Answer:
5.80% , option A is correct
Explanation:
The formula for the simple rate of return on the investment=annualprofit/net amount invested
annual profit amount=savings in cash operating costs-annual depreciation on the new machine=$133,000-$88, 200=$ 44,800.00
net amount of investment=pruchase cost of new machine-the scrap value of the old machine=$793, 800-$21, 200=$ 772,600.00
simple rate of return on investment=$ 44,800.00/$ 772,600.00=5.80%
Evans Inc. had current liabilities at April 30 of $69,400. The firm's current ratio at that date was 1.7. Required: Calculate the firm's current assets and working capital at April 30. Assume that management paid $14,300 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.) Identify the changes, if any, to working capital and the current ratio that would be caused by the April 29 paym
Answer:
See explanation below
Explanation:
Given:
Current liabilities at April 30 of $69,400
Current ratio = 1.7
a) Calculate the firm's current assets and working capital at April 30:
Use the formula below to find the firm's current assets:
current ratio= current asset/current liability
current asset = current ratio × current liability
current asset = 1.7 × $69,400
Current asset = $117,980
For working capital:
Working capital= current assets-current liability
= $117,980 - $69,400
= $48,580
Working capital = $48,580
b) Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made:
New current assets = $117,980 + $14,300 = $132,280
New current liability = $69,400 + $14,300 = $83,700
Working capital = $132,280 - $83,700 = $48,580
Current ratio = 132,280/83700 = 1.58
c) There is no change in the working capital.
The current ratio will decrease by 0.12 (1.7 - 1.58) due to payment on 29th April
If a business using the specific identification method of inventory has two items on hand at $300 each and purchases four items at $400 each, what is the value of inventory if two of the $300 items are sold
Answer:
The value of inventory is $1600.
Explanation:
The business has two inventory on hand that cost $300 each so total value of inventory = 2 × 300 = $600
The value of four items at $400 each = 4 × 400 = $1600
Total number of items = 2 + 4 = 6
Total value of 6 items = 600 + 1600 = $2200
The value of sold inventory = 2 × 300 = $600
The value of inventory = total value of inventory - The value of sold inventory
The value of inventory = $2200 - $600
The value of inventory = $1600
Colgate reported Diluted EPS of $2.38 in accordance with GAAP. How much higher would EPS be if Colgate ignored the impact of restructuring and other one-time charges during the period
Answer:
EPS will be higher than $2.38
Explanation:
The Earnings per share is the value available to stockholders of the company after the deduction of all the expense and taxes. Restructuring expense are one time expense and they are reported as other operating expenses in the Income Statement. The inclusion of restructuring and other one-time charges in the Income Statement results in lower Earnings before Tax and ultimately reduced net profit. If these cost are excluded the Earning will rise which will give rise to EPS of the company.
The records of Pippins, Inc., included the following information: Net sales $ 1,000,000 Gross margin 475,000 Interest expense 50,000 Income tax expense 80,000 Net income 240,000 Compute the times interest earned ratio, rounded to the nearest decimal. 4.8 6.4 7.4 20.0
Answer:
Times interest earned (TIE) = 7.4 times
Explanation:
The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,
Times Interest Earned (TIE) = EBIT / Total Interest expense
Where,
EBIT is the earnings of the company before interest and taxTo calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:
EBIT = Net income + tax + interest expense
EBIT = 240000 + 80000 + 50000
EBIT = $370000
Times interest earned (TIE) = 370000 / 50000
Times interest earned (TIE) = 7.4 times
Testbank Multiple Choice Question 96 On June 30, 2021, when Bonita Industries's stock was selling at $66 per share, its capital accounts were as follows: Capital stock (par value $50; 58000 shares issued) $2900000 Premium on capital stock 580000 Retained earnings 4150000 If a 100% stock dividend were declared and distributed, capital stock would be $3480000. $5800000. $7656000. $2900000.
