Answer and Explanation:
Liquidating distribution in the problem are made in accordance to the preferred stock.since the activity may not meet the section 322 requirement,the section 322 rules will not apply to the case cited in the problem.This means parents has to recognize a capital loss of $50,000 on the distribution,the capital loss can only be used to offset capital gains.
Under the section 165(g)(3) rules for affiliated cooperation's worthlessness securities,parents can recognize an ordinary loss of $500,000 on the common stock.The ordinary loss can be sued to offset ordinary income.
Explanation of the losses on Parent's preferred and common stock in a liquidation scenario.
Parent's Loss on Preferred Stock: The loss is calculated as the excess of the adjusted basis of the stock over the amount received upon liquidation. In this case, Parent's loss on the preferred stock would be $50,000.
Parent's Loss on Common Stock: Since the common stock receives distribution only after the creditors and preferred stockholders are paid, and there are no remaining funds, Parent's loss on the common stock would be the adjusted basis of $500,000.
Universal Containers (UC) wants its closed Won opportunities to be synced to a Data warehouse in near real time. UC has implemented Outbound Message to enable near real- time data sync. UC wants to ensure that communication between Salesforce and Target System is secure. What certificate is sent along with the Outbound Message?a) The default client Certificate or the Certificate and Key Management menu.b) The CA-signed Certificate from the Certificate and Key Management Menu.c) The default client Certificate from the Develop--> API menu.d) The Self-signed Certificates from the Certificate & Key
The certificate sent along with the Outbound Message to ensure secure communication between Salesforce and the Target System is the default client Certificate or the chosen one from the Certificate and Key Management menu.
Explanation:When Universal Containers (UC) wants to securely communicate between Salesforce and their Target System using Outbound Message integration, UC needs to ensure the correct certificate is used. The certificate that is sent along with the outbound message is a) The default client Certificate or the Certificate and Key Management menu.
This option provides UC with the ability to use their default client certificate or select another from the Certificate and Key Management menu, ensuring the secure communication between Salesforce and the Target System.
It's essential for UC to manage these certificates effectively to ensure the sensitive data contained within the exchanges are secure and the data integrity is maintained. Hence, it's crucial to select the appropriate certificate when setting up the Outbound Message configuration.
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Beginning inventory $ 34,000 Inventory purchases (on account) 164,000 Freight charges on purchases (paid in cash) 19,000 Inventory returned to suppliers (for credit) 21,000 Ending inventory 39,000 Sales (on account) 259,000 Cost of inventory sold 157,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
Answer:
Journal entries - Perpetual inventory system
Inventory purchases (on account) 164,000
Inventory $ 164000(debit)
Trade Payables $ 164000 (credit)
Freight charges on purchases (paid in cash) 19,000
Freight Charges $ 19000 (debit)
Bank $19000 (credit)
*****Freight Charges forms part of cost of Inventory (IAS 2) therefore write off freight cost to Inventory Account****
Inventory $19000 (debit)
Freight Charges $ 19000 (credit)
Inventory returned to suppliers (for credit) 21,000
Trade Payable $ 21000 (debit)
Inventory $21000(credit)
Sales (on account) 259,000,
Trade Receivables $ 259000 (debit)
Revenue $259000(credit)
Cost of inventory sold 157,000
Cost of Sales $157000 (debit)
Inventory $157000 (credit)
Journal entries - Periodic inventory system
Inventory purchases (on account) 164,000
Inventory $ 164000(debit)
Trade Payables $ 164000 (credit)
Freight charges on purchases (paid in cash) 19,000
Freight Charges $ 19000 (debit)
Bank $19000 (credit)
*****Freight Charges forms part of cost of Inventory (IAS 2) therefore write off freight cost to Inventory Account****
Inventory $19000 (debit)
Freight Charges $ 19000 (credit)
Inventory returned to suppliers (for credit) 21,000
Trade Payable $ 21000 (debit)
Inventory $21000(credit)
Sales (on account) 259,000,
Trade Receivables $ 259000 (debit)
Revenue $259000(credit)
Cost of inventory sold 157,000
Cost of Sales $157000 (debit)
Inventory $157000 (credit)
Explanation:
Inventory purchases (on account) 164,000
Recognise an Asset - Inventory and a liability - Account payable
Freight charges on purchases (paid in cash) 19,000
Recognise an expense - Freight Charges and de-recognise asset - Bank
*****Freight Charges forms part of cost of Inventory (IAS 2) therefore write off freight cost to Inventory Account****
Derecognise expense- Freight and recognise an asset - Inventory
Inventory returned to suppliers (for credit) 21,000
De-recognise Asset - Inventory and De-recognise Liability - Account Payable
Sales (on account) 259,000,
Recognise Asset - Trade Receivable and Recognise Revenue
Cost of inventory sold 157,000
Recognise expense - Cost of Sale in Profit and Loss and De-recognise Asset- Inventory
Select the correct adjective or adverb in the following sentences.
Briana is a typist.
I’ve asked Taneesha to give the team a explanation of the mail merge procedure.
His rise to the top of corporate America was a ascent.
I was advised to read the Johnson expense report.
I do not like the carpet in my office.
Walk when you pass cubicles where people are working.
I can’t believe she is going to work for him.
We are done with this project.
Our new manager is a woman.
The presentation on the increase in business overseas was , but the speaker didn’t mention how our company was doing.
The question is asking for proper adjectives and adverbs to complete the sentences. The suggested words describe the sentences accurately and provide additional information to them.
Explanation:The question is asking you to fill in the blanks in the sentences with appropriate adjectives or adverbs. Here are my suggestions:
Briana is a fast typist.I’ve asked Tanisha to give the team a detailed explanation of the mail merge procedure.His rise to the top of corporate America was a meteoric ascent.I was advised to carefully read the Johnson expense report.I do not like the gloomy carpet in my office.Walk quietly when you pass cubicles where people are working.I can’t believe she is actually going to work for him.We are almost done with this project.Our new manager is a competent woman.The presentation on the increase in business overseas was informative, but the speaker didn’t mention how our company was doing.Learn more about adjectives and adverbshttps://brainly.com/question/31883559
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I get $200 revenue from the sale of my product each day. I rent the factory that I use for $90 a day. The raw materials of the operation cost $115 a day. I do all the work myself. Both jobs are equally attractive as far as the work is concerned. Recently, a competitor offered me $30 a day to work for him. My accounting profit is , and my economic profit is ________.
