Bonds are a type of investments that is categorized as a fixed-income instrument which symbolizes loans that investors make to a borrower. Bonds can be made by a corporation or a government. Bonds always have end dates, and they generally have lower risks compared to stocks.
However, there are still some risks associated with this type of instrument, which is (C) the issuer could go bankrupt.
Answer:
Option c is the correct answer.
Explanation:
The depletion expense or charge for the period can be calculated using the following formula,
Depletion expense = [(Cost - Salvage Value) / Total units expected to be mined] * Units mined during the period
Depletion expense = [(1500000 - 250000) / 2000000] * 150000
Depletion expense = $93750
The entry to record the expense is,
Depletion expense 93750 Dr
Accumulated depletion 93750 Cr
So, option c is the correct answer.
Answer:
D1 = $4.86
D2 = $5.25
D3 = $5.67
D4 = $6.12
D5 = $6.61
D6 = $6.85
Explanation:
Dividend paid by Indigo Ink Supply at year 0 = Do = $4.5
Growth rate for the first five years = 8%
Growth rate for the sixth year = 3.6%
The dividend paid out for the next six years are,
D1 = Do(1+ growth rate)
D1 = $4.5(1+8%) = $4.86
D2 = $4.86(1+8%) = $5.25
D3 = $5.25(1+8%) = $5.67
D4 = $5.67(1+8%) = $6.12
D5 = $6.12(1+8%) = $6.61
D6 = $6.61(1+3.6%) = $6.85
Net lease type will be the most likely sign by Cheapo manufacturing.
<u>Explanation:</u>
Single net leases, which are frequently alluded to as a Net or N rent, are not as regular in the rental world. In a rent this way, the proprietor moves a negligible measure of hazard to the occupant, who covers the property charges. This implies some other cost, for example, protection, support and fixes, and utilities—are the proprietor's obligation. The landowner is likewise liable for any support and additionally fixes that must be finished over the span of the rent inside the property.
Occupants under a solitary net rent wind up paying marginally lower lease than with a standard rent as a result of the additional expense of property charges. In any case, a higher rental installment doesn't reduce the landowner's obligation regarding staying up with the latest.
Answer:
Deitz Corporation
Cash Budget
For the Quarter ended March 31, 2020:
Beginning balance $33,300
Cash Collections From Customers 205,350
Sale of Equipment 3,330
Total available cash $241,980
Cash Payments:
Direct materials $47,730
Direct labor 77,700
Manufacturing overhead 38,850
Selling & Administrative 49,950
Purchase of Securities 15,540 $(229,770)
Ending Balance $12,210
Minimum Balance 27,750
Shortfall $15,540
Explanation:
Deitz Corporation uses this Cash Budget which it has prepared to understand its financial needs for the next quarter. For example, with the minimum balance of $27,750 most likely based on past experience the corporation will start making arrangements for some outside funds to the tune of $15,540 or more to meet its cash needs for the first quarter.
