Answer:
Deal, Inc. working capital will be overstated while there will be a nil net effect on cash flows from operating activities.
Explanation:
The working capital of an entity is the difference between the entity's current asset and current liabilities at a given time or period. The operating activities of the cash flow statement is where the net income and changes in current liabilities are considered in the cash flow statement.
As such, when a company fails to accrue for sales salaries On December 31, Year 4, and the salaries are payable on January 6, Year 5, the current liabilities of the company would be understated and as such, it's working capital will be overstated.
Also, the net income will be understated as the corresponding entry in the accrual for sales salaries is an expense. Also, the ending balance of accrued sales salaries will be understated result in a nil effect on the operating activities of the cash flow.
Answer:
Current yield is 6.17%
<em>YTD is 5.43%</em>
<em>YTC is 4.26%</em>
Explanation:
Tenor: 15 years
-> number of payment (NPer) is 30 (= 15 years * 2 for semiannual)
Coupon rate: 7.4%
- > semiannual payments (PMT): $37 = ($1000*7.4%/2)
Future value (FV): $1000
Present value (PV): $1200
Current yield = annual coupon/ current price = $37*2/$1200 = 6.17%
<u>Extra: </u>
We use excel to calculate yield to date (YTD) or nominal yield:
= Rate(Nper, PMT, - PV,FV) = Rate(30,37,-1200,1000) = 2.717% semiannual
-> annual rate is 5.43%
The bond issue is callable in 5 years at a call price of $1,074, then FV is $1074
Yield to call = rate(10,37,-1200,1074) = 2.13% semiannual
-> annual rate is 4.26%
Answer:
$87,000
Explanation:
Calculation of the conversion cost for November.
Conversion cost can be defined as the combination of both direct labor costs and manufacturing overhead costs that are vital to help convert raw materials into product.
Using this formula
Total Conversion cost = Direct labor cost + Manufacturing overhead cost
Hence,
Direct labor cost $25,000
Add Manufacturing overhead cost $62,000
Total Conversion cost $87,000
Therefore the conversion cost for November is $87,000
Answer:
The contract is void since it attempts to contract for services that are illegal
Explanation:
Since there is a contract between the Mr Green and Mr Blue and they already know that the Mr blue has already caught the number of crabs i.e permitted in the season but they agree to exceed the quota
Therefore the status should be void as they want to exceed which is not permitted that results in illegal service contracts
Hence, there is a void contract
Answer:
Coupon= $30 per period.
20 period for semi annual coupon payment.
28.148% discount rate
Explanation:
1.) Coupon rate * face value of bond = coupon
semi annual rate =6%/2=3%
Coupon= 1000 *3%= $30 per period.
2.) t= number of periods = years of maturity * coupon payment semi-annual
t= 10 * 2 = 20 periods.
3. Discount rate formula =C+[(F-P)/t] / (F+P/2)
where C=coupon payment annual
F= face value of security
P=price of security= 1000 *8%=80
t= years of maturity.
so we have⇒ 60+[(1000-80)/10]/(1000+80)/2
=152/540
=28.148%
