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iVinArrow [24]
2 years ago
9

At the beginning of the year, long-term debt of a firm is $308 and total debt is $339. At the end of the year, long-term debt is

$269 and total debt is $349. The interest paid is $35. What is the amount of the cash flow to creditors
Business
1 answer:
Gnoma [55]2 years ago
4 0

Answer:

The amount of the cash flow to creditors is $74

Explanation:

Beginning of the year:

Long-term debt = $308

Total debt = $339

At the end of the year:

Long-term debt = $269

Total debt = $349.

Interest = $35

Net new borrowing = Ending Long-term debt - Beginning Long-term debt

= $269 - $308

= ($39)

Cash flow to creditors = Interest paid - Net new borrowing

= $35 - ($39) = $ 74

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A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. Residual value is expected to be
mel-nik [20]

Answer:

Annual depreciation= $73,551.72

Explanation:

Giving the following information:

A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. The residual value is expected to be zero. The truck is driven​ 27,000 miles during the first​ year.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= (316,000/116,000)*27,000= $73,551.72

8 0
2 years ago
Read 2 more answers
Restore Construction Company enters into a contract to remodel Sam’s Home Store, agreeing to use only products from United Build
BlackZzzverrR [31]

Answer:

Sam’s Home Store can enforce the contract against Restore Construction Company

Explanation:

In contract law, only the parties involved in a contract can take action to enforce the contract. In this case Sam' Home Store signed the contract with Restore, so they can enforce it. Any third party beneficiaries from the contract, like United Building Supplies, are not entitled to enforce anything.

6 0
2 years ago
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The
likoan [24]

Answer:

$3,935

Explanation:

The computation of the catering supplies are shown below:

= Catering supplies + monthly cost for each job × number of jobs + monthly cost for per meal × number of meals

= $450 + $75 × 27 jobs + $10 × 146 meals

= $450 + $2,025 + $1,460

= $3,935

We simply added the catering supplies cost, meal cost, and the job cost so that the accurate value can come

All other information which is given is not relevant. Hence, ignored it

4 0
2 years ago
A manager in your organization just received a special order at a price that is "below cost." The manager points to the document
Alex777 [14]

Answer:

So, from a short-run perspective, so long as the sale does not affect other output prices or normal sales volume, a "below cost" sale may result in a net increase in income so long as the revenues cover the differential costs.

However, in the long run all costs must be covered or management would not reinvest in the same type of assets.

If the company must continually sell below the full cost of production then it will most likely get out of that particular business when it comes time to replace those facilities.

5 0
2 years ago
Problem 2-14 As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have
Gala2k [10]

Answer and Explanation:

For calculating the average of the monthly productivity, first, we have to determine the total hours, and then units per machine hours

Therefore, the formula to figure out  the total hours is

=  Hours per machine × Number of machines

For JAN = 325 × 3 = 975 hours

For FEB = 200 × 5 = 1,000 hours

For MAR = 400 × 4 =  1,600 hours

For APR = 320 × 4 = 1,280 hours

Now, the units per machine hours equivalent to  

= Units produced ÷ total hours

For JAN = 2,300 units  ÷ 975 hours = 2.36

For FEB = 1,800 units  ÷ 1,000 hours = 1.8

For MAR = 2,800 units  ÷ 1,600 hours = 1.75

For APR = 3,000 units  ÷ 1,280 hours = 2.34

Now, the average of the monthly productivity equals to

= (2.36 + 1.8 + 1.75 + 2.34) ÷ 4

= 2.06 units per machine hour

7 0
2 years ago
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