Option (a) is the best choice. Interest groups pay lobbyists to serve as their representatives.
What does interest group lobbying entail?The act of lobbying is the direct approach taken by a lobbyist to influence public figures to promote the agenda of their clientele. The National Rifle Association is an illustrative lobbying organization. Interest groups are associations of people who get together for the purpose of influencing the government.
Why would a lobbyist be employed by an interest group?Lobbyists are employed by interest groups to sway elected authorities. Access to public figures in all areas of government is sought after by lobbyists. By informing government officials about the interests of their group and engaging in grassroots lobbying, lobbyists attempt to sway policy. Many lobbyists have prior public service experience.
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Shopping on thanksgiving has gained popularity though many people speak out against it. How much money was spent online in 2021 on t-day?.
Shopping on thanksgiving has gained popularity though many people speak out against it. $5.29 billion was spent online in 2021 on t-day
According to Adobe, online buyers spent a record $5.29 billion on Thanksgiving, up 2.9% over the previous year. An average day's internet sales range from $2 billion to $3 billion.
A record $5.29 billion was spent online on Thanksgiving Day, up 2.9% from the previous year, according to Adobe, which monitors sales on store websites. Online purchases often range from $2 billion to $3 billion every day. The three major U.S. shopping days saw similar or slightly decreased sales from the previous year. The fact that businesses urged customers to purchase early owing to anticipated product shortages and shipping delays doesn't come as a surprise.
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ccc stock paid a dividend this year of $3, and this dividend is expected to grow at a rate of 10% for the next two years and at a rate of 5% thereafter. assuming jackie expects to sell the stock in three years, and her required rate of return is 12%, what is the price she should be willing to pay for ccc stock? a) $49.25 b) $37.57 c) $43.41 d) $71.43
The price that she should be willing to pay for ccc stock is a) $49.25.
The market price can be described as the most recent price at which a security was traded. The market price also says the output of the interaction of traders, investors, and dealers in the stock market.
The Current stock price of CCC stock will be determined by the formula that is shown below;
P = [D (1 + g) ] / (r - g)
Where, P = Current price
D = Current dividend
r = Rate of return
g = growth of dividend
From the scenario we know that
D = $3
r = 12% = 0.12
g = 10% = 0.1
D1 = $3 x 1.1 = $3.3
D2 = $3.3 x 1.1 = $3.63
D3 = $3.63 x 1.05 = $3.8115
After year 3 value =(Dividend for year 3 × Growth rate) ÷ (Required rate-growth rate)
=($3.8115 × 1.05) ÷ (0.12 - 0.05)
= $4.0021 : 0.07
= $57.17
Current price = Future dividends × Present value of discount factor (12%,time period
Current price = $3.3 : 1.12 + $3.63 : 1.12² + $3.8115 : 1.12³ + $57.17 : 1.12³
Current price = $2.94 + $2.90 + 2.72 + 40.69
Current price = $49.25
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A new company wants to offer a line queuing service where customers book someone to wait in line on their behalf through a smart phone app. What concept is represented by the possibility that no one wants to pay someone else to wait in line ?.
The concept of offer a line queuing service where customers book someone to wait in line on their behalf through a smart phone app is A Waiting Line System.
What Is a Waiting-Line System?A queuing system, commonly referred to as a waiting line system, is what it sounds like. It occurs when a person or thing waits patiently in a line for an event to occur or a transaction to be completed.A consumer may be in line to pay for a movie ticket or deposit a check, or a shipment can be in a warehouse waiting to be dispatched.There are two types of waiting line service: a low level that is initially affordable to the business and a high level that is first expensive. The cost could, however, be justified given that returning customers are more probable the greater the level of customer satisfaction.Learn more about Queuing system refer :
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colonial company has sales revenue of $300,000 resulting in net operating income of $36,000. average invested assets are $200,000, and residual income is $20,000. what is the hurdle rate?
The hurdle rate is 20%.
What is hurdle rate?
