gain or Loss-Income $7,800 $
Fair Value Adjustment $7,800
(To record an unrealized gain on Muninger common stock)
Dec. 31 Unrealized Gain or Loss-Income $ $1,000
Fair Value Adjustment $1,000
(To record unrealized loss on Tatman common stock)
Note: The amount of the unrealized gain or loss is reported in the income statement under the "Unrealized Gain or Loss-Income" account. In this case, there is a net unrealized gain of $7,800 on the investment securities.
Please note that the account titles and amounts provided are examples and should be adjusted based on the specific account names used by Crane Company.
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A swot analysis allows a marketer to evaluate the company's overall strengths, weaknesses, opportunities and threats.
a. true
b. false
Answers
A swot analysis allows a marketer to evaluate the company's overall strengths, weaknesses, opportunities and threats.The statement is a. True.
In various fields, such as business, finance, science, and research, analysis plays a crucial role in decision-making and problem-solving. Here are a few common types of analysis:
Financial Analysis: Involves assessing a company's financial statements, ratios, and performance indicators to evaluate its financial health, profitability, and efficiency.
SWOT Analysis: Examines the strengths, weaknesses, opportunities, and threats of a business or organization to understand its internal capabilities and external market dynamics.
A SWOT analysis is a strategic planning tool used by marketers and other professionals to assess the internal and external factors that can impact a company's performance. It helps identify the company's strengths and weaknesses (internal factors) as well as opportunities and threats (external factors) in its operating environment. By conducting a SWOT analysis, marketers gain insights that can be used to develop effective marketing strategies and make informed business decisions.
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bob bought some land costing $15,640. today, that same land is valued at $45,317. how long has bob owned this land if the price of land has been increasing at 4 percent per year?
Answers
If the price of land has been increasing at 4 percent per year then Bob has owned this land for 27.27 years.
Future value (FV) refers to the value that an investment or asset is expected to have at a specific point in the future, based on the application of compound interest or growth. It represents the accumulated value of an investment or asset after a certain period, considering the effect of interest or growth.
Let the time Bob owned the land be t (in years). Initially, the value of the land was $15,640. If the value of the land increases at a rate of 4% per year, then the future value FV is given by:
FV = PV × (1 + r)tn
where, PV = present value = $15,640
r = annual interest rate = 4% = 0.04
t = time in years
FV = future value = $45,317
Substitute the values:
FV = PV × (1 + r)tn
$45,317 = $15,640 × (1 + 0.04)t
Simplify and solve for t:
3.6061 = (1 + 0.04)tln(3.6061)
= ln(1 + 0.04)tln(3.6061) / ln(1.04)
= t≈ 27.27
So, If the price of land is increasing Bob has owned the land for approximately 27.27 years.
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on september 1, year 1, west company borrowed $54,000 from valley bank. west agreed to pay interest annually at the rate of 9% per year. the note issued by west carried an 18-month term. west company has a calendar year-end. what is the amount of interest expense that will be reported on west's income statement for year 1?
Answers
The amount of interest expense that will be reported on west's income statement for year 1 is $1619.838.
What is an expense for interest?The expense of interest is related to the price of borrowing money. The fee incurred by a business for borrowed cash is known as an interest expenditure. Interest expense can be the cost of borrowing money from banks, bondholders, and other sources on the income statement.
Given:
The interest expenses will be charged for 4 month (September 1 to December 31)
Interest expenses = $54,000 × 9% × 4/12
Interest expenses = $54,000 × 0.09 × 0.3333
Interest expenses = $1619.838
So, the amount of interest expense that will be reported on West's income statement for Year 1 is $1619.838
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Why very few subsistence economies exist today
Answers
Answer:
As previously mentioned,
subsistence markets are
extremely vulnerable to
external influences.
Because of this
vulnerability, these economies are
becoming more scarce around the
world. In the past, for example, large
populations of indigenous peoples lived
throughout North America.
How much is it to start a buissness?
Answers
Answer:the average cot to start a business is 30,000
Explanation:
Please help............
Answers
Vane's income tax rate is 30%. In Vane's 20X3 multiple-step income statement, what amount should Vane report as income after income taxes from continuing operations
Answers
Answer:
The correct option is A. $126,000.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.
The explanation to the answer now provided as follows:
A multi-step income statement can be described as an income statement that provides gross profit and each category of expenses and incomes in details to determine the net income of a business for a specified period.
The to determine the amount should Vane report as income after income taxes from continuing operations, we prepared its year-end multiple-step income statement as follows:
Vane Co.
Year-end multiple-step income statement
Particulars $ $
Sales 575,000
Cost of sales (240,000)
Gross income 335,000
Administrative expenses (70,000)
Selling and distribution exp.:
Sales commissions (50,000)
Freight out (15,000) (65,000)
Operating income 200,000
Interest income:
Interest revenue 25,000
Other expenses:
Uncollectible accounts expense (15,000)
Other income (loss):
Loss on sale of equipment (10,000)
Loss on early retirement of LT debt (20,000)
Income before tax 180,000
Tax ($180,000 * 30%) (54,000)
Income after tax 126,000
Therefore, Vane should report $126,000 as income after income taxes from continuing operations. That is, the correct option is A. $126,000.