Stonehall Inc. recently borrowed $685,000 from its bank at a simple interest rate of 10 percent. The loan is for eight months and, according to the loan agreement, the interest should be added to the amount borrowed and the total amount will be repaid in monthly installments. The loan's annual percentage rate (APR) is:________a. 20.00%
b.18.25%
c. 15.05%
d. 13.33%

Answers

Answer 1
Answer:

Answer:

a. 20.00%  

Explanation:

Monthly loan payment

= (685000*10%*8/12 + 685000)/8

= $91,333.33

PV = -685000

Nper = 8

Using RATE function

= RATE(8,91333.33,-685000,0)*12

= 20%

Therefore, The loan's annual percentage rate (APR) is 20%.


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Suppose the economy starts off producing Natural Real GDP. Next, aggregate demand rises, ceteris paribus. As a result, the price level rises in the short run. In the long run, when the economy has moved back to producing Natural Real GDP, the price level will be- (A) higher than it was in short-run equilibrium. (B) lower than it was in short-run equilibrium but higher than it was originally (before aggregate demand increased). (C) lower than it was originally (before aggregate demand increased). (D) equal to what it was originally (before aggregate demand increased).
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An underpinning of all commerce is effective communications, knowledge of where goods and services exit and where they are needed and the ability to communicate instantaneously across vast distances. Facilitation this movement into the future one can observe which shifts in examining world population and telecommunications?

Answers

Explanation:

Analyzing the historical context, it is possible to see how the new communication technologies were essential for the development of commerce. We currently live in the digital age, where almost every individual has access to a cell phone with internet and can communicate within seconds with any part of the world.

This technological revolution also had a great economic impact, generating new business models.

Companies have to adapt to this reality and insert themselves in the new market based on the internet, in creating relationships with consumers, in the practice of positive social and environmental attitudes, etc. Some companies needed to reinvent themselves to adapt to the new economic context, or they would lose strength in the market and would cease to exist.

The fact is that the technological revolution has impacted commercial relations around the world, today the consumer seeks the solution to his problems and desires, not being restricted to local consumption, which causes a new redesign of commerce and manages impacts on the economy of the world.

In an efficient market, professional portfolio management can offer all of the following benefits except which of the following? A. A superior risk-return trade-off
B. Low-cost diversification
C. A targeted risk level
D. Low-cost record keeping

Answers

Answer:

A. A superior risk-return trade-off

Explanation:

In a normal and efficient market a professional portfolio management service is able to offer  Low-cost diversification, A targeted risk level, and even a Low-cost record keeping. What they cannot offer is a superior risk-return trade-off, this is because risk-return holds a very correlated trade-off in which the higher amount of risk your portfolio holds the higher returns you can get from it, but this does not get rid of the risk which can cause you to lose all of your money. Therefore "superior" is unnachievable.

Dillard’s, Inc., operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2016 third-quarter report, the company reported Cost of Goods Sold of $880 million, ending inventory for the third quarter of $1,900 million, and ending inventory for the previous quarter of $1,500 million. Estimate merchandise purchases for the third quarter.

Answers

Answer:

$1,280 million

Explanation:

The change between the opening inventory balance and the ending inventory balance for a period is as a result of the purchases of inventory and the sale of inventory during the period.

All of these elements are related as;

Opening inventory + purchases - cost of goods sold = ending inventory

As such, to estimate the merchandise inventory purchased,

let the purchase for the period be T

1500 + T - 880 = 1900 (All amounts in millions of $)

T = 1900 + 880 - 1500

= 1280

The merchandise purchases for the third quarter is $1,280 million.

The following data from the just completed year are taken from the accounting records of Mason Company: Sales$658,000 Direct labor cost$83,000 Raw material purchases$135,000 Selling expenses$106,000 Administrative expenses$46,000 Manufacturing overhead applied to work in process$202,000 Actual manufacturing overhead costs$224,000 InventoriesBeginningEnding Raw materials$8,800$10,200 Work in process$5,900$20,500 Finished goods$74,000$25,100 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.

