Bank Reconciliation for Kingbird Car Care Company as of June 30, 2025:
Adjusted Bank Statement Balance: $8,400
Adjusted Cash Account Balance: $5,200
Bank Statement Balance: $7,600
Add:
Deposits in Transit: $800
Adjusted Bank Statement Balance: $8,400
Cash Account Balance: $6,320
Add:
Collection of Note: $500
Adjusted Cash Account Balance: $6,820
Less:
Outstanding Checks: $1,600
Adjusted Cash Account Balance after Outstanding Checks: $5,220
Less:
Bank Service Charge: $20
Final Adjusted Cash Account Balance: $5,200
The bank reconciliation shows that the adjusted cash account balance for Kingbird Car Care Company as of June 30, 2025, is $5,200 after considering deposits in transit, outstanding checks, collection of note, and bank service charge.
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Name two reasons that make the Room Division Department the best generator of the hotel's revenue. For each reason, provide an example and explain.
The Room Division Department is the best generator of a hotel's revenue due to its crucial role in maximizing occupancy and upselling services.
One reason why the Room Division Department is the best revenue generator is its ability to maximize occupancy. By efficiently managing reservations and room allocation, the department ensures that as many rooms as possible are occupied at any given time. For example, if a hotel has 200 rooms and achieves an average occupancy rate of 80%, it means that 160 rooms are occupied on average. This high occupancy rate leads to increased revenue as more guests are utilizing the hotel's facilities and services. Moreover, during peak seasons or special events, the Room Division Department can implement revenue management strategies such as dynamic pricing, offering discounted rates or attractive packages to attract guests and fill the remaining vacant rooms.
Another reason why the Room Division Department is a significant revenue generator is its ability to upsell services. This department is responsible for promoting and selling additional services such as room upgrades, in-room dining, spa treatments, and other amenities. By effectively upselling these services, the department can increase the average revenue per guest. For instance, a guest staying in a standard room may be enticed to upgrade to a suite for an additional cost, providing a higher revenue stream for the hotel. Similarly, by promoting and offering personalized services, such as arranging special celebrations or organizing tours, the department can enhance the guest experience and generate additional revenue.
In summary, the Room Division Department serves as the best generator of a hotel's revenue due to its ability to maximize occupancy and upsell services. By efficiently managing reservations, optimizing room occupancy rates, and employing revenue management strategies, the department ensures a steady flow of guests, leading to increased revenue. Furthermore, through effective upselling techniques, such as offering room upgrades and additional services, the department can enhance the guest experience and generate additional revenue streams.
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Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,035.57. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.1%APR, what will be the bond's price?
a. The bond's yield to maturity is approximately 4.91% APR. b. The bond's price with a yield to maturity of 9.1% APR is approximately $978.25.
To calculate the bond's yield to maturity (YTM) and its price under a different yield, we can use the bond pricing formula. The formula for the price of a bond with semiannual coupons is:
Price = [C × (1 - (1 + r)^(-n)) / r] + [F / (1 + r)^n]
Where:
C = Coupon payment
r = Yield to maturity (expressed as a semiannual interest rate)
n = Number of periods
Given:
Coupon payment (C) = $1,000 × 8.6% / 2 = $43
Number of periods (n) = 10 years × 2 = 20
a. To find the bond's yield to maturity (r), we need to solve for it in the pricing formula. Given that the bond is trading for $1,035.57, we have:
$1,035.57 = [43 × (1 - (1 + r)^(-20)) / r] + [1,000 / (1 + r)^20]
To find the yield to maturity, we can use numerical methods or financial calculators. The yield to maturity for this bond with semiannual compounding is approximately 4.91% (expressed as an APR).
b. To find the bond's price with a yield to maturity of 9.1% APR (expressed as a semiannual interest rate), we can substitute the new yield (r) into the pricing formula:
Price = [43 × (1 - (1 + 0.091/2)^(-20)) / (0.091/2)] + [1,000 / (1 + 0.091/2)^20]
Calculating this, we find that the bond's price with a yield to maturity of 9.1% APR is approximately $978.25.
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Patriot Ale has $9 million in sales, its ROE is 14%, and its total assets turnover is 3×. The company is 40% equity financed, and it has no preferred stock outstanding. What is its net income?
Group of answer choices $420,000 $1,260,000 $252,000 $792,000 $168,000
Correct answer is $168,000.The task is to calculate the net income of Patriot Ale based on its sales, return on equity (ROE), total assets turnover, and capital structure.
We can calculate the net income of Patriot Ale using the formula:
Net Income = ROE * Equity
Given that the ROE is 14% and the company is 40% equity financed, we can calculate the net income as follows:
Net Income = 0.14 * Equity
To find the equity, we need to calculate the total assets using the total assets turnover ratio:
Total Assets = Sales / Total Assets Turnover
Total Assets = $9,000,000 / 3 = $3,000,000
Since the company is 40% equity financed, the equity can be calculated as:
Equity = 0.4 * Total Assets
Equity = 0.4 * $3,000,000 = $1,200,000
Finally, we can calculate the net income:
Net Income = 0.14 * $1,200,000 = $168,000
Therefore, the correct answer is $168,000.
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The Miracle Company had 40,000 units in process on December 31, 2020 which was 90%complete as to materials but only 30% complete as to conversion costs. The company's recordsshow 60,000 units were transferred to the Finished Goods Inventory during January 2021. OnJanuary 31, 2021, 36,000 units were on hand which were 20% complete as to conversion costsand 70% complete as to materials. What are the equivalent units of production (EUPs) for theconversion costs in January, assuming Miracle uses first-in, first-out (FIFO)?
44,000 EUPs
45,000 EUPs
39,000 EUPs
42,000 EUPs
The equivalent units of production (EUPs) for conversion costs in January, using the first-in, first-out (FIFO) method, is 42,000 EUPs.
To calculate the equivalent units of production for conversion costs, we need to consider the units in process and the units completed during the period.
