On April 1, 2012, Allen Company signed a $100,000, one-year, 6 percent note payable. At due date, March 31, 2013, the principal and interest will be paid. Interest expense and interest receivable should be reported on the income statement (for the year ended December 31, 2012) as .

A) $6,000.
B) $3,000.
C) $4,500
D) $1,500

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Brokers such as paypal benefit online businesses because they do not charge fees like credit cards. they deliver the money to the business immediately. they cannot store credit card numbers. the business does not have to get an account with credit-card companies.

A. what is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? market equilibrium rental price is $ per month. market equilibrium quantity is apartments. b. if the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage?