Answer:
The asset’s anticipated percentage rate of return is 5%
Explanation:
Rate of return is the annual return that an investor earns on an Initial investment in an asset.
RatReturn on Asset = Expected selling price - Initial Purchase price
Return on Asset = $1,050 - $1,000
Return on Asset = $50
Rate of return = Return on Asset / Initial Purchase price = $50 / $1,000 = 0.05 = 5%
Answer:
$470,425
Explanation:
The computation of the amount reported as bond payable is shown below:
<u>Particulars Interest at 4.5% Interest at 5% Amortized UnAmortized CV</u>
<u> discount discount </u>
Starting value $30,500 $469,500
($500,000 - $469,500)
June 30 $22,500 $23,475 $975 $29,525 $470,425
($500,000 × 4.5%) ($469500 × 5%)
The six months rate would be the half of the rates given in the question
Answer:
The entry to record Dividend Paid will be;
Retained Earnings (Dr.) $5,700
Cash (Cr.) $5,700
Explanation:
When the Castillo Services declares dividend it should record journal entry as
Retained Earnings (Dr.) $5,700
Dividend Payable (Cr.) $5,700
And when the Dividend is paid to its sole shareholder K. Castillo, the journal entry will be
Dividend Payable (Dr.) $5,700
Cash (Cr.) $5,700
To now close the Dividend account at the end of the year it should record the adjusting entry as,
Retained Earnings (Dr.) $5,700
Cash (Cr.) $5,700
Answer:
The correct answer is Channel Marketing.
Explanation:
The marketing channels are the routes through which the products circulate from their origin, the manufacturer, to the final consumer. These channels are formed by companies independent of the manufacturers whose function is to market, sell or help the sale of products created or manufactured by others. Let's say that the marketing channels are the ones that help sell the products of others.
Depending on the type of sales technology they use, we can find different channels:
- Traditional channels: those that, as the name implies, do not use advanced technology to achieve their ends.
- Automated channels: they use technology in a basic way to channel products towards consumption. For example, product vending machines.
- Audiovisual channels: these are the channels that use different media. For example, television to publicize their products, the telephone to contact potential buyers and a transport company to get the product home.
- Electronic channels: these are the marketing channels that use the internet as a means to connect with consumers.
Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.
Explanation:
Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as
Total Liabilities/ Total Assets
The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.