Answer:
Accounting loss of $5
Economic loss of $35
Explanation:
Accounting profit is the net of revenue and Explicit cost. Explicit costs are the cost which actually incurred or paid.
On the other hand the economic profit is the net of revenue, Explicit and Implicit costs. Implicit value is the opportunity costs of choosing the alternative.
Implicit cost = $30
Explicit cost = 90 + 115 = $205
Accounting Profit = Revenue - Explicit costs = $200 - $205 = ($5)
Economic Profit = Revenue - Explicit cost - Implicit cost = $200 - $205 - $30
Economic Profit = ($35)
Howard, a salesperson for Kemco Sanitation Systems, told a purchasing agent, "Our new system can save your company $60,000 annually in energy, chemicals, and water use compared to the type of sanitation system you're using now." Howard's statement reflects _____ in this scenario.
Answer:
Benefits.
Explanation:
Benefits are what a person or group stand to gain by using a product or engaging in a process. It is different from the features of the product in that it focuses on what the consumer stands to gain from the use of various features of the product.
Howard told a purchasing agent, "Our new system can save your company $60,000 annually in energy, chemicals, and water use compared to the type of sanitation system you're using now."
Howard is focusing on the benefits to the client's company to get his buy in.
Answer: Benefits
Explanation: Benefits is defined as anything that proffers an advantage or profit to someone while minimizing wastage or loss. They are what a consumer hopes to get, feel or achieve when he/she uses a product; benefits also describes the qualities a product offers to satisfy the needs, desires and wants of its users. By highlighting the qualities of the product or system that the purchasing agent might find useful, Howard, the sales person's, statement reflects benefits.
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $140,000, with equal probabilities of 0.5. The alternative riskless investment in T-bills pays 6%. a. If you require a risk premium of 11%, how much will you be willing to pay for the portfolio? (Round your answer to the nearest dollar amount.)
Answer:
$95,000
Explanation:
We are to Consider a risky portfolio, that at the end-of-year cash flow derived from the portfolio will be either $50,000 or $140,000, with equal probabilities of 0.5.
That means;
the portfolio may generate either $50,000 or $140,000
Let the cash flow in the scenario 1 = $50,000
Let the cash flow in the scenario 2 = $140,000
For both scenario; the probability is the same = 0.5
The amount that the investor will be willing to pay for the portfolio is the (Expected cash from portfolio) which can be calculated as follows:
Expected cash from portfolio = [tex]CF_{S1} *p_{(s_1)}+CF_{S2}*p_{(s_2)}[/tex]
where:
[tex]CF_{S1}[/tex] = Expected cash flow at the end of year in scenario 1 = $50,000
[tex]CF_{S2}[/tex] = Expected cash flow at the end of year in scenario 2 = $140,000
[tex]p_{(s_1)}[/tex] = probability of occurrence of scenario 1 = 0.5
[tex]p_{(s_2)}[/tex] = probability of occurrence of scenario 2 = 0,5
NOW;
Expected cash from portfolio = ($50,000× 0.5)+ ($140,000×0.5)
Expected cash from portfolio = $25,000 + $70,000
Expected cash from portfolio = $95,000
Thus, as an investor, I will be willing to pay $95,000 for the portfolio.
On January 1, 2017, Eagle borrows $23,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $7,099, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Round your intermediate calculations and final answers to the nearest dollar amount.) Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.
Answer:
Dr. Cr.
January 1, 2017
Cash $23,000
Account Payable $23,000
December 31, 2017
Account Payable $5,029
Interest Expense $2,070
Cash $7,099
December 31, 2018
Account Payable $5,482
Interest Expense $1,617
Cash $7,099
December 31, 2019
Account Payable $5,975
Interest Expense $1,124
Cash $7,099
December 31, 2020
Account Payable $6,514
Interest Expense $585
Cash $7,099
Explanation:
Installment of $7,099 is divided in interest and principal payments. As Interest payment is decreasing with the balance due is reducing each year due to principal payment with interest payment after paying interest the loan amount is zero after 4th installment. Loan Amortization schedule shows the amortization of loan and interest payment each year and their balances.
Loan Amortization schedule
Date Opening Interest @ 9% Principal Balance
January 1, 2017 $23,000 $23,000
Dec 31, 2017 $23,000 $2,070 $5,029 $17,971
Dec 31, 2018 $17,971 $1,617 $5,482 $12,489
Dec 31, 2019 $12,489 $1,124 $5,975 $6,514
Dec 31, 2020 $6,514 $585 $6,514 $0
Such overhauls occur regularly at two-year intervals and have been treated as a maintenance expense in the past. Management is considering whether to capitalize this year’s $22,000 cash cost in the Cranes asset account or to expense it as a maintenance expense. Assume that the cranes have a remaining useful life of two years and no expected salvage value. Assume straight-line depreciation.
Answer:
There are no requirements in the question,find them below:
Determine the amount of additional depreciation expense Webb would recognize in 2016 and 2017 if the cost were capitalized in the Cranes account.
Determine the amount of expense Webb would recognize in 2016 and 2017 if the cost were recognized as maintenance expense.
Determine the effect of the overhaul on cash flow from operating activities for 2016 and 2017 if the cost were capitalized and expensed through depreciation charges.
Determine the effect of the overhaul on cash flow from operating activities for 2016 and 2017 if the cost were recognized as maintenance expense.
Additional depreciation of $11000 for both years
$22000 additional expense would be recognized in the first year and none in the second year.
