XYZ Bank loaned cash to a customer on October 1, Year 1. The…
XYZ Bank loaned cash to a customer on October 1, Year 1. The note receivable had a principal amount of $65,000, 4% annual interest rate, and a term of five-months. How much interest income would be reported on the Year 1 income statement dated December 31? [Amount1] How much cash interest would be collected in Year 1? [Answer2] How much interest income would be reported on the Year 2 income statement, assuming no other sources provided interest during the year? [Answer3] How much cash interest would be collected in Year 2? [Answer4] Formula(s): Principal x Monthly Interest x Months in Period
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Suppose that the population standard deviation for the number of sick days taken in a year while working at a department store is equal to 3 days. Two department stores (Macy’s and Kohl’s) want to investigate their own sampling distributions of the sample mean, so they each select random samples of their employees. Macy’s is able to collect information on 1,000 employees whereas Kohl’s collects information on 5,000 employees. Which is TRUE when comparing the standard deviations of the distributions of the sample means for each company?
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