The lowest rate of return on the an investment or project that a supervisor or investor will accept. It enables businesses to decide to choose whether or not pursue a particular project. Projects with higher levels of risk typically have higher hurdle rates than projects with lower levels of risk; the hurdle rate explains the appropriate compensation again for level of risk present. The associated risks, the cost of capital, as well as the returns of other potential investments or projects are some of the factors that must be taken into account in order to determine the rate.
The formula for calculating the hurdle rate is: (Residual Income / Average Invested Assets) x 100. In this case, (20,000 / 200,000) x 100 = 20%.
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per gasb no. 42. accounting and financial reporting for impairment of capital assets and for insurance recoveries, governments should test a capital asset for impairment whenever a prominent change in circumstances indicates that its service utility has declined. the amount of the impairment may be measured by one of three methods (restoration cost approach, service unit approach or deflated depreciated replacement cost approach). true false
A capital asset is viewed impaired when its provider utility has declined notably and unexpectedly.
How do you account for impairment of monetary assets?The usually frequent accounting ideas (GAAP) outline an asset as impaired when its fair fee is decrease than its book value. To test an asset for impairment, the whole profit, money flow, or other gain anticipated to be generated by the asset is compared with its cutting-edge e book value.
What property are examined for impairment?Asset debts that are likely to grow to be impaired are the company's bills receivable, goodwill, and fixed assets. Long-term assets, such as intangibles and constant assets, are specifically at chance of impairment due to the fact the carrying price has a longer span of time to emerge as impaired.
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https://brainly.com/question/15300072#SPJ4last year altman corp. had $205,000 of assets, $303,500 of sales, $18,250 of net income, and a total liabilities-to-total-assets ratio of 41%. the new cfo believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $152,500. sales, costs, and net income would not be affected, and the firm would maintain the total liabilities-to-total assets ratio. by how much would the reduction in assets improve the roe? group of answer choices 6.22% 5.73% 7.48% 5.19% 5.45%
By lowering Total Assets, the ROE is impacted by 5,19%.
Describe ROE.
A metric of financial performance known as return on equity (ROE) is obtained by dividing net income by shareholders' equity. ROE is referred to as the return on net assets since shareholders' equity is determined by subtracting a company's debt from its assets.
ROE is regarded as a barometer of a company's profitability and how effectively it produces profits. The management of a company is more effective at generating income and growth from its equity financing the higher the ROE.
Calculation:
The calculation of how a decrease in assets increases ROE is displayed below:
However, we must first perform the following calculations.
Equity ratio: (100 - 41)/59%
$205,000 total equity divided by 59% equals $120,950.
ROE equals net income times total equity or $18,250 divided by $120,950, or 15.08%.
Once more, total equity = $152,500 minus 59% equals $89,975.
ROE is calculated as Net Income x Total Equity ($18,250 x $89,975 = 20.28%).
Now, ROE increased by 5.19% (20.28% - 15.08%).
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9.54 what products are expected, including their stereochemistry, when (2s,3r)-2-bromo-3-methylpentane is subjected to each of the following conditions? explain. methanol containing an excess of sodium methoxide hot methanol containing no sodium methoxide
Two elimination groups must be anti to each other for E2 elimination.
Methylpentane is used as a raw material a rubber solvent and a solvent for vegetable oil extraction. It is also used as a solvent for adhesives. In addition, it is used as an intermediate in organic synthesis and has applications in foods preservatives cosmetics pharmaceuticals beverages, and flavor enhancers.
Pentane is used in the manufacture of blowing agents which are used in the manufacture of the foam known as polystyrene. The insulation of refrigerators and heating pipes is made of polystyrene. Pentane is also used as a binary fluid in geothermal power plants. Because the boiling point is too low. One of the characteristics of the recrystallization solvent is that it should not dissolve the compound at room temperature but it can at elevated temperatures.
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many companies have found that having staff with certain specialties on its payroll is expensive, so they hire people in other countries who have the training and skills to do the work for them. this is called
They hire people in other countries who have the training and skills to do the work for them. This is called offshoring.
