Toby purchased a 20-year par value bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a price of 1,722.25. The bond can be called at par value 1,100 on any coupon date starting at the end of year 15. What is the minimum yield that Toby could receive, expressed as a nominal annual rate of interest convertible semiannually?

Answers

Answer 1

Answer:

3.22%

Explanation:

Here, we are interested in calculating the minimum yield that Toby could receive.

To calculate this, we use the YTM formula.

Before we apply this formula, we write out the parameters which we were given in the question.

Given that number of years, n = 15*2 = 30, Price, P = 1722.25, Face value, F = 1100, C = 0.08/2*1100 = 44

Using YTM approximation formula,

YTM = [C + (F – P)/n]/ (F + P)/2

YTM = [44 + (1100 – 1722.25)/30]/ (1100+1722.25)/2

YTM = 23.2583/1411.125

YTM = 1.61%

YTM = 1.61% x 2 = 3.22%


Related Questions

Wanda contracted to sell Mike 100 boxes of ball bearings.The contract did not specify a place of delivery.The ball bearings now reside at Wanda's place of business.Wanda refuses to ship the 100 boxes to Mike,and Mike refuses to come to Wanda's place of business to pick them up.Who is right? Why?

Answers

Answer:

Wanda is right since the contract did not specify a place of delivery

Explanation:

Wanda is right, since the contract did not specify the place of delivery or whether Wanda is expected to deliver the bearing to Mikes place.

If it is in Wanda terms of business that normally boxes above 100 when purchased, delivery is free and he defaults, then he is wrong, but in this case it was not specified who will bear the cost of shipping, and it is not in Wanda terms of business that delivery is free, so Wanda is right in my own opinion.

The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 54,000 shares authorized, 15,000 shares issued, and 4,000 shares held as treasury stock. What is the entry when the dividends are declared

Answers

Answer:

DR Dividends $6,600  

CR Dividends Payable  $6,600

Explanation:

Out of 54,000 shares, 15,000 are issued. Of those 15,000, 4,000 are held as Treasury stock.

Dividends will be;

= (15,000 - 4,000) * $0.6

= $6,600

Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. How much will the company pay in separation costs if each worker receives $5,000 when separated?

Answers

Answer:

$293,500

Explanation:

The computation of the amount pay in separation cost is shown below:

As there are 587 employees

but 10% are downsized

So, separation cost is

= Current employees × downsized percentage × received amount by workers

= 587 employees × 10% × $5,000

= $293,500

We simply applied the above formula so that the amount pay by the company with respect to the separation cost could arrive

railway cabooses justpaid its annual sividend of $1.70 per share. The company has been reducing the dividends by 11.3 percent each year. how much are you willing to pay today to purchase stock in this company if your required rate of return is 12 percent?

Answers

Answer:

$6.47

Explanation:

The computation of the current price of the stock is shown below:

= {Current Dividend x [1 + (Dividend Growth)}  ÷ [Required rate of Return - (Dividend growth)]

= {$1.70 × [1 + (- 0.113)]} ÷ [0.12 - (- 0.113)]

= $1.5079 ÷ 0.233

= $6.47

hence, the current price of the stock valued today is $6.47 i.e come by applying the above formula

Adams Bautista needs $26,700 in 8 years. Click here to view factor tables

Required:
a. What amount must he invest today if his investment earns 12% compounded annually?
b. What amount must he invest today if his investment earns 12% compounded annually?

Answers

Answer:

a. $10,783.68

b. $10,510.36 semi annual compounding

Explanation:

a. This question requires the present value of $26,700 given 8 years and compounded annually at 12%.

Present Value = [tex]\frac{Future Value}{ ( 1 + interest)^{number of periods} }[/tex]

Present Value = [tex]\frac{26,700}{ 1.12^{8} }[/tex]

Present Value = $10,783.68

He would need to invest $10,783.68 today.

b. This is a duplicate of question 1 but I will solve it assuming semi-annual compounding just in case.

