Answer:
D. It exempts the borrowing from SEC regulation
Explanation:
Commercial paper is a short-term debt instrument. Companies can borrow money by issuing it to investors. It is unsecured, meaning collateral does not back it up. ... As long as the maturity is less than 270 days, you do not have to register the debt with the SEC.
A Commercial Paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example payroll), and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note.
Answer:
$294,803.84
Explanation:
The computation of the equipment and the note is shown below:
Rate = 7% and the time = 3 years
Cash flow Table Value Amount Present Value
Par (Maturity) Value 0.81629 $320,000 $261,212.80
Interest (Annuity)
($320,000 × 4%) 2.6243 $12,800 $33,591.04
Price of equipment $294,803.84
The 0.81629 is
= 1 ÷ 1.07^3
And, the 2.6243 is the PVIFA factor
Answer:
Cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold.
Explanation:
Cost of goods available for sale can be described as the <u>maximum amount</u> of inventory, stock, or goods that is possible for a firm to sell during an accounting period. It is the maximum amount because it is not possible for a firm to sell more than the cost of goods available for sale.
The cost of goods available for sale is obtained by adding beginning inventory and net purchases during an accounting period. This can be stated as follows:
COGAFS = BI + NP ............................... (1)
Where;
COGAFS = Cost of goods available for sale
BI = Beginning inventory
NP = Net purchases
At the end of an accounting period, ending inventory is deducted from the cost of goods available for sale to obtain cost of goods sold as follows:
COGS = COGAFS - EI ............................ (2)
Where;
COGS = Cost of goods sold
COGAFS = Cost of goods available for sale
EI = Ending inventory
Rearranging equation (2) and solve for COGAFS, we have:
COGFAS = COGS + EI ........................... (3)
Equation (3) therefore implies that the correct option is "cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold".
Answer:
$93,000
Explanation:
Data provided in the question:
selling cost of the property = $350,000
Earnest money paid = $12,000
Percentage of loan obtained = 70%
Now,
The amount of loan obtained = 70% of $350,000
= $245,000
Therefore,
Amount to be paid by self
= selling cost of the property - amount of loan obtained
= $350,000 - $245,000
= $105,000
Thus,
Additional cash the buyer will have to bring to the closing day
= Amount to be paid by self - Earnest money paid
= $105,000 - $12,000
= $93,000