Reference no: EM133186300
Questions -
Q1. ABC Company estimates its total annual cash disbursements of P3,251,250 which are to be paid uniformly. It has the opportunity to invest the money at 9% per annum. The company spends, on the average, P25 for every cash conversion to marketable securities and vice versa. Compute the opportunity cost
Q2. The balance sheet and income statement data for MAS Factory indicate the following:
Bonds payable, 10% (issued 1998 due 2022) P1,000,000
Preferred 5% stock, P100 par (no change during year) P300,000
Common stock, P50 par (no change during year) P2,000,000
Income before income tax for year P350,000
Income tax for year P80,000
Common dividends paid P50,000
Preferred dividends paid P15,000
Based on the data presented above, what is the number of times bond interest charges were earned?