No impact on cash flow from operating activities in both years
$22000 reduction in cash flow from operating activities
Explanation
If the costs of overhaul were capitalized in cranes account,there would additional depreciation of $11000($22000/2) in both years
If the costs of overhaul were expensed in the first year,the impact on expenses in that year would an increase of $22000 and no impact in the second year.
If the costs of overhaul were capitalized there would be no impact on cash flow from operating activities in both years,however,there would be increase in capital expenditure of $22000 under cash flow from investing activities.
If the costs of overhaul were expensed,there would an reduction of $22000 in cash flow from operating activities in year 1
(a) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200. (b) Bonds payable for $100,000 were retired by payment at their face amount. (c) 5,000 shares of common stock were issued at $13 for cash. (d) Cash dividends declared and paid, $25,000. Prepare a statement of cash flow, using the indirect method of reporting cash flows from operating activities
The Statement of Cash Flows captures the cash transactions for equipment scrapping (non-effective), bond retirement (-$100,000), stock issuance (+$65,000), and dividends (-$25,000). The net cash flow from financing activities is calculated as -$60,000, an outflow. Note that operating and investing activities are not included due to lack of information.
Explanation:Statement of Cash Flows Preparation
When constructing a statement of cash flows using the indirect method, we start with the net income and adjust it for non-cash transactions and changes in working capital. However, as a net income figure is not provided, we'll focus on the given cash flow information:
(a) Equipment with a cost of $60,000 was scrapped with no salvage value. This transaction does not affect the cash flow because the equipment was fully depreciated.(b) $100,000 in bonds payable were retired at face value. This is a cash outflow under financing activities and would be recorded as a decrease of $100,000.(c) 5,000 shares of common stock were issued at $13 per share for cash, resulting in a cash inflow of $65,000 under financing activities.(d) Cash dividends of $25,000 were declared and paid, which is a cash outflow under financing activities.Calculation of Cash Flow from Financing Activities
Proceeds from issuing common stock: $13/share × 5,000 shares = $65,000 (Inflow)
Payment to retire bonds: -$100,000 (Outflow)
Dividends paid: -$25,000 (Outflow)
Net cash flow from financing activities: $65,000 - $100,000 - $25,000 = -$60,000 (Outflow)
Note: Since no beginning cash balance or other operating or investing cash flows are given, we have limited information and only show the cash flows from financing activities.
Eulis Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,190 2 1,090 3 1,540 4 1,900 If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What is the present value at 18 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What is the present value at 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $
Answer:
Present value when I is 10% = $4,437.39
Present value when I is 18% = $3,708.86
Present value when I is 24% = $3,279.93
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow for year 1 = $ 1,190
Cash flow for year 2= 1,090
Cash flow for year 3 = 1,540
Cash flow for year 4 = 1,900
Present value when I is 10% = $4,437.39
Present value when I is 18% = $3,708.86
Present value when I is 24% = $3,279.93
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Final answer:
The present value of future cash flows is calculated by discounting those cash flows back to their value today, using the discount rate, and adding those discounted values together. For Eulis Co.'s investment project, each cash flow is discounted separately for each year, using the formula PV = Cash Flow / (1 + r)^n, where r is the discount rate and n is the number of periods. The process is repeated for each discount rate given to find the overall present value at each rate.
Explanation:
When we talk about the present value of future cash flows, we are essentially looking at how much a series of future payments is worth today, given a specific discount rate. The discount rate reflects the time value of money, essentially the opportunity cost of having money now versus later. To calculate the present value, we apply the following formula for each cash flow:
Present Value (PV) = Cash Flow / (1 + r)n
Where r is the discount rate and n is the number of periods until the payment.
Here are the present value calculations for the cash flows provided by the student at different discount rates:
Year 1 cash flow of $1,190 at 10%: PV = $1,190 / (1 + 0.10)1 = $1,081.82
Year 2 cash flow of $1,090 at 10%: PV = $1,090 / (1 + 0.10)2 = $900.83
Year 3 cash flow of $1,540 at 10%: PV = $1,540 / (1 + 0.10)3 = $1,159.69
Year 4 cash flow of $1,900 at 10%: PV = $1,900 / (1 + 0.10)4 = $1,266.51
Adding up these values, the total present value at a 10% discount rate is: $1,081.82 + $900.83 + $1,159.69 + $1,266.51 = $4,408.85
To find the present values at 18% and 24%, the same method is applied, just changing the discount rate (r) accordingly.
Remember not to round intermediate calculations, and only round your final answer to two decimal places.
If current output is $40b less than Potential GDP, how much would congress need to decrease taxes by to correct this short-run economic fluctuation given that the MPC is 0.75?
Answer:
Reduction in Tax Needed = $ 13.33
Explanation:
Tax Multiplier shows magnitude of change (decrease) in income due to tax change (rise) .
Tax Multiplier = ΔY / ΔT = - MPC / (1- MPC)
Given : Change in Income needed [ΔY] = 40
MPC = 0.75
Putting in formula ;
40 / ΔT = - 0.75 / (1- 0.75)
40 / ΔT = - 0.75 / 0.25
40 / ΔT = - 3
ΔT = - 40/ 3
ΔT = - 13.33
The congress will need to decrease the taxes by $13.33 billion to correct the short-run economic fluctuation.
Here, we will determine the how much of tax collection need to be reduced to correct the short-run economic.
Given Information
Current output = $40 billion < Potential GDP
MPC = 0.75
The tax multiplier shows the magnitude of changes (decrease) in income because of tax change (rise).
The Formula of Tax Multiplier = {ΔY / ΔT = - MPC / (1- MPC)}
40 / ΔT = -0.75 / (1 - 0.75)
40 / ΔT = -0.75 / 0.25
40 / ΔT = -3
ΔT = -40/ 3
ΔT = -13.33
So, the congress will need to decrease the taxes by $13.33 billion to correct the short-run economic fluctuation.
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Any culture is based on values that provide the context within which a society's norms are established and justified. Norms of a culture can be further subdivided into folkways and mores, which govern the social rules of people's actions toward one another. Determine whether each example is a value, folkway, or more.