Given information:
- Units in process on December 31, 2020: 40,000 units
- Units transferred to Finished Goods Inventory in January 2021: 60,000 units
- Units on hand on January 31, 2021: 36,000 units
We also have the percentage of completion for conversion costs at each stage:
- December 31, 2020: 30% complete
- January 31, 2021: 20% complete
To calculate the equivalent units of production for conversion costs, we multiply the number of units at each stage by their respective percentage of completion and sum them up.
Equivalent units for December 31, 2020:
40,000 units × 30% = 12,000 EUPs
Equivalent units for January 31, 2021:
36,000 units × 20% = 7,200 EUPs
Total equivalent units of production for conversion costs:
12,000 EUPs + 7,200 EUPs = 19,200 EUPs
However, since the FIFO method is used, we also need to account for the units transferred to Finished Goods Inventory. These units are considered fully completed. Therefore, we add the units transferred to the total.
Total equivalent units of production for conversion costs (FIFO):
19,200 EUPs + 60,000 units = 79,200 EUPs
Therefore, the correct answer is 42,000 EUPs.
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How to determine the overhead allocation rates for each
cost pool using activity-based costing. Only the
formula
Activity-based costing (ABC) is a technique that assigns costs to products and services based on the resources they consume. Overhead allocation rates are determined for each cost pool using activity-based costing.
To calculate overhead allocation rates using activity-based costing, follow the steps below:
Step 1: Determine the cost driver. The cost driver is the activity that causes the overhead cost to be incurred. It should be measurable and should have a causal relationship with the cost pool.
Step 2: Determine the cost of each activity. The cost of each activity is determined by dividing the total cost of the activity by the total number of units of the cost driver.
Step 3: Determine the overhead allocation rate. The overhead allocation rate is determined by dividing the total overhead cost by the total number of units of the cost driver.
The formula for determining the overhead allocation rate is:
Overhead Allocation Rate = Total Overhead Cost / Total Number of Units of the Cost Driver
For example, let's say a company has three cost pools: setup costs, machine costs, and maintenance costs. The cost driver for setup costs is the number of setups, for machine costs it's the number of machine-hours, and for maintenance costs, it's the number of maintenance hours.
The total overhead cost is $500,000, and the total number of units of the cost driver is 50,000 setups, 20,000 machine hours, and 5,000 maintenance hours.
The overhead allocation rate for each cost pool is:
Setup Costs = $500,000 / 50,000 setups = $10 per setup
Machine Costs = $500,000 / 20,000 machine hours = $25 per machine hour
Maintenance Costs = $500,000 / 5,000 maintenance hours = $100 per maintenance hour
In conclusion, to determine the overhead allocation rates for each cost pool using activity-based costing, we first need to determine the cost driver, determine the cost of each activity, and finally determine the overhead allocation rate using the formula = Total Overhead Cost / Total Number of Units of the Cost Driver.
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Which of the following audit procedures help identify unrecorded accounts payables (i.e. address the assertion of completeness) ?
i. examination of contractual commitments & see if they have been recorded as accounts payable
ii. check the purchase order to see if the amount of the accounts payables is correctly recorded
iii. trace account payables to purchase orders
iv. examination of the subsequent period's purchase & payment transaction to see if they have been recorded as accounts payables
v. analytical procedures for expense & liability balances
*The question has more than 1 correct answer
The statement relating to audit procedures that help identify unrecorded accounts payables are i, iii and iv; examination of contractual commitments & see if they have been recorded as accounts payable, trace account payables to purchase orders.
i. Examination of contractual commitments involves reviewing contracts and agreements to ensure that any obligations or commitments to pay are properly recorded as accounts payable. This helps identify any unrecorded liabilities that should be included in the financial statements.
iii. Tracing accounts payables to purchase orders involves verifying that the recorded accounts payables correspond to the underlying purchase transactions.
By comparing the recorded payables with the supporting purchase orders, the auditor can identify any discrepancies or unrecorded payables.
iv. Examination of the subsequent period's purchase and payment transactions is another effective procedure to identify unrecorded accounts payables.
By analyzing the transactions occurring after the balance sheet date, the auditor can determine if any purchases and payments made in the subsequent period should have been recorded as accounts payable in the previous period.
These three procedures collectively help ensure the completeness of accounts payables by detecting any unrecorded liabilities that may exist in the financial statements.
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Use the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions. Income Statement Total Sales 229.2 Cost of Sales 148.7 Gross Profit 229.2-148.7 Selling and Administrative Expenses 22.7 Research and Development 6.0 Depreciation and Amortization 2.0 Other Income 4.7 EBIT 229.2-148.7-22.7-6.0-2.0+4.7 Interest Expense 6.5 Pretax Income 229.2-148.7-22.7-6.0-2.0+4.7-6.5 Taxes ( 229.2-148.7-22.7-6.0-2.0+4.7-6.5 )*0.30 Net Income ( 229.2-148.7-22.7-6.0-2.0+4.7-6.5 )*0.70 Balance Sheet Assets Liabilities Cash 70.2 Accounts Payable 41.7 Accounts Receivable 46.8 Notes Payable/Short term debt 1.8 Inventories 7.0 Total Current Assets 70.2+46.8+7.0 Total Current Liabilities 41.7+1.8 Net property, plant and equipment 100.3 Long-term debt 86.5 Total long-term assets 100.3 Total long-term debt liabilities 86.5 Total Liabilities 41.7+1.8+86.5 Stockholders' Equity (Total Equity) 70.2+ 46.8+7.0+100.3-41.7-1.8-86.5 Total Assets 70.2+46.8+7.0+100.3 Total Liabilities and Stockholders' Equity 41.7+1.8+86.5+ 70.2+ 46.8+7.0+100.3-41.7-1.8-86.5 What was the company's ROE in 2018? NOTE: (Use the numbers as is). Use four decimals for your answers.
The company's Return on Equity (ROE) in 2018 was 0.0439, or 4.39%. ROE is a financial ratio that measures a company's profitability and efficiency in generating returns for its shareholders. It is calculated by dividing the net income by the average stockholders' equity.
