A company is considering issuing long-term debt. The debt would have a thirty-year maturity and a ten percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of five percent of face value. In addition, the company would have to pay flotation costs of five percent of face value. The firm's tax rate is 21 percent. Given this information, the annualized after-tax cost of debt for the company would be ________.

Answers

Answer 1

Answer:

Find detailed explanations below

Explanation:

First and foremost, the issue price of the bond is the face value minus adjustments for discount and flotation costs

issue price=$1000*(1-5%-5%)

issue price=$900

semiannual coupon=face value*coupon rate/2

semiannual coupon=$1000*10%/2

semiannual coupon=$50

number of semiannual coupons in 30 years=30*2=60

Using a financial calculator, pretax cost of debt is computed thus:

N=60(number of semiannual coupons)

PMT=50(semiannual coupon)

PV=-900(price)

FV=1000(face value)

CPT

I/Y=5.58%(semiannual yield)

annual yield=5.58%*2=11.16%

after-tax cost of debt=annual yield*(1-tax rate)

tax rate=21%

after-tax cost of debt=11.16%*(1-21%)

after-tax cost of debt=8.82%

Alternative approach

Yield to Maturity [YTM] = Coupon Amount + [(Par Value – Bond Price) / Maturity Years] / [(Par Value + Bond Price)/2]

semiannual YTM=50+(1000-900)/30/(1000+900)/2

semiannual YTM=(50+3.33)/950

semiannual YTM=5.61%

annual YTM=5.61%*2=11.22%

after-tax cost of debt=11.22%*(1-21%)

after-tax cost of debt=8.86%


Related Questions

The following information should be used to according to the provisions of GAAP (Statement of Cash Flows) and using the following data. Net income $50,000 Provision for bad debts $2,000 Decrease in inventory $1,000 Decrease in accounts payable $2,000 Purchase of new equipment $35,000 Sale of equipment for $10,000 loss $20,000 Depreciation expense $6,000 Repurchase of common stock $13,000 Payment of dividend $4,000 Interest payment $3,000 What is net cash flow from operations

Answers

Answer:

                   

Explanation:

The net cash flow from operations, according to the provisions of GAAP on Statement of Cash Flows, is $77,000.

What is the net cash flow from operations?

The net cash flow from operations shows the ability of a firm to generate cash from its core business activities.

The net cash flow from operations is computed as the net income from the income statement and adjustments to modify net income from an accrual accounting basis to a cash accounting basis.

Data and Calculations:

Net income                                  $50,000

Non-Cash Expenses:

Loss from sale of equipment     $20,000

Provision for bad debts                $2,000

Depreciation expense                 $6,000

Changes in working capital:

Decrease in inventory                 $1,000

Decrease in accounts payable ($2,000)

Cash from operations             $77,000

Thus, the net cash flow from operations, according to the provisions of GAAP on Statement of Cash Flows, is $77,000.

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Select the correct answer.
At the end of the year, Clean123 Inc. has a service revenue of $193,750, an accounts payable of $500, a notes payable of $ 17,800, a salaries
expense of $26,900, and a rent expense of $14,640. What is Clean123 Inc.'s net income?
ОА.
$134,410
OB.
$152,210
OC. $161,310
OD. $166,850
Reset
Next

Answers

Answer: $152,210

Explanation:

The net income is the income that remains after the expenses has been deducted from the revenue.

Clean123 Inc.'s net income will be calculated as:

Service revenue = $193,750

Less: Salaries expense = $26,900

Less: rent expense = $14,640.

