Answer: Patton will sue QC industries for tortious interference with a contract
Explanation:
Since there has been a contract which had already been signed, then if QC industries damages Patton Company's image, Patton will sue QC industries for tortious interference with a contract.
Tortious interference, is also refered to as the intentional interference with a contract and this occurs when the business relationship or contract that one has with a third party is intentionally damaged by another person. In this case, QC intentionally damages Patton's contract and therefore, Patton will sue QC industries for tortious interference with a contract.
The operating income calculated using variable costing and absorption costing amounts to $9,100 and $11,200. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.
Answer:
$2,100
Explanation:
The difference between variable costing income and absorption costing income arises due to fixed cost deferred in inventory. This is the total fixed manufacturing overhead that will be expensed under absorption costing.
Calculation :
Fixed Cost in Inventory = $11,200 - $9,100
= $2,100
What would be the most challenging part of working in Information technology
Answer:
The most challenging part of working in information technology are as given below:
1. Workload
2. Cybersecurity
3. Skills gaps
4. Digital transformation
5. Cloud computing
6.Budget
7.Leadership support in prioritizing new skills development
8.Analytics and data management
9.Automation
Explanation:
Many have been facing a new hurdle—not confined to IT. As millions of people adjust to the new norm of remote working, employees, as well as supervisors had to learn quickly how to improve virtual communication and collaboration. For those who don't have the habit of working from home, it may be a fight to avoid distractions that aren't a factor if you work at an office. (e.g. family members, house chores, Netflix).
In the event of a difficult transition to remote work, we offer various training courses designed specifically to help teams maximize virtual technologies and enhance soft skills, which are more critical when staff is in separate places.
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, _________
A. Mary produces only cakes while Tim produces only pies
B. Mary produces only pies
C. Tim produces both pies and cakes
D. Tim produces only cakes while Mary produces only pies
Answer:
A. Mary produces only cakes while Tim produces only pies
Explanation:
I will start by describing the concept called comparative advantage. Comparative advantage can be described as a businesses ability to produce at a reduced or lower opportunity cost than others. Given this definition, we can see that Mary's opportunity cost of producing cakes is lower than Tims opportunity cost. So Mary has an advantage over Tim in the production of cakes. So the answer to this question is A. Mary should specialize in the making of cakes while Tim should specalize in pie making
Brad and Angie are married and file a joint return. For year 14, they had income from wages in the amount of $100,000 and had the following capital transactions to report on their income tax return: Carryover of capital losses from year 13$200,000 Loss on sale of stock purchased in March year 14, sold on October 10, year 14, and repurchased on November 2, year 1420,000 Gain on the sale of stock purchased 5 years ago and sold on March 14, year 1415,000 Gain on the sale of their personal residence (all qualifications have been met for the maximum allowable gain exclusion)675,000 Loss on the sale of their personal automobile10,000 Gain on the sale of their personal furniture5,000 Loss on the sale of investment property (land only)150,000 What is the amount of capital loss carryover to year 15
Answer:
The amount of capital loss carryover to year 15 is 152,000
Explanation:
The working is attached with the answer please find the attached file.
The following losses cannot be claimed or considered
Loss on sale of stock purchased in March year 14, sold on October 10, year 14, and repurchased on November 2, year 14Loss on the sale of their personal automobileGizmo Inc. purchased a one-year insurance policy on October 1 for $5,280. The adjusting entry on December 31 would be: (If an amount box does not require an entry, leave it blank.)
Answer and Explanation:
The adjusting entry is shown below:
Insurance Expense ($5,280 × 3 months ÷ 12 months) $1,320
To Prepaid Insurance $1,320
(being the insurance expense is recorded)
Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
An individual has $30,000 invested in a stock with a beta of 0.7 and another $70,000 invested in a stock with a beta of 1.2. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
Answer:
1.05
Explanation:
Beta measures systematic risk. Systemic risk are risk that are inherent in the economy. They cannot be diversified away.