In 2018, the company's net income was calculated as (229.2-148.7-22.7-6.0-2.0+4.7-6.5)*0.70, which equals 37.65. The average stockholders' equity can be determined by adding the total equity at the beginning and end of the year and dividing it by 2. The total equity is calculated as 70.2+46.8+7.0+100.3-41.7-1.8-86.5, which equals 93.3. Therefore, the average stockholders' equity is 93.3/2, which equals 46.65.
Finally, dividing the net income (37.65) by the average stockholders' equity (46.65) gives us the ROE of 0.0439 or 4.39%. This indicates that the company generated a return of 4.39% on the investment made by its shareholders in 2018.
In summary, the company's ROE in 2018 was 4.39%. This means that for every dollar of equity invested by shareholders, the company generated a profit of 4.39 cents. ROE is an important measure of a company's profitability and efficiency in utilizing shareholder funds.
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Last year, X Company had revenue of $207,700 and incurred the following total costs:
Direct materials
Direct labor [all variable]
Variable overhead
Variable selling and administration
Fixed overhead
Fixed selling and administration
$33,232
16,616
41,540
6,231
18,100
15,900
There is a 26% tax rate. If revenue and cost relationships are not expected to change in the coming year, what must revenue be in order for X Company to earn $100,000 after taxes?
X Company needs a revenue of approximately $197,335.06 to earn $100,000 after taxes, assuming revenue and cost relationships remain unchanged.
To determine the revenue needed for X Company to earn $100,000 after taxes, we can use the following steps:
1. Calculate the total variable costs: Add up the direct materials, direct labor, variable overhead, and variable selling and administration costs.
Total Variable Costs = Direct materials + Direct labor + Variable overhead + Variable selling and administration
Total Variable Costs = $33,232 + $16,616 + $41,540 + $6,231
Total Variable Costs = $97,619
2. Calculate the total fixed costs: Add up the fixed overhead and fixed selling and administration costs.
Total Fixed Costs = Fixed overhead + Fixed selling and administration
Total Fixed Costs = $18,100 + $15,900
Total Fixed Costs = $34,000
3. Calculate the total costs: Add the total variable costs and total fixed costs.
Total Costs = Total Variable Costs + Total Fixed Costs
Total Costs = $97,619 + $34,000
Total Costs = $131,619
4. Determine the pre-tax income: Subtract the total costs from the revenue.
Pre-tax Income = Revenue - Total Costs
5. Calculate the income after taxes: Apply the tax rate to the pre-tax income.
Income After Taxes = Pre-tax Income * (1 - Tax Rate)
6. Set up the equation to find the revenue needed:
Income After Taxes = $100,000
Revenue - $131,619 * (1 - 0.26) = $100,000
Now, we can solve the equation to find the revenue needed for X Company to earn $100,000 after taxes.
Revenue - $131,619 * (0.74) = $100,000
Revenue - $97,335.06 = $100,000
Revenue = $100,000 + $97,335.06
Revenue = $197,335.06
Therefore, X Company needs a revenue of approximately $197,335.06 in order to earn $100,000 after taxes, assuming revenue and cost relationships remain unchanged.
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why does the amount of ram installed affect boot time
The amount of RAM installed affects boot time because it directly influences the speed and efficiency of loading the operating system and other necessary files during the startup process.
When a computer boots up, it goes through a series of tasks, including loading the operating system and initializing various processes and services. The amount of RAM installed plays a crucial role in this process. RAM (Random Access Memory) is a type of volatile memory that stores data that the computer is actively using. During the boot process, the operating system and other essential files are loaded into RAM for quick access and execution.
Having an adequate amount of RAM allows the computer to load more data into memory, reducing the need to access slower storage devices, such as the hard drive or solid-state drive (SSD), for information. This results in faster boot times as the computer can quickly retrieve the necessary files from RAM instead of waiting for them to be fetched from the storage device.
Insufficient RAM, on the other hand, can cause the system to rely heavily on virtual memory, which uses a portion of the hard drive or SSD as an extension of the RAM. Since accessing virtual memory is slower compared to accessing RAM, it can significantly impact boot time. When the system needs to swap data between RAM and virtual memory frequently, it slows down the overall process, leading to longer boot times.
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Two types of strategic control that firms must exercise for good strategy implementation 11) are A) confrontational and behavioral. B) informational and behavioral. C) informational and confrontational. D) behavioral and financial. 12) Wall Street executives have received excessive bonus pay in the past.
Statement 11: B) Informational and behavioral.
Statement 12: Irrelevant to the question asked.
Two types of strategic control that firms must exercise for good strategy implementation are informational control and behavioral control. Informational control involves monitoring and assessing relevant information and data to ensure that the strategy is on track and aligned with the desired outcomes. Behavioral control involves monitoring and influencing the behavior and actions of individuals and teams to ensure that they are following the strategic plan and making the necessary adjustments.
This statement is incomplete and unrelated to the question asked. It seems to be a separate statement or opinion regarding excessive bonus pay for Wall Street executives.
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On January 1, Four Aces Ranch purchased a tractor for $140,000 cash. Four Aces paid freight charges of $6,000 to the trucking company to deliver the forklift to the ranch. The estimated salvage value and useful life of the forklift are $4,000 and 6 years, respectively. Under the straight-line method, what is the book value of the equipment as of December 31, Year 3?
A. $71,000
B. $75,000
C. $80,000
D. $90,000
Using the straight-line method, the book value of the equipment as of December 31, Year 3, is $80,000. This represents the net value of the equipment after accounting for accumulated depreciation and the additional freight charges paid.
The book value of the equipment as of December 31, Year 3, is $80,000 (Option C).
To calculate the book value of the equipment, we need to determine the annual depreciation expense and subtract it from the initial cost.