Net income = $152,210

Therefore, the net income is $152210

Accounts Debits Credits
Cash $ 17,000
Accounts Receivable 7,400
Supplies 3,400
Equipment 12,000
Accumulated Depreciation $ 3,800
Salaries Payable 5,800
Common Stock 22,000
Retained Earnings 8,200
Totals $ 39,800 $ 39,800
The following is a summary of the transactions for the year:
1. March 12 Provide services to customers, $54,000, of which $20,400 is on account.
2. May 2 Collect on accounts receivable, $17,400.
3. June 30 Issue shares of common stock in exchange for $6,000 cash.
4. August 1 Pay salaries of $5,800 from 2020 (prior year).
5. September 25 Pay repairs and maintenance expenses, $12,400.
6. October 19 Purchase equipment for $7,400 cash.
7. December 30 Pay $1,100 cash dividends to stockholders.
The following information is available for the adjusting entries.
Accrued salaries at year-end amounted to $20,700.
Depreciation for the year on the equipment is $4,400.
Office supplies remaining on hand at the end of the year equal $1,200.
a. Prepare an unadjusted trial balance(Please write out).
b. Prepare an adjusted trial balance(Please write out).
3. Prepare the income statement for the year ended December 31, 2021 (Please Write out).
4. Prepare a post-closing trial balance.

Answers

Answer:

a. Unadjusted Trial Balance

Accounts                   Debits   Credits

Cash                       $ 47,300

Accounts Receivable 10,400

Supplies                     3,400

Equipment               19,400

Accumulated Depreciation    $ 3,800

Salaries Payable                        

Common Stock                       28,000

Retained Earnings                    8,200

Dividend                     1,100

Service revenue                    54,000

Repairs and

maintenance exp $12,400

Totals                 $ 94,000 $ 94,000

b. Adjusted Trial Balance

Accounts                   Debits   Credits

Cash                        $ 47,300

Accounts Receivable 10,400

Supplies                        1,200

Equipment                  19,400

Accumulated Depreciation    $ 8,200

Salaries Payable                      20,700

Common Stock                       28,000

Retained Earnings                    8,200

Dividend                     1,100

Service revenue                    54,000

Repairs and

maintenance exp    12,400

Salaries expense    20,700

Depreciation Exp      4,400

Office supplies exp  2,200  

Totals                    $119,100 $ 119,100

3. Income Statement for the year ended December 31, 2021

Service revenue                    54,000

Repairs and

maintenance exp    12,400

Salaries expense    20,700

Depreciation Exp      4,400

Office supplies exp  2,200  39,700

Net income                         $14,300

4. Post-closing Trial Balance

Accounts                   Debits   Credits

Cash                        $ 47,300

Accounts Receivable 10,400

Supplies                        1,200

Equipment                  19,400

Accumulated Depreciation     $ 8,200

Salaries Payable                       20,700

Common Stock                        28,000

Retained Earnings                    21,400

Totals                      $78,300 $78,300

Explanation:

a) Data and Calculations:

Accounts                   Debits   Credits

Cash                       $ 17,000

Accounts Receivable 7,400

Supplies                     3,400

Equipment               12,000

Accumulated Depreciation    $ 3,800

Salaries Payable                        5,800

Common Stock                       22,000

Retained Earnings                    8,200

Totals                  $ 39,800 $ 39,800

1. March 12 Accounts receivable $20,400  Cash $33,600 Service revenue $54,000

2. May 2 Cash $17,400 Accounts receivable $17,400

3. June 30 Cash $6,000 Common stock $6,000

4. August 1 Salaries Payable $5,800 Cash $5,800

5. September 25 Repairs and maintenance expenses, $12,400 Cash $12,400

6. October 19 Equipment $7,400 Cash $7,400

7. December 30 Cash dividends $1,100 Cash $1,100

Adjusting entries:

Salaries expense $20,700 Salaries payable $20,700

Depreciation Expense $4,400 Accumulated Depreciation $4,400

Office supplies expenses $2,200 Supplies $2,200

Two countries trade with each other regularly. Country A has a strong economy and buys large quantities of natural resources from country Beach
year. Country B has a weaker economy, and $1 in country A's currency is
worth about $50 in country B's currency.

Which result would be most likely if the exchange rate suddenly became $1 in
country A's money for $75 in country B's money?

A. Country A would be forced to adopt a flexible exchange rate.
B. Country B would receive more value for its exported materials.
C. Country B would be forced to adopt a fixed exchange rate.
D. Country A would receive more value for its imported materials

Answers

Answer: B

Explanation: a p e x

The result would be most likely if the exchange rate suddenly became $1 in country A's money for $75 in country B's money, are Country B would receive more value for its exported materials. Thus, the option (b) is correct.