What is Training?Training can be defined as the process by which a person or a group of individuals is taught or provided the knowledge about the job that is required to be done before, during, or after the job.
The procedure where a particular company gives its top to another company. This usually happens when the rate of production or the cost incurred is low on another company which is why they will higher and train the people from another country. This whole process is called offshoring.
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paxton company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct labor, $14; and incremental overhead $3. an outside supplier has offered to sell the product to paxton for $32. compute the net incremental cost or savings of buying the component.
The net incremental cost or savings of buying the component is calculated to be $5 per unit if the outside supplier has offered to sell the product to Paxton for $32.
We can compute the incremental cost or saving of purchasing the component as follows;
Offered Selling price = $32
And the making cost is can be determined as follows;
making cost = Direct material + variable overhead + direct labor
making cost = $10 + $3 + $14
making cost = $27
Therefore the net incremental cost is calculated by subtracting the making cost from the offered selling price as follows
net incremental cost = Selling price - making cost
net incremental cost = $32 - $27
net incremental cost = $5 cost per unit
Hence the net incremental cost or savings of buying the component is $5 per unit
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A news headline reads, "Time for change: let free market forces determine the money supply." Which statement offers a valid claim in direct opposition to this headline?
Congress is essential to a stable money supply, as it controls fiscal policy and the federal budget.
Congress should lose its role in fiscal policy, as it often fails to control the money supply.
The Fed should be controlled by the people, as money supply changes should be publicly voted upon.
The Fed is essential to a stable economy, as an unregulated money supply can spike inflation.
Option C. The solution that would tell us the valid claim based on the money supply in the economy is that The Fed should be controlled by the people, as money supply changes should be publicly voted upon.
What is money supply?The total amount of money—cash, coins, and balances in bank accounts—in circulation is known as the money supply. The money supply is typically understood as a collection of secure assets that individuals, businesses, and governments can use to make payments or hold as short-term investments.
The term "money supply" refers to both the population's access to and the amount of money that can be used in a nation's economy. Bank-held demand deposits and currency are the two halves of the supply of money. Coins and paper money are the two forms of currency that are produced.
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Answer:
The Fed is essential to a stable economy, as an unregulated money supply can spike inflation.
Explanation:
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when consumers explicitly agree to share personal information, the agreement is referred to as .
opt-out policy. Opt in: Consumers own their personal information, and outlets should get shoppers to explicitly agree to share this non-public information (EU) Opt out:
Consumers need to explicitly inform shops no longer to use their non-public statistics (US) market basket analysis.
What is intended by means of customer loyalty in business?Customer loyalty describes an ongoing emotional relationship between you and your customer, manifesting itself by way of how willing a consumer is to have interaction with and again and again purchase from you versus your competitors. Loyalty is the byproduct of a customer's positive journey with you and works to create trust.
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https://brainly.com/question/8444030#SPJ4vending machines are an example of group of answer choices direct mail. scrambled merchandising. intertype competition. nonstore retailing. hypermarkets.
Vending machines are an example of non-store retailing. Hence, d) Option is correct.
What is non-store retailing?
Retailing outside of traditional brick-and-mortar (physical) locations is referred to as non-store retailing.
Electronic commerce, off-premise direct selling, and distance selling are just a few examples of the many diverse types of retailing that don't take place in actual retail spaces.
The e-commerce giant Amazon is one of the best examples of non-store retailing. Amazon does not have a physical location where customers may go to purchase goods; instead, it offers goods to customers online.
Direct selling, distance selling, and online selling are the three primary non-store retailing methods.
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most interbank trades are group of answer choices speculative or arbitrage transactions. simple order processing for the retail client. overnight loans from one bank to another. brokered by dealers.
Most interbank trades are overnight loans from one bank to another. Hence, option c) is correct.
What is Interbank Market?