The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighted beta of a stock = percentage of the stock in the portfolio x beta of the stock
total value of the portfolio = $30,000 + $70,000 = $100,000
percentage of stock A in the portfolio = $30,000 / $100,000 = 0.30
percentage of stock B in the portfolio = $70,000 / $100,000 = 0.70
weighted beta of stock A = 0.30 x 0.7 = 0.21
weighted beta of stock B = 0.70 x 1.2 = 0.84
Portfolio beta = 0.21 + 0.84 = 1.05
Professional baseball teams in the United States use only wooden bats. If aluminum bats were permitted, the impact on the wooden bat market would be
Answer: b. a lower price for wooden bats.
Explanation:
If aluminum bats were permitted for use in baseball then a lot of teams would begin to use them instead. This would reduce the demand for wooden bats and lead to their prices falling.
The reason the price will fall is that the demand curve for the wooden bats will shift to the left to show that the demand has fallen. The curve would then intersect with the supply curve at a lower equilibrium price.
Essentially what happens is that, with people demanding less wooden bats, their prices would have to fall to entice people to buy them.
Suppose your client wishes to purchase an annuity that pays $110,000 each year for 8 years, with the first payment 5 years from now. At an interest rate of 5%, how much would the client need to invest now
Answer:
Initial investment= $557,050.6
Explanation:
Giving the following information:
Annual payment= $110,000
Interest rate= 5%
Number of payments= 8
First, we need to determine the value of the annuity five years from now. We will use the following formula:
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
A= annual payment
PV= 110,000*{(1/0.05) - 1/[0.05*(1.05^8)]}
PV= $710,953.40
Now, the initial investment now:
PV= FV / (1 + i)^n
PV= 710,953.4 / (1.05^5)
PV= $557,050.6
Consider a small island country whose only industry is weaving. The following table shows information about the small economy in two different years. Complete the table by calculating physical capital per worker as well as labor productivity.
Physical Capital Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity
Year
2029 300 100 4,000 36,000
2030 480 120 4,200 50,400
Based on your calculations, in physical capital per worker from 2029 to 2030 is associated with in labor productivity from 2029 to 2030. Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the fishing industry?
a. Imposing a tax on looms
b. Imposing restrictions on foreign ownership of domestic capital
c. Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving
d. Subsidizing research and development into new weaving technologies
Answer:
Small Island Country
1. Completion of Table and Calculation of Physical Capital Per Worker and Labor Productivity:
Physical Labor Physical Capital Labor Output Labor
Capital Force per Worker Hours Productivity
Year
2029 300 100 3 (300/100) 4,000 36,000 9 (36,000/4,000)
2030 480 120 4 (480/120) 4,200 50,400 12 (50,400/4,200)
2. Based on the calculations, physical capital per worker from 2029 to 2030 is NOT associated with labor productivity from 2029 to 2030.
3. The policy that would lead to greater productivity in the fishing industry is:
d. Subsidizing research and development into new weaving technologies
Explanation:
a) Data and Calculations:
Physical Labor Physical Capital Labor Output Labor
Capital Force per Worker Hours Productivity
Year
2029 300 100 4,000 36,000
2030 480 120 4,200 50,400
Physical Labor Physical Capital Labor Output Labor
Capital Force per Worker Hours Productivity
Year
2029 300 100 3 (300/100) 4,000 36,000 9 (36,000/4,000)
2030 480 120 4 (480/120) 4,200 50,400 12 (50,400/4,200)
b) The last question mixes garment (weaving) industry and fishing industry. The answerer is left conflicted.
On receiving a client's bank cut-off statement, an auditor most likely would trace
A. Checks dated after year end listed in the cut-off statement to the year-end outstanding checklist.
B. Prior-year checks listed in the cut-off statement to the year-end outstanding checklist.
C. Deposits in transit listed in the cutoff statement to the year-end bank reconciliation.
D. Deposits recorded in the cash receipts journal after year-end to the cutoff statement.
Answer:
B. Prior-year checks listed in the cut-off statement to the year-end outstanding checklist.
Explanation:
Bank cutoff statement can be regarded as bank statement that is produced as of a date which is seen as date that is subsequent to the date of the balance sheet. At a point in time, this date would be the one that will give permission for most of outstanding checks to clear the bank at the year-end. Cutoff bank statement is utilized in verifying reconciling items on the bank statement which been Mailed directly to the auditor. One of the purpose of cutoff bank statements is in verification of reconciling items on the year-end bank reconciliation of clients which comes with evidence that it can't be accessible to the client. It should be noted that On receiving a client's bank cut-off statement, an auditor most likely would trace Prior-year checks listed in the cut-off statement to the year-end outstanding checklist.