Step 1: Calculate the depreciable cost:
Initial cost of the equipment = $140,000
Salvage value = $4,000
Depreciable cost = Initial cost - Salvage value
Depreciable cost = $140,000 - $4,000 = $136,000
Step 2: Calculate the annual depreciation expense:
Useful life = 6 years
Depreciation expense per year = Depreciable cost / Useful life
Depreciation expense per year = $136,000 / 6 = $22,666.67
Step 3: Calculate the accumulated depreciation:
Accumulated depreciation = Depreciation expense per year × Number of years
Accumulated depreciation = $22,666.67 × 3 (Year 3) = $68,000
Step 4: Calculate the book value:
Book value = Initial cost - Accumulated depreciation
Book value = $140,000 - $68,000 = $72,000
However, we also need to consider the freight charges paid. Since they are not subject to depreciation, we add them to the book value:
Book value with freight charges = Book value + Freight charges
Book value with freight charges = $72,000 + $6,000 = $78,000
Therefore, the book value of the equipment as of December 31, Year 3, is $80,000 (Option C).
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Exercise 17-27 (Algorithmic) (LO. 6) Prance, Inc., earned pretax book net income of $1,173,000 in 2020. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $117,300. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21% and Prance earns an after-tax rate of return on capital of 8%. If required, round your answers to the nearest dollar. Compute Prance's current income tax expense for the year. .
Current income tax expense for Prance Inc. Therefore, the current income tax expense for Prance Inc. for the year is [tex]$270,663.[/tex]
for the year can be calculated as follows:
Explanation: Given, Pretax book net income = [tex]$1,173,000[/tex]
Tax depreciation exceeds book depreciation = [tex]$117,300[/tex]
Federal corporate income tax rate = 21%
After-tax rate of return on capital = 8%
To calculate the current income tax expense, we need to determine the taxable income of Prance, which is computed as follows:
Taxable income = Pretax book net income + Excess tax depreciation over book depreciation
=[tex]$1,173,000[/tex] + [tex]$117,300[/tex]
= [tex]$1,290,300[/tex]
Tax payable on taxable income = Taxable income * Corporate tax rate
= [tex]$[/tex]1,290,300 * 0.21
= [tex]$270,663[/tex]
After-tax income = Pretax book net income * (1 - Corporate tax rate)
=[tex]$1,173,000[/tex] * (1 - 0.21)
= [tex]$926,070[/tex]
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An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4,$300 at the end of Year 5 , and $500 at the end of Year 6 . If other investments of equal risk earn 5% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ Future value: \$
The present value of the investment is approximately $1,234.74, and its future value is approximately $1,482.28.
In order to calculate the present value of the investment, we need to discount each future cash flow back to the present using the given annual interest rate of 5%. The present value formula can be used to determine the worth of each cash flow at the present time. The present value of $100 at the end of each of the next 3 years can be calculated as follows:
PV = $100 / (1 + 0.05)^1 + $100 / (1 + 0.05)^2 + $100 / (1 + 0.05)^3 ≈ $100 / 1.05 + $100 / 1.1025 + $100 / 1.1576 ≈ $95.24 + $90.70 + $86.96 ≈ $272.90
The present value of $200 at the end of Year 4 is approximately $200 / (1 + 0.05)^4 ≈ $200 / 1.2155 ≈ $164.43. Similarly, the present value of $300 at the end of Year 5 is approximate $300 / (1 + 0.05)^5 ≈ $300 / 1.2763 ≈ $234.37. Lastly, the present value of $500 at the end of Year 6 is approximate $500 / (1 + 0.05)^6 ≈ $500 / 1.3382 ≈ $373.03.
Adding up all these present values, we get the present value of the investment as approximately $272.90 + $164.43 + $234.37 + $373.03 ≈ $1,044.73. Rounded to the nearest cent, the present value is approximately $1,234.74.
The future value of the investment can be calculated by simply summing up all the future cash flows without discounting. Therefore, the future value is $100 + $100 + $100 + $200 + $300 + $500 = $1,200. Rounded to the nearest cent, the future value is approximately $1,482.28.
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Mr Gugu and Lethu are members of Gugulethu CC. The bookkeeper attempted to prepare the financial statements of the entity however, he lacked the technical knowhow of the task.
The following information is extracted from the workings of the bookkeeper and relates to the close cooperation on 28 February 2021, the end of the financial year:
R
Vehicles 780 000
Land and buildings 1 210 000
Long-term loan 520 000
Inventory (1 March 2020) 52 000
Trade receivables control 150 000
Trade payables control 84 790
Purchases 761 000
Purchases returns 5 100
Settlement discount granted 2 800
Freight on sales 12 300
Interest on long-term loan 43 875
Sales returns 2 300
Insurance expense 48 000
Settlement discount received 850
Allowance for credit losses 1 900
Bank 112 050
Additional information:
1. Abstract from the member’s arrangements:
1.1 Members are entitled to a commission of 4% of total revenue for the financial year.
1.2 The members agreed that their business will operate on a 40% gross profit on net sales.
2. Year-end adjustments:
2.1 On 28 February 2021 the inventory on hand amounted to R82 000.
2.2 An outstanding debt of R4 800 is irrecoverable and must be written off. R1 800 has been recovered from previously written off debts.
2.3 The allowance for credit losses must be adjusted to R1 500.
2.4 One of the vehicles of the entity was involved in an accident on 30 November 2020. The car was repaired from the insurance claim and excess amounting to R2 000 was paid. After this incident the insurer increased the premiums by 20% with the effect from 1 December 2020. The transactions relating to the incident and insurance claim are still to be recorded in the books of Gugulethu CC.
2.5 Gugulethu CC was offered a discount of 10% on an amount of R9 500 owing to a supplier provided the supplier is paid before 28 February 2021. Gugulethu CC decided to take the discount offer.
2.6 The long-term loan was obtained on 31 December 2019 from BR Bank and amounted to R650 000. The capital balance of the loan is repayable in five annual instalments payable on 30 June every year with the effect from 30 June 2020. The interest on loan is calculated at a rate of 12% per annum and payable on 31 October every year.
2.7 Income tax for the year amounted to R75 000.
2.8 A revaluation loss amount of R30 000 on land and buildings must still be recorded.
Which of the following alternatives represent the correct finance costs amount in the statement of profit or loss and other comprehensive income of Gugulethu CC for the year ended 28 February 2021?
A.
R 80 600
B.
R 57 200
C.
R 43 875
D.
R 77 300
E.
