Enviro company issues 8%, 10-year bonds with a par value of $280,000 and semiannual interest payments. on the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 ½. the straight-line method is used to allocate interest expense. 1. using the implied selling price of 87 ½, what are the issuer's cash proceeds from issuance of these bonds? 2. what total amount of bond interest expense will be recognized over the life of these bonds? 3. what is the amount of bond interest expense recorded on the first interest payment date?
Answers: 1
Business, 22.06.2019 11:40, rmcarde4432
Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a Ă— b) $880,000 $760,000 $770,000 variable costs (a Ă— c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?
Answers: 1
Business, 23.06.2019 00:30, destinyd10189
Dr. hughes enjoys offering to employees who perform over and above the call of duty
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Business, 23.06.2019 00:50, kellimcollier8294
Mr. drucker uses a periodic review system to manage the inventory in his dry goods store. he likes to maintain 15 sacks of sugar on his shelves based on the annual demand figure of 225 sacks. it costs $2 to place an order for sugar and costs $1 to hold a sack in inventory for a year. mr. drucker checks inventory one day and notes that he is down to 9 sacks; how much should he order?
Answers: 1
Enviro company issues 8%, 10-year bonds with a par value of $280,000 and semiannual interest payment...
Mathematics, 15.12.2020 20:50
Mathematics, 15.12.2020 20:50
Mathematics, 15.12.2020 20:50
Mathematics, 15.12.2020 20:50
Mathematics, 15.12.2020 20:50
Mathematics, 15.12.2020 20:50