12% per annum would become = 12/2 = 6% per semi annum

Number of periods would become = 8 * 2 = 16 periods

Present Value = [tex]\frac{Future Value}{ ( 1 + interest)^{number of periods} }[/tex]

Present Value = [tex]\frac{26,700}{ 1.06^{16} }[/tex]

Present Value = $10,510.36

He would need to invest $10,510.36 today.

Mario transferred real estate with an adjusted basis of $140,000 for similar real estate with a fair market value of $160,000. The exchange qualified as a like-kind exchange. The realized gain on the exchange was $

Answers

Answer:

$20,000

Explanation:

Calculation for th e realized gain on the exchange

Using this formula

Realized gain=Fair market value - Adjusted basis

Let plug in the formula

Realized gain=$160,000-$140,0000

Realized gain=$20,000

Therefore the realized gain on the exchange was $ 20,000

On October 1, 2017, Waterway, Inc. assigns $1,160,700 of its accounts receivable to Wildhorse National Bank as collateral for a $747,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Waterway and Wildhorse.

Answers

Answer:

                                             Waterway, Inc.

        General Journal                            Debit            Credit

Cash                                                      $713,079

Interest Expense ($1,160,700 * 3%)     $34,821  

Notes Payable                                                          $747,900

                                     Wildhorse National Bank

        General Journal                            Debit            Credit

Notes Receivable                                  $747,900

Cash                                                                           $713,079

Interest Revenue ($1,160,700 * 3%)                          $34,821

Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 25 percent of the book value of Slider Corporation. On December 31, 20X8, Slider Corporation acquired 25 percent of Janet Corporation's stock. Slider records dividends received from Janet as nonoperating income. In 20X9, Janet reported operating income of $100,000 and paid dividends of $40,000. During the same year, Slider reported operating income of $75,000 and paid $20,000 in dividends.
1) Based on the information provided, what amount will be reported as consolidated net income for 20X9 under the treasury stock method?
a. $150,000
b. $100,000
c. $75,000
d. $175,000
2) Based on the information provided, what amount will be reported as income assigned to the controlling interest for 20X9 under the treasury stock method?
a. $18,750
b. $156,250
c. $175,000
d. $100,000

Answers

Answer:

1) d. $175,000

2) b. $156,250

Explanation:

1. The computation of net income for 20X9 under the treasury stock method is shown below:-

Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income

= $100,000 + $75,000

= $175,000

2. The computation of income assigned to the controlling interest for 20X9 is shown below:-

income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)

= $100,000 + ($75,000 × 75%)

= $100,000 + $56,250

= $156,250

Therefore we have applied the above formulas.

On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,914. Cash receipts yet to be deposited into the checking account total $3,308, and checks written by the academy but not yet processed by the bank total $1,395. The company's balance of cash does not reflect a bank service fee of $32 and interest earned on the checking account of $43. These amounts are included in the balance of cash of $6,012 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021.

Answers

Answer: Reconciled ending balance of cash=$7,925

Explanation:

Bank reconciliation is used by companies to reconcile thier ledger balances and that of their bank's balance and to make necessary adjustments where necessary.

  BanK Reconcillation on August 31,     2021

Bank cash balance                    $6,012

add

Deposit outstanding                 +$3,308

deduct :

Checks outstanding                  -$1,395

Bank  balance reconciliation     $7,925

Company's book balance             $7,914.

add:

interest earned                             +  $43

deduct:

service fees                                    -  $32

Company balance reconciliation   $7,925

A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 3.0 per minute. In serving themselves, customers take about 14 seconds, exponentially distributed. a. How many customers would you expect to see, on average, at the coffee urn? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer: 3 customers.

Explanation:

Given the following :

Arrival rate of customers = 3 customers per minute

Service time = 14 seconds

Then if service time is 14 seconds, the service rate per minute will be 60/14 = 4.29 = 4 (nearest whole number)

Service rate = 4 customers per minute.