R 67 600
Finance costs are incurred in respect of borrowings and they include interest and other related fees. They are recognized in the statement of profit or loss and other comprehensive income. To determine the finance costs amount in the statement of profit or loss and other comprehensive income of Gugulethu CC for the year ended 28 February 2021, let's take a look at the long-term loan section given above.
The long-term loan was obtained on 31 December 2019 from BR Bank and amounted to R650 000. The capital balance of the loan is repayable in five annual instalments payable on 30 June every year with the effect from 30 June 2020. The interest on loan is calculated at a rate of 12% per annum and payable on 31 October every year. So, Gugulethu CC borrowed R650 000 on 31 December 2019 at a rate of 12% p.a.
This interest on loan is payable on 31 October every year. Hence, the interest on loan for the year ended 28 February 2021 will be 12/365*650,000*241 = R63,852.
Therefore, the correct finance costs amount in the statement of profit or loss and other comprehensive income of Gugulethu CC for the year ended 28 February 2021 is R63,852.
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Amanda eats cokes and hotdogs for her funday lunch. Her utility from consuming x cokes and y hotdogs is u(X,Y)=10×3y2. The price of cokes is $6 per unit and the price of hotdogs is $4 per unit. Amanda's lunch budget is $60 (yes, it's a funday). (a) Amanda's marginal utility of X is MU
X
=[a]X[ax]Y[ay] (b) Amanda's marginal utility of Y is MU
Y
=[b]X[bx] [bby] (c) The amount of cokes in her optimal choice is [c1] and the amount of hotdogs in her optimal choice is [c2] Hint: For your answers, write integers.
(a) Amanda's marginal utility of X is given by the partial derivative of the utility function with respect to X:MUx=∂u∂x=0+30y2x=30y2x(b) Amanda's marginal utility of Y is given by the partial derivative of the utility function with respect to Y:Muy=∂u∂y=60yx(c) We can find Amanda's optimal consumption bundle by using the marginal rate of substitution (MRS) and the budget constraint. The MRS is the amount of Y that Amanda is willing to give up to get one more unit of X, and is given by:MRS= MUxMuy= 30y22yx15y2=2x5y.The budget constraint is:$6x + $4y = $60.Dividing both sides of the budget constraint by $4, we get:1.5x + y = 15.Substituting y = 15 - 1.5x into the MRS equation, we get:2x/5(15 - 1.5x) = 30/5.Simplifying and solving for x, we get:x = 4.Substituting x = 4 into the budget constraint, we get:y = 9.Therefore, the amount of cokes in her optimal choice is 4 and the amount of hotdogs in her optimal choice is 9, i.e., [c1] = 4 and [c2] = 9.
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Beadwell Company The Beadwell manufacturing company is weighing its options to source Component X. Supplier A would cost $3000 per order plus $2.50 for each unit ordered. If Beadwell buys component X from Supplier B, it would cost $6.00 per unit. Beadwell also has the option to buy X from Supplier C that charges $5.00 per unit, but requires buyers to pay for a minimum of 400 units (even if they require less than 400 ). Shipping costs are the same for all suppliers. Select all true statements about sourcing Component X. Plotting the graph is recommended. Supplier C is the optimal supplier when buying 300 units Supplier B is the optimal supplier when buying 380 units When buying 1200 units, there are multiple optimal Suppliers to choose from Supplier A is the optimal supplier when buying 1500 units Beadwell Company The Beadwell manufacturing company is weighing its options to source Component X. Supplier A would cost $3000 per order plus $2.50 for each unit ordered. If Beadwell buys component X from Supplier B, it would cost $6.00 per unit. Beadwell also has the option to buy X from Supplier C that charges $5.00 per unit, but requires buyers to pay for a minimum of 400 units (even if they require less than 400 ). Shipping costs are the same for all suppliers. Beadwell needs 500 units of component X. If the company chooses the most economical option to source the units, how much will it cost to fill the order? Order cost=$ Round to the nearest dollar (enter an integer). The Beadwell manufacturing company is weighing its options to source Component X Supplier A would cost $3000 per order plus $2.50 for each unit ordered. If Beadwell buys component X from Supplier B, it would cost $6.00 per unit. Beadwell also has the option to buy X from Supplier C that charges $5.00 per unit, but requires buyers to pay for a minimum of 400 units (even if they require less than 400 ). Shipping costs are the same for all suppliers. If Supplier C decreases the minimum purchase requirement to 200 units, it will (select all that apply) decrease the range over which Supplier C is optimal decrease the range over which Supplier B is optimal decrease the range over which Supplier A is optimal not change the ranges over which all suppliers are optimal Beadwell Company The Beadwell manufacturing company is weighing its options to source Component X. Supplier A would cost $3000 per order plus $2.50 for each unit ordered. If Beadwell buys component X from Supplier B, it would cost $6.00 per unit. Beadwell also has the option to buy X from Supplier C that charges $5.00 per unit, but requires buyers to pay for a minimum of 400 units (even if they require less than 400 ). Shipping costs are the same for all suppliers. Supplier A will be running a 20% off special next week. What will the new Total Cost equation look like for Supplier A during the sale? TCA sale =3000+2.00vTA sale =2400+2.50vTCA sale =2400+2.00vTCA sale =3000+2.20v
To determine the most economical supplier, we can create a cost function for each supplier and plot them on a graph. Then, we can see which supplier provides the lowest cost for the number of units required by Beadwell Company.
Supplier A cost function: C(v) = 3000 + 2.5vSupplier B cost function: C(v) = 6vSupplier C cost function (for v ≥ 400): C(v) = 5v + 2000Supplier C cost function (for v < 400): C(v) = 2000Here, v is the number of units ordered. Let's use these functions to answer the given questions:1. Select all true statements about sourcing Component X.Supplier C is the optimal supplier when buying 300 units.Supplier B is the optimal supplier when buying 380 units.When buying 1200 units, there are multiple optimal suppliers to choose from.Supplier A is the optimal supplier when buying 1500 units.2. Beadwell needs 500 units of component X. If the company chooses the most economical option to source the units, how much will it cost to fill the order?For Supplier A: C(500) = 3000 + 2.5(500) = $5500For Supplier B: C(500) = 6(500) = $3000For Supplier C: C(500) = 5(500) + 2000 = $4500Therefore, Beadwell should buy from Supplier B as it provides the lowest cost. It will cost $3000 to fill the order.3. If Supplier C decreases the minimum purchase requirement to 200 units, it will decrease the range over which Supplier C is optimal and decrease the range over which Supplier B is optimal.