Answer:
$5800000
Explanation:
Stock dividend refers to a form of dividend payment whereby additional stock shares of the company are distributed to shareholders instead of paying the shareholders in cash.
Stock dividends are also known as stock spills and it increases the common stock par value by its declared percentage.
Since the a 100% stock dividend were declared and distributed, this would increase the common stock as follows:
Increase in common stock = $2,900,000 * 100% = $2,900,000.
Therefore, the new common stock would be:
New common stock = Existing common stock + Increase in common stock = $2,900,000 + $2,900,000 = $5,800,000.
Therefore, If a 100% stock dividend were declared and distributed, capital stock would be $5,800,000.
Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information.
A publicly held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of retained earnings, and other financial information for analysis.
The following descriptions of the major financial statements and reports that a firm publishes. Identify the correct statement or report for each description.
Description :
a. Is required by the SEC and includes the audited document that shows the company's financial results for the past year and management's discussion about the future outlook and plans
b. Gives details about the firm's sales, costs, and profits for the past accounting period
c. Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earings.
d. Provides details about the flow of funds from operating, investing, and financing activities.
e. Summarizes a company's assets, liabilities, and stockholders' equity at a specific point in time.
Answer: a. Annual Report
b. Income statement
c. Statement of Shareholder Equity.
d. Cashflow Statement
e. Balance Sheet.
Explanation:
The Annual Report is a comprehensive report that aims to show stakeholders including the SEC what the company has been up to in the previous year. It analyzes the business's financial report and also the strategic goals of the business as well.
The Income Statement lets stakeholders know how the company's business transactions went for the previous period. It shows how much goods and services were sold as well as the expenses involved.
The Statement of Shareholder Equity aims to show how the business's dealings during the year have impacted the ownership of the company. It shows the Capital and the Retained Earnings.
The Cashflow Statement aims to show just how much actual cash that the business has. To do so it usually divides the cash transactions into Operating, Investing, and Financing activities.
The Balance Sheet summarizes the components of the Accounting Equation which includes Assets, Liabilities and Equity. This way a person can see at a glance how the business operates.
A book which cost $300.00 was sold
For $240.00. What was the loss
percentage
Answer:
20%
Explanation:
300-240= 60
60÷300×100%= 20%.
what is break even point?
Answer:
The break-even point in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and one has "broken even", though opportunity costs have been paid and capital has received the risk-adjusted, expected return.
Explanation:
The balance in Ashwood Company's Accounts Payable account at December 31, 2016, was $1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2016. The invoice cost was $85,000, and the goods were shipped FOB shipping point on December 29, 2016. The goods were received on January 2, 2017. Goods shipped FOB shipping point on December 20, 2016, from a vendor to Ashwood were lost in transit. The invoice cost was $40,000. On January 5, 2017, Ashwood filed a $40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2016, from a vendor to Ashwood were received on January 6, 2017. The invoice cost was $20,000. What amount should Ashwood report as accounts payable on its December 31, 2016, balance sheet? a. $1,345,000 b. $1,325,000 c. $1,260,000 d. $1,285,000
Answer:
$1,325,000 is the amount to be recorded as accounts payable on Ashwood's report of 31 December, 2016 balance sheet
Explanation:
Here, we want to calculate the amount that Ashwood should report as accounts payable on its December 31, 2016 balance sheet.