Number of customers at coffee urn(Nc) :

Nc = (arrival rate) /(service rate - arrival rate)

Nc = (3) / (4 - 3)

Nc = 3 / 1

Nc = 3

Therefore, average number of customers expected at coffee urn = 3

On August 1, Batson Company issued a 60-day note with a face amount of $58,800 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.)
a) Determine the proceeds of the note assuming the note carries an interest rate of 10%.
b) Determine the proceeds of the note assuming the note is discounted at 10%.

Answers

Answer:

a. $58,800

b. $57,820

Explanation:

Generally, notes are issued on the discounted or face value. It is face value when the price of the note is the same as the face value while it is discounted when the price of the note is lower than the face or par value.

a. Since the note is issued on the face value of $58,800 , it means that the proceed is the same amount. The proceeds from a note that is issued, is that price at which the note is issued.

b. Discount value

= $58,800 × 10% × 60/360

= $980

Proceeds

= Face/par value of the note - Discount value of the note

= $58,800 - $980

= $57,820

During the Great Recession, the U.S. budget deficit worsened as tax collections fell and payments to the poor rose. In other words, the deficit worsened as a result of _________ in the federal budget.

Answers

The answer is automatic stabilizers

A. Why may a hotel charge such very high prices for wine, soft drinks or even bottled water and yet quite reasonable prices for food and still get away with such high prices?

Answers

Answer:

The justification given is indeed the performance, product as well as the location which makes up for the exorbitant cost charged.

Explanation:

It's indeed primarily although together with the goods, they have their service. The hotels wouldn't go out of operation even though they demand these high costs since perfect pairing some other considerations included within the amount, including the environment, infrastructure, facilities, services, etc.The income elasticity becomes extremely relatively elastic, which means the demand doesn't really exist based on the paid costs.

AgCo sells corn in a perfectly competitive market. Say the current market price for a bushel of corn is $4.00. If AgCo prices at $4.10 per bushel for its corn, a. AgCo will sell less corn than other producers but still earn a reasonable profit. b. AgCo will sell no bushels of corn. c. AgCo's total revenue will increase. d. AgCo will maximize profit at that price.

Answers

Answer:

b. AgCo will sell no bushels of corn.

Explanation:

A perfectly competitive market refers to market has many buyers and sellers will all the market selling the undifferentiated product without any difference.

Some of the others attributes of a perfectly competitive market are that buyers and sellers have perfect information about the price of a good,  no barriers to entry and exit, similar products are being sold, there are free entry and exit to the market, and all sellers are price takers.

All sellers are price takers implies that the price of good is determined or given by the market. Therefore, any attempt to increase the price beyond the price given by the market will result into a zero sale because the buyers will immediately switch to another seller selling at the market price which lower.

Based on the above explanation, AgCo will sell no bushels of corn because its prices at $4.10 per bushel for its corn is higher than the current market price for a bushel of corn of $4.00.

The Book of Mormon is one of the biggest musical hits on Broadway. It has received many awards including Tony and Grammy Awards. According to Wikipedia, "High attendance coupled with aggressive pricing allowed the financial backers to recoup their investment of $11.4 million after just nine months of performances." While the highest ticket price was $477, the average price is $170. What is the variable cost per ticket

Answers

Answer:

variable cost per ticket = $129.60

Explanation:

some information is missing and I looked it up:

30 performances per month

1,100 seats in the theater and 95% occupancy rate

number of tickets sold during the first 9 months = 30 x 9 x 1,100 x 0.95 = 282,150 tickets

total revenue during the first 9 months = 282,150 x $170 = $47,965,500

variable costs = total revenue - fixed costs = $47,965,500 - $11,400,000 = $36,565,500

variable cost per ticket = $36,565,500 / 282,150 tickets = $129.5959 ≈ $129.60

Which of the following completes the argument against deregulation of U.S. banks that began with the phrase: "if banks competed to pay higher rates of interest"?
a. they might also compete to make riskier loans, potentially imperiling the safety of the banking system.
b. they might also compete to make less riskier loans, potentially imperiling the U.S consumer's reliance on credit.
c. they will end up playing a large role in setting the regulations that they will follow.

