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iris
1 month ago
11

On December 31, Year 1, Jet Co. received two $10,000 notes receivable from customers in exchange for services rendered. On both

notes, interest is calculated on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Hart Corp., made under customary trade terms, is due in nine months and the note from Maxx, Inc. is due in five years. The market interest rate for similar notes on December 31, Year 1 was 8%. The compound interest factors to convert future values into present values at 8% follow:
Business
1 answer:
soldi70 [3.6K]1 month ago
4 0

Response:

Hart's note is to be noted at $10,000 while Maxx's note is to be recognized at $7,820

Justification:

Hart's note, being a current note (maturing within a year), will be listed at future value = $10,000

On the other hand, Marxx's note should be reflected at its present value:

present value = future value x discount factor = {$10,000 [1 + (3% x 5)]} x 0.68

present value = $11,500 x 0.68 = $7,820

*simple interest is utilized to determine the future value of Marxx's obligation since Jet Co. does not apply compound interest

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Bryant Co. reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000
Katen [3525]

Respuesta:

$26,000

Explicación:

Las actividades operativas: Incluyen aquellas transacciones que afectan el capital de trabajo después del ingreso neto. Un aumento en los activos corrientes y una disminución en los pasivos corrientes se deducirían, mientras que una disminución en los activos corrientes y un aumento en los pasivos corrientes se sumarían.

Estos cambios en el capital de trabajo se ajustarían. Además, el gasto de depreciación se suma al ingreso neto

El cálculo de los flujos de efectivo de las operaciones se muestra a continuación:

Flujo de efectivo de actividades operativas

Ingreso neto $20,000

Ajustes realizados:

Agregar: Gasto de depreciación $7,000

Menos: Ganancia por venta de maquinaria - $3,000

Agregar: Pérdida por jubilación de notas $2,000

Flujo de efectivo neto de actividades operativas $26,000

7 0
2 months ago
Blake eats two bags of potato chips each day. Blake's hourly wage increases from $9 to $15, and he decides to stop eating generi
Mariulka [3825]

Answer:

-4 units

Explanation:

Applying the midpoint method, Blake's income elasticity of demand for generic potato chips is determined by multiplying the change in demand (D) by his average income (I), then dividing by the product of the change in income and average demand:

E=\frac{\Delta D}{\Delta I}*\frac{I_{avg}}{D_avg}\\E=\frac{0-2}{15-9}*\frac{\frac{9+15}{2}}{\frac{2+0}{2} }\\E=-4\ units

Thus, Blake's income elasticity of demand equals -4 units.

8 0
3 months ago
All else equal, a firm would prefer to have a higher gross margin. <br> a. True <br> b. False
Scilla [3833]
I believe the correct answer is true.
8 0
1 month ago
ABC issued callable bonds on January 1, 2018. ABC's accountant has projected the following amortization schedule from issuance u
arsen [3447]

The gain amounts to $370

Reasoning:

To determine the gain or loss for the date 12/31/2018, according to ABC's amortization schedule

On this date, the carrying value was $196,370 while ABC procured the bonds back for $196,000 on 12/31/2018

Now let’s compute the gain or loss using this formula

Gain/Loss = Carrying value - Bond stock

Substituting into the formula gives us Gain/Loss =$196,370-$196,000

Gain/Loss=$370

Therefore, on the date 12/31/2018, ABC will show a gain of $370

7 0
2 months ago
Jackson and Max are the only inhabitants of a small tropical island. Each drives an old, smoke-belching Oldsmobile. Suppose that
stepan [3596]
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