The correct answer to this is adding together : The balance in Ashwood Company's Accounts Payable account at December 31, 2016 + Invoice cost of goods in transit from vendor on December 31, 2016 + invoice cost of goods lost in transit
From the question, we can identify the following;
Balance in Ashwood Company's Accounts Payable account at December 31, 2016 = $1,200,000
invoice cost of goods in transit from vendor on December 31, 2016 = $85,000
invoice cost of goods lost in transit = $40,000
Plugging these values into the equation, we have;
1,200,000 + 85,000 + 40,000 = $1,325,000
Season tickets for the Dingos are priced at $240 and include 12 home games. An equal amount of revenue is recognized after each game is played. When the season began, the amount credited to Unearned Ticket Revenue was $1,224,000. By the end of October, $714,000 of the Unearned Ticket Revenue had been recognized as revenue. How many season tickets did the Dingos sell
Answer:
5,100 tickets
Explanation:
The computation of the season tickets sold is shown below:
The Volume of Season Tickets is
= (Amount Credited to Unearned Revenue Account) ÷ (Price Per Ticket)
where,
The Amount credited is $ 1,224,000
And, the price per ticket is $240
Now placing these values to the above formula
So, the number of season tickets sold is
= $1,224,000 ÷ $240
= 5,100 tickets
We simply applied the above formula
Suppose that Tommy takes a workplace personality quiz that shows that he is highly creative. Store managers decide to transfer him to the produce department, where he is trained in cutting produce and displaying it on the shelves. Which approach to job design best characterizes this scenario?
Answer:
The Motivational approach
Note: Find an attached image of the complete question to this solution below.
Explanation:
Solution
In this scenario Tommy is one of the person in meat department that has specialized skill in cutting process that even neglect his pain making the cutting process.
The transferring to producing department make him to show the produced cutting meat to attract customers to the store.
That step taken in regards to Tommy by the store managers is a motivational approach.
Source: The research for the complete question was taken from quiz-let platform
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $4,650,000 and will be sold for $1,325,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset
Answer:
After tax salvage value of the asset = $1210274
Explanation:
Given book value of purchase = $4650000
Accumulated depreciation [tex]=4650000* ( 0.2 + 0.32 + 0.192 + 0.1152) = $3846480[/tex]
Book value at the time of sale = book value of purchase - Accumulated depreciation
Book value at the time of sale = $4650000 - $3846480 = $803520
Gain on disposal = salvage value of plant - Book value at the time of sale
Gain on disposal = $1325000 - $803520
Gain on disposal = $521480
Tax on gain on disposal = 521480 * 22% = $114725.60
After tax cash flow = 1325000 – 114725.60 = $1210274
n the summer there are many teenagers looking for minimum wage jobs, so firms are able to fill all open positions easily. This suggests that, at least during the summer, the supply of labor is:
Answer:
According to the analogy, the supply of unskilled labour is high during summer.
Explanation:
The total amount in hours that workers are willing to work at a given real wage rate is, in economics, referred to as the supply of labour. As a matter of mathematical accuracy, the amount of hours is usually adjusted for quality of result attained.
Cheers!
1- What are the goals of the Deposit Insurance Corporation? 2- what is the Income tax brackets? Thank you in advance. Regards.
Answer:
The deposit insurance corporation created in 1933 is responsible for insuring the deposits of the US banks in case of emergency. It is an independent federal agency. It was created to keep the financial system stable by promoting sound banking practises. It insures deposit amount upto $250,000 if the depositor is a member firm. The consumers should confirm whether heir institution is FDIC insured or not. Its main objective is to avoid "Great Depression " like situation by preventing bank runs.
Tax bracket is a range of income that is taxable. Tax brackets follow a progressive tax system in which the tax progressively increases as a persons income grows. People with low income either fall into low tax brackets or don't have to pay tax at all.
The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:
20Y3
Nov.
21 Received from McKenna Outer Wear Co., on account, a $66,000, 60-day, 8% note dated November 21 in settlement of a past due account.
Dec.
31 Recorded an adjusting entry for accrued interest on the note of November 21. 20Y4
Jan.
20 Received payment of note and interest from McKenna Outer Wear Co.
Required:
Journalize the entries to record the transactions.