Answers

Answer:

A. They might also compete to make riskier loans, potentially imperiling the safety of the banking system.

Explanation:

Banks may compete to make riskier loans if they had to pay higher interest rates, which might jeopardize the stability of the banking system. As a result, choice (A) is the appropriate response.

What is meant by loans?

A loan is an act of one or more people, businesses, or other entities lending money to other people, businesses, or other entities. The recipient, or borrower, incurs a debt and is often responsible for both the main amount borrowed as well as interest payments on the debt until it is repaid.

The promissory note or equivalent document used to prove the debt will typically include information such as the principal borrowed amount, the interest rate being charged by the lender, and the due date. The subject asset is temporarily reallocated between the borrower and the lender as part of a loan.

The payment of interest encourages the lender to make the loan.

Hence, option (A) is accurate.

Learn more about loans, from:

brainly.com/question/11794123

#SPJ2

Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstandingSuppose the most recent dividend was "$3.25" and the dividend growth rate is 5 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company’s WACC?

Answers

Answer:

WACC = 15.08%

Explanation:

Some information is missing:

"The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years."

In order to calculate WACC we must first determine the YTM and market values of the 2 bonds.

bond 1:

market value = $70,000,000 x 0.97 = $67,900,000

YTM = {4,200,000 + [(70,000,000 - 67,900,000)/21]} / [(70,000,000 + 67,900,000)/2] = 4,300,000 / 68,950,000 = 6.24%

bond 2:

market value = $40,000,000 x 1.08 = $43,200,000

YTM = {2,600,000 + [(40,000,000 - 43,200,000)/6]} / [(40,000,000 + 43,200,000)/2] = 2,066,667 / 41,600,000 = 4.97%

weighted average cost of debt:

total value of debt = $67,900,000 + $43,200,000 = $111,100,000

weighted average cost = [($67,900,000/$111,100,000) x 6.24%] + [($43,200,000/$111,100,000) x 4.97%] = 3.814% + 1.933% = 5.75%

cost of equity (Re):

$68 = ($8 x 1.05) / (Re - 5%)

Re - 5% = $8.40 / $68 = 12.35%

Re = 17.35%

outstanding stock's market value = 7,000,000 x $68 = $476,000,000

WACC = [($476,000,000/$587,100,000) x 17.35%] + [($111,100,000/$587,100,000) x 5.75% x 0.79] = 14.07% + 1.01% = 15.08%

You are preparing a presentation on networking for a professional development seminar that your company is hosting for its employees. You look at the attendance list and see that you have good relationships with all of the registered seminar participants. Additionally, this presentation is a follow-up presentation that was requested by previous participants. You know you will have a friendly audience. What organizational pattern would be best for this situation

Answers

Answer:

any pattern.

Explanation:

When preparing a presentation for an organizational seminar, it is ideal to pre-analyze the audience for whom you will be presenting, the common characteristics of the audience will be essential for choosing the best organizational pattern.

In the scenario above, it is possible to perceive that the public is known and friendly, therefore any organizational pattern can be used, the focus in this case should be the use of a pattern that increases the involvement of the participants.

The essential thing is for the presenter to convey confidence by passing on important information, preparing beforehand, maintaining a friendly and cordial posture and being open to interaction with the public.

how does being mindful of your strengths, skills, weaknesses, and potential challenges or obstacles impact your personal, academic, and professional growth?​

Answers

Explanation:

It’s not unusual for people to compare themselves with others around them, and to feel superior or inferior towards them based on their strengths and their weaknesses.

The thing is, every individual is different and we all function differently based on our personalities. It is important to know yourself and your capacities.

Your strengths are things you can leverage on, things you can use to push yourself further.