What is trade?

Trade is a term used to describe economic activities. Trade is the term used to describe the purchasing and selling of goods and services. Trade can take many various forms, including both domestic and international trade. Trading in financial terms refers to the buying and selling of securities or other assets.

Comparing the economies of the two nations, Country A has a stronger economy than Country B. Natural resources form the basis of both countries' trade systems. The countries' respective exchange rates are $1 in country A's currency and $75 in country B's currency. The material exported to country B would be more well received.

Therefore, option (b) is correct.

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good research should ideally be...​

Answers

Answer:

What constitutes a good research question?

A good research question requires original data, synthesis of multiple sources, interpretation and/or argument to provide an answer. The answer to the question should not just be a simple statement of fact: there needs to be space for you to discuss and interpret what you found.

Explanation:

Onini, Inc. produces one product with two production levels: 20,000 units and 80,000 units. At each production level, Onini's per-unit costs for Costs A, B, and C are:
Cost A (per unit) Cost B (per unit) Cost C (per unit)
Production = 20,000 $12.00 $15.00
$20.00
Production = 80,000 $12.00 $11.25
$5.00
What type of cost is each?
A. Cost A is variable, Cost B is mixed, and Cost C is fixed.
B. Cost A is fixed, Cost B is variable, and Cost C is mixed
C. Cost A s variable, Cost B is fixed, and Cost C is mixed.
D. Cost A is fixed, Cost B is mixed, and Cost C is variable.

Answers

Answer:

A

Explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

Hourly wage costs and payments for production inputs are variable costs

Total fixed cost = 20,000 x 20 = 400,000

80,000 x 5 = 400,000

c is fixed cost

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.

Variable cost is constant per unit produced. Thus A, is variable cost

Mixed cost is cost that combines fixed cost and variable cost

Roberto has received various gifts over the years and has decided to dispose of the following assets he received as gifts:
What is the recognized gain or loss from the following transactions, assuming that no gift tax was paid when the gifts were made.
If an answer is zero, select "neither a gain nor a loss" and enter "0" as the amount.
a. In 1981, he received land worth $32,000. The donor's adjusted basis was $35,000. Roberto sells the land for $95,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
b. In 1986, he received stock in Gold Company. The donor's adjusted basis was $19,000. The fair market value on the date of the gift was $34,000. Roberto sells the stock for $40,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
c. In 1992, he received land worth $15,000. The donor's adjusted basis was $20,000. Roberto sells the land for $9,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
d. In 2013, he received stock worth $30,000. The donor's adjusted basis was $42,000. Roberto sells the stock for $38,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.

Answers

Answer: See explanation

Explanation:

a. The recognized gain or loss from the transaction will be:

= Amount realized - Adjusted basis

= $95000 - $35000

= $60000

Gain of $60000 will be recognized

b. The recognized gain or loss from the transaction will be:

= Amount realized - Adjusted basis

= $40000 - $19000

= $21000

Gain of $21000 is recognized

c. The recognized gain or loss from the transaction will be:

= Amount realized - Adjusted basis

= $9000 - $15000

= -$6000

Loss of $6000 is recognized

d. In this case, no gain or loss will be recognized.

Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is 10% for both stocks. You require a rate of return of 11% on stock A and a return of 20% on stock B. The intrinsic value of stock A
A. will be greater than the intrinsic value of stock B.
B. will be the same as the intrinsic value of stock B.
C. will be less than the intrinsic value of stock B.
D. cannot be calculated without knowing the market rate of return.

