Answer:
we need to use excel for this exercise, see attached image for charts and calculations. In order to calculate the standard deviation, I used the STDEV function
Explanation:
On June 1, 20X1, Conner Company, a new firm, paid $5,880 rent in advance for a seven-month period. The $5,880 was debited to the Prepaid Rent account. On June 1, 20X1, the firm bought supplies for $7,150. The $7,150 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $2,900 were on hand. On June 1, 20X1, the firm bought equipment costing $47,520. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation. Prepare end-of-June adjusting entries for Conner Company.
A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account. A related account is Supplies Expense, which appears on the income statement.
No Account and explanation Debit Credit
1. Rent expense ($4,300/5) $860
Prepaid rent $860
(To record adjusted rent expense)
2. Supplies expense (7,250-2,950) $4,300
Supplies $4,300
(To record adjusted supplies)
3. Depreciation expense $460
[(44,160/8)/12]
Accumulated depreciation $460
(To record depreciation)
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Question Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit.
Answer:
Deposited amount will decrease by 1% and $2,000
Explanation:
Inflation rate will effect the value of money due to decrease in purchasing power of the currency holder.
We will use following formula to calculate the impact
Nominal rate = Real interest rate + Inflation rate
5% = Real interest rate + 6%
Real interest rate = 5% - 6% = -1%
The deposited amount will be decreased by 1%.
Deposit value = $200,000 x ( 1 - 1% ) = $198,000
Decrease in value = $200,000 - $198,000 = $2,000
Question 1 of 10
What is an example of a fixed expense?
A. Buying a new holiday sweater
B. Replacing a flat tire
C. Paying a cell phone bill
D. Eating at a nice restaurant
An example of a fixed expense is paying a cell phone bill. The Option C is correct.
What is considered as a fixed expense in accounting?Fixed expenses are those that do not change in response to the level of activity. These expenses are usually fairly consistent, with little variation from month to month. Advertising, dues, equipment leases, insurance, and rent are examples of fixed expenses.
Within a certain range of activity, expenses tend to be fixed, but they vary outside of that range. For example, a company may rent fixed-cost administrative space; however, sales double, necessitating the addition of more staff than can fit in the existing facility, necessitating an increase in rent expense to accommodate the additional staff.
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explain the components of National income
National income is the total value of all goods and services produced within a country's borders, including both goods produced by domestic firms and foreign firms operating within the country. The components of national income include:
1. Wages and salaries: This includes the income earned by employees for their work, including both hourly wages and salaries.
2. Profits: Profits are the income earned by businesses after they have paid all their expenses, including salaries, rent, and other costs.
3. Rent: Rent is the income earned by landlords for the use of their property, such as land or buildings.
4. Interest: Interest is the income earned by lenders for lending money to borrowers, such as banks or other financial institutions.
5. Dividends: Dividends are the income earned by shareholders for their ownership of a company's stock.
6. Indirect taxes: Indirect taxes are taxes that are levied on goods and services, such as sales taxes or value-added taxes.
7. Subsidies: Subsidies are payments made by the government to businesses or individuals to encourage certain activities, such as the production of certain goods or services.
8. Depreciation: Depreciation is the decrease in value of an asset over time, such as a piece of machinery or a building.
Together, these components make up the total national income of a country, and they provide a measure of the overall health and productivity of the economy.
A singular intended objective of project is part of a macro-plan? True or false
Answer:
True
Explanation:
In the world of weight loss, there are TONS of diet plans out there. Some work. Some don’t. You can count calories. Or points. Or carbs. Or you can track one of the most countable elements: macros. Macros or “flexible dieting” is all the rage, but is it a proven method to healthy living? Here’s the skinny on macro counting
hope it helps you:)
Garcia Company had the following selected transactions during the year. (A partial chart of accounts follows:
Cash; Accounts Receivable; Prepaid Insurance; Wages Payable; Unearned Revenue; Revenue;
Wages Expense; Insurance Expense; Depreciation Expense.)
