Your company has received a $50,000 loan from an industrial finance company. The

Question

Your company has received a $50,000 loan from an industrial finance company. The annual payments are $6,202.70. If the company is paying 9 percent interest per year, how many loan payments must the company make? 19 15 13 12 All of the following statements about balance sheets are true except: assets are reported at historical cost. a balance sheet reports a company?s financial position at a specific point in time Assets - Liabilities = Shareholders? Equity balance sheets show average asset balances over a one - year period Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150.000; Interest Expense = $30.000; Marketing Expenses = $80,000; and Taxes = $300,000; Rogues operating profit margin is equal to 36.67% 50.00% 25.67% 35.67%

Explanation / Answer

Hi,

Please find the detailed answer as follows;

Part A:

Operating Profit Margin = (Operating Profit)/Sales*100 = (3000000 - 1500000 - 170000 - 150000 - 80000)/3000000*100 = $36.67 (Option A)

------

Part B:

Option D is the correct answer.

--------

Part C:

PV = 50000 (indicates the amount of loan)

Rate = 9% (indicates rate)

PMT = 6202.70 (indicates annual payment)

FV = 0 (indicates face value, if any)

Nper = ? (indicates years)

Period = Nper(Rate,PMT,PV,FV) = Nper(9%,6202.70,-50000,0) = 15 Years (Option B)

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.