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snow_tiger [21]

2 years ago

8

On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, four-year term note that had an 8

percent annual interest rate. The note is to be repaid by making annual cash payments of $30,192 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $52,000 cash per year.
Prepare an amortization schedule for the four-year period.

1 answer:

expeople1 [14]2 years ago

8 0

Answer: Please see below

Explanation: Amortization for the four year period is given as

FOR 2018

Principal Balance = $100,000

cash payment for dec 31st= #30,182

Applied to interest== 8% of 100000= 0.08 x100,000=8000

Applied to Principal = cash payment -interest= 30192-8000= $22, 192

Principal balance at end of period=Principal Balance--applied to Principal

= 100,000 - 22,192=$ 77, 808

FOR 2019

Principal Balance = $77,808

cash payment for dec 31st= $30,182

Applied to interest== 8% of 77,808= 0.08 x77,808 =$6225

Applied to Principal = cash payment -interest= 30192-6225= $23,967

Principal balance at end of period=Principal Balance--applied to Principal

= 77,808 - 23,967=$ 53,841

FOR 2020

Principal Balance = $53,841

cash payment for dec 31st= $30,182

Applied to interest== 8% of 53,841= 0.08 x53,841 =$4307

Applied to Principal = cash payment -inbterst= 30192-4307= $25,885

Principal balance at end of period=Principal Balance--applied to Principal

= 53,841- 25,885= $27,956

FOR 2021

Principal Balance = $27,956

cash payment for dec 31st= $30,182

Applied to interest== 8% of 27,956= 0.08 x27,956 =$2236

Applied to Principal = cash payment -interest= 30192-2236= $27,956

Principal balance at end of period=Principal Balance--applied to Principal= 27,956- 27,956=0

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La Femme Accessories Inc. produces women's handbags. The cost of producing 800 handbags is as follows: Direct materials$18,000 D

SSSSS [86.1K]

Answer:

A. Desired Profit = $55,000

B. Product cost = $40

C. The product cost markup percentage = 225%

D. The sale price of handbags = $130 for 1 bag, $104,000 for 800 bags.

Explanation:

Requirement A

Here,

Desired Profit ($) = Invested assets x Desired profit in percentage

Given,

Invested assets = $250,000

Desired profit in percentage = 22%

The amount of desired profit from the production and sale of 800 handbags

= $250,000 x 22%

= $55,000

Requirement B

Product Cost = When the cost is directly related to the production of a specific product, it is called product cost. It means the materials, direct labor, and factory related costs are added to determine the product cost. No selling and administrative expenses are added in calculating product cost.

Given,

Direct materials $18,000

Direct labor $ 8,500

Factory overhead $ 5,500

Total manufacturing cost $32,000

Product cost = $\frac{Total Manufacturing Cost}{Number of bags}$

Product cost for 800 handbags will be = $\frac{32,000}{800}$

Product cost = $40.

Requirement C & D

We know,

The product cost markup percentage = $\frac{Selling price - Product cost}{Product Cost}$ x 100

We get product cost for each bag (from requirement B) = $40

We need to find total selling price for 800 bags =

Product cost + Selling and administrative expenses + desired profit

= $32,000 + $17,000 + $55,000

= $104,000

The sale price for 1 bag = $\frac{104,000}{800}$ = $130

Therefore,

The product cost markup percentage = $\frac{130 - 40}{40}$ x 100

The product cost markup percentage = $\frac{90}{40}$ x 100

The product cost markup percentage = 225%

6 0

2 years ago

John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each cont

marishachu [46]

Answer:

<em>2.statute.</em>

Explanation:

<em>The court ruling will be decided by the contractual agreement signed by the three parties. A Limited Liability Agreement will usually be demonstrated by three parties signing a contract together. </em>

The situation will become difficult once, within each partner, there is no written statement about the distribution of profit. Every partner must obtain the suitable yield rate, based on their original investment.

The verdict begins to appear as if it falls into the hands of the state. By considering the Revised Uniform Partnership Act-Section 306. It relies heavily on where the business is registered, authorized, type of business.

However, John is the majority shareholder with 60 per cent of financial and legal accountability[ which is why he owes more to investment return]. It is also partly due to unlawful double tax laws and they are intended to protect the owner / partner of the business.

The confusion could've been avoided if an attorney and bookkeeper were available to describe the process, before the agreement was made and/or written. The condition they submit for incorporation makes a huge difference however, it does not seem to be the circumstance.

8 0

2 years ago

Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed

Hunter-Best [27]

Answer:

correct answer is option B

I.E $150,000

Explanation:

GIVEN DETAILS:

Variable cost $99,000

Fixed cost $30,000

Operating income $36,000

Total sales for 22,000 units = Variable cost + Fixed cost + Operating income

total cost = $99,000 + $30,000 + $36,000 = $165,000

Selling price of per unit = $165,000 / 22,000 = $7.5

Budgeted amount for 20,000 units = $7.5 x 20,000 = $150,000

so correct answer is option B

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2 years ago

When purchasing a dishwasher a manager can tell if it is in compliance with the regulatory authority by?

katrin2010 [14]

When purchasing a dishwasher a manager can tell if it is in compliance with the regulatory authority by? Appliances have to be compliant with federal regulations. To check if a dishwasher is in compliance, a manager can make sure there are NSF seals or ANSI certifications on the dishwasher.

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2 years ago

The bargaining power of consumers can be the most important force affecting competitive advantage. Consumers gain increasing bar

viva [34]

Answer:

C. If consumers are informed about products, prices, and costs across countries

D. If consumers are particularly important to the seller

YES. As having a complete information will allow for arbitrage between areas and if they are a big fish of the seller business the seller will be less likely to roll-over the consumer in negociation.

Explanation:

A. If switching to competing brands or substitutes is expensive

NO. If switching is expenses then, the exit-barrier is higer thus, less bargaining power as we are less likely to leave

E. If consumer demand is rising

NO. Is demand rises then the supplier will have bargain power as it has where to sale the product if we leave

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2 years ago