Financial institutions use the interbank market, a global network, to transact directly in currencies and other currency derivatives. While banks occasionally conduct interbank trading on behalf of significant clients, the majority of such trading is proprietary, meaning that it is conducted for the benefit of the banks' own accounts. The interbank market is used by banks to manage their own interest rate and exchange rate risk as well as to take research-based speculative bets. The interbank market is used by banks to manage their own interest rate and exchange rate risk as well as to take research-based speculative positions.
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8. assume that cane normally produces and sells 61,000 betas and 81,000 alphas per year. if cane discontinues the beta product line, its sales representatives could increase sales of alpha by 16,000 units. what is the financial advantage (disadvantage) of discontinuing the beta product line?
The expected increase in total profit is the financial disadvantage of discontinuing the beta product line.
A product line is known as a group of related products that are offered by the same company and promoted under a single brand name. Businesses promote a wide range of product lines under a variety of brand names in an effort to distinguish them from one another for the benefit of consumers.
In marketing jargon, "product lining" refers to the discrete sale of several connected products.
Product line decisions include (1) product line expansion, (2) product line repositioning, and (3) product line shrinkage. The marketing executive will make a number of decisions regarding the product line over the life of the product's existence.
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If a country increases its money supply rapidly under a fixed exchange rate regime, then.
If a country increases its money supply rapidly under a fixed exchange rate regime then the country will face high levels of price inflation.
Inflation is the rate of increase in expenses over a given period of time. Inflation is usually a vast measure, consisting of the overall boom in prices or the increase in the fee of residing in a country.
whilst high inflation can be dangerous, too little inflation can also weaken the financial system. while the economy is suffering and inflation is too low, the Fed will take the other technique through reducing hobby quotes or shopping for belongings to boom coins move.
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would you want to work at a place like zappos before the transition to holacracy? how about after? why or why not? use person-organization fit as a framework for your answer
No, I wouldn't want to work for Zappos before the company adopted Holacracy.
This is because, prior to switching to holacracy, Zappos required its employees to navigate a bureaucratic structure in order to complete tasks.In the holacracy system of self-management, the traditional chain of command is not used to assign leadership roles.In a holacracy, people take on multiple roles rather than one fixed position with a set purpose, domain, and responsibilities.Holacracy gives its members broad discretion to act as they see fit within the confines of their roles, provided that they do not contravene any established norms.At the organization's regular governance meetings, any issues that crop up can be discussed.Learn more about Holacracy, here
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he pattern of improvement identified from a worker having performed a task multiple times is known as a
A learning curve is a pattern of improvement identified by employees who have performed a task multiple times and can be applied to predict the cost and time to complete a repetitive activities. By considering the impact of learning curves (or experience curves), you can more accurately predict project duration and save money and time.
The learning curve is a graphical representation of repetitive tasks that, when performed continuously, lead to reductions in activity time, resources, and costs. Falling behind on the learning curve can mean you're seriously falling behind in your projects.
Learning curve theory states that less time and effort should be required to complete a task. More work will be done over time. Repetition of tasks can make people feel more confident and knowledgeable, ultimately leading to more efficient and faster operations.
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on january 15, 2020 coronado company recieved a two-month, 9%, 10000 note from peter long for the settlement of his open account. the entry by coronado company on january 15 2020 would include a
According to the given information, the entry by Coronado company on January 15 2020 would include a debit of $10,000 to Notes Receivables.
The journal entry by Coronado Company on January 15, 2020, is:
Date General Journal Debit Credit
Jan 15 Notes receivables $10,000
Accounts receivables $10,000
Money owed to a business in the near future is represented by the asset account known as accounts receivable (AR) on the balance sheet.When a business permits a customer to pay on credit for its goods or services, accounts receivable are produced.Accounts payable are similar to accounts receivable, but they represent money that is owed as opposed to money that will be received.The accounts receivable turnover ratio or days sales outstanding can be used to determine the strength of a company's AR.It is possible to conduct a turnover ratio analysis to determine when the AR will actually be received.Learn more about Accounts receivables, here
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You are planning a store on a large lot. Your budget only allows for 800 linear feet of walls. What is the maximum square footage of your store?.