Suppose that today you buy a bond with an annual coupon rate of 10 percent for $1,120. The bond has 17 years to maturity. What rate of return do you expect to earn on your investment
Answer:
8.63%
Explanation:
The expected rate of return on the bond can be determined using a financial calculator bearing in mind that the calculator would be set to its end date before making the following inputs:
N=17(number of annual coupons in 17 years)
PMT=100(annual coupon=face value*coupon rate=$1000*10%=$100)
PV=-1120(the current price is $1,120)
FV=1000(the face value of the bon is $1000)
CPT
I/Y=8.63%
EXCEL APPROACH:
=rate(nper,pmt,-pv,fv)
nper=N=17
=rate(17,100,-1120,1000)
rate=8.63%
On its year 1 financial statements, Seatax Corporation, an accrual-method taxpayer, reported federal income tax expense of $570,000. On its year 1 tax return, it reported a tax liability of $650,000. During year 1, Seatax made estimated tax payments of $700,000. What book-tax difference, if any, associated with its federal income tax expense should Seatax have reported when computing its year 1 taxable income? Is the difference favorable or unfavorable? Is it temporary or permanent?
Answer: $570000
Explanation:
The book-tax difference, that's associated with its federal income tax expense that Seatax should have reported when computing its year 1 taxable income will be $570000.
It should be noted that the $570000 for the book tax difference is permanent as it isn't reversible for.the next fiscal period.
Suppose the demand function (D) for golf clubs is: QP, where P is the price paid by consumers in dollars per club and Q is the quantity demanded in thousands. Suppose the supply curve (S) for golf clubs is estimated to be: QP. Calculate the equilibrium price for golf clubs and the equilibrium quantity sold. The equilibrium price is $ 75 per club (Enter your response as an integer.), and the equilibrium quantity is 75 thousand clubs (Enter your response as an integer.) Suppose instead that golf club producers agree to charge a price of $ per club. This would result in a surplus of nothing thousand clubs (Enter your response as an integer.)
Answer:
(a)
The equilibrium price is $75 per club
The equilibrium quantity is 75000 clubs
(b)
A charge a price of $50 per club. This would result in a surplus of 25000 clubs
Explanation:
Given
[tex]Q = 150 - 1.00P[/tex] --- The demand function
[tex]Q = 1.00P[/tex] --- The supply function
Solving (a): The equilibrium price and quantity
To do this, we equate both functions
This gives:
[tex]1.00P = 150 - 1.00P[/tex]
Collect like terms
[tex]1.00P+1.00P = 150[/tex]
[tex]2.00P = 150[/tex]
Make P the subject
[tex]P =\frac{150}{2.00}[/tex]
[tex]P = \$75[/tex] ---The equilibrium price
Substitute 75 for P in [tex]Q = 1.00P[/tex]
[tex]Q = 1.00 * 75[/tex]
[tex]Q = 75[/tex] ---- The equilibrium quantity
Solving (c): When the price is changed to $50
This means that: [tex]P =50[/tex]
The quantity demanded will be:
[tex]Q = 150 - 1.00P[/tex]
[tex]Q = 150 - 1.00 * 50[/tex]
[tex]Q = 150 - 50[/tex]
[tex]Q = 100[/tex]
Subtract the equilibrium quantity from [tex]Q = 100[/tex] to get the shortage/surplus
[tex]\triangle Q = 100 - 75[/tex]
[tex]\triangle Q = 25[/tex]
Since the change is positive, then there is a surplus.
Cash balance, December 1, 2016 is $18,200
Transactions:
Dec.
1 Common stock was issued to stockholders for $7,800 cash.
7 Purchased equipment for $1,700 on account.
14 Paid $20,000 cash for land.
17 Paid cash expenses: office rent, $1,700; employees' salaries, $1,500; utilities, $90.
23 Paid cash dividends of $2,600.
26 Earned service revenue for the month, $5,000, receiving cash.
Required:
Journalize the entries.