Jan. 1 The company paid $6,000 cash for 12 months of insurance coverage beginning immediately for
the calendar year.
Aug. 1 The company received $2,400 cash in advance for 6 months of contracted services beginning
on August 1 and ending on January 31.
Dec. 31 The company prepared any necessary year-end adjusting entries related to insurance coverage
and services rendered.
a. Record journal entries for these transactions assuming Garcia follows the usual practice of recording a
prepayment of an expense in an asset account and recording a prepayment of revenue received in a
liability account.
b. Record journal entries for these transactions assuming Garcia follows the alternative practice of recording
a prepayment of an expense in an expense account and recording a prepayment of revenue
received in a revenue account
According to the data of the Garcia Company, the journal entry is Insurance Expenses (Dr.) $ 6000 and Cash (Cr.) $ 6000.
What do you mean by prepaid Insurance?Prepaid insurance defines as to insurance premiums that are paid in advance. A premium is a recurring payment made to a provider in exchange for the benefit of insurance coverage.
When insurance is paid in advance before the due date, this amount is known as prepaid insurance.
Here,
The journal entries are as follows:
Date Particulars Debit Credit
Jan 1. Insurance Expenses $ 6000
Cash $ 6000
(Being payment of Insurance)
Aug 1. Cash $ 2400
Revenue $ 2400
(Being advance revenue received)
Dec 31. No entry
Dec 31. Revenue $ 400
Unearned revenue $ 400
(Being adjustment entry to recognize service revenue)
Therefore, the given data of the Garcia Company, the journal entry is Insurance Expenses (Dr.) $ 6000 and Cash (Cr.) $ 6000.
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Which type of car insurance policy usually has the highest premium?
Comprehensive car insurance policy usually has the highest premium among all the other types of car insurance policies. Hence the correct answer is A.
Comprehensive car insurance is an optional coverage that provides protection against damage to your vehicle from various risks such as theft, vandalism, fire, and natural disasters. It also covers damages to your car from collisions with animals. Comprehensive car insurance provides broader coverage than liability insurance, including damage to both other people and property and your own car, making it more expensive.
Therefore, comprehensive car insurance policy usually has the highest premium among all the other types of car insurance policies. Hence the correct answer is A.
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Which one of the following expenses would be denied as entertainment and would not be deductible?
Select one:
a. Sandwiches and coke were served during a 3 hour meeting that went from 11am - 2pm
b. The taxpayer employed a tea lady to serve staff hot drinks and biscuits, costing $18,000 in wages and $5,000 for food and drink.
c. Taxpayer paid entertainment allowances to his staff
d. The manager took clients to lunches at a restaurant costing $5,800
The expenses that would be denied as entertainment and would not be deductible is, “The manager took clients to lunches at a restaurant costing $5,800.” Therefore, option D is the correct option.
What are expenses?Expenses are the expenditures a person or an organization makes in order to fulfill either their needs and requirements or their luxuries. The expenses generally occur from income or savings. The expenses should be aligned with the amount of income and the savings of the individual in order to maintain healthy financial health. More expenses than income can cause financial burdens or debts.
The manager brought clients to lunches at a restaurant that cost $5,800; these costs would be disallowed as entertainment and not deductible. As a result, choice D is the best one.
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Which of the following actions is a good example
of protecting sensitive information? Check all of
the boxes that apply.
using a paper shredder to discard documents
that contain personal medical information
keeping patient files in a secure electronic file
system with limited access
maintaining a confidential patient consultation
area in a doctor's office
discussing private matters with patients in the
waiting room
Answer:
A,B,C
Explanation:
Answer:
“Using a paper shredder to discard documents that contain personal medical information”, “Keeping patient files in a secure electronic file system with limited access” and “Maintaining a confidential patient consultation area in a doctor’s office”
Explanation:
The rate of unemployment when the economy is not in recession, meaning it is producing full-potential GDP, is called the natural rate of unemployment (u*). If the rate of unemployment is below this, the economy is experiencing BLANK cyclical unemployment.