In this question, the examples are not included. Therefore, we cannot classify them. However, we can still define what folkways and mores are, which will allow you to classify them yourself.
Informal norms (those that are not written laws) are guided by values that are agreed upon by a particular community. These informal norms are further divided into folkways and mores. Folkways are rules that are not particularly offensive to violate, but that are still expected to be respected. On the other hand, while mores are also informal rules, their violation can lead to severe punishments. It can also lead to social sanction or social exclusion.
Cultural norms in societies are divided into folkways and mores, with values underpinning these norms. Folkways govern everyday behavior and do not result in severe punishment if breached, whereas mores dictate moral behavior, violating which can lead to significant consequences. Values are abstract beliefs that motivate and justify these norms.
Explanation:Understanding cultural norms is crucial in analyzing how societies function. Norms are the backbone of societal behavior, dictating how individuals are expected to act in various situations. They are broadly categorized into folkways and mores, both of which play significant roles in maintaining social order. Folkways represent the everyday, habitual behaviors and practices such as manners, dressing customs, and dining etiquette. These are social expectations that, when not followed, might cause mild social discomfort but do not attract serious consequences. On the other hand, mores are deeply ingrained ethical or moral standards that dictate right from wrong in a society. Violating mores often results in severe social sanction or legal penalties, as these norms are considered pivotal to societal well-being and order.
Values, while related, are more abstract and foundational beliefs about what is deemed good or desirable in a society, such as freedom or equality. They provide the overarching reasons why certain norms, including folkways and mores, are upheld. For instance, the value of respect for life underpins mores against murder.
To illustrate: Wearing dark clothing to a funeral is a folkway—it reflects societal expectations for expressing grief and respect, originating from the value of showing solidarity and support for the bereaved. On the other hand, laws against homicide are rooted in mores, stemming from the fundamental value that human life is sacred.
A common excuse for carrying out a morally questionable project is, "If I don’t do it somebody else will." This rationale may be tempting for engineers who typically work in situations where someone else might be ready to replace them on a project.
Do you view it as a legitimate excuse for engaging in projects that might be unethical? In your answer, comment on the concept of responsible conduct developed in this section.
Answer:
It is not a legitimate excuse for engaging in unethical projects
Explanation:
Ensuring scientific integrity and avoiding professional misconduct is a collective role of Scientists and Engineers. Every professional, engineers inclusive, must ensure they stay committed and faithful to the oath of practice they have sworn to. Engineering is an important and learned profession. As members of this profession, engineers are expected to exhibit the highest standards of honesty and integrity. Engineers must perform under a standard of professional behavior that requires adherence to the highest principles of ethical conduct.
Every engineer must be familiar with the code of ethics of the profession, abide by it, and report erring professionals for punitive measures to be taken rather than giving excuses for carrying out an unethical project.
The concept of responsible conduct emphasizes ethical decision making, professional responsibilities, and strict adherence to professional standards and values. Every engineer and professional must take into cognizance all the responsible conducts required by their professions
Engaging into projects that are unethical is not a legitimate excuse as it is against work ethics. Every employee should adhere to high ethical standards. Thus, these are part of responsible conduct.
What do understand by responsible conduct?
The concept of responsible conduct focuses on ethical decision-making, professional obligations, and strict adherence to professional standards and values. All engineers and technicians should consider all the ethics required by their profession.
Ensuring scientific integrity and avoiding professional misconduct is a fundamental role of Scientists and Engineers. All professionals, including engineers, must make sure that they stay committed to their work and to the vows they have made.
Every engineer should familiarize himself with the code of conduct, adhere to it, and report any misconduct to the professional rather than giving excuses for doing wrong.
Engineers and technicians should follow the required code of conduct and ethical standards and be an example for society and for future generations.
Hence, it is not a legitimate excuse to engage in projects that might be unethical.
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La Famiglia Pizzeria provided the following information for the month of October:
a. Sales are budgeted to be $157,000. About 85% of sales is cash; the remainder is on account.
b. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month.
c. Food and supplies purchases, all on account, are expected to be $116,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase.
d. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month.
e. Utilities average $5,950 per month. Rent on the building is $4,100 per month.
f. Insurance is paid quarterly; the next payment of $1,200 is due in October.
g. September sales were $181,500 and purchases of food and supplies in September equaled $130,000.
h. The cash balance on October 1 is $2,147.
Required:
1. Calculate the cash receipts expected in October.
2. Calculate the cash needed in October to pay for food purchases.
3. Prepare a cash budget for the month of October.
Answer:
a
The cash receipts in October are as follows:
Cash Sales:
85% of $157,000
= 0.85 * $157,000
= $133,450
Payments on September credit sales:
$181,500 * 28% * (80 - 75)%
= $181,500 *0.28 * 15%
= $181,500 * 0.28 * 0.15
= $7,623
Payments on October credit sales** 16,485
$157,000 * 70% * (85 - 70)%
$157,000 * 0.7 * 15%
= $157,000 * 0.7 * 0.15
= $16,485
Total cash expected = $133,450 + $7,623 + $16,485 = $157,558
b.
Payments for food purchases is as follows:
September
($130,000 × 0.75) = $97,500
October
($116,000 × 0.25) = 29,000
Total cash needed for June = $97,500 + $29,000 = $126,500
c.
The inventory is as follows:
Beginning balance $2,147
Cash receipts $157,558
Cash available $159,705
The following items will be subtracted:
Food purchases $126,500
Shareholder's Dividend $6,000
Workers’ wages in September $730 ---- 10% of $7,300
Workers’ wages re: October $6,570 --- 90% of $7,300
Utilities $5,590
Insurance $1,200
Rent $4,100
Total disbursements $150,690
Ending balance
= $159,705 - $150,690
= $9,015
Final answer:
La Famiglia Pizzeria expects $149,935 in cash receipts for October, needs $29,000 to pay for food purchases, and a cash budget must include all expected cash inflows and outflows to determine the ending cash balance.