Budget only allows for 800 linear feet of walls and the maximum square footage is 40000 sq/ft
What is the maximum square footage?budget only allows for 800 linear feet of walls, the maximum square footage of store is:
It is indicated that:
As stated, inches of walls equal 800 feet of sides, and four.
inches of walls
= 800 ft
Sides,
= 4
Now,
The square store's name is:
800/4
=400ft
the maximum square footage is :
400*100=
40000 sq/ft
The maximum square footage is 40000 sq/ft
A McMansion-style home can come in a variety of sizes. In general, these residences are bigger than the U.S. Census Bureau's estimate of the median size of a newly constructed single-family home.To learn more about the maximum square footage refer to:
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part-a: what is the income effect? (5 pts) part-b: what is the substitution effect? (5 pts) part-c: suppose there are two goods which are substitutes and the price for one of the goods increases. how does the substitution and effect impact the quantity demanded of the good, which gets more expensive? can we say for certain what will happen to the quantity demanded for this good? how does the substitution and effect impact the quantity demanded of the good, whose price remains the same? can we say for certain what will happen to the quantity demanded for this good? (10 pts)
According to the income effect, when a good's price drops, it is as though the buyer's income increased. According to the substitution effect, as a good's price drops, consumers will switch from the more costly good to the one that is less expensive.
What is the impact of income?In microeconomics, the income effect is the subsequent shift in demand for a good or service brought on by an increase or decrease in a consumer's actual income or purchasing power. The income impact predicts that people would start to demand more as their income rises (and vice-versa).
What effect does substitution have?When a product's price increases, consumers may transfer to less expensive substitutes, which results in a decline in sales known as the substitution effect. The substitution impact, however, is solely a reflection of thriftiness. A product may lose market share for a variety of reasons.
Let's say there are two alternatives for each other, and the cost of one of the commodities rises. How does demand for the good, which increases in price due to substitution and effect?In microeconomics, two things are considered substitutes if customers may use them for the same purpose. Having more of one thing makes a buyer want less of the other good because they regard both goods as similar or equivalent.
Can we predict with certainty what will happen to the quantity of this good that is demanded?In economics, the word "quantity demanded" refers to the overall amount of an item or service that consumers demand over a specific period of time. Regardless of whether a market is in equilibrium, it is dependent on the cost of an item or service.
How does the substitute and effect change the amount of the good that is being purchased at the same price?When a product's price increases, consumers may transfer to less expensive substitutes, which results in a decline in sales known as the substitution effect.
Can we predict with certainty how much demand there will be for this good?The phrase "quantity demanded" is used in economics to refer to the overall quantity of an item or service that consumers demand over a specific period of time. Whether or not a market is in equilibrium is irrelevant; what matters is the cost of an item or service.
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the (the rate banks charge their best customers) closely follows the rate that the fed adjusts by using open market operations.
'The Prime rate closely follows the rate that the fed adjusts by using open market operations.
Marketing Operations is the function that oversees an organization's marketing programs, campaign planning, and annual strategic planning activities. Other responsibilities include technology and performance measurement, and reporting and data analysis.
Central banks conduct open market operations to regulate the money supply in the economy. For example, in India, open market operations are conducted by the Reserve Bank of India or RBI.
Open market operations (OMOs) — the buying and selling of securities on the open market by central banks — are an important tool used by the Federal Reserve in conducting monetary policy. Short-term targets for open market operations are set by the Federal Open Market Committee (FOMC).
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when is the best time to start looking for an internship? as soon as you have the skills, knowledge, and experience for your career. during the spring, autumn, or winter of your junior senior year. during the summer of your junior senior year. as soon as you feel ready to explore potential careers.
Almost always, it's a good idea to expand your personal and professional network, look at several career paths, get some work experience, and polish your resume. Hence Option A is Correct.