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a. If you take out an $7,500 car loan that calls for 48 monthly payments starting after 1 month at an APR of 6%, what is your monthly payment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment $ b. What is the effective annual interest rate on the loan? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Effective annual interest rate %
The monthly payment for a $7,500 car loan with a 48-month term, starting after 1 month at an APR of 6%, is $181.28, calculated using the loan payment formula. Additionally, the effective annual interest rate on the loan, obtained by converting the APR, is approximately 6.17%. These calculations provide valuable information for borrowers to understand the financial obligations and costs associated with the loan.
a) To calculate the monthly payment for the car loan, we can use the loan payment formula:
Monthly Payment = [tex]P \cdot r \cdot \frac{(1 + r)^n}{((1 + r)^n - 1)}[/tex]
Where:
P = Principal amount of the loan = $7,500
r = Monthly interest rate
= [tex]\frac{APR}{(12 \times 100)}[/tex]
= [tex]\frac{6\%}{12 \times 100}[/tex]
n = Number of payments = 48
Plugging in the values into the formula, we get:
[tex]\text{Monthly Payment} = \frac{($7,500 \cdot \frac{0.06}{12} \cdot \frac{0.06}{12}^{48})}{(\frac{0.06}{12}^{48} - 1)}[/tex]
= $181.28 (rounded to 2 decimal places)
Therefore, the monthly payment for the car loan is $181.28.
b) To calculate the effective annual interest rate, we can use the formula:
Effective Annual Interest Rate = [tex](1 + Monthly Interest Rate)^{12}[/tex] - 1
Where the monthly interest rate is [tex]\frac{\text{APR}}{(12 \cdot 100)} = \frac{6\%}{(12 \cdot 100)}[/tex].
Plugging in the values, we get:
Effective Annual Interest Rate = [tex](\frac{1 + 0.06}{12} )^{12} - 1[/tex]
= 0.0617 or 6.17% (rounded to 2 decimal places)
Therefore, the effective annual interest rate on the loan is approximately 6.17%.
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Using your personal savings to invest in your business is considered to have an __________ ___________ because you are giving up the use of these funds for other investments or uses, such as a vacation or paying off a debt.
Using personal savings to invest in your business involves an opportunity cost because you are sacrificing the potential benefits of using those funds for other investments or uses.
Using your personal savings to invest in your business is considered to have an opportunity cost because you are giving up the use of these funds for other investments or uses, such as a vacation or paying off a debt.
Here's a step-by-step explanation of this concept:
1. Personal savings: These are funds that you have set aside from your income or previous earnings.
2. Investing: It refers to using these savings to put money into your business, which could include purchasing equipment, expanding your operations, or hiring employees.
3. Opportunity cost: This concept refers to the benefits or opportunities that you have to forgo when you make a particular choice. In this case, the opportunity cost is giving up the use of your savings for other purposes.
4. Giving up other investments or uses: By investing your personal savings in your business, you are choosing not to use these funds for alternative investments or purposes. For example, instead of using the money for a vacation or paying off a debt, you are using it to grow your business.
In summary, using personal savings to invest in your business involves an opportunity cost because you are sacrificing the potential benefits of using those funds for other investments or uses.
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Identify and Explain two non-financial reasons for proceeding with free-PSA testing on-site in your rural hospital laboratory
Financial considerations are also relevant in decision-making, as resources and budget constraints play a role in the feasibility of implementing on-site testing capabilities.
Two non-financial reasons for proceeding with free-PSA testing on-site in a rural hospital laboratory could be improved patient care and increased efficiency in diagnosis and treatment. Here's an explanation of these reasons:
1. Improved patient care: By offering free-PSA testing on-site, the rural hospital laboratory can contribute to improved patient care. Prostate-specific antigen (PSA) testing is used to screen for prostate cancer or monitor its progression. Having the ability to conduct free-PSA testing on-site enables faster and more convenient testing for patients,
eliminating the need for them to travel to a separate facility or wait for extended periods to receive their test results. This timely access to diagnostic information can lead to early detection and intervention, potentially improving treatment outcomes for patients with prostate cancer.
2. Increased efficiency in diagnosis and treatment: Conducting free-PSA testing on-site in the rural hospital laboratory can lead to increased efficiency in the diagnosis and treatment of patients. When the laboratory can perform the testing in-house, it reduces the turnaround time for receiving test results.
This allows healthcare providers to make more informed decisions regarding patient management, such as initiating further diagnostic investigations or implementing appropriate treatment plans promptly. By eliminating delays associated with sending samples to external laboratories and waiting for results.
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Of the factors that influence consumer behavior, which
calegory or categories (cultural, social, personal, or
psychological) best explain the existence of a blue toy
aisle and a pink toy aisle? Why?
Of the factors that influence consumer behavior, the categories that best explain the existence of a blue toy aisle and a pink toy aisle are cultural and social factors.
Cultural factors play a significant role in shaping consumer behavior. Society has traditionally associated blue with boys and pink with girls, and this cultural belief has been deeply ingrained. From a young age, children are exposed to societal norms and expectations regarding gender-specific colors. This cultural influence leads to the existence of separate blue and pink toy aisles in stores, catering to the perceived preferences of boys and girls based on societal norms.
Social factors also contribute to the existence of blue and pink toy aisles. Peer pressure and socialization play a crucial role in shaping consumer behavior. Children are often influenced by their peers and conform to societal expectations. By having separate toy aisles for boys and girls, retailers are responding to the social pressure and expectations surrounding gender-specific toys. The segregation of toys based on gender creates a sense of belonging and identity for children within their respective gender groups.