Explanation:
To calculate the cash receipts expected in October for La Famiglia Pizzeria, one must consider both the cash sales and the collections from sales on account. Given the sales are budgeted at $157,000 and 85% is in cash, the cash sales would be $157,000 × 85% = $133,450. The credit sales would be the remaining 15%, which is $157,000 × 15% = $23,550. Of the credit sales, 70% is expected to be collected in the same month, which amounts to $23,550 × 70% = $16,485. Therefore, the total cash receipts for October would be $133,450 (Cash Sales) + $16,485 (Collections from Credit Sales) = $149,935. To calculate the cash needed in October to pay for food purchases, consider that La Famiglia expects to make $116,000 of purchases on account, paying 25% in the month of purchase. Thus, cash needed for purchases in October would be $116,000 × 25% = $29,000. Creating a cash budget for October involves summarizing expected cash inflows and outflows. The beginning cash balance is $2,147, with expected cash sales and collections totaling $149,935. Cash outflows include food purchases ($29,000), salaries and wages to part-time workers (90% of $7,300), monthly withdrawals by the owners ($6,000), utilities ($5,950), rent ($4,100), and an insurance payment ($1,200). Total cash outflows are calculated by adding all these expenses. The ending cash balance will be the initial cash balance plus total cash inflows minus total cash outflows.
Under what conditions could a company artificially increase their current ratio at the end of their accounting reporting period by taking out a short term loan and placing the proceeds in the cash account
Answer:
1) Prompt Submission of invoice
2) Removal of unnecessary assets
3) Bargain for a longer payment period
Explanation:
Current ratio measures the capability of a business or organisation to meet up to its short-term obligations that are due within a period of one year.
Conditions in which a company can increase its current ratio at the end of their accounting period include:
A) Prompt invoice submission:
Invoice should be submitted early to the customers. The more your accounts receivables increase and the quicker money is derived from your sales,the better your current ratio be and you will have much more money.
B) Removal of unnecessary assets:
All business has unproductive assets. Resources that are just lying there and wasting,resources that is not earning anything. It is advisable to dispose them off since they are not adding to your income.
C) Bargain for longer payment period:
Try and negotiate for a longer payment periods with your vendors and ask if you can be given discounts.
Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity? b) Chuck and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per day, what will be their new productivity? c) What will be their unit increase in productivity per hour? d) What will be their percentage change in productivity?
Answer:
Production = 120 boxes
Efforts : 4 people multiply 10 hrs each per day = 40 hr per day
a) Productivity = production per unit time per person = 120/40 = 3 boxes per hr per person
b) new production = 125 boxes per day
New productivity = 125/40 = 3.125 boxes per hr per person
c) unit increase in productivity per hour = (3.125-3) = 0.125 box per hr per person = 0.125 multiply with 4 = 0.5 box per hr
d) percentage change in productivity = [tex](3.125-3) / 3 * 100[/tex] = 4.16%
Multiple Choice Question 131 Wu and Mannis each sell 1/3 of their partnership interest to Patel, receiving $105300 each. At the time of the admission, each partner has a $313200 capital balance. The entry to record the admission of Patel will show a
Answer:
Credit, Patel Capital $210600: Debit Cash or Bank $210600.
Explanation:
There were no talk of revaluation after the admission so it would be treated as Patel bringing capital in cash which is left in the business;
Credit, Patel Capital $210600: Debit Cash or Bank $210600.
Final answer:
The entry to record Patel's admission to the partnership reflects Patel's investment amounting to $210,600, increasing Patel's capital in the partnership and decreasing Wu and Mannis's capital accounts accordingly.
Explanation:
The question involves a scenario where Wu and Mannis each sell 1/3 of their partnership interest to Patel for $105,300 each, and at the time of admission, each partner has a $313,200 capital balance. To record the admission of Patel into the partnership, the accounting entry should reflect Patel's investment in the partnership and the decrease in Wu and Mannis's capital accounts accordingly. Given the amounts mentioned, Patel's total investment would be $210,600 ($105,300 from Wu and $105,300 from Mannis), which would be recorded as an increase in the partnership's capital for Patel and a decrease for Wu and Mannis by their respective sold amounts.
Before beginning to compose a successful business message, you need to collect necessary information by conducting informal or formal research Often the information you collect during the research process helps shape your message. Which questions should you ask yourself in order to avoid frustration and inaccurate messages? Check all that apply. a. What will happen if I don't conduct research? b. What action should the receiver take? c. What does the receiver need to know about this topic? d. How is the receiver to take action? e. Where should I begin my research?
Answer:
Before forming your message you ought to consider what the recipient of the message has to know, what move the beneficiary should make subsequent to accepting your message, how the collector should make a move and when, and what will occur if the collector doesn't make a move.
By asking yourself these inquiries, you will have the option to foresee the exploration essential for the effective creation of your message.
Long reports and complex business issues regularly require formal research strategies.
Think about the accompanying situation and recognize which formal research technique would be proper.
Your division has been approached to order a suggestion at the cost point for a creative programming application. You have to realize how a lot of clients will pay and under what conditions.
Lead a logical investigation. Access conventional sources and electronic sources. Lead essential research for firsthand data.Answer:
The information i need to compose a business message that i should conduct formal and informal research for to help shape the message can be gathered with the questions reflected in all the five options form A) to E)
A)What will happen if I don't conduct research?
B)What action should the receiver take?
C) What does the receiver need to know about this topic
D) How is the receiver to take action?
E) Where should I begin my research?
Explanation:
A)What will happen if I don't conduct research?
A business message is supposed to generate a business transaction. Research play the role of exposing the needs of the receiver that you can meet such that will generate effective demand. If you d not conduct an extensive research, you stand the risk of not meeting the need of the receiver thereby losing a potential business transaction.
B)What action should the receiver take?
The call to action prompt on your message will determine the corresponding action from the receiver. Your message must therefore be structured to end with a CTA in order to direct the receiver's response.
C) What does the receiver need to know about this topic?