Answer:
20Y3
Nov. 21 :
Debit Notes receivable $66,000
Credit Accounts receivable $66,000
(To recognize notes receivable iro past due account)
Dec. 31:
Debit Interest revenue $161.33
Credit Interest receivable $161.33
(To record accrued interest on notes receivable)
Jan. 20:
Debit Cash $66,880
Credit Notes receivable $66,000
Credit Interest receivable $880
(To record payment of note and interest on Nov. 21 notes)
Explanation:
Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Interest revenue on the notes is calculated as: Principal x Interest Rate x Time
In this case, the total interest expense is $66,000 x 8%/12 x 2 months = $880.
Total interest expense to the Company as at December 31 is therefore $880 / 60 days x 11 days = $161.33.
The following information is for Ayayai Corporation as of December 31, 2017.
Restricted Cash for Retirement of long- term debt $23,500 Additional Paid-in Capital $55,000
Equipment (cost) 111,100 Accounts Receivable 73,300
Inventory (work in process) 13,000 Inventory (raw materials) 59,600
Cash (unrestricted) 21,100 Supplies Expense 18,400
Inventory (finished goods) 33,300 Cost of Goods Sold 406,300
Equity Investments (cost) 10,000 Allowance for Doubtful Accounts 3,700
Customer Advances 12,800 Licenses 6,200
Unearned Service Revenue 36,200 Notes Receivable 19,600
Treasury Stock 13,200
The following additional information is available.
1. Inventories are valued at lower-of-cost-or-market using FIFO.
2. Treasury stock is recorded at cost.
3. Licenses are recorded net of accumulated amortization of $7,300.
4. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $37,750.
5. The equity investments have a fair value of $9,700. (Assume they are trading securities.)
6. The allowance for doubtful accounts applies to the accounts receivable.
7. The notes receivable are due in full on March 31, 2019, with interest receivable every April 30. The notes bear interest at 7%. (Hint: Accrued interest due on December 31, 2017.)
Required:
Prepare the current assets section of Flint Corporation's balance sheet with appropriate disclosures on the face of the balance sheet.
Answer:
Flint Corporation current assets section of Balance Sheet
Particulars Amount
Cash ($23,500 + 21,100) 43,600
Less: Restricted for plant expansion 23,500 21,100
Trading Securities 9,700
Accounts receivable 73,300
Less: Allowance for bad debts 3,700 69,600
Interest receivables (19,600*7%*9/12) 1,029
Inventories
Finished goods 33,300
Work in Progress 13,000
Raw materials 59,600
Total Current Assets 186,229
Revise your worksheet to reflect the following transactions and updated values at the end of the accounting period, then answer the questions that follow. 7,200 1,400 9,900 1,100
1. Cash on hand at the company and not yet deposited at the bank.
2. EFT for monthly utility bill not yet recorded by the company.
3. Note collected by the bank and not yet recorded by the company.
4. Interest collected by the bank from note in #3 not yet recorded by the company.
5. A check witten for insurance expense for $110 was cashed. The check was recorded on the books for $190.
6. Checks written by the company but not yet processed by the bank.
7. Service fee charged by bank but not yet recorded by the company.
8. Customer checks determined by the bank to have nonsufficient funds. 3,100 100 2,700
Bank balance at the end of the period.
Company balance at the end of the period. 19,610 16,830 Required:
1-a. What is the revised
Cash balance at the end of the period?
Cash $ 23,710 1-b. Is the bank reconciliation in balance?
Yes
Nο
2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made?
Cash 2-b. Would the bank reconciliation still be in balance?
Yes
No
3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $190,000 rather than $19,000?
No effect on the bank reconciliation.
The difference of $171,000 will be subtracted from the book balance.
The difference of $171,000 will be added to the book balance.
The bank balance will be increased by $190,000.
