A farmer sells 4 million bushels of corn at a spot price of $2.10 per bushel. The total cost of production was $9.2 million. The farmer has an effective tax rate of 25%
If the farmer entered into a futures contract at a price of $2.40 per bushel on 4 million bushels, what is the farmer's net loss or gain?
A) $100,000 loss
B) $800,000 loss
C) $300,000 gain
D) $400,000 gain
C
Business
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Businesses have four primary sources of funds. ______ generally provides the greatest part of a firm's financing.
Fill in the blank(s) with the appropriate word(s).
Business
A business purchases equipment for $8,000 cash. Which of the following accounts is credited?
A) Cash B) Accounts Payable C) Common Stock D) Equipment
Business