On the other hand, your weaknesses are not your downfall. These are areas you need to improve on. It is not something you lack. It is something you need to develop and build.

In order to leverage your strengths and improve on your weaknesses, you first need to know them.

Answer:

Being mindful of my strengths, skills, and potential obstacles can significantly impact my personal, academic, and professional growth. When I am aware of my strengths, I can rely on them to complete tasks, sort of like leverage. They are also things that will help push me further in whatever aspect of life.  Knowing my skills will also benefit me by knowing when to use them in certain situations. Learning my skills is also essential to understand when knowing when and how to use them. Also, when I am aware of my obstacles or challenges, it will help me find a way to avoid them or find a better way to accomplish something. It is also something that I know I need to work on and become better at, and without being aware of first, I wouldn’t be able to do that. When I am aware of how I function, it makes it easier for me to achieve my goals. I wouldn’t be able to grow in my personal, academic, or professional life if I wasn’t aware of those things. A saying that I learned throughout my recovery was “ to be aware is to be alive.” It is essential to know my benefits and downfalls within myself to be able to grow and become better in all areas of my life.

Explanation:

Explain why a firm might want to continue operating and producing goods even after diminishing marginal returns have set in and marginal cost is rising.

Answers

Answer:

Explanation:

Overall in a scenario such as this one, a firm may continue operating and producing goods if they believe demand may go back up and result in higher returns or if they expect the tastes of consumers to change in the near future. Both of these will in term cause the market sentiment surrounding the firm's product to change and begin seeing more profitable times. Otherwise, a firm would cut their loses and stop operating and producing goods.

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.30 Direct labor $ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 15,000 Sales commissions $ 1.30 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 4,200 If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Answers

Answer:

Total indirect manufacturing cost= $23,750

Explanation:

Giving the following information:

Variable manufacturing overhead $1.25

Fixed manufacturing overhead $ 15,000

Production= 7,000 units are produced

The indirect manufacturing cost is the sum of the total fixed overhead and total variable cost:

Total indirect manufacturing cost= 15,000 + 7,000*1.25

Total indirect manufacturing cost= $23,750

The Botosan Factory has determined that its budgeted factory overhead budget for the year is $601,880 and budgeted direct labor hours are 367,000. If the actual direct labor hours for the period are 334,000, how much overhead would be allocated to the period

Answers

Answer:

Allocated MOH= $541,200

Explanation:

Giving the following information:

Estimated overhead= $601,880

Budgeted direct labor hours= 367,000

The actual direct labor hours for the period are 334,000

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 601,880/367,000

Predetermined manufacturing overhead rate= $1.64 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.64*334,000

Allocated MOH= $541,200

Consider a team that you are familiar with - either by being a member of the team, a team leader, or a bystander. What were the team's goals?

Answers

Answer:

• To ensure that there is no income leakage whatsoever

• Ensure that there is no customer complaint made to the company's executives

• Early closure not later than 5pm daily, Monday to Friday

• Ensure customer survey ratings of at least 8.0

• Drive paperless environment.

• Daily reconciliation of the bank's transit accounts.

Explanation:

I used to belong to a team called settlement and reconciliation , which is under operations support, business banking in one of the top financial institution.

The goals are as listed above. For instance as a settlement and reconciliation team, you must ensure accurate settlement of all merchants such that none would receive excess settlement s which could deplete the bank's income. Also, there must be no customer complaint escalated to the bank's executives hence team must promptly resolve all queries and complaint.

Another goal is to drive early closure. No member of staff must remain in the office after 5pm unless permission is obtained to deal urgent transaction. Each year, the bank conducts internal survey among departments to know how well we treat our internal and external stakeholders. The least score approved for my team is 8.0 out of 10 , which must be met.

Again, one of the goals of the bank is paperless drive which was included in each team or unit's goals. We support the drive for paperless transactions by suggesting means to consummate transactions without printing. We must also ensure daily and timely reconciliation of all our transit accounts in order to ensure that no idle fund is sitting in there.

