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2 years ago

The exchange rate for the yuan is quoted at 6.58 to the us$ if this changes to 6.25 yuan, what would be the change in price

1 answer:

4 0

In order to obtain the change in price, the local price of the yuan must be known. Next is to take the difference of the reciprocal of the two prices, then multiply it to the local price. The solution is: change in price = 275 (1/ 6.58 - 1/6.25) therefore, the change in price is equal to $2.21

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On June 1, Greendale Corp. issued $700,000, five-year bonds at 8%, with interest payable annually on May 31. The bonds sold for

elena-14-01-66 [18.8K]

Answer:

$23,709

Explanation:

Data provided in the question:

Amount of bond issued = $700,000

Duration = 5 years

Interest rate = 8%

Selling amount of bond = $728,700

Market rate of interest = 7%

Now,

Interest paid = Amount of bond issued × Interest rate

= $700,000 × 0.08

= $56,000

Interest expense = Amount of bond sold × Market Interest rate

= $728,700 × 0.07

= $51,009

unamortized premium = Selling amount of bond - Amount of bond issued

= $728,700 - $700,000

= $28,700

Amortized amount = Interest paid - Interest expense

= $56,000 - $50,009

= $4,991

Balance of the premiums on bonds payable account immediately following the first interest payment

= unamortized premium - Amortized amount

= $28,700 - $4,991

= $23,709

5 0

2 years ago

Henry Hacker, a professional golfer who was having trouble with his driver, decided to skip the next two tournaments on the PGA

goblinko [34]

Answer:

The earnings foregone by skipping the two tournaments on the PGA tour is cost of opportunity

Explanation: The cost of opportunity of an economic decision that has several alternatives is the value of the best unrealized option. In other words, it refers to what a business stops earning, when choosing an alternative among several available. In this case are the prizes the golf player lost for not playing the tournments.

5 0

2 years ago

John purchases a call option with a strike price of $110 that is selling for $3.50 when the stock is trading at $108 per share.

andreev551 [17]

The intrinsic value of a call option can be calculated by subtracting the strike price from the market price ($108-$110=?). Therefore the intrinsic value of John's call option is $-2 or 0.

3 0

2 years ago

Birk Co. uses a job order cost system. The following debits (credits) appeared in Birk's work-in-process account for the month o

svp [43]

Answer:

The amount of direct materials charged to Job No. 5 is $5,200.

Explanation:

Work in process, April 30 = Balance + Direct material + Direct labor + Factory overhead - Cost of finished goods

= $4,000 + 24,000 + 16,000 + 12,800 - 48,000

= $8,800

Job No 5 = Work in process, April 30 = $8,800

Job No 5 = Direct material + Direct labor + Factory overhead

$8,800 = Direct material + $2,000 + $1,600 ($2,000 * 80%)

Direct material = $8,800 - $2,000 - $1,600

= $5,200

Therefore, The amount of direct materials charged to Job No. 5 is $5,200.

5 0

2 years ago

Which statement describes direct materials in a manufacturing setting?A) Direct materials are used to determine total manufactur

Helga [31]

Answer:

B) Direct materials are used to determine total inventoriable product costs.

Explanation:

Product costs includes direct materials, direct labor & manufacturing overhead.

This makes Choice B a description of direct materials in a manufacturing setting. All other choices are false.

Their is a chance to use direct labor as a basis for manufacturing overhead but not direct materials.

Direct materials can be separately and conveniently traced.

And finally, as stated above, direct materials are part of the finished product.

7 0

2 years ago