This question forms the basis of your synopsis. You will have to filter the information you have gathered and leave only the ones that will serve the receiver in your message body.
D) How is the receiver to take action?
Make sure that your call to action leads to a portal or a system that will make the receiver's response effectively enough to generate a transaction. For instance a CTA phrase like shop now on your message body should have an embedded link that sends the receiver to your website.
E) Where should I begin my research?
This question will prompt you to draft a research plan that is but efficient and cost effective.
Charlie Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable $65,000, Accounts receivable $33,000, Capital stock $100,000, Cash $50,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $2,000, Inventory $36,000, Notes payable $80,000, Prepaid expenses $5,000, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. How much are total assets?
Answer:
$294,000
Explanation:
Asset are resources controlled and owned by a company from which future economic benefits will flow to the entity.
Asset may be current or non current based on how soon they can be realized. Assets usually have debit balances and it is an element of the balance sheet. Examples of assets include Accounts receivable, cash, land, equipment, prepayments, Inventory etc.
Total Assets
= $33,000 + $50,000 + $36,000 +$5,000 + $123,000 + $47,000
= $294,000
Use the appropriate command on a graphing utility to find the daily production level (to the nearest integer) at which the average cost per player is a minimum. What is the minimum average cost (to the nearest cent)?
Answer:
39: $182.46
Explanation:
In this problem, the daily production level at the lowest average cost per player and the average cost (in $) can be estimated by considering the graph (average cost (y) against production level (x)) in the previous question. By drawing the graph up to scale, it can be deduced from the graph that the lowest average cost is approximately $182.46 and the production level at that point is 39.
please find the answer below
Near the end of 2018, Byron realizes that he has a net short-term capital loss of $13,000 for the year. Byron has taxable income (not including the loss) of $123,000 and is single. He owns numerous stocks that could be sold for a long-term capital gain.
a. What should he do before the end of 2018?
Solution:
Short-term capital loss of $13,000
Taxable income (not including the loss) of $123,000
He has several inventories, which can be marketed for a long-term profit.
Since Byron can only deduct $3,000 for the capital loss he must sell stock at a capital gain of $10,000 to offset the amount over the $3,000 deduction maximum.
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 340 units and of Product B is 680 units. There are three activity cost pools, with total cost and activity as follows: Total Activity Activity Cost Pools Total Cost Product A Product B Total Activity 1 $ 24,860 750 350 1,100 Activity 2 $ 35,040 1,800 1,400 3,200 Activity 3 $ 10,445 130 230 360 The activity rate for Activity 2 is closest to__________.
Answer:
depreciable amor 10.95 dollars per Activity 2 base cost object.
Explanation:
[tex]\frac{Activity\: Pool}{Activity \: base}= Activity\:Rate[/tex]
totoal expected cst: 35,040
activity 2 expected cost dirver Total 3,200
Activity rate: $35,040 cost pool / 3,200 driver expected amount = $10.95
You have just won the lottery and will receive a lump sum payment of $22.57 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 4.84 percent. If you make equal annual withdrawals for the next 30 years, how much can you withdraw each year starting exactly one year from now?
Answer:
I will withdraw $1,441,542.
Explanation:
Wquivalent annual annuity is the amount equally received or paid with investment on a specified rate including interest and its compouding effect as well.
PV of Annuity (NPV) = Payment (EAA) × [ (1 − (1 + r)-n / r ]
22,570,000 = EAA × [ ( 1 − ( 1 + 4.84% )^-30 / 4.84% ]
22,570,000 = EAA × [ ( 1 − ( 1 + 0.0484 )^-30 / 0.0484 ]
22,570,000 = EAA × [ ( 1 − ( 1.0484 )^-30 / 0.0484 ]
22,570,000 = EAA × 15.65685
EAA = 22,570,000 / 15.65685
EAA = $1,441,541.56
EAA = $1,441,542
You have deposited $96,780 into an account that will earn an interest rate of 15% compounded semiannually. How much will you have in the account by the end of 14 years?
Answer:
After 14 years, the compounded value of the invested amount = $733,200.27
Explanation:
What the question is asking us to find is the future value of an amount that is invested over a period of 14 years, compounded at 15% semiannually.
The formula is:
[tex]FV= PV(1 + \frac{i}{n} )^{nt}[/tex]
where ;
FV = Future value
PV = present value (principal)
i = nominal interest
n = compounding frequency in a year
t = total number of years.
Note: for investments that are compounded annually, n = 1, because compounding is once in a year, for those compounded semiannually, n=2, because compounding is twice in a year, for compounding done quarterly, n = 4 because there are four quarters in a year and so on.
Putting, the values into the equation above;
[tex]FV=PV(1 + \frac{r}{n}) ^{nt} \\[/tex]
[tex]= 96,780(1 + \frac{0.15}{2} )^{(2*14)} = 96,780 (1 + 0.075)^2^8\\ = 96,780 (7.5759882436) = 733,200.27[/tex]
= $733,200 (to the nearest dollar)
On January 1, 2020, Carter Company makes the two following acquisitions. 1. Purchases land having a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $337,012. 2. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $250,000 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Carter Company for the two purchases on January 1, 2020. (b) Record the interest at the end of the first year on both notes using the effective-interest method.
Carter Company recorded two journal entries on January 1, 2020. The first entry was for the acquisition of land using a promissory note, and the second entry was for the acquisition of equipment using a promissory note. Both entries include discounts on the notes payable.
On January 1, 2020, Carter Company made two acquisitions. The first acquisition was the purchase of land with a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note with a face amount of $337,012. To record this acquisition, Carter Company would make the following journal entry:
Debit Land $200,000Credit Notes Payable $337,012Credit Discount on Notes Payable $137,012 ([$337,012 - $200,000])The second acquisition was the purchase of equipment by issuing a 6%, 8-year promissory note with a maturity value of $250,000. To record this acquisition, Carter Company would make the following journal entry:
Debit Equipment $250,000Credit Notes Payable $250,000Debit Interest Expense $13,125 ([$250,000 x 6%])Credit Discount on Notes Payable $113,125 ([$250,000 - $136,875])For more questions on Entries
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Final answer:
To record the land and equipment acquisitions on January 1, 2020, Carter Company would make two journal entries. They would also record the interest at the end of the first year using the effective-interest method.