You want employees to know that they can talk to retirement planning specialists. Which of the following statements is most likely persuasive to the most employees?
a) Make your financial dreams come true. Talk one-on-one with our expert retirement planners to decide which retirement packages make the most sense for you.
b) Learn about your options for retirement income. Talk one-on-one with our expert retirement planners to decide which retirement packages make the most sense for you.
c) Learn about your options for retirement income by talking one-on-one with our expert retirement planners, who can help you decide which retirement packages make the most sense for you based on your retirement goals and hopes.
d) Learn about your options for retirement income. Meet with our retirement planners to find out their recommendations for your retirement package.

Answers

It would have to be B

PROBLEM 1:
Equipment A Equipment B
cost $100,000 $63,000
Accumulated depreciation(1/1) $ 42,000 $36,000
Useful life 8 years 5 years
Depreciation method straight line straight line
Date sold 7/1/12 9/1/12
Sales price $ 39,000 $ 20,000
Journalize all entries required to update deprecition and record thesales of the two assets in 2012.accumulated depreciation includes depreciation recorded through 12/31/11.

Answers

Answer:

Equipment A

Journal Entry - update depreciation

Depreciation expense $6,250 (debit)

Accumulated depreciation $6,250 (credit)

Journal Entry - to record the sale

Accumulated depreciation ($ 42,000 + $6,250) $48,250 (debit)

Cash $ 39,000 (debit)

Profit and Loss $12,750 (debit)

Equipment $100,000 (credit)

Equipment B

Journal Entry - update depreciation

Depreciation expense $6,300 (debit)

Accumulated depreciation $6,300 (credit)

Journal Entry - to record the sale

Accumulated depreciation ($36,000 + $6,300) $42,300 (debit)

Cash $ 20,000 (debit)

Profit and Loss $700 (debit)

Equipment $63,000 (credit)

Explanation:

Straight line method charges a fixed amount of depreciation for the time the asset is in use in the business.

Depreciation Expense = (Cost - Residual Value) / Estimated Useful Life

Equipment A

Depreciation Expense = $100,000 / 8 years

                                     = $12,500

Depreciation Expense for 2012 = $12,500 × 6/12

                                                    = $6,250

Journal Entry - update depreciation

Depreciation expense $6,250 (debit)

Accumulated depreciation $6,250 (credit)

Journal Entry - to record the sale

Accumulated depreciation ($ 42,000 + $6,250) $48,250 (debit)

Cash $ 39,000 (debit)

Profit and Loss $12,750 (debit)

Equipment $100,000 (credit)

Equipment B

Depreciation Expense = $63,000 / 5 years

                                     = $12,600

Depreciation Expense for 2012 = $12,600 × 6/12

                                                    = $6,300

Journal Entry - update depreciation

Depreciation expense $6,300 (debit)

Accumulated depreciation $6,300 (credit)

Journal Entry - to record the sale

Accumulated depreciation ($36,000 + $6,300) $42,300 (debit)

Cash $ 20,000 (debit)

Profit and Loss $700 (debit)

Equipment $63,000 (credit)

                                     

Jervis sells $3,900 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 3% factoring fee. What entry should Jervis make to record the transaction

Answers

Answer:

Dr cash                           $3783

Dr factoring fee expense  $177

Cr accounts receivable               $3900

Explanation:

The cash proceeds from the factoring arrangement would be 97% of the value of the receivables since 3% is the factoring fees expenses to be incurred.

