BUSINESS COLLEGE

On October 1, 2018, Hill Company borrows $20,000 from a local bank. The note has an interest rate of 6% and is due in one year. How much interest expense will Hill Company report on its 2018 income statement?

Answers

Answer 1

Answer:

Answer:

Amount of interest = $ 300

Explanation:

Given:

Total number of month = 3 months (Oct, Nov and Dec)

Amount borrow = $20,000

Interest rate = 6%

Find:

Amount of interest

Computation:

Amount of interest = $20,000 x 6% x 3 months / 12 months

Amount of interest = $ 300

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Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,100 + $2.00q Utilities $5,100 + $0.50q Supplies $1,300 + $0.40q Equipment depreciation $18,100 + $2.50q Factory rent $8,500 Property taxes $2,700 Factory administration $13,300 + $0.60q The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 66,780 Indirect labor $ 11,680 Utilities $ 7,590 Supplies $ 3,190 Equipment depreciation $ 28,100 Factory rent $ 8,900 Property taxes $ 2,700 Factory administration $ 15,050 Required: 1. Prepare the Production Department’s planning budget for the month. 2. Prepare the Production Department’s flexible budget for the month. 3. Calculate the spending variances for all expense items.
What are price, output, profits, marginal revenues, and deadweight loss if the monopolist can price discriminate? (round all answers to two decimal places) In market 1, the price is $nothing and the quantity is nothing. In market 2, the price is $nothing and the quantity is nothing.

An asset is said to be illiquid when: Group of answer choices it cannot be used to settle debts. it cannot act as a store of value. it is an illegal tender. it cannot be readily exchanged for goods. it lacks purchasing power.

Answers

Answer:

it cannot be used to settle debts

Explanation:

The assets are said to be liquid when it is convertible into cash and the liquid asset we called as a current asset. The liquidity of an asset is important to pay off the short term debt or obligations arise.

It can be in terms of account payable, inventory, prepaid insurance, etc

The asset that said to be illiquid when it is not be used for settling the debts

Hence, the first option is correct

A store sells 20 ice cream bars per hour for $4 each, but on discount days, it sells 35 ice cream bars per hour for $3. Based on these two data points, what would be the slope for the relationship between the price and the quantity of ice cream sold?

Answers

Answer:

The slope for the relationship between the price and the quantity of ice cream sold would be of -1/15

Explanation:

In order to calculate the slope for the relationship between the price and the quantity of ice cream sold we would have to calculate the following formula:

Slope= change in yaxis( vertical)/change in xaxis(horizontal)

Slope= change in price/change in quantity demand

Slope=P2-P1/Q2-Q1

Slope=3-4/35-20

Slope=-1/15

The slope for the relationship between the price and the quantity of ice cream sold would be of -1/15

A company purchased a building for $900,000 by obtaining a 30-year mortgage payable. Assume the lending arrangement specifies that the company will pay $20,000 of the principal over the first year, $30,000 in the second year, and the remainder evenly over the final 28 years. What amount of the $900,000 would be classified as a long-term liability at the time the mortgage payable is obtained

Answers

At the time the mortgage is obtained, approximately $850,000 of the $900,000 would be classified as a long-term liability.

In the first year, the company pays $20,000 of the principal. In the second year, it pays $30,000 of the principal. This means that by the end of the second year, the company has paid a total of $20,000 + $30,000 = $50,000 of the principal.

Now, the remaining principal balance is $900,000 - $50,000 = $850,000.

Since the company will pay the remainder of the principal evenly over the final 28 years, you can calculate the annual principal payment for the remaining term:

$850,000 / 28 years = $30,357.14 per year (rounded to the nearest cent).

At the time the mortgage payable is obtained, the long-term liability portion of the mortgage is the total principal amount to be paid after the first two years. Therefore, it is:

$20,000 (Year 1 principal payment) + $30,000 (Year 2 principal payment) + ($30,357.14 x 28) ≈ $850,000.

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Final answer:

The amount of the $900,000 mortgage payable classified as a long-term liability is $870,000.

Explanation:

To determine the amount of the $900,000 mortgage payable that would be classified as a long-term liability at the time the mortgage is obtained, we need to calculate the portion of the principal that will be paid over the first year, second year, and the remaining 28 years.

In the first year, $20,000 of the principal is paid.
In the second year, $30,000 of the principal is paid.
The remaining principal to be paid over the final 28 years is $900,000 - $20,000 - $30,000 = $850,000.
The annual payment for the remaining 28 years is $850,000 / 28 = $30,357.143 (approximately).

Therefore, the amount of the $900,000 mortgage payable that would be classified as a long-term liability at the time of obtaining the mortgage is the sum of the principal payments in the first year and the remaining principal payment over the final 28 years: $20,000 + $850,000 = $870,000.

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The problem-based ideation process begins with: a. the selection of one or more problem identification techniques. b. a study of the situation. c. the development of concept statements for further evaluation. d. the creation of a list of potential problems.

Answers

Answer: b. A study of the situation

Explanation: The problem-based ideation process is characterized by a workflow that begins with the study of a situation, to use of various techniques of problem identification, to screening of the resulting problems, and ends in development of concept statements for final evaluation. The aim is to generate a large quantity of ideas that can then filtered through and the best, most practical or most innovative solutions are selected.

Vilas Company is considering a capital investment of $183,600 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $10,557 and $51,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment.Required:
a. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)
b. Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.52%)
c. Using the discounted cash flow technique, compute the net present value.

Answers

Answer:

Payback period = 3.6 years

Annual rate of return = 11.50%

NPV = 243.59

Explanation:

The payback period: The estimated number of years it will take the initial cost to be recouped.

Payback period= initial cost/ Net cash inflow

= 183,600/51,000

= 3.6 years

Annual rate of return is the average annual income as a percentage of average investment

Annual rate of return = annual net income/ average investment

Average investment =( Initial,cost + scrap value)/2

= (183,600 + 0)/2 = 91,800

Annual rate of return = (10,557/91,800)× 100

= 11.50%

Net Present Value = The present value of cash inflow less the initial cost

PV of cash inflow = A × (1- (1+r)^(-n))/r

= 51,000 × (1- (1.12)^(-5)/0.12

= 183,843.59

NPV = 183,843.59 - 183,600

= 243.59

endrik is in charge of his company’s subsidiary in Beijing. He recently received a large bonus check because the subsidiary had exceeded sales expectations by 25 percent. What aspect of organizational architecture did Kendrik benefit from? Multiple Choice processes incentives forecasts norms

Answers

Answer: Incentives

Explanation:

Incentive Fees which can also be known as Performance Fees are an ADDITIONAL form.of compensation that are tied to an Employee's salary based on their level of performance or more specifically, their level of Financial return.

They can be calculated in various ways but the main goal is to encourage the employee to keep up the good work.

Endrik received the Incentive of a large bonus check for Exceeding the Sales expectations of the company. This will spur him to keep up the good work.

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