Fill in the Blank:
Negative or Positive?
Answer:negative
Explanation:
I just got it right
This incentive contract is based on a target price of $260,000 withexpected costs of $240,000 and target incentive of $5,000.Thecontract specifies a share ratio of 80/20. If the actual cost is $249,000, what is the seller's final fee?A.$5,000,B.$13,800,C.$11,000,D.$7,200
The seller's final fee is $7,200. which is option D. based on the incentive contract.
The seller's final fee can be calculated by subtracting the target cost from the actual cost and multiplying it by the share ratio.
First, let's calculate the difference between the actual cost and the target cost:
Actual cost - Target cost = $249,000 - $240,000 = $9,000
Next, we multiply the difference by the share ratio:
$9,000 * (80/100) = $7,200
Therefore, the seller's final fee is $7,200.
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Question: MRP II did not replace or improve MRP. Rather, it expanded the scope of materials planning to include
capacity requirements planning, and to involve other functional areas of the organization.” Compare and
contrast MRP and MRP II.
Answer:
MRP and MRP II
MRP (materials requirement planning) and MRP II (materials requirement planning II) are information management systems for scheduling and billing materials required in production.
MRP is the first generation information system for materials planning, while MRP is a more advanced software that has added functional features.
MRP manages inventory, reduces cost, and optimizes production activities with increased efficiency. These benefits are also obtained with MRP II. In addition, MRP II offers Master Production Scheduling (MPS) that eliminates production bottlenecks. MRP II also features Purchasing Management to ensure steady flow of materials. Finally, MRP II incorporates capacity planning in order to meet customer demand.
Therefore, MRP II can be said to be more strategic and shows advanced features than MRP.
Explanation:
MRP and MRP II have both eased the tasks of production managers, enabling them to efficiently manage production materials. They have also made it easier for production managers to organize materials before the actual production takes place. However, the two materials requirement planning softwares can be integrated with Advanced Planning and Scheduling Software to increase production efficiencies.
Round Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 180,000 shares of stock outstanding. Under Plan II, there would be 130,000 shares of stock outstanding and $1.925 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. a. If EBIT is $400,000, what is the EPS for each plan
Answer:
Explanation:
Under Plan I, the EPS would be calculated as:
= EBIT / Shares of stock outstanding
= $400,000 / 180,000 shares
EPS = $2.22
Under Plan II, the EPS will be calculated as thus:
We should note that the EBIT in this case will be reduced by interest payment. This will be:
= $400000 - 8% (1.925 million)
= $400000 - 0.08($1,925,000)
= $400,000 - $154000
= $246,000
Then, the EPS for plan II will be calculated as:
EPS = $246,000 / 130,000 shares
EPS = $1.89
what is the yearly salary or hourly wage of a librarian?
Answer:
$61,920, or $29.77
Explanation:
Answer:
The average hourly rate for Librarian ranges from $27 to $38 with the average hourly pay of $32.
Explanation:
The average salary for a Librarian is $58515 per year in United States.
Salaries start from $34630 and go up to $93050.
Parents put $ 1000 into a savings account at the birth of their daughter. When their daughter is 18 years old, the money in the account is $2936.77. What is the interest rate compounded monthly?
Answer:
408.611%
Explanation:
FIVE
Your company’s Chief Finance Officer (CFO) recently read about the notion that adjusting the capital
structure can increase the market value of a firm drastically. The CFO liked this idea and has asked you
to do a preliminary study on this issue; he will entertain any proposal to increase the debt of the company
up to a maximum debt /equity (D/E) ratio of 30 percent.
Your company is currently very conservative with its leverage and has a D/E ratio of only 10 percent.
You estimate the beta of your stock to be 1.05, based on the last five’s data. The marginal tax rate is 30
percent. The long –term Treasury bond rate is 8 percent and market risk premium is 5 percent.
From an investment banker, you obtain the approximate relationship between the pre-tax cost of debt and
the D/E ratio as follows
% in x 125 100 75 50 25 0 -25
% in y -25 0 25 50 75 100 125
Page 6 of 6
In addition from the statement of changes in cash flows, you found that Earnings before Interest and Tax
to be Sh. 120 Million, depreciation to be Sh. 10.5 million, Capital Spending to be Sh. 15 million and the
net working capital is zero. The growth rate on future cash flows is estimated to be constant at 6 percent
p.a.
Required
(i) What is the total market value of the firm today when D/E is 10 percent
(ii) What D/E ratio would you advise the firm
1. The total market value of the firm today when D/E is 10 percent is 492.15 million. 2. we would advise the firm to increase its D/E ratio to 30 percent to maximize its market value.
1. To calculate the total market value of the firm today, we can use the following formula:
Total Market Value = Equity Value + Debt Value
Equity Value = Earnings before Interest and Tax (EBIT) * (1 - Tax Rate) / Cost of Equity
Debt Value = Debt * Cost of Debt
Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium
Cost of Debt can be estimated using the relationship provided in the question. When D/E ratio is 10 percent, the cost of debt is 10 percent.
Plugging in the values, we get:
Equity Value = 120 * (1 - 0.3) / (0.08 + 1.05 * 0.05) = 430.63 million
Debt Value = 0.1 * 430.63 / (1 - 0.3) = 61.52 million
Total Market Value = 430.63 + 61.52 = 492.15 million
(ii) To advise the firm on the optimal D/E ratio, we can use the formula for the weighted average cost of capital (WACC):
WACC = Weight of Equity * Cost of Equity + Weight of Debt * Cost of Debt * (1 - Tax Rate)
To maximize the firm's market value, we need to find the D/E ratio that minimizes the WACC.
We can use the provided relationship between the pre-tax cost of debt and the D/E ratio to estimate the cost of debt for different D/E ratios. We can then calculate the WACC for each D/E ratio using the formula above.
Plotting the estimated cost of debt and WACC against the D/E ratio, we can see that the minimum WACC occurs at a D/E ratio of 30 percent.
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The goods and services produced by an economic unit through ______ can be exchanged for a full range of desired products produced by other economic units.
Answer: specialization
Explanation:
When the goods and services are generated by an economic unit via specification so they can be exchanged.
The following information related to the economic unit is
In the economy, the production, consumption & exchange should be carried out via 3 economic units i.e. firm, household, and the government.It involved the decisions related to the production i.e. what to produce, how to produce, and what prices should be charged.Therefore we can conclude that When the goods and services are generated by an economic unit via specification so they can be exchanged.
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In a many-worker economy the consumption possibilities line touches the production possibility curve
At one point, the PPC curve crosses the consuming possibility curve.
That is where the two curves meet at that moment.
What does the phrase "consume" mean?Institutional units consume up products or services through the activity of consuming, which can be either final or intermediary. It is the utilization of products and services to fulfill personal or social needs and desires.
What kinds of consumption are there?Consumption may be grouped into two types: depersonalized consumption and personalized consumption. Depersonalized ingestion occurs when commodities are produced by a world organization that is only dimly comprehended. The distinction between business and non-market-based consumption is another.
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Flaherty Electric has a capital structure that consists of 70 percent equity and 30 percent debt. The company's long-term bonds have a before-tax yield to maturity of 8.4 percent. The company uses the DCF approach to determine the cost of equity. Flaherty's common stock currently trades at $45 per share. The year-end dividend (D 1) is expected to be $2.50 per share, and the dividend is expected to grow forever at a constant rate of 7 percent a year. The company estimates that it will have to issue new common stock to help fund this year's projects. The flotation cost on new common stock issued is 10 percent, and the company's tax rate is 40 percent. What is the company's weighted average cost of capital, WACC? A. 10.30% B. 10.73% C. 7.48% D. 9.89% E. 11.31%
Answer:
Option B is correct
WACC= 10.73%
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund
WACC = (Wd×Kd) + (We×Ke)
After-tax cost of debt = Before tax cost of debt× (1-tax rate)
Kd-After-tax cost of debt
Ke-Cost of equity
Wd-Weight f debt
We-Weight of equity
After tax cost of debt = (1-T)× Before-tax yield on debt
= (1-0.4)× 8.4
=5.04%
Cost of equity = Do/P(1-F) + g
D= Year 1 dividend= 2.50
P- price of stock = 45, F= Flotation cost= 10%, g= growth rate= 7%
Cost of equity =( 2.50/[(1-0.07)× 45]) + 0.07= 13.2%
WACC = (Wd×Kd) + (We×Ke)
We= 70%, Wd= 30%
WACC= (13.2%× 70%) + (5.04%× 30%)
= 10.73%
WACC= 10.73%
The difference between a nominal interest rate and the rate of inflation is the ___.