Answer:
1a. Revised Cash balance $23,710
1b. No. the Bank reconciliation is NOT in balance
2a.$23,630
2b.No. The bank reconciliation will still NOT be in balance
3.The difference of $171,000 will be subtracted from the book balance
Explanation:
1a.Preparation of the Revised Cash Book
Particular Debit Particular Credit
Unadjusted $16,830; EFT of Utility $1,400
Balance $9,900 ; Bil $100
Note Collected 1,100; Service Fee Charged $2,700
Interest on Note Collected 90 ; NSF Checks Dishonored $23,710
Excess of Insurance Expense 27,910; Revised Balance $27,910
Therefore the Revised Cash balance at the end of the period will be $23,710
1b.NO. The Bank reconciliation is NOT in balance because the revised balance is still not matched with the bank balance reason been that the amount of $23,710 is not equal to $19,610
2-a) In a situation where the entry to correct the insurance payment hasn’t been made, the balance of cash book will be :
$23,710 – $80 = $23,630
2-b) No. The bank reconciliation will still NOT be in balance because $23,630 is not equal to $19,610
3. If company incorrectly recording a customer deposit at $190,000 rather than $19,000, this increases the balance of cash book by $171,000. Therefore, the company subtracted the difference of $171,000 from the book balance
1a.Rectified Cash balance $23,710
1b.No. the Bank reconciliation is NOT in balance
2a.$23,630
2b.No.The bank reconciliation will always NOT be in balance
Prepare Bank reconciliation
1a. Now we Preparation of the Revised Cash Book is:
Particular Debit and Credit
Unadjusted $16,830; and EFT of Utility $1,400The Balance is $9,900; Bill is $100Then Note Collected 1,100; Service Fee Charged $2,700Now the Interest on Note Collected 90; NSF Checks Dishonored $23,710Then Excess of Insurance Expense 27,910; Revised Balance $27,910Hence the Revised Cash balance at the end of the period will be $23,7101b.NO. When The Bank reconciliation is NOT in balance because the adjusted balance is still not matched with the bank balance reasoning is that the amount of $23,710 is not equal to $19,610
2-a) In circumstances where the entry to rectify the insurance payment hasn’t been made, the balance of the cash book will be :
$23,710 – $80 = $23,630
2-b) No. When The bank reconciliation will still NOT be in balance because $23,630 is not equal to $19,610
3. If the company mistakenly registers a consumer deposit at $190,000 rather than $19,000, this increases the balance of the cash book by $171,000. Thus, the company subtracted the distinction of $171,000 from the book balance The distinction of $171,000 will be subtracted from the book balance
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3. The impossible trinity Suppose the government of Iraq is deciding what kind of monetary policy and exchange rate regime to choose. The government wants to ensure stability in international trade and investment by pegging the Iraqi dinar to the U.S. dollar. Which of the following policy choices will achieve this goal? Check all that apply. Controlling the interest rate in the country without imposing restrictions on foreign exchange trading Controlling the interest rate in the country and imposing restrictions on foreign exchange trading Maintaining capital controls with no independent monetary policy
Answer:
Correct Answer is (B)
Explanation:
We look at the objectives the government has in mind to achieve;
- stability in international trade
- stability in investment
Which of the listed policies will achieve these goals?
- the tool here used to control international trade is foreign exchange trading
- the tool used to control investment is interest rate
To achieve stability in these 2 indicators, both tools should be controlled. Thus the monetary policy & exchange rate regime to choose here is:
Controlling the interest rate in the country and imposing restrictions on foreign exchange trading.
Option (C) won't suffice because an independent monetary policy is necessary.
You are considering investing in an Emerging Market bank account that pays a nominal annual rate of 18% on dollar deposits, compounded monthly (i.e the account pays [0.18/12]% per month). If you invest $5,000 at the beginning of each month, how many months will it take for your account to grow to $250,000? Round fractional months up.
Answer: About 263 month
Sorry if I am wrong
tell me If I am wrong so I can edit it.
If I am correct hope it helped
Anyway have a good day :D
Prior to creating a network, it is important to: Identify the party responsible for each activity. Calculate the float for each activity. Understand the activity precedence. Identify all loops through activities.
Answer:
The correct answer to the following question will be Option C (Understand the activity precedence).