Answer:
Journal Entries:
Dec. 1 Debit Cash $7,800
Credit Common stock $7,800
To record the issuance of common stock for cash.
Dec. 7 Debit Equipment $1,700
Credit Accounts Payable $1,700
To record the purchase of equipment on account.
Dec. 14 Debit Land $20,000
Credit Cash $20,000
To record the payment for land.
Dec. 17 Debit Office Rent expenses $1,700
Debit Salaries expenses $1,500
Debit Utilities expense $90
Credit Cash $3,290
To record the payment for cash expenses.
Dec. 23 Debit Cash dividends $2,600
Credit Cash $2,600
To record the payment of cash dividends.
Dec. 26 Debit Cash $5,000
Credit Service revenue $5,000
To record the receipt of cash for earned services.
Explanation:
a) Data and Transactions Analysis:
Dec. 1 Cash $7,800 Common stock $7,800
Dec. 7 Equipment $1,700 Accounts Payable $1,700
Dec. 14 Land $20,000 Cash $20,000
Dec. 17 Office Rent expenses $1,700 Salaries expenses $1,500 Utilities expense $90 Cash $3,290
Dec. 23 Cash dividends $2,600 Cash $2,600
Dec. 26 Cash $5,000 Service revenue $5,000
On May 11, 2012, your calendar year firm pays $6,000 for a used computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Section 179 deduction is taken, what is your firm’s maximum 2012 deduction for depreciation?
Answer:
Calendar-Year Firm
The firm’s maximum 2012 deduction for depreciation is:
= $917.
Explanation:
a) Data and Calculations:
Purchase of a used computer server on May 11, 2012 = $6,000
Since the server is a used one, we assume a four-year useful life
Salvage value = $500
Assumed useful life = 4 years
Depreciable amount = $5,500 ($6,000 - $500)
Since the firm does not take the Section 179 Deduction, which would have allowed it to expense the whole depreciable amount this 2012, the depreciation expense for the first year is calculated as follows:
Annual depreciation expense, using the straight-line method = $1,375
For 2012, the firm's maximum deduction for depreciation will be:
= $917 ($1,375 * 8/12) (covering the months from May 11 to December 31)
At the profit-maximizing level of output, the amount by which the firm can mark up price is: Group of answer choices directly related to the price elasticity of demand for item in question. totally unrelated to the price elasticity of demand for item in question. equal to the ratio of the marginal and average costs of production. inversely related to the price elasticity of demand for item in question.
Answer:
inversely related to the price elasticity of demand for item in question.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider.
Generally, all businesses and entrepreneurship go into the business of buying and selling or providing services to service takers (consumers) for the sole purpose of making profit and maximizing the profits over time.
At the profit-maximizing level of output, the amount by which a business firm can mark up price is inversely related or proportional to the price elasticity of demand for the item (product) in question. Thus, the amount by which a business firm can mark up price increases as the price elasticity of demand for a item (product) decreases and vice-versa.
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Also, a mark-up price is simply the difference between the cost price of a good (product) or service and its selling price.
Lincoln Park Co. has a bond outstanding with a coupon rate of 5.76 percent and semiannual payments. The yield to maturity is 6.3 percent and the bond matures in 21 years. What is the market price if the bond has a par value of $2,000?a. $1,876.09b. $1,880.53c. $1,878.06d. $1,912.67e. 1,875.17
Answer:
e. 1,875.17
Explanation:
The computation of the market price i.e. present value is as follows:
Given that
RATE = 6.3% ÷ 2 = 3.15%
NPER = 21 × 2 = 42
PMT = $2,000 × 5.76% ÷ 2 = $57.6
FV = $2,000
The formula is given below:
=-PV(RATE,NPER,PMT,FV,TYPE)
After applying the above formula, the market price is $1,875.17
If the Fed sells Treasury bills (bonds/securities) this will shift the Group of answer choices money demand curve to the right. money supply curve to the right money demand curve to the left. money supply curve to the left.
Answer: money supply curve to the left.
