MGMT 275 - Chpt 10, 11, 12
A) consumption rate
B) utilization rate
C) burn rate
D) usage rate
E) liquidity rate
Generic drug sales make up about half of all prescriptions sold in the United States. The marketing manager for a pharmaceutical company wanted to acquire more information about the sales of generic prescription drugs. To do so, she randomly sampled 475 customers who recently filled prescriptions for generic drugs and recorded the cost of each prescription. Estimate with 95% confidence the mean cost of all generic prescription drugs.
Presented below is the partial bond discount amortization schedule for Gomez Corp. Gomez uses the effective-interest method of amortization.
Interest PeriodsIssue date12Interest to Be Paid$45,00045,000Interest Expense to Be Recorded$48,07048,223Discount Amortization$3,0703,223Unamortized Discount$38,60935,53932,316Bond Carrying Value$961,391964,461967,684
(c) Explain why interest expense will increase each period.