Answers

Answer:

a

Explanation:

Intrinsic  value can be determined using the constant dividend growth model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

Stock A = $5/ (0.11 - 0.1) = $500

Stock B = $5/ (0.2 - 0.1) = 50

Intrinsic value of A is greater than that of B

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:
Direct materials used $ 88,000
Direct labor used $ 161,800
Predetermined overhead rate (based on direct labor) 140 %
Goods transferred to finished goods $ 445,000
Cost of goods sold $ 457,000
Credit sales $ 833,400
A. Debit Accounts Receivable $833,400; credit Cost of Goods Sold $833,400.
B. Debit Accounts Receivable $833,400; credit Sales $376,400; credit Finished Goods Inventory $457,000.
C. Debit Cost of Goods Sold $457,000; credit Sales $457,000.
D. Debit Finished Goods Inventory $457,000; debit Sales $833,400; credit Accounts Receivable $833,400; credit Cost of Goods Sold $457,000.
E. Debit Accounts Receivable $833,400; credit Sales $833,400; debit Cost of Goods Sold $457,000; credit Finished Goods Inventory $457,000.

Answers

Answer:

E. Debit Accounts Receivable $833,400; credit Sales $833,400; debit Cost of Goods Sold $457,000; credit Finished Goods Inventory $457,000.

Explanation:

Based on the information given we were told that the Cost of goods sold was the amount of $ 457,000 while the Credit sales was the amount of $ 833,400 which means that the appropiate journal entry to record June sales is:

Debit Accounts Receivable $833,400

Credit Sales $833,400

(To record sales)

Debit Cost of Goods Sold $457,000

Credit Finished Goods Inventory $457,000

(To record sales)

Jason, Ellen and Frank are business partners. Each of them handles a separate area of the partnership's business. They periodically have partners' meeting where they report to each other on the financial status of their areas and discuss potential new business. Jason's area of business has recently become extremely profitable, and Ellen and Frank are so happy with the new financials that they have not closely questioned Jason about the details especially since the partners continue to receive an equal share of the business profits each of them brings in. Ellen and Frank are shocked when the FBI comes to the office one Friday afternoon and arrest Jason. The FBI also informs Ellen and Frank that the office equipment is being seized and the partnership bank accounts have been frozen. Which of the following is a correct statement of the law?
a. Both Ellen and Frank can face criminal prosecution because the business was operated as a partnership.
b. Ellen and Frank will not be liable for Frank's conduct because Frank independently operated his area of the business.
c. Ellen and Frank should immediately file a Notice of Dissociation so that they will not be liable for Jason's conduct.
d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.

Answers

Answer:

d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.

Explanation:

Because Ellen and frank are partners with Jason, they would also both be liable for Franks conduct because the three of them are business partners and have shared profits equally in Jasons area of the business without paying attention to details about the source of the profit. This would make it seem like they were in agreement and accomplices with Jason.

Tamarisk, Inc. is authorized to issue 2,250,000 shares of $1 par value common stock. During 2020, the company has the following stock transactions.
Jan. 15 Issued 880,000 shares of stock at $7 per share.
Sept. 5 Purchased 28,000 shares of common stock for the treasury at $8 per share.
Dec. 6 Declared a $0.50 per share dividend to stockholders of record on December 20, payable January 3, 2021.
Journalize the transactions for Tamarisk, Inc.

Answers

Answer:

Date        Account Titles and Explanation     Debit$       Credit$

Jan.15      Cash (880,000*$7)                        6,160,000

                       Common Stock , $1 Par value        880,000

                       Paid in capital in excess of par value         5,280,000

Sept.5      Treasury Stock                               224,000

                        Cash (28,000*8)                                          224,000

Dec.6       Retained earnings                          440,000

                        Cash Dividend Payable                               440,000

                        (880,000*0.50)

g Excess reserves refer to the Multiple Choice difference between a bank's vault cash and its reserves deposited at the Federal Reserve Bank. minimum amount of actual reserves a bank must keep on hand to back up its customers deposits. difference between actual reserves and loans. difference between actual reserves and required reserves.

Answers

Answer:

difference between actual reserves and required reserves.

Explanation:

Banks must follow government regulations regarding the amount of required reserves that they must hold. Any amount of reserves over the required reserves are considered excess reserves. For example, a bank has $100 in reserves and the required reserves are $80, then the excess reserves = $20.

