Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can uou please answer both images . The assignment requires you to ability to calculate bond prices. Last year, The Harvest Time Corporation sold $40,000,000

can uou please answer both images . image text in transcribed
image text in transcribed
The assignment requires you to ability to calculate bond prices. Last year, The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon, fifteen-year maturity, $1,000 par value, AA-rated; noncallable bonds to finance its business expansion. Currently, investors are demanding a yield of 8.5% on similar bonds. If you own one of these bonds and want to sell it, how much money can you expect to receive on it? Your answer should be of the following format: Mode: P/Y ?; C/Y = ? FV IY PMT Input: N PV ? ? ? Key: Output ? Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 79,000 units of product: net sales $1,580,000; total costs and expenses $1,637,000; and net loss $57,000. Costs and expenses consisted of the following. RESOURCES 2 Fixed Total Variable -6 $486,000 90,000 56,000 $483,000 $969,000 Cost of goods sold 430,000 520,000 Selling expenses sessment 12 92,000 148,000 Administrative expenses uestion 41 Choice 73 $1,005,000 $1,637,000 $632,000 Management is considering the folowing independent altematives for 2017. Choice 88 Choice 177 1. Increase unit selling price 30 % with no change in costs and expenses 2. Change the compensation of salespersons from fixed annual salaries totaling $203,000 to total salaries of $37,000 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 (a) Compute the break-even point in dollars for 2016. (Round contribution margin ratio to 2 decimal places e.g. 0.25 and final answer to 0 decimal places, e-g. 2,510.) ore asults by Study 1647541 Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action for 2017. (Round contribution margin ratio to 4 decimal places e-g. 0.2510 and final answers to 0 decimal places, e.g. 2,510.) Break-even point 1525460 2. Change compensation 3. Purchase machinery Version 4.24.15.6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren

1st Extended Canadian Edition

1118878418, 9781118878415

More Books

Students also viewed these Accounting questions