Explanation:
Networking is not only useful in the growth of a business or the improvement of one's personal life but could also play an important role throughout the social life benefit of the entire.Professional connections or networks can support one's career in certain aspects, whether someone is taking a job, obtaining a progression, or exploiting a pay raise. Nevertheless, to go through all things, clients, therefore, need to move beyond their usual environment or start socializing in a certain profession.The other given choices are not related to the given situation. So that Option C would be the appropriate one.
A medical student will complete her residency and go into medical practice in 4 years. She needs to purchase expensive medical equipment to start the practice. In order to determine the amount of money that must be invested today to meet this capital need, all of the following are needed except:___________.1. Current cost of medical equipment2. Assumed rate of return3. Expected inflation rate
Answer:
3. Expected inflation rate
Explanation:
To determine the amount of money that the medical student must invest today to meet this capital need, she needs to know the current cost of medical equipment to have the the amount she needs to be able to buy the equipment. Also, she has to know the assumed rate of return to determine the amount of interest she will receive as the formula to calculate the money she needs today is:
PV= FV/(1+r)^n, where:
PV= present value
FV= future value
r= rate of return
n= number of periods of time
According to this, the answer is that the option that she doesn't need to find the amount of money that must be invested today to meet this capital need is the expected inflation rate as the formula to calculate the present value considers the amount she will need, the rate of return and the period of time.
Laser World reports net income of $640,000. Depreciation expense is $49,000, accounts receivable increases $10,000, and accounts payable decreases $29,000. Calculate net cash flows from operating activities using the indirect method.
Answer:
$650,000
Explanation:
The computation of net cash flows from operating activities using the indirect method is shown below:-
Cash Flows from Operating Activities
Net income $640,000
Adjustment made
Add: Depreciation expense $49,000
Less: Increase in accounts receivable ($10,000)
Less: Decrease in accounts payable ($29,000)
Net cash flows from operating activities $650,000
The positive amount reflects the cash inflow and the negative amount reflects the cash outflow
Mary Graham worked as a real estate agent for Piedmont Properties for 15 years. Her annual income is approximately $100,000 per year. Mary is considering estab- lishing her own real estate agency. She expects to generate revenues during the first year of $2 million. Salaries paid to her employees are expected to total $1.5 million. Operating expenses (i.e., rent, supplies, utility services) are expected to total $250,000. To begin the business, Mary must borrow $500,000 from her bank at an interest rate of 15 percent. Equipment will cost Mary $50,000. At the end of one year, the value of this equipment will be $30,000, even though the depreciation expense for tax purposes is only $5,000 during the first year.
a) Determine the (pre-tax) accounting profit for this venture.
b) Determine the (pre-tax) economic profit for this venture.
c) Which of the costs for this firm are explicit and which are implicit?
Answer and Explanation:
The computation is shown below:
a. The pre tax accounting profit is
= Revenue - operating expenses - salaries - depreciation - interest on loan
= $2,000,000 - $250,000 - $1,500,000 - $5,000 - ($500,000 × 15%)
= $2,000,000 - $250,000 - $1,500,000 - $5,000 - $75,000
= $170,000
b. The pre tax economic profit is
= Revenue - operating expenses - salaries - foregone income - actual depreciation - interest on loan
= $2,000,000 - $250,000 - $1,500,000 - $100,000 - $20,000 - $75,000
= $55,000
The actual depreciation is
= $50,000 - $30,000
= $20,000
c. The explicit cost is the cost which includes wages & salaries, operating expense, depreciation expenses etc while the implicit cost includes the opportunity cost and annual depreciation cost
Jason Rodriguez works as a waiter in a Houston restaurant. His boss overhears Jason telling a co-worker during a break period that he thinks that the president ought to be impeached. The boss, a big supporter of the president, fires Jason on the spot. Jason thinks the boss violated his freedom of speech. Would you expect that Jason would be able to get his job back on that basis?