When internship is suitable for career ?Thus, the question of when to complete a college internship rather than whether to do one does not exist. Additionally, when to begin college internships depends on your chronology, past, and future.
The beginning of the year, in January or February, is the ideal time to submit an application for a summer internship. Students should apply for fall internships in April or May because the majority of them start in late August or early October.
College sophomore year is a fantastic time for students to discover their interests and make any minor changes or major changes in their course of study.
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which of the following is true of strategic leadership? a. it is defined as the ability to inspire support and acceptance through charisma. b. it leads change to achieve a superior alignment between a firm and the environment. c. it explicitly relates leadership to the role of lower-level management. d. you cannot be a leader if you do not have high ethical standards. e. it is limited to understanding complexities within the organization.
The correct option is B : It leads change to achieve a superior alignment between a firm and the environment. Leading change in a strategic way to better match a company with its surroundings.
Executives that practice strategic leadership create a vision for their company that will allow it to adapt to or remain competitive in a changing economic and technical environment utilizing a variety of management methods.
Strategic Management. - The capacity for foresight, adaptability, and the ability to empower others to effect strategic change when called for. - Executive conduct and personality traits that help others carry out the organization's vision and goal. Creating chances for cross-departmental cooperation is crucial for a strategic leader. For instance, you may make it mandatory for teams from different departments to occasionally meet, like the sales and product development teams.
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a certain stock costs 50 today and will pay annual dividends of 4, 5, 6, and 7 for the next 4 years. an investor wishes to purchase a 4-year prepaid forward contract for this stock. the first dividend of 4 will be paid one year from today and the last dividend of 7 will be paid just prior to delivery of the stock. assume an annual effective interest rate of 10%. calculate the price of the prepaid forward contract.
The correct answer is 22.49, thus the price of the prepaid forward contract is 32.49.
To calculate the price of the prepaid forward contract
The stock cost today is 50
Dividends: 4,5,6,7
Expiry limit: 4 years
The interest rate is 10%
= 50 – 4/1.10 – 5/(1.10) – 6/(1.10) – 7/(1.10)
= 50 - 3.63 - 4.13 - 4.5 - 5.25
= 32.49
Here the price of the prepaid forward contract is 32.49.
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initially, there is no output gap and inflation expectations are 2%. then, contractionary fiscal policy results in gdp falling 3% below potential gdp. what is the inflation rate after that fiscal contraction?
The inflation rate after that fiscal contraction is 1%
Output gap = -3% (stated in question)
Unexpected inflation = -1% (can be seen from graph)
Inflation = expected inflation - unexpected inflation = 2 - 1= 1%
The once a year inflation rate for the us is 7.7% for the three hundred and sixty five days ended October 2022 after rising 8.2% previously, in step with U.S. exertions branch data posted Nov. 10. the next inflation update is scheduled for release on Dec. thirteen at 8:30 a.m. ET.
Constant-rate loan holders. all and sundry with large, fixed-fee money owed like mortgages gain from higher inflation, says Mark Thoma, a retired professor of economics at the college of Oregon. those hobby quotes are locked in for the life of the loan, meaning they may not ebb and glide with inflation.
Not unusual anti-inflation assets consist of gold, commodities, numerous actual property investments, and tips. Many human beings have seemed to gold as an "opportunity foreign money," mainly in countries wherein the local currency is dropping fee.
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caused by a single stimulus, a quick cycle of contraction and relaxation is called? a . the short delay between the stimulus and the onset of the twitch is called the period. this is the time required for excitation, excitation-contraction coupling, and of the elastic components of the muscle. the force generated during this time is called tension. once elastic components are taut, the muscle produces external . when the external tension moves a load, this is called the phase.