Explanation:
To record the two purchases on January 1, 2020, Carter Company would make the following journal entries:
a) Land acquisition:
Debit: Land $200,000Credit: Notes Payable $337,012b) Equipment acquisition:
Debit: Equipment $250,000Credit: Notes Payable $250,000To record the interest at the end of the first year on both notes using the effective-interest method:
a) Interest on land note:
Debit: Interest Expense $16,851 ($337,012 x 11% x 1/12)Credit: Notes Payable $16,851b) Interest on equipment note:
Debit: Interest Expense $15,000 ($250,000 x 6% x 1)Credit: Notes Payable $15,000Refer to information in E33-5 for Shadee Corp. It expects the following unit sales for the third quarter: July 625 August 490 September 450 Sixty percent of Shadee’s sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 45 percent is collected during the following month, and 5 percent is never collected. Required: Calculate Shadee’s total cash receipts for August and September.
Answer:
Explanation:
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An automobile, having an original value of $18,000 when new, depreciates at a rate of 18% per year. Determine, to the nearest tenth of a year, how long it takes for the value of the automobile to decrease to $1,000.
Answer:
14.6 years
Explanation:
Applying an early depreciation rate 'r = 18%', the value of an automobile originally valued at $18,000, after 't' years, is given by:
[tex]V(t)=\$18,000*(1-r)^t}[/tex]
The number of years required for which V(t) = $1,000 is:
[tex]\$1,000=\$18,000*(1-0.18)^t\\ln(\frac{1,000}{18,000})=t*ln(0.82)\\ t=\frac{ln(0.05555555)}{ln(0.82)} \\t=14.6\ years[/tex]
It will take 14.6 years for the value of the automobile to decrease to $1,000.
Final answer:
To find out how long it takes for an automobile, originally valued at $18,000 and depreciating at 18% per year, to reach a value of $1,000, the formula for exponential decay is applied, revealing it would take about 16.7 years.
Explanation:
The question involves finding out how long it takes for the value of an automobile to decrease to $1,000, given that its original value is $18,000 and it depreciates at a rate of 18% per year. This can be solved using the formula for exponential decay, which is V = P[tex](1 - r)^t[/tex], where V is the final value, P is the principal amount (original value), r is the rate of depreciation, and t is the time in years. Plugging in the values gives us $1,000 = $18,000[tex](1 - 0.18)^t[/tex].
To solve for t, we rearrange the formula to t = log(V/P) / log(1 - r). Substituting the numbers in gives us t = log(1,000/18,000) / log(0.82), which calculates to t ≈ 16.7 years. So, it will take approximately 16.7 years for the automobile's value to decrease to $1,000.
Presented here are the components in Bradley Company’s multi-step income statement for 2018 and 2019. Determine the missing amounts. Net Sales Cost of Gross Operating Net Revenue Goods Sold _Margin Expenses Income FY 2018 $73,000 (a) $34,000 (b) $16,500 FY 2019 (c) $86,000 $53,500 $41,000 (d)
Answer:
See explanation section.
Explanation:
Requirement A
2018
Net sales 73,000
Less: Cost of goods sold 39,000 (Note- A)
Gross profit 34,000
Less: Operating expense 17,500 (Note- B)
Net income 16,500
Note - A = (Net sales - Cost of goods sold) = Gross profit
73,000 - Cost of goods sold = 34,000
Or, 73,000 - 34,000 = Cost of goods sold
Or, 39,000 = Cost of goods sold
Cost of goods sold = 39,000.
Note - B = Gross profit - Operating expense = Net income
Or, 34,000 - Operating expense = 16,500
Or, 34,000 - 16,500 = Operating expense
Or, 17,500 = Operating expense
Operating expense = 17,500.
Requirement B
2019
Net sales $139,500 (Note - C)
Less: Cost of goods sold $86,000
Gross profit $53,500
Less: Operating expense $41,000
Net income $12,500
Note - C = (Net sales - Cost of goods sold) = Gross profit
Or, Net sales - $86,000 = $53,500
Or, Net sales = $86,000 + $53,500
Net sales = $139,500
The net income of 2019 is less than the 2018 net income.
The University of Chicago Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). The following data (in thousands) pertain to 2014:
Direct materials and supplies purchased on credit $800
Direct materials used 710
Indirect materials issued to various production departments 100
Direct manufacturing labor 1,300
Indirect manufacturing labor incurred by various production departments 900
Depreciation on building and manufacturing equipment 400
Miscellaneous manufacturing overhead incurred by various production departments (ordinarily detailed as repairs, photocopying, utilities, etc.) 550
Manufacturing overhead allocated at 160% of direct manufacturing labor costs?
Cost of goods manufactured 4,120
Revenues 8,000
Cost of goods sold (before adjustment for under- or over-allocated manufacturing overhead) 4,020
Inventories, December 31, 2013 (not 2014): Materials Control 100 Work-in-Process Control 60 Finished Goods Control 500
1. Prepare an overview diagram of the job-costing system at the University of Chicago Press.
2. Prepare journal entries to summarize the 2014 transactions. As your final entry, dispose of the year-end under- or over-allocated manufacturing overhead as a write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted.
3. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.