Cash proceeds=$3900*97%=$ 3,783.00  

Factoring fees expense=$3,900.00-$3,783.00=$117

Cash account and factoring fees expense would be debited with $3783 and $117 respectively, while accounts receivable is credited with $3900

Lefty provides demolition services in several southern states. Lefty has property as follows: Property State Beginning Ending Alabama $ 123,044 $ 204,241 Kentucky $ 203,317 $ 185,108 Mississippi $ 881,932 $ 1,002,396 Louisiana $ 243,951 $ 350,310 Tennessee $ 143,204 $ 143,204 Total $ 1,595,448 $ 1,885,259 Lefty is a Mississippi corporation. Lefty also rents property in Mississippi and Tennessee with annual rents of $56,000 and $21,000, respectively. What is Lefty's Mississippi property numerator

Answers

Answer:

Lefty's Mississippi property numerator is

Property Numerator = $56,000

Which can be expressed as a percentage of the Average Annual Property Value

= Annual Rent/Average Annual Property

= $56,000/$942,164 x 100 = 5.9%

Explanation:

a) Data:

Property State       Beginning             Ending

Alabama                $ 123,044          $ 204,241

Kentucky               $ 203,317           $ 185,108

Mississippi            $ 881,932       $ 1,002,396

Louisiana             $ 243,951           $ 350,310

Tennessee          $ 143,204           $ 143,204

Total                 $ 1,595,448        $ 1,885,259

b) Calculations:

Mississippi

Beginning Property value = $ 881,932    

Ending Property value =   $ 1,002,396

Average annual property value = $942,164 ($ 881,932 + $ 1,002,396)/2

Rent in Mississippi =  $56,000

What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Administrative Budget 4. Budgeted Income Statement

Answers

Answer:

1. Sales Budget

2. Selling and Administrative Budget

3. Budgeted Income Statement

4. Budgeted Balance Sheet

Explanation:

First of all the sales budget is prepared in which expected sales are shown and then the selling and administrative budget is prepared which shows expenses related to sale.

The income statement budget is prepared which shows the expected income.

Then at last  Budgeted Balance Sheet  is prepared in which the expected income is transferred.

The order in which they appear is as follows.

1. Sales Budget

2. Selling and Administrative Budget

3. Budgeted Income Statement

4. Budgeted Balance Sheet

The proper preparation sequencing of the budgets includes the Sales Budget, Selling and Administrative Budget, Budgeted Income Statement, and Budgeted Balance Sheet respectively.

 

The preparation of budgeted statement by business helps them to know how to expend funds in the future and plan for changes as well.

The proper preparation sequencing of the budgets includes:

Sales budget which are prepared to estimate the sales and revenue expected for the period

The Selling and administrative budget is prepared estimate the cost of operation

The Budgeted Income Statement is prepared like the Conventional Income statement.

The Budgeted Balance Sheet is prepared like the Conventional Balance sheet.

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Blossom Company sells equipment on September 30, 2020, for $20,100 cash. The equipment originally cost $72,800 and as of January 1, 2020, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2020 is $5,45. Prepare the journal entries to (a) update depreciation to September 30, 2015, and (b) record the sale of the equipment.

Answers

Answer:

Date             Account titles and explanation        Debit      Credit

30/09/2020  Depreciation expense                     $5,450

                     Accumulated depreciation                              $5,480

                     (To record depreciation expense)

30/09/2020    Accumulated depreciation            $47,550

                        Cash                                                $20,100

                        Loss on sale of equipment            $5,230

                        Equipment                                                         $72,880

                        (To record sale of equipment)

A local finance company quotes an interest rate of 19.9 percent on one-year loans. So, if you borrow $48,000, the interest for the year will be $9,552. Because you must repay a total of $57,552 in one year, the finance company requires you to pay $57,552/12, or $4,796.00 per month over the next 12 months.

Required:
a. What rate would legally have to be quoted?
b. What is the effective annual rate?

Answers

Answer:

a. What rate would legally have to be quoted?

banks are required to quote the APR, which in this case is 19.9%

b. What is the effective annual rate?

22.1%

Explanation:

Annual percentage rate (APR) = [($9,552 / $48,000) / 365] x 365 x 100 = 19.9%

In this case, you should only divide $9,552 / $48,000 and then multiply by 100 since the loan only lasts one year.

effective annual rate = (1 + 0.199/365)³⁶⁵ - 1 = 0.2201 = 22.1%

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