Answer: Option (e) is correct.
Explanation:
Given that,
Company's revenue = $530,000
Profit before taxes = $98,000
Product costs = $390,000
Company's gross margin = Company's revenue - Product costs
= $530,000 - $390,000
= $140,000
Therefore, The company's gross margin totals $140,000.
Answer:
It would be a differential loss of 174,500
Explanation:
Continue Or discontinued
Continued Discontinued Differential
Sales 930,000 - (930,000)
Variable (413,500) - 413,500
Tracable Fixed Cost (342,000) - 342,000
Allocate cost (536,500) (536,500) -
Result (362,000) (536,500) (174,500)
If discountinued, sales, variable cost and tracable fixed cost are zero
Tracable cost
215,500 + 126,500
Allocate cost
total fixed cost - tracable cost
(525,500 + 353,000) - 342,000
Once we got the numbers we calculate the diffferential income/loss
Answer:
The company’s cash flows from investing activities is $221,100
Explanation:
Cash flow from investing activities:
It records that transactions which is related to the purchase and sale of long term assets. The purchase of fixed assets has outflow of cash so, it is deducted whereas the sale of fixed assets has inflow of cash so, it is added.
The cash flow from investing activities is shown below:
Add : Sale of equipment (Book value - loss) = ($65,300 - $14,000) = $51,300
Less : Purchase of new truck = - $89,000
Add: Sale of land = $198,000
Add: Sale of long term investment = $60,800
So, the cash flow from operating activities :
= $51,300 - $89,000 + $198,000 + $60,800
= $221,100
The other cost is not related to the investing activities. Therefore, it is not considered in the computation part.
Hence, the company’s cash flows from investing activities is $221,100
n = 30
i = 6%
Cash Flow Amount Present Value
Interest $111,300,000 $74,454,240
Principal $100,000,000 $13,137,000
Price of bonds $87,591,240
Answer:
Bond Price = $97.4457408 million rounded off to $97.45 million
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 113 million * 0.05 = 5.65 million
Total periods (n) = 30
r or YTM = 0.06 or 6%
The formula to calculate the price of the bonds today is attached.
Bond Price =5.65 * [( 1 - (1+0.06)^-30) / 0.06] + 113 / (1+0.06)^30
Bond Price = $97.4457408 million rounded off to $97.45 million
The price of the bonds issued by Interlink Communications on December 31, 2021, is $87,591,240. This is calculated by adding the present value of the annual interest payments and the present value of the principal, both discounted at the market rate of 6%.
Interlink Communications issued 5% of the stated rate bonds with a face amount of $113 million on December 31, 2021. The bonds matured on December 31, 2051. To calculate the price of the bonds, we need to calculate the present value (PV) of the interest (5% x $113 million) and the principal ($113 million), both discounted at the market rate of interest (6%).
The bonds pay $5.65 million (5% x $113 million) annually. The PV of these payments is $74,454,240 based on the table given where n=30 and i=6%. The PV of the principal, the $113 million due at the end of the bond's term, is $13,137,000, again using the table values where n=30 and i=6%. So, the price of the bonds on December 31, 2021 is the sum of the PV of the interest and the PV of the principal, which is $87,591,240.
#SPJ3
b. $50,000
c. $75,000
d. $75,000
Answer:
Cost of hedging = $24,000
Explanation:
cost of hedging = 1,200,000 * ($0.80 - $0.82) = 1,200,000 * $0.02 = -$24,000
Since the actual forward rate was higher than th eexpected forward rte, the coampny lost money by hedging the operation. The cost of hedging the operation was $24,000.
c. abandoned property.
d. None of these are correct.
Answer:
The answer is option B) The fan would most likely be considered mislaid property.
Explanation:
Mislaid property fall among the categories of the common law of property which deals with personal property or chattel which has left the possession of its rightful owner without having directly entered the possession of another person.
Mislaid property refers to a property that has been left intentionally in a certain place and later forgotten. When a property is left in a certain place by the owner with an intention to take it later and if the owner finds it difficult to locate the property later.
Jonah's neighbor's fan falls into the category of mislaid property because, It seems to be perfectly fine and was intentionally laid out by his neighbor.