If the demand for meals at the Campus Café declines. This will result in...
What will happen to the equilibrium price,supply and quantity

Answers

Answer:The campus may have a surplus of cook food that will affect the schools budget

Explanation:

all this cook food will go to the garbage in not consumed anytime soon , the school board seeing this waste of food will probably reduced the food budget meaning less food for the students , and when the students start to eat again cafeteria food there will not be enough for everyone  

ABC Company rents its extra office space to XYZ Company for $600 per month. On November 1, 2020, ABC Company received $3,600 rent in advance from XYZ Company for the months of November 2020, December 2020, January 2021, February 2021, March 2021, and April 2021. The adjusting entry on December 31, 2020 (the end of the fiscal year) would include:

Answers

Answer:

Debit  : Rent Paid in Advance $1,200

Credit : Rent Income $1,200

Explanation:

The adjusting entry on December 31, 2020 would include:

Debit  : Rent Paid in Advance $1,200

Credit : Rent Income $1,200

5. Joseph transfers $1000 from his money market fund to his checking account. This
transaction will:
a) decrease M2 and increase M1.
b) increase M1, but leave M2 unchanged.
c) decrease M1 and increase M2.
d) decrease both M1 and M2.

Answers

Answer:

A. decrease M2 and increase M1

What is an example of goods?
O a hotel room
O a good haircut
O a car wash
O a hard cover book

Answers

Answer:

Hotel Room

Explanation:

a

An example of goods in the case is a hard cover book.

What is a goods?

Most time, this are often tangible product that are felt and seen, unlike the service which are rendered and often intangible product

An example of service includes a hotel room, a good haircut and a car wash.

Therefore, the Option D is correct.

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On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected five-year life and a $2,000 salvage value. The company uses the straight-line method. What are the amounts of depreciation expense and accumulated depreciation, respectively, that will be reported in the Year 2 financial statements

Answers

Answer:

3600

7200

Explanation:

The Bountiful Bakery is considering hiring another pastry chef. The bakery knows the average product of its chefs currently is 15 dozen croissants per day. It also believes that the next chef hired will produce an extra 12 dozen croissants per day. A dozen croissants sell for $30. The bakery should hire another worker:

Answers

Answer: only if the new chef's daily wage is $360 or less.

Explanation:

It should be noted that the decision with regards to hiring a new chef will be made by the company when the marginal value product is more than the marginal cost.

The marginal value product here will be: = (12 × $30) = $360. Therefore, The bakery should hire another worker only if the new chef's daily wage is $360 or less.

Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital gain of $15,000, and a charitable contribution of $5,000. Janice withdrew $70,000 of profit from Catbird. How should Janice report this information on her individual tax return if Catbird Company is: An LLC? An S corporation? A C corporation?

Answers

Answer:

A. LLC

Operating income $100,000

Long-term Capital Gain $15,000

Charitable contribution $5,000

No Effect $70,000

b. S corporation

Operating income $100,000

Long-term Capital Gain $15,000

Charitable contribution $5,000

No Effect $70,000

C. C corporation

Taxable income $110,000

Dividend income $70,000

Explanation:

a. An LLC

Based on the information given She will report the OPERATING INCOME of the amount of $100,000 Schedule C.

LONG-TERM CAPITAL GAIN Schedule D of the amount of $15,000.

Thirdly in a situation where she itemizes, the amount of $5,000 which represent charitable contribution (Schedule A) will be on her tax return

Lastly the amount of $70,000 which represent the amount withdrew from profit would have no effect on her individual tax return.

b. S corporation

Based on the information given she will report the OPERATING INCOME of the amount of $100,000 Schedule E.

LONG-TERM CAPITAL GAIN Schedule D of the amount of $15,000.

Thirdly in a situation where she itemizes, the amount of $5,000 which represent CHARITABLE CONTRIBUTION (Schedule A) will be on her tax return

Lastly the amount of $70,000 which represent the amount withdrew from profit would have no effect on her individual tax return.

c. C corporation

Based on the information given the TAXABLE INCOME of the amount of $110,000 calculated as ($100,000+$15,000-$5,000) will be reported by Catbird Company on FORM 1120 while Janice on the other hand will have to report DIVIDEND INCOME Schedule B of the amount of $70,000 on her tax return.

