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elixir [45]
2 years ago
15

Sarah is a freshman high school student who is also holding down a 20-hour-a-week job. she drinks diet cola several times a day

to keep her energized without adding calories, and she has given up all dairy products as part of her newly embraced vegan diet. at a routine checkup, her physician warned against excessive soda consumption and recommended that she add more sources of calcium to her diet. why?
Business
1 answer:
AURORKA [14]2 years ago
6 0
<span>As Sarah is young, increasing her calcium intake at a younger age can help with bone density at a later age. This can help ward off osteoporosis and other bone-related diseases that can be caused by a lack of sufficient nutrient intake. In addition, the increased soda consumption, even as a diet alternative, lead to negative health effects because of the ingredients in the soda and the lack of nutritional value in the carbonated drink.</span>
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Franklin Corporation issues $88,000, 10%, five-year bonds on January 1 for $92,000. Interest is paid semiannually on January 1 a
dusya [7]

Answer:

$4,000

Explanation:

The computation of interest expense to be recognized on July 1 is shown below:-

Here the interest is paid in semi-annually,

so, the interest rate per period= 10% ÷ 2 = 5%

and the number of periods = 5 × 2 = 10

Bond premium = Five year bonds - Issued amount

= $92,000 - $88,000

= $4,000

Bond premium amortization per period = Bond premium ÷ Number of periods

= $4,000 ÷ 10

= $400

Interest expense to be recognized on July 1 = Issued amount × Interest rate per period) - Bond premium amortization per period

= ($88,000 × 5%) - $400

= $4,000

4 0
2 years ago
A construction company plans to build a certain number of apartment buildings and stores on a piece of land. This PPC shows the
Bond [772]

Answer 1) Option B) Shift to the right.

Explanation : If the amount of land available to the company increases, the PPC will shift to the right. As the graph indicates, the PPC will grow by shifting on right side as the company is acquiring more land for building purpose.

Answer 2) Option C) Remain Unchanged.

Explanation : The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in.

In this case, the PPC will remain unchanged. When the company realizes that no construction can be done on the portion of land because of its hollowness the PPC will remain to be undisturbed.

5 0
2 years ago
Read 2 more answers
Determine proper classification (LO11-1) Wi-Fi, Inc., has the following selected transactions during the year. Required: Select
jekas [21]

Answer:

a. Operating activities (indirect method)

1. Pays a $20,000 account payable

2. Collects a $15,000 account receivable

3. Pays $75,000 to suppliers for inventory.

b. Investing activities

Purchases equipment for $

Loans $50,000 to a customer, accepting a note receivable.

c. Financing activities

Issues $20 million in bonds

Declares and pays a cash dividend of $100,000

d. A separate noncash activities note

Exchanges land for a new patent. Both are valued at $300,000.

Explanation:

The categorisation and their effects are explained as follows:

a. Operating activities (indirect method)

1. Pays a $20,000 account payable: This a cash outflow and its effect is a reduction in cash flow from operating activities.

2. Collects a $15,000 account receivable: This a cash inflow and its effect is an increase cash flow from operating activities.

3. Pays $75,000 to suppliers for inventory: This a cash outflow and its effect is a reduction in cash flow from operating activities.

b. Investing activities

1. Purchases equipment for $: This a cash outflow and its effect is a reduction in cash flow from investing activities.

2. Loans $50,000 to a customer, accepting a note receivable: This a cash outflow and its effect is a reduction in cash flow from investing activities.

c. Financing activities

1. Issues $20 million in bonds: This a cash inflow and its effect is an increase in cash flow from financing activities.

2. Declares and pays a cash dividend of $100,000: This a cash outflow and its effect is a reduction in cash flow from financing activities.

d. A separate noncash activities note

1. Exchanges land for a new patent. Both are valued at $300,000: This is a noncash transaction that neitheir leads to the outlow nor inflow of cash.

6 0
2 years ago
Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more levered. Both companies will rem
Lapatulllka [165]

Answer:

a. What is the value today of Steinberg's debt and equity?

  • $2,890,909

b. What is the value today of Dietrich's debt and equity?

  • $2,890,909

c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?

  • A. Disagree: a company's value is determined by by its operating income (EBIT), not by there capital structure (M&M theory).

Explanation:

economic expansion 80% chance, EBIT $3.5 million

economic recession 20% chance, EBIT $1.9 million

expected EBIT = (3.5 x 0.8) + (1.9 x 0.2) = $2.8 million + $0.38 million = $3.18 million

Steinberg's debt obligations $980,000 at the end of next year

Dietrich's debt obligations $2,000,000 at the end of next year

total company value = $3.18 million / (1 + 10%) = $2,890,909

3 0
2 years ago
You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.2
postnew [5]

Answer:

a. project A; because its NPV is about $335 more than the NPV of project B.

Explanation:

As in the question it is mentioned that the required rate of return for project A and project B is 11.25% and 10.75% respectively.

Here we have to determined the net present value for both projects having different required rate of return

So based on the net present value the first option is correct as the project A is more than the project B

Therefore the first option should be accepted

5 0
2 years ago
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