A. annual percentage yield
B. nominal interest rate
C. real interest rate
D. compound interest
SUBMIT
ans is real interest rate
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $20,200 for March and $39,200 for April. What are the budgeted cash receipts from sales on account for April? $fill in the blank 1
Answer: $24950
Explanation:
The budgeted cash receipts from sales on account for April will be calculated thus:
March sales = 75% × $20200 = $15150
April sales = 25% × $39200 = $9800
Therefore, the budgeted cash receipt from sales on account for April will be:
= $15150 + $9800
= $24950
Select the correct answer.
Some social workers work in hospitals.
A. True
B. False
Answer:
A
Explanation:
Using a plantwide factory overhead rate distorts product costs when:
A. neither A nor B are true
B. both A and B are true
C. products require different ratios of allocation-base usage in each production department
D. significant differences exist in the factory overhead rates used across different production departments
Using a plantwide factory overhead rate distorts product costs when: C. products require different ratios of allocation-base usage in each production department. D. significant differences exist in the factory overhead rates used across different production departments.
What is plantwide factory overhead rate?Plantwide factory overhead rate can be defined as the rate used by companies or organization to allocate or distribute their production overhead costs to product cost.
Formula for calculating Plantwide factory overhead rate is:
Plantwide factory overhead rate=Total overhead rate/Direct labor hours.
Therefore Using a plantwide factory overhead rate distorts product costs when: C. products require different ratios of allocation-base usage in each production department. D. significant differences exist in the factory overhead rates used across different production departments.
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Compared with diversification based on intangible resources, diversification based on financial resources is: a. less imitable and more likely to create value on a long-term basis. b. more imitable and less likely to create value on a long-term basis. c. less imitable and less likely to create value on a long-term basis. d. more imitable and more likely to create value on a long-term basis.
Answer:
b. more imitable and less likely to create value on a long-term basis.
Explanation:
In Finance, diversification can be defined as an investment technique that focuses on distributing capital or portfolio across various investments.
Basically, the aim of adopting a diversification is to lessen or mitigate the degree of uncertainty of the portfolio by enhancing its high long-term returns.
Diversification helps financial experts or investors to complement or annul the losses associated with an asset class by the benefits of another asset class in a portfolio.
Compared with diversification based on intangible resources, diversification based on financial resources is more imitable or copied by rivals in the industry and less likely to create value on a long-term basis.
Diversification based on intangible resources, includes intellectual property, brand recognition, human resources, patents, customer lists, trademarks, copyrights, and goodwill etc.
Diversification based on financial resources, includes shares, money, bond, gold, debentures, checks, and promissory notes.
Journalize the following transactions of Upton Drugs:
Transactions:
July 8 Received a $180,000, 90-day, 8% note dated July 8 from Miracle Chemical on account.
Oct. 6 The note is dishonored by Miracle Chemical.
Nov. 5 Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Miracle Chemical on Oct. 6.
Required:
Journalize the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest.
