Answer:
The journal entry for disposal of equipment will be as follows;
Explanation:
Accumulated Depreciation Dr.$98,000
Cash Dr.$40,000
Loss on disposal (150-98-40) Dr.$12,000
Equipment Cr.$150,000
Answer:
Budgeted purchases for second quarter is 165000 pounds
Explanation:
The per unit requirement of material A is 2 pounds.
We first need to calculate the closing inventory of Material A at the end of first quarter and at the end of second quarter.
<u />
<u>End of first quarter</u>
The closing inventory for First quarter should be enough to meet 25% production requirement for next quarter. 25% production requirement for second quarter is 40000 pounds.
Production requirement - Second quarter = 80000 * 2 = 160000
25% of 160000 = 40000 pounds
<u />
<u>End of second quarter</u>
The closing inventory for First quarter should be enough to meet 25% production requirement for next quarter. 25% production requirement for second quarter is 45000 pounds.
Production requirement - Second quarter = 90000 * 2 = 180000
25% of 180000 = 45000 pounds
Budgeted Purchase -Second quarter = Closing Inventory in pounds + production in pounds - Opening Inventory in pounds
Purchase requirement - First quarter = 45000 + 160000 - 40000 = 165000 pounds
Answer:
The question is missing the options, which can be found in the attached.
The number of bonds necessary to raise the funds is 46,009
Explanation:
First of all, I calculated the price at which would be issued using the pv formula in excel, which =pv(rate,nper,pmt,fv)
rate is the yield to maturity divided by 2 because it is semi-annual payment
nper is 30 years multiplied by 2
pmt is the semi-annual coupon payment
fv is the $2000 payable on maturity
Find attached.
Answer:
A. economic
Explanation:
Economic environment -
It consists of all the economic factors that can affect the economic market , consumers behavior , is referred to as the economic environment .
These factor are capable to alter any business .
Any changes in the monetary value , like cash , income , savings and interest rate can alter the economic environment as well .
Hence , from the given information of the question,
The correct option is A. economic environment .
Answer:
A. 12.1%
B. 8.9%
Explanation:
a. Calculation for What is the company's new cost of equity
Using this formula
New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]
Let plug in the formula
New cost of equity=[0.089+[(0.089-0.057)*(1)*1]
New cost of equity=[0.089+0.032*(1)*1]
New cost of equity=[0.121*(1)*1]
New cost of equity=0.121*100
New cost of equity=12.1%
Therefore the company's new cost of equity will be 12.1%
b. Calculation for What is its new WACC
Particular Weight Cost Weighted cost
Equity 0.5000 *12.1% = 0.0605
Debt 0.5000 * 5.7% =0.0285
WACC =0.089*100
WACC =8.9%
(0.0605+0.0285)
Therefore the new WACC will be 8.9%