The answers to the questions are given below
- Caused by a single stimulus, a quick cycle of contraction and relaxation is called a twitch.- The short delay between the stimulus and the onset of the twitch is called the latent period.- This is the time required for excitation, excitation-contraction coupling, and tensing of the elastic components of the muscle.- The force generated during this time is called internal tension.- Once elastic components are taut, the muscle produces external tension.- When the external tension moves a load, this is called the contraction phase.What transpires during the latent phase?The latent period is when labor first begins. Your cervix becomes thin and supple at this time as it prepares to dilate and open up to allow the birth of your child. You'll begin to experience contractions, which may be erratic and vary in length, force, and frequency.
Therefore, The latent period is the span of time between a person or host becoming infected by a pathogen and becoming infectious, i.e. capable of spreading the infection to other susceptible people, in epidemiology, notably in the study of infectious disease dynamics.
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Why might your creditors rather work out a payment plan with you than just send your debt to collections?.
The creditors rather work out a payment plan with you than just send your debt to collections It's better than paying collections from your own account because it won't hurt your credit score as much and will likely give you better repayment terms than any collection agency or collection agency offers.
What is credit?Credit is a trust that allows one party to provide money or resources to another party, where the second party does not repay the first party immediately, but promises to either repay or return the funds later.
A credit bureau keeps a monthly record of your past years bills and monthly loan repayments (EMI). Typically, a credit bureau calculates your credit score by collecting data from past years of payment history. Credit creation is the process by which commercial banks can create credit in the form of new deposits.
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A distribution manager at a company that has customers in all 50 states considers that storing goods in every state will make them quickly available to all customers. What other major factor should affect the decision on the number of warehouses?.
The major factor that should affect the decision on the number of warehouses is Operating 50 or more warehouses will be expensive.
While a warehouse is any building that stores physical items for any reason, a distribution center could be a sort of warehouse that's particularly planned for satisfying orders for distribution to other businesses or consumers. A warehouse may be a structure utilized to store products. Manufacturers, wholesalers, merchants, transportation companies, customs, and others utilize warehouses. They are regularly huge plain buildings found on the edges of cities, towns, or towns. other components depending on the number of stockrooms are Provider network, Lease Rates, Building Accessibility, and Expandability, etc.
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on january 1, 2021, eagle company borrows $100,000 cash by signing a four-year, 7% installment note. the note requires four equal payments of $29,523, consisting of accrued interest and principal on december 31 of each year from 2021 through 2024. prepare the journal entries for eagle to record the note's issuance and each of the four payments
It should be remembered that the balance of notes payable is multiplied by 7% to determine the interest expenses.
What is interest?The cost a company pays a lender (creditor) for a loan is called interest. Although many other arrangements are available, interest payments are typically based on the remaining balance of a loan and paid on a monthly basis. At a predetermined interest rate, interest is often computed as a percentage of the loan balance.
In a market economy, interest fulfills a number of important roles. The coordination between borrowers and savers is the most obvious example; borrowers are required to pay interest in order to borrow more money in order to spend more in the present.
For instance, if you place money in a high-yield savings account, a bank will give you interest. The bank pays you to keep your money on deposit and utilize it to make investments in other deals. On the other hand, if you borrow money to cover a significant bill, the lender will also charge you interest.
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on february 15th, discus manufacturing lends javelin industries $10,000 using a promissory note. in the note, javelin promises to repay the entire amount plus 5% annual interest within 120 days. what accounting entries should discus make on february 15th to record acceptance of this note?
Notes Receivable = debit of $10,000; Cash = credit of $10,000
How might accountants calculate the cost of uncollectible accounts for a business?The method of evaluating uncollectible accounts that uses the revenue statement and multiplies credit sales by the percentage of uncollectible debts.
Who are a promissory note's two principal parties?Checks involve three parties as opposed to a promissory note's two parties (the payer and the payee) (the payer, the payee, and the bank from which the funds are drawn).
What is the phrase for the anticipated net cash flow from receivables?The net amount of cash anticipated is known as the cash (net) realizable value, which is net of amounts the company anticipates it won't be able to collect. As a result, using the allowance technique, the balance sheet receivables are decreased by the expected uncollectible receivables.
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