Journalizing the transactions of Upton Drugs for the period is as follows:
Journal Entries:July 8 Debit Note Receivable $180,000
Credit Accounts Receivable $180,000
To record the receipt of the 90-day 8% note from Miracle Chemical.Oct. 6 Debit Accounts Receivable (Miracle Chemical) $182,250
Credit Note Receivable $180,000
Credit Interest Revenue $2,250
To record the dishonor of the note at the due date and the accrued interest.Nov. 5 Debit Cash $183,768.75
Credit Interest Revenue $1,518.75
Credit Accounts Receivable (Miracle Chemical) $182,250
To record the receipt on the note with due interest.What are Journal Entries?Journal Entries are made to record business transactions.
Journal Entries identify the accounts involved in each transaction and differentiates the account to be debited from the account to be credited.
Transaction Analysis:July 8 Note Receivable $180,000 Accounts Receivable $180,000
90-day, 8%.
Oct. 6 Accounts Receivable (Miracle Chemical) $182,250 Note Receivable $180,000 Interest Revenue $2,250
Nov. 5 Cash $183,768.75 Interest Revenue $1,518.75 Accounts Receivable (Miracle Chemical) $182,250
Interest Revenue:Oct. 6: Interest Revenue = $2,250 ($180,000 x 8% x 90/360)
Nov. 5: Interest Revenue = $1,518.75 ($182,250 x 10% x 30/360)
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Suppose a stock had an initial price of $71 per share, paid a dividend of $per share during the year, and had an ending share price of $85. Compute the percentage total return
Answer:
The percentage will be "21.48%".
Explanation:
The given values are:
Initial price,
= $71per share
Paid dividend,
= $1.25 per share
Ending share price,
= $85
Now,
The total return will be:
= \(\frac{(Ending \ price - Initial \ price + Received \ dividend)}{Initial \ price}\)
On substituting the values, we get
= \(\frac{(85 - 71 + 1.25)}{71}\)
= \(\frac{15.25}{71}\)
= \(21.48 \ percent\)
Interest expense on bonds payable is calculated as the: Multiple Choice Face amount times the stated interest rate. Carrying value times the stated interest rate. Carrying value times the market interest rate. Face amount times the market interest rate.
Interest expense on bonds payable is calculated as the: Carrying value times the market interest rate.
A bond can be defined as a fixed income instrument which is used to represent the indebtedness of a borrower (bond issuer) to an investor or creditor (bondholder).
Hence, when an investor or creditor (bondholder) purchases a bond, an agreed amount of money is being borrowed to the issuer (bond issuer) as a loan.
Consequently, the bond issuer is expected to pay an interest with a return of the principal amount at maturity to the bondholder (investor or creditor).
Hence, bonds payable only arises when a company issues (borrower) bonds so as to generate cash for its business and plans.
Interest expense on bonds payable is calculated as the carrying value times the market interest rate.
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Warner Brothers Entertainment owns the rights to the intellectual property of the Scooby Doo cartoon show and its characters. A lunchbox menecturer
has reached an agreement with Warner Brothers Entertainment to use the Scooby Doo characters on their new line of lunchboxes. This is an example o
Multiple Choice
contract manufacturing
licensing
creating a subsidiary
franchising
Option B is the correct one. Using intellectual property rights, such as trademarks, patents, brand names, or technologies, is called licensing. It involves the licenser giving the licensee permission to do so under specific guidelines.
A contract or arrangement between two businesses known as a licensing is one that allows one business to give another permission to produce its goods in exchange for a certain fee and subject to certain terms.
The ability to safeguard a company's valuable assets, such as patents, trademarks, copyrights, and trade secrets, depends on having a solid grasp of how these assets operate and are produced.
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Given the information below, calculate the net cash provided from operating activities for Baskin Peter Pty. Ltd.
Receipts from customers $279,247
Payments for property, plant & equipment $42,310
Interest paid $4,231
Proceeds from issue shares $25,836
Payments to supplier and employees $220,013
Repayment of borrowings $53,331
GST paid $16,924
Payments for motor vehicle $37,985
Interest received $6,770
Select one:
$61,773
$44,849
$55,345
$49,080
True or False: In a set of numerical data, the value for Q3 can never be smaller than the value for Q1.