Answer:
The yield to maturity is 9.127%
Explanation:
The yield to maturity is the yield or return on the bond as a percentage of its current price in the market. The formula to calculate the yield to maturity is:
YTM = C + {(F - P) / n} / {(F + P) / 2}
Where,
- C is the coupon payment / interest payment on the bond
- F is the face value of the bond
- P is the current market price of the bond
- n is the years to maturity
The coupon payment = 1000 * 0.113 = 113 per year
So, YTM = 113 + {(1000 - 1127.3) / 8} / {(1000 + 1127.3) / 2}
YTM = 0.09127 or 9.127%
Answer:
Sales Returns and Allowances $140 and Accounts Receivable $140
Explanation:
When goods are returned, the sales revenue decreases through Sales Returns and Allowances which is an expense so it is debited and the goods sold on account so the Accounts Receivable which is an asset decreases so it is credited.
Date Account Titles and Explanations Debit Credit
Sales Returns and Allowances $140
Accounts Receivable $140
(To record sales returns)
Answer:
a. Borrow using short-term notes payable and use the cash to increase inventories.
Explanation:
The formula to compute the current ratio is shown below:
Current ratio = Total Current assets ÷ total current liabilities
where,
The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets
And, current liabilities would be
= Short-term obligations + Accounts payable
If the current ratio is 0.5 which means that the current asset is 1 and the current liabilities are 2 so the most appropriate option is a.
Answer:
c. Dorothy should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
Explanation:
The best application of the AICPA conceptual framework approach in this scenario is that: Dorothy should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
<u>The threat of independence in the scenario is not high enough to warrant the resignation of Dorothy from the audit team because her friend is not the Finance Director or person in charge of primary preparation of the financial statements but just a member in the internal audit team, hence the risk to her independence is relatively moderate.</u>
Dorothy already believes that she will be objective, hence she should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
Answer:
If the company makes 8 deposits, one per year earning 7% per year, in order to get $375000 at the 8 year, the company has to deposit $34,874.16 each year.
Explanation:
To get this number the best option is to use a excel spreadsheet and solver add-in. In a table with 8 columns (8 years), organize the payments and the rule of interest: payment year 1*(1+7%)^8+payment year 2*(1+7%)^7+payment year 3*(1+7%)^6+payment year 4*(1+7%)^5+payment year 5*(1+7%)^4+payment year 6*(1+7%)^3+payment year 7*(1+7%)^2++payment year 8*(1+7%)^1 where all the payments are equal (payment 1=p2=p3...=P8)