Answers

Answer:

1. Prepare a schedule of cost of goods manufactured

schedule of cost of goods manufactured

Direct labor cost                                        $83,000

Raw Materials                                           $133,000

Manufacturing overhead                         $202,000

Add Beginning Work In Process                 $5,900

Less Ending  Work In Process                 ($20,500)

cost of goods manufactured                    $403,400

2. Prepare a schedule of cost of goods sold

schedule of cost of goods sold

Begining Finished goods                       $74,000

Add cost of goods manufactured        $403,400

Less Ending Finished goods                 ($25,100)

Add Under- Applied Overheads           $22,000

cost of goods sold                                $473,300

3. Prepare an income statement.

Sales                                                      $658,000

Less cost of goods sold                       ($473,300)

Gross Profit                                            $184,700

Less Operating Expenses

Selling expenses                                  ($106,000)

Administrative expenses                      ($46,000)

Net Income                                             $ 32,700

Explanation:

1. Prepare a schedule of cost of goods manufactured

Raw Materials Consumed in Production

Begining Raw Materials Inventory              $8,800

Add Raw material purchases                   $135,000

Less Ending Raw Materials Inventory      ($10,800)

Raw Materials Consumed in Production $133,000

schedule of cost of goods manufactured

Direct labor cost                                        $83,000

Raw Materials                                           $133,000

Manufacturing overhead                         $202,000

Add Beginning Work In Process                 $5,900

Less Ending  Work In Process                 ($20,500)

cost of goods manufactured                    $403,400

2. Prepare a schedule of cost of goods sold

Actual manufacturing overhead costs ($224,000) > Applied Manufacturing overhead($202,000)

Under- Applied Overheads

Applied Manufacturing overhead        $202,000

Actual manufacturing overhead costs $224,000

Under- Applied Overheads                    $22,000

schedule of cost of goods sold

Begining Finished goods                       $74,000

Add cost of goods manufactured        $403,400

Less Ending Finished goods                 ($25,100)

Add Under- Applied Overheads           $22,000

cost of goods sold                                $473,300

3. Prepare an income statement.

Sales                                                      $658,000

Less cost of goods sold                       ($473,300)

Gross Profit                                            $184,700

Less Operating Expenses

Selling expenses                                  ($106,000)

Administrative expenses                      ($46,000)

Net Income                                             $ 32,700

There are three categories of cash flows: single cash flows, also referred to as "lump sums," a stream of unequal cash flows, and annuities. Based on your understanding of annuities, answer the following questions. Which of the following statements about annuities are true? Check all that apply. Ordinary annuities make fixed payments at the end of each period for a certain time period. An annuity due is an annuity that makes a payment at the end of each period for a certain time period. An annuity due earns more interest than an ordinary annuity of equal time. A perpetuity is a constant, infinite stream of equal cash flows that can be thought of as an infinite annuity.

Answers

Answer:

All statement are correct except the the second one.

Explanation:

  • Ordinary annuities make fixed payments at the end of each period for a certain time period.

True. the differentiating feature between ordinary annuities and annuity dues is the timing of the cash-flows- If payments are made at the end of each period, the payment stream is an ordinary annuity but if payments are made at the beginning of each period, then the stream is an annuity due.

  • An annuity due is an annuity that makes a payment at the end of each period for a certain time period.

False. with an annuity due, payments are made at the beginning of each period.

  • An annuity due earns more interest than an ordinary annuity of equal time.

True. Payments are made sooner in an annuity due, with the 1st payment made at the beginning of the first period and the last payment being made at the beginning of the last period. Thus each payment earns interest and as a result, both the present value and the future value are higher than that of an ordinary annuity.

A perpetuity is a constant, infinite stream of equal cash flows that can be thought of as an infinite annuity.

True. A perpetuity is a stream of cash-flows starting at a certain date with equal payments at equal intervals but with no terminal date. Therefore the stream of cash-flows is expected to continue forever- which makes it an infinite annuity.

Edward leaves an organization for three years to fulfill military duties. Which observation is true of his employer's obligation to reemploy Edward under the Uniformed Services Employment and Reemployment Rights Act?A) The employer is not obligated to reemploy Edward.


B) The employer must reemploy Edward with the same seniority and status he would have earned if his employment had not been interrupted.


C) The employer must reemploy Edward but is exempted from providing him any fringe benefits or retirement benefits.


D) The employer must implement an early retirement incentive program for Edward.


E) The employer must reemploy Edward with a lower pay scale to compensate for his absence.

Answers

Answer:

The corrwct option is B

Explanation:

The USERRA is a federal statute that protects servicemen and veterans civilian employment rights. Under certain conditions USERRA requires employers to put individuals back to work after their military service