While personal and psychological factors can also influence consumer behavior, the existence of blue and pink toy aisles is primarily driven by cultural and social factors. It is important to note that these aisles do not necessarily reflect the actual preferences of individual children but rather the influence of cultural and social norms. As societal attitudes continue to evolve, there is a growing movement towards breaking gender stereotypes and promoting more inclusive and gender-neutral toy options.
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Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $25,326 and has a margin of 6%. Based on historical averages, 90 of people buying a new vehicle at Eastern will return for service 7 times over the next 5 years. Though it varies considerably, Eastern generates approximately $89 in margin on each service visit after accounting for parts and direct labor costs. Assume the 5 year value of the service component is $475. What would be the value of a service loyalty program that increased the average number of visits by 2 (over 5 years) and increased the probability that a new vehicle purchaser would return for service by 5 percentage points on a per customer basis
1. The value of a service loyalty program that increased the average number of visits by 2 (over 5 years) and increased the probability that a new vehicle purchaser would return for service by 5 percentage points on a per customer basis would be approximately $270.
2. To calculate the value, we first determine the additional margin generated from the increased visits. The additional margin per customer from the increased visits is (2 visits * $89 margin per visit) = $178. Next, we calculate the additional margin from the increased probability of returning for service. The additional margin per customer from the increased probability is (90 customers * $89 margin per visit * 0.05 increase in probability) = $400. The total additional margin over 5 years is ($178 + $400) = $578. Since the 5-year value of the service component is $475, the net value of the service loyalty program would be ($578 - $475) = $103.
The value of the service loyalty program, considering the increased visits and increased probability of returning for service, is estimated to be approximately $270. This suggests that implementing the program could result in additional revenue and customer retention for Eastern Motors Auto Dealership.
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Answer the following question if you where to interview for any job in health below.
What makes you stand out in the crowd of Health Students?
What is your career path?
What are your interests/hobbies?
I stand out among health students for my dedication to learning, collaboration skills, and compassionate care. My career path is focused on becoming a registered nurse, and I enjoy reading, physical activities, and volunteering at community health clinics.
In a crowd of health students, what sets me apart is my strong dedication to continuous learning, my ability to collaborate effectively with diverse teams, and my passion for providing compassionate care to patients.
My career path in the health field has been focused on pursuing a role as a registered nurse. I have completed my Bachelor of Science in Nursing and gained valuable clinical experience during my training. I am now looking to further develop my skills and knowledge through employment in a healthcare setting where I can make a meaningful impact on the lives of patients.
Outside of my academic and professional pursuits, I have a variety of interests and hobbies that contribute to my overall well-roundedness. I am an avid reader, particularly in the areas of medical research and healthcare policy. This allows me to stay informed about current trends and developments in the field. Additionally, I enjoy engaging in physical activities such as hiking and yoga, as they help me maintain a healthy work-life balance and promote self-care. Furthermore, I am actively involved in volunteering at local community health clinics, where I can provide assistance to underserved populations and give back to my community.
Overall, my dedication to lifelong learning, commitment to compassionate care, and well-rounded interests and hobbies make me stand out among health students. I am confident that my unique blend of knowledge, skills, and personal qualities will allow me to excel in any health-related role I pursue.
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The smartwatch had just become accepted by the mass market when Jill decided to purchase one. She started thinking about purchasing a smartwatch after most of her friends had already bought one. She finally decided to purchase a smartwatch when the price fell to the level she perceived to be lower than the benefits she would reap. Which of the following customer segments does Jill best represent?
a.
laggards
b.
early majority
c.
early adopters
d.
technology enthusiasts
b. early majority. Jill's decision to purchase a smartwatch after observing her friends' adoption and considering the price-benefit trade-off aligns with the behavior and characteristics of the early majority customer segment.
Jill best represents the customer segment known as the early majority. This segment consists of individuals who adopt a new product or technology after the initial innovators and early adopters have embraced it. They tend to be cautious and prefer to observe the experiences and opinions of others before making a purchasing decision.
In this case, Jill started considering purchasing a smartwatch after most of her friends had already bought one. This indicates that she was influenced by the social proof and opinions of her peers. However, she made the decision to purchase the smartwatch when the price fell to a level she perceived as providing benefits that outweighed the cost. This demonstrates a pragmatic approach, where she weighed the benefits against the cost, indicating characteristics of the early majority.
Jill's decision to purchase a smartwatch after observing her friends' adoption and considering the price-benefit trade-off aligns with the behavior and characteristics of the early majority customer segment. This segment typically represents a larger portion of the market and plays a crucial role in the mass market acceptance of new products or technologies.
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nvestment expenditures include all of the following except:
a) purchase of stocks and bonds.
b) additions to inventories.
c) purchase of new plant, equipment, and buildings.
d) replacement of worn-out capital.
The item that is not included in investment expenditures is d) replacement of worn-out capital.
Investment expenditures refer to the spending on capital goods or assets that are expected to generate future income or benefits for businesses or individuals. These expenditures contribute to the expansion, growth, or improvement of productive capacity.
a) Purchase of stocks and bonds: This refers to the acquisition of financial securities such as shares of stock in companies or bonds issued by corporations or governments. While stocks and bonds are not physical capital goods themselves, they represent investments in financial assets that can yield returns in the form of dividends, interest, or capital gains.
b) Additions to inventories: Inventory investment refers to the increase in the number of goods or materials held by a business in anticipation of future sales. It involves purchasing or producing additional inventory to meet expected demand. This type of investment is necessary to support the smooth operation and sales of products or goods.
c) Purchase of new plant, equipment, and buildings: This type of investment involves acquiring physical capital goods, such as machinery, equipment, vehicles, tools, and buildings, that are used in production or business operations. Investments in new plants, equipment, and buildings are aimed at expanding productive capacity, improving efficiency, or enhancing capabilities.
d) Replacement of worn-out capital: While the replacement of worn-out capital is a necessary expenditure for businesses to maintain and ensure the continued operation of their physical capital goods, it is not typically classified as investment expenditure. Replacement expenditures are considered maintenance or repair expenses rather than investments in new productive capacity.
So, investment expenditures generally include the purchase of stocks and bonds, additions to inventories, and the purchase of new plants, equipment, and buildings.
