Venus Inc. recently borrowed $750,000 from its bank at a simple interest rate of 10 percent. The loan is for six months. The loan agreement requires the interest to be added to the amount borrowed and the total amount to be repaid in monthly installments. What is the loan's effective annual rate (EAR)?
A. 18.18%
B. 17.50%
C. 18.32%
D. 14.12%
E. 16.94%
Answer: C
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Cameron Dunphee runs the marketing department of a large electronics firm. This firm operates in an extremely competitive business environment. Cameron wants to ensure that he is involved in all the daily decisions and that there is a clear chain of communication between himself and his marketing employees. He believes that his extensive marketing experience makes him the best person for making all the major marketing decisions. Cameron believes all employees should act together as a cohesive unit and know their roles. Under Cameron Dunphee, the marketing department most likely has a _______________ structure
A. decentralized B. informal C. demoralizing D. opportunistic E. centralized
Tremble Company manufactures outdoors wear for women. During 2014, the company reported the following items that affected cash. Required: Indicate whether each of these items is a cash flow from operating activities (O), investing activities (I), or financing activities (F). _____A. Paid cash for supplies _____B. Purchased equipment by paying cash _____C. Collected cash on account from customers
_____D. Paid dividends to stockholders _____E. Paid suppliers for fabric _____F. Borrowed money from a bank on a long-term note _____G. Paid interest to bank on the note _____H. Paid wages to employees _____I. Sold shares of common stock to new stockholders Fill in the blank(s) with correct word
Many of the employees ____ with the new reorganization
A) agree B) agrees
On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the appropriate journal entry to record the issuance of the note?
A. Debit Notes Payable $250,000; credit Cash $250,000. B. Debit Cash $287,258; credit Interest Payable $37,258; credit Notes Payable $250,000. C. Debit Cash $250,000; debit Interest Expense $37,258; credit Notes Payable $287,258. D. Debit Cash $37,258; credit Notes Payable $37,258. E. Debit Cash $250,000; credit Notes Payable $250,000.