Explanation:
The sale of Treasury Bills by the Fed is part of its contractionary monetary policy and is used to reduce the amount of money in the economy. By selling the bills, people pay money to the Fed which then takes the money out of circulation thereby reducing the amount of money in the economy.
The effect of this would be a leftward shift in the money supply curve to indicate that there is now less money in the economy. The Fed does this when it feels that the economy is overheated and so economic growth needs to be reduced to a more sustainable level.
The net asset value of shares in a closed-end investment company is $36. An investor buys the shares for $34 in the secondary market. The company distributes $1 and after one year, the net asset rises to $42. The investor sells the shares for $43 in the secondary market. What is the percentage return on the investment
Answer:
Closed-End Investment Company
The percentage return on the investment is:
= = 29.41%
Explanation:
a) Data and Calculations:
Net asset value of share = $36
Price paid by an investor = $34
Dividend distributed = $1
Net asset value after one year = $42
Selling price in the secondary market by the investor = $43
Total amount realized by the investor = $44 ($43 + $1)
Cost of investment = $34
Dollar return on the investment = $10 ($44 - $34)
Percentage return on the investment = Return on investment/Cost of investment * 100
= $10/$34 * 100
= 29.41%
A U.S. company (like Jelly Belly) makes its gourmet jelly beans in the United States, and sugar is about half the cost of production. Can the company change U.S. sugar policy
Answer: Highly doubtful.
Explanation:
U.S. sugar protection policies save producers in the U.S. billions of dollars so those companies continually lobby for the government to keep up the policies.
A company such as Jelly Belly is not influential enough to fight off the various sugar interests unless there are other players like Jelly Belly in the game. The text makes no mention of them however so it must just be Jelly Bean and they do not have the influence to get the government to reverse policy.
The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections. Please use the high-low method to calculate the variable cost per inspection.
Answer:
Variable cost per unit= $0.5 per inspection
Explanation:
Giving the following information:
The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections.
To calculate the variable cost under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,400 - 4,200) / (1,400 - 1,000)
Variable cost per unit= $0.5 per inspection
A friend has $1,400 that he has saved from his part-time job. He will need his money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 5.90% interest or to lend it to Victor. Victor has promised to repay $1,470 after six months.
Required:
a. Calculate the interest earned on the savings account for six months.
b. Calculate the rate of return if the money is lent to Simone. Round your percentage answer to two decimal places.
c. Which alternative would you recommend? Explain your answer.
Answer:
a. The interest earned on the savings account for six months is:
= $41.30
b. The rate of return if the money is lent to Victor is:
= 10%
c. Based on the calculations alone, lending the $1,400 to Victor is better than saving in the bank, provided that there is no risk of default on the part of Victor.
Explanation:
a) Data and Calculations:
Savings from part-time job = $1,400
Interest rate in a bank savings account = 5.90%
Period of savings in the bank = 6 months
Future value of the $1,400 savings = $1,441.30
Victor repayment if $1,400 was instead lent to him = $1,470
From a financial calculator, the future value of $1,400 at 5.9% after six months is $1,441.30
Loan Amount 1400
Loan Term 0 years 6 months
Interest Rate 5.9
Compound Semi-annually
Pay Back 6 Months after
Results:
Payment Every 6 Months = $1,441.30
Total of 1 Payments = $1,441.30
Total Interest = $41.30
Interest paid by Victor = $70 ($1,470 - $1,400)
This translates to 5% for six months and 10% for 1 year
5% = ($70/$1,400 * 100)
Differentiate between an active partner and sleeping partner?
Which of the following statements is false? Question 21 options: Not all economists are agreed as to whether government should bail out companies in financial trouble. Not all economists prefer a rule-based monetary policy to discretionary monetary policy. Rule-based monetary policy advocates often assert that discretionary monetary policy can be motivated by politics. The tax multiplier is always larger than the government spending mult
Answer:
The tax multiplier is always larger than the government spending multiplier
Explanation:
As we know that
Tax multiplier = mpc ÷ (1 - mpc)
Here mpc means marginal propensity to consume
And,
Government spending multiplier= 1 ÷ (1 - mpc)
So based on this the government spending multiplier should always be more than the tax multiplier
Therefore the last option should be considered
Question 12
1 points
Save Answer
An example of Impulse decision making is
consumers who repeatedly use the services
of the same travel agent or website to book
their airline tickets.