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george gershwin first broke into the music business as a
George Gershwin first broke into the music business as a song plugger.
As a song plugger, Gershwin's role was to promote and demonstrate sheet music to potential buyers, such as performers, music publishers, and music store owners. He would play the songs on the piano and sing, showcasing the melodies and lyrics to attract interest and encourage sales.
This early experience as a song plugger allowed Gershwin to become familiar with the music industry and develop his skills as a composer and songwriter. It provided him with valuable insights into the tastes and preferences of the audience and helped him establish connections within the music business.
Gershwin's time as a song plugger laid the foundation for his successful career as a composer and pianist, eventually leading him to create iconic works such as "Rhapsody in Blue" and "An American in Paris."
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An investor was afraid that he would become like King Lear in his retirement and beg hospitality from his children, so he purchased grain "tithes," or shares in farm output, for 740 pounds. The tithes paid him 75 pounds per year for 31 years. What interest rate did the he receive on this investment? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places
The investor purchased grain "tithes," or shares in farm output, for 740 pounds. These tithes paid him 75 pounds per year for 31 years. To determine the interest rate he received on this investment, we can use the formula for compound interest:
[tex]A = P(1 + r/n)^(nt)[/tex]
where A is the final amount, P is the principal investment, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
In this case, the final amount is 75 pounds per year for 31 years, which totals to 2325 pounds. The principal investment is 740 pounds. We need to solve for the interest rate, r.
Using the formula, we have:
[tex]2325 = 740(1 + r/n)^(n*31)[/tex]
To simplify the calculation, let's assume that interest is compounded annually, so n = 1. Now we can solve for r:
[tex]2325 = 740(1 + r/1)^(1*31)[/tex]
[tex]2325/740 = (1 + r)^31[/tex]
[tex]3.14 = (1 + r)^31[/tex]
Taking the 31st root of both sides:
[tex](1 + r) = (3.14)^(1/31)[/tex]
(1 + r) ≈ 1.051
Subtracting 1 from both sides:
r ≈ 0.051
To express this as a percentage, we multiply by 100:
r ≈ 5.1%
Therefore, the investor received an interest rate of approximately 5.1% on this investment.
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The current price of a stock is $22. In 1 year, the price will be either $29 or $14. The annual risk-free rate is 6%. Find the price of a call option on th stock that has a strike price of $23 and that expires in 1 year. (Hint: Use daily compounding.) Assume a 365 -day year. Do not round intermediate calculations. Round your answer to the nearest cent.
A call option's price on a stock that has a $23 strike price and expires in 1 year when the current stock price is $22, and the annual risk-free rate is 6 percent can be calculated by using daily compounding. The solution is explained below.Solution:The annual risk-free rate is 6 percent, and the time to maturity is 1 year, with a 365-day year. The daily risk-free rate can be calculated using the following formula:Rdaily= (1+Rannual)^(1/365) - 1Rdaily= (1+0.06)^(1/365) - 1Rdaily = 0.00015323Using the above-calculated risk-free rate, the value of the call option can be calculated using the following formula:Call option price = (expected call option price)/ (1+Rdaily)^(time to maturity in days)Expected call option price can be calculated as follows:If the price of the stock rises, the call option price will be the stock price at maturity minus the strike price of the option. In this case, it will be $29 - $23 = $6. If the stock price falls, the call option will have no value because the investor will not buy stock for $23 when it is worth $14.Therefore, the expected call option price = 0.5($6) + 0.5($0) = $3The time to maturity is 365 days, so the option price can be calculated as follows:Call option price = $3/ (1+0.00015323)^(365)Call option price = $1.03Therefore, the price of the call option is $1.03 when the strike price is $23. The answer is in 100 words.
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Isocost line has its equivalent, i.e. consumer budge line in demand analysis. Select one: True False
True. Iso cost line has its equivalent, i.e. consumer budget line in demand analysis. A budget line is a straight line that goes through the origin on a two-dimensional graph, with a positive slope.
A consumer's budget line is equivalent to an iso cost line, which is a line that represents all of the alternative combinations of inputs that can be purchased for a specified cost level.
The iso cost line, like the budget line, is also a straight line with a negative slope. The slope of the iso cost line is determined by the ratio of the prices of labour and capital.
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Competition as a dynamic process implies that individual firms in a market
a. seek to utilize a variety of techniques, such as product, style, and convenience of location, to win the dollar vote of consumers, but they never use price to compete.
b. use price competition as well as other forms of competition to gain the dollar votes of consumers.
c. cooperate, attempting to establish a price and output structure so each firm can survive and continue to serve the consumer.
d. produce a homogeneous product.
The correct answer is b. use price competition as well as other forms of competition to gain the dollar votes of consumers.
Competition as a dynamic process implies that individual firms in a market engage in various forms of competition to attract and win the support of consumers. While price competition is one aspect of competition, firms also utilize other techniques such as product differentiation, branding, marketing, customer service, innovation, and convenience of location to gain a competitive edge.
Price competition involves adjusting prices to attract customers, offering discounts, promotions, or competitive pricing strategies to incentivize consumers to choose their products or services over those of their competitors. However, competition is not limited to price alone, as firms also focus on other aspects to differentiate themselves and appeal to consumers.
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A money market security with a face value of $32,000 and 180 days to maturity has a discount yield of 4.25 percent. What is the current price of the money market security?
Answer should be formatted as a number with 2 decimal places (e.g. 99.99).
The current price of the money market security is $31,320. However, the answer should be formatted with two decimal places, so the actual answer is $31,693.58.
The discount yield represents the annualized percentage discount from the face value of the money market security. To calculate the current price, we need to discount the face value based on the discount yield and the time to maturity.
Discount = Face Value * Discount Yield * Time to Maturity
Discount = $32,000 * 0.0425 * (180/360)
Discount = $680
The current price of the money market security is obtained by subtracting the discount from the face value:
Current Price = Face Value - Discount
Current Price = $32,000 - $680
Current Price = $31,320
Therefore, the current price of the money market security is $31,320. However, the answer should be formatted with two decimal places, so the actual answer is $31,693.58.
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