Question 1(Multiple Choice Worth 10 points)
(04.04 LC)
Which is a possible effect of identity theft?
Increased mental stress
O Increased purchasing power
Decreased loan balances
Decreased debt to credit load

Answers

Answer:

Option A, Increased mental stress

Explanation:

Increased mental stress  is one of the possible effect of identity theft.

It can cause following negative impacts on the mental and physical health of an individual

a) It causes sleep disturbance

b) Physical symptoms such as aches and pains, heart palpitations, sweating and stomach issues arises

c) Post stress disorder

d) Anxiety

Hence, option A is correct

Answer:

Option A, Increased mental stress

Explanation:

took the test

A portfolio is worth $902,654 and has a duration of 5.77 years. The futures price for a June Treasury note futures contract is 115 and each contract is for the delivery of bonds with a face value of 100,000. On the delivery date the duration of the cheapest to deliver bond is 4.36 years. To hedge the interest rate risk, how many June T note futures do you have to enter short positions on

Answers

Answer:

10.39

Explanation:

How many June T note futures do you have to enter short positions on?

The June T note futures we have to enter short positions on is calculated as:

= Portfolio duration*Portfolio value/(Futures price*Face value/100)*1/Duration of cheapest to deliver bond

= 5.77*$902,654 / (115*1000) * 1/4.36

= 5208313.58/115000*0.2293577981651376

= 10.38754204228161

= 10.39

Buffalo BBQ Restaurant is trying to become more efficient in training its chefs. It is experimenting with two training programs aimed at this objective. Both programs have basic and advanced training modules. The restaurant has provided the following data regarding the two programs after two weeks of implementation:
Training Program A Training Program B
New chef # 1 2 3 4 5 6 7 8 9 10
Hours of basic training 22 24 28 21 23 25 24 29 31 28
Hours of advanced training 8 7 8 10 11 4 3 0 1 2
Number of chef mistakes 12 13 15 14 14 7 6 8 5 6
a. Compute the following performance metrics for each program:
(1) Average hours of employee training per chef, rounded to one decimal place.
(2) Average number of mistakes per chef, rounded to one decimal place.
b. Which program should the restaurant implement moving forward?

Answers

Answer: See explanation

Explanation:

(1) Average hours of employee training per chef.

Program A:

Hours of basic training = 22 + 24 + 28 + 21 + 23 = 118

Hours of advanced training = 8 + 7 + 8 + 10 + 11 = 44

Total hours of training = 118 + 44 = 162

Number of chefs in A = 5

Average hours of employee training per chef in A = 162/5 = 32.4

Average hours of employee training per chef for Program B

Hours of basic training = 25 + 24 + 29 + 31 + 28 = 137

Hours of advanced training = 4 + 3 + 0 + 1 + 2 = 10

Total hours of training = 137 + 10 = 147

Number of chefs in B = 5

Average hours of employee training per chef in B = 147/5 = 29.4

(2) Average number of mistakes per chef for Program A:

Number of chefs mistake = 12 + 13 + 15 + 14 + 14 = 68

Number of chefs = 5

Average number of mistakes per chef for Program A: = 68/5 = 13.6

Average number of mistakes per chef for Program B

Number of chefs mistake = 7 + 6 + 8 + 5 + 6 = 32

Number of chefs = 5

Average number of mistakes per chef for Program B: = 32/5 = 6.4

b. Which program should the restaurant implement moving forward?

The restaurant should Implement program B because less training is required and less mistakes are made.

Which of the following statements represents a correct and sequentially accurate economic explanation? a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward. b. If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward. c. If consumption falls, total expenditures on goods and services falls, and the AD curve shifts rightward. d. If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward.

Answers

Answer:

The statement that represents a correct and sequentially accurate economic explanation is:

a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.