True
False
Question 12 of 30
Moving to the next question prevents changes to this
answer.
Answer:
hello brothers and sisters of United States
All of the following are true of measuring the effectiveness of security policies, except: A. you can get a basic understanding if individuals are being held accountable for adherence to security policies by examining policy violations, incidents, and security awareness. B. measuring accountability is easier than measuring effectiveness. C. the best measurement of whether employees are following policies is the actual reduction in risk that occurs. D. to ensure accountability, you need to measure if employees are following the policies.
Answer:
All of the following are true of measuring the effectiveness of security policies, except:
B. measuring accountability is easier than measuring effectiveness.
Explanation:
Measuring the effectiveness of security policies requires using quantitative tools to demonstrate that the security policies are working as they should. But measuring accountability requires the use of qualitative measurements, including understanding individuals, examining policy violations, analyzing incidents, and determining security awareness.
An industry consists of three firms with sales of $300,000, $700,000, and $250,000. a. Calculate the Herfindahl-Hirschman index (HHI).
Answer:
4112
Explanation:
Calculation to determine the Herfindahl-Hirschman index (HHI)
First step is to calculate the Total sales of the industry
Total sales of the industry=$300,000+$700,000+$250,000
Total sales of the industry=1,250,000
Second step is to Allocate
Firm A= $300,000/$1,250,000
Firm A=0.24
Firm B= $700,000/$1,250,000
Firm B=0.56
Firm C=$250,000/$1250,000
Firm C=0.2
Now let calculate the Herfindahl-Hirschman index (HHI).
Herfindahl-Hirschman index (HHI)=1000*[(0.24)^2+(0.56)^2+(0.2)^2]
Herfindahl-Hirschman index (HHI)=10000*(0.0576 + 0.3136 + 0.04 )
Herfindahl-Hirschman index (HHI)=10000 * 0.4112
Herfindahl-Hirschman index (HHI)=4112
Therefore the Herfindahl-Hirschman index (HHI) is 4112
I’ll give 20 points to the best answer !!!
Answer:
The answer is "Slide Master View"
Explanation:
Slide Master Look is indeed the name of this feature. This can help you keep track of all the presentations you've created and change those ones that require work or even more information. The additional feature is the ability to change the presentation's actual picture, as it may be extended to all slides. Slide master view also allows you to change the text format & placeholders.
Camille Noah is investing $5,000 in an account that pays an annually compounded rate of 6.75 percent for three years. What is the interest on interest if interest is compounded
Answer:
$69.88
Explanation:
Calculation to determine the interest on interest if interest is compounded
First step is to calculate Simple interest per year
Deposit today represent PV = $5,000
Interest rate represent i = 6.75%
No. of years represent n = 3
Simple interest per year = $5,000 × (0.0675)
Simple interest per year= $337.50
Second step is to calculate the Simple interest for 3 years
Simple interest for 3 years = $337.50 × 3
Simple interest for 3 years= $1,012.50
Fourth step is to calculate the Future value with compound interest (FV3)
FV3 = $5,000 (1 + 0.0675)^3
FV3=$5,000+(1.0675)^3
FV3= $6,082.38
Now let determine the Interest on interest
Interest on interest = $6,082.38 - $5,000 - $1,012.50
Interest on interest = $69.88
Therefore the interest on interest if interest is compounded is $69.88
A reasonable amount of uncollectible accounts is evidence Group of answer choices that the credit policy is too strict. that the credit policy is too lenient. of a sound credit policy. of poor judgments on the part of the credit manager.
Answer:
. of a sound credit policy.
Explanation:
credit policy can be regarded as set of guidelines which is sets as terms for credit and payment for customers, It establishes clear course of action as regards late payments, it also Set term of payment for parties to whom credit is been extended. It also define that is required to be set as regards outstanding credit accounts.
The elements of credit policy of a firms are;
✓collection policy
✓ credit period
✓credit standards
✓discounts
It should be noted that A reasonable amount of uncollectible accounts is evidence of a sound credit policy.