4. How did the University of Chicago Press perform in 2014?
Answer:(1) in the diagram, the manufacturing overhead is from indirect cost pool, direct manufacturing labour cost is from under cost allocation base,indirect and direct cost is from under cost object and direct materials and direct manufacturing labour is from under direct cost (2) journal entry total Dr : $25,060, Cr total $25,060 (3) materials inventory controlbalance c/d $90, work in process inventory control balance c/d $2,050, finished good inventory control balance c /d $600 (4) The university of Chicago press performed well in the period under review
Explanation:
Indirect cost pool. Manufacturing overhead
|
Cost Allocation Base. Direct manufacturing
Labour cost
|
Cost object. Allocated manufacturing overhead cost
Direct cost
|
Direct cost. Direct materials, Direct manufmanufacturing Labour
In this diagram, the manufacturing overhead is from indirect cost pool, direct manufacturing labour cost is from under cost allocation base, indirect and direct cost is from under cost object and direct manufacturing labour is from under direct cost
(2)
Journal entry will be
Dr: materials inventory control $800, Cr : Account payable control to record purchase of direct materials $800
Dr : work in process inventory control $710, manufacturing overhead $100, Cr: materials inventory control $810
Dr: work in process inventory control $1,300, manufacturing overhead control $900,Cr : wages payable $2,200 to record manufacturing labour
Dr: Manufacturing overhead control $400,Cr : Accumulated depreciation building and manufacturing equipment $400 to record depreciation of building and equipment
Dr: Manufacturing overhead control $550,Cr : miscellaneous account $550 to record miscellaneous factory overhead
Dr: work in process inventory control $2,080, Cr : Applied manufacturing overhead $2,080 to assign manufacturing overhead to work in process based on direct manufacturing labour
Dr:Finished goods inventory control $4,120,Cr: work in process control $4,120
Dr: Account Receivable inventory control or cash $8,000, Cr : Sales revenue $8,000 to record sales revenue
Dr: Cost of good sold $4,020, Cr: Finished good Inventory control $4,020 to record the cost of good sold
Dr: Applied manufacturing overhead $2,080, Cr: manufacturing overhead control $1,950, cost of good sold $130 to adjust for over application of manufacturing overhead
(3) The T Account is as follows
Materials inventory control
Dr. Cr
$ $
Material control 100. Materials inventory 810
Direct materials purchase 800. Balance c/d 90
----------- -----------
900. 900
--------------- ---------------
Work in process inventory control
Dr. Cr
$ $
Work in process control 60. Finished good Inventory 4,120
Work in process inventory control 710
Direct materials Labour. 1,300
Balance c/d 2,050
------------- -------------
4,120. 4,120
--------------- ----------------
Finished good Inventory control
Dr. Cr
$ $
Finished good control 500. Under or over allocated overhead 4,020
Cost of good manufactured 4,120. Balance c/d 600
--------- -----------
4,620. 4,620
------------ --------------
(4) in the period under review, the university of Chicago performed well.
Here's an outline of the information and the steps to complete the task:
Overview of the job-costing system at the University of Chicago Press:
Direct costs:Direct materials and supplies
Direct manufacturing labor
Indirect costs:
Manufacturing overhead (allocated on the basis of direct manufacturing labor costs)
Cost of goods manufactured:
Beginning work-in-process inventory
Direct materials used
Direct manufacturing labor
Manufacturing overhead applied
Less: Ending work-in-process inventory
Cost of goods sold:
Beginning finished goods inventory
Cost of goods manufactured
Less: Ending finished goods inventory
Journal entries to summarize the 2014 transactions:
Record the purchase of direct materials and supplies on credit:
Debit: Direct materials and supplies (800)
Credit: Accounts payable (800)
Record the use of direct materials:
Debit: Work-in-process control (710)
Credit: Materials control (710)
Record the issuance of indirect materials to various production departments:
Debit: Other manufacturing overhead (100)
Credit: Materials control (100)
Record the incurrence of direct manufacturing labor:
Debit: Work-in-process control (1,300)
Credit: Manufacturing wages payable (1,300)
Record the incurrence of indirect manufacturing labor:
Debit: Other manufacturing overhead (900)
Credit: Manufacturing wages payable (900)
Record the depreciation on building and manufacturing equipment:
Debit: Other manufacturing overhead (400)
Credit: Accumulated depreciation (400)
Record the incurrence of miscellaneous manufacturing overhead:
Debit: Other manufacturing overhead (550)
Credit: Accounts payable (550)
Allocate manufacturing overhead at 160% of direct manufacturing labor costs:
Debit: Work-in-process control (2,080)
Credit: Other manufacturing overhead (2,080)
Close the Work-in-Process Control account to the Finished Goods Control account:
Debit: Finished goods control (1,970)
Credit: Work-in-process control (1,970)
Close the Cost of Goods Manufactured account to the Finished Goods Control account:
Debit: Finished goods control (2,150)
Credit: Cost of goods manufactured (2,150)
Record the cost of goods sold:
Debit: Cost of goods sold (4,020)
Credit: Finished goods control (4,020)
Dispose of the year-end under- or over-allocated manufacturing overhead as a write-off to Cost of Goods Sold:
Debit: Cost of goods sold (130)
Credit: Manufacturing overhead applied (130)
These journal entries provide a comprehensive overview of the University of Chicago Press's job-costing system and summarize the 2014 transactions accurately.
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ABC has bonds outstanding that has 25 years left to maturity. The coupon rate is 9%, and coupons are paid semiannually. The bond is currently selling for $908.72 per $1,000 bond. What is the cost of debt
Answer:
The cost of debt is 10.04%
Explanation:
The cost of debt is also another way of a yield to maturity of a bond so therefore we will calculate the yield to maturity for the following problem to get the cost of debt therefore using the following formula:
Yield to maturity =[(face value/current value)(1/period to maturity)] -1
where the face value is $1000 the original bond price
current value is the value of the bond which is $908.72 which its currently selling for.
period to maturity is the period of which the bond took to mature which is not specified but we know a bonds price is valuated every year so it will be 1 year.
now we substitute to the above mentioned formula :
Yield to maturity = ($1000/$908.72)(1/1) - 1 then compute
Yield to Maturity = 0.1004489832 then we multiply by 100 for percentage
Yield to maturity = 10.04% rounded off to two decimal places,
we know the cost of debt is the interest rate at which entities pay over their loans or debts, so in this case that is the yield to maturity of a bond therefore the cost of debt is 10.04%