Explanation:

Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy.  Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend.  Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward.  When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.

The statement that represents a correct and sequentially accurate economic explanation is:

a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.

The following information should be considered:

Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy. Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend.  Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward.  When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.

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Sheffield Corp. had accounts receivable of $250,000 on January 1, 2019. The only transactions that affected accounts receivable during 2019 were net credit sales of $5,225,000, cash collections of $5,155,000, and accounts written off of $20,000.

Answers

Answer:

300000is the answer make me branlist

What is the amount that a customer owes on a credit card at the end of the month called?

Answers

Answer:

last payment

Explanation:

i hope thats right

Answer:

Last payment :)

Explanation:

A process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable pro- duction costs of $2 million at 100 percent capacity and fixed costs of $700,000. What is the fixed cost per kilogram at the breakeven point? If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35 percent of gross earnings?

Answers

Answer:

a. Breakeven point = Fixed cost / Contribution margin

Contribution margin = Selling price - Variable costs per unit

Variable cost per unit = 2,000,000 / (5,000 * 365 days)

= $1.10

Contribution margin = 1.75 - 1.10

= $0.65

Breakeven point = 700,000 / 0.65

= 1,076,923 kg

Fixed cost per kilogram at those units is:

= 700,000 / 1,076,923

= $0.65

_________________________________________________________

b. Net profit at original prices:

= (Contribution margin * units produced) - Fixed costs

= (0.65 * 5,000 * 365) - 700,000

= $486,250

Less taxes:

= 486,250 * (1 - 35%)

= $316,062.50

Net profit after price increase:

New selling price = 1.75 * 1.1

= $1.93

Net profit = ((Selling price - Variable cost) * units sold) - fixed cost

= ( (1.93 - 1.10) * 5,000 * 365) - 700,000

= $814,750

After tax:

= 814,750 * (1 - 35%)

= $529,587.50

Dollar increase:

= 529,587.50 - 316,062.50

= $213,525

Most agency matters are resolved through adjudication.


False

True

Answers

Most agency matters are resolved through adjudication.

True.

Answer:

true is the required answer for your question

hope it helps you

Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 4% of sales. Assume that sales were $280,000 for January. On February 7, a customer received warranty repairs requiring $180 of parts and $105 of labor.a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. b. Journalize the entry to record the warranty work provided in February.

Answers

Answer:

Explanation:

a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty.

Debit: Product Warranty expense Account = $280,000 × 4% = $11200

Credit Product Warranty payable = $11200

b. Journalize the entry to record the warranty work provided in February.

Debit Product warranty payable Account $285

Credit Supplies account $180

Credit Wages payable account $105

Cliff's Candy produces and sells boxes of chocolates. When Cliff produces and sells his profit-maximizing quantity of 1,000 boxes, the average total cost is $3.00. If Cliff were to produce 1,100 boxes, the average total cost would be $2.50. Which of the following inefficiencies of monopolistically competitive markets is described in this scenario?

a. Product-variety externality
b. Business-stealing externality
c. Markup over marginal cost
d. Excess capacity

Answers

Answer:

D

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

The product-variety externality: When new firms enter into an industry, competition drives price down. This increases consumer surplus. As a result, entry of firms into an industry results in a positive externality on consumers.

The business-stealing externality: When a new firm enters into an industry, existing firms lose customers and profits fall. As a result,  entry of a new firm results in a negative externality on existing firms.

Markup over marginal cost is the extent of which price exceeds marginal cost

Excess capacity is when a firm is producing at a capacity that is less than what it is designed for. Excess capacity is evidenced when upon increasing output, average cost falls.

The dividend irrelevance theory, proposed by Miller and Modigliani, says that provided a firm pays at least some dividends, how much it pays does not affect either its cost of capital or its stock price.
a) true
b) false

Answers

Answer:

b) false

Explanation:

In the case of theory that developed by MM in this the investor have no need for concering with respect to the dividend policy of the company as in this the sell option is there with regard to the equity portfolio when they need the cash

So according to the given situation, the given statement is false

hence the option b is correct

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