Answer:
No
Explanation:
It is mentioned in the question that the boss who is a big supporter of the president fired Jason, who works as a waiter in the restaurant
So based on the given situation, the first amendment is applied for the government employees as it become the first priority for everyone, not for the private employees
Hence, the answer is no
Planet Food is currently operating at full capacity. The profit margin and the dividend payout ratio are held constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 6 percent. What is the external financing need
Answer:
The answer is $30
Note: Kindly find an attached copy or image of the complete question given below
Sources: I researched the complete question from Quizlet
Explanation:
Solution
Given that
The total assets projected = $8,850 × 1.06
= $9,381.00
Projected accounts payable = $1,300 × 1.06
= $1,378.00
Projected retained earnings = $3,810 + ($399 × 1.06)
= $4,232.94
Thus
External financing need = $9,381.00 - $1,378.00 -$1,640 -$2,100 - $4,232.94 = $30
Therefore the external financing need is $30.
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs average $20,000 per year. On average, tuition and other costs have historically increased at a rate of 6% per year. Assuming that college costs continue to increase an average of 6% per year and that all her college savings are invested in an account paying 8% interest, then the amount of money she will need to have available at age 20 to pay for all four years of her undergraduate education is closest to ________.
Answer:
$256,571
Explanation:
College Graduation fee for four years in the present value
PV = $20,000 x 4 = $80,000
As historically the fee has risen by 6% we need to find future value when the baby will be 20 years old by using future value formula
Let's say
FV = Future value
PV = Present value
n = number of years
i = Interest
Workings
FV = PV x ((1+growth rate)^n)
FV = $80,000 x ( (1+0.06)^20)
FV = $256,571
As the bank interest rate is 8% the saving need to be deposited annualy can be calculated as
Savings = (FV x i) / ((1+i)^n)-1)
Savings = ($256,571 x 0.08) / ((1+0.08)^20)-1)
Savings = 20,525.68 / 3.66
Savings = $5,608
On January 1 2021 Salvatore Company leased several machines from Nola Corporation under a three year operating lease agreement. The lease calls for semiannual payments of $15,000 each payable on June 30 and December 31 of each year. The machines were acquired by Nola at a cost of $90,000 and are expected to have a useful life of five years with no expected residual value Required Prepare the appropriate journal entries for the lessor from the beginning of the lease through the end of 2021. Of no entry is required for a transaction/event, select "No Journal entry required" in the first account field.)
Answer and Explanation:
The journal entries are shown below:
1. Equipment $90,000
To Cash $90,000
(Being the cost of the building is recorded)
For recording this we debited the equipment as it increased the assets and credited the cash as it decreased the assets
2. Cash $15,000
To Lease Revenue $15,000
(Being the recognition of revenue is recorded)
For recording this we debited the cash as it increased the assets and credited the lease revenue as it also increased the revenue
3. Cash $15,000
To Lease Revenue $15,000
(Being the recognition of revenue is recorded)
For recording this we debited the cash as it increased the assets and credited the lease revenue as it also increased the revenue
4. Depreciation $18,000 ($90,000 ÷ 5 years)
To Accumulated depreciation $18,000
(Being the depreciation expense is recorded)
For recording this we debited the depreciation as it increased the expenses and credited the accumulated depreciation as it decreased the assets
To create a bulleted list, Nathan should select the list first. Next, he should navigate to the of the Word window. After that, he should go to the command group. Then, he should click the picture that shows .
Answer: 3 tiny dots with tiny lines next to them.
Explanation: Because that is the icon you select to insert bullet points or a number system.
A $20,000 loan is to be amortized for 10 years with quarterly payments of $699.44. If the interest rate is 7%, compounded quarterly, what is the unpaid balance immediately after the sixth payment
Answer:
The answer is "17809.46"
Explanation:
Given:
P= $20,000
quarterly payment k= $699.44
interest rate quarterly r= 7%
[tex]r=\frac{7}{400}\\\\r= 0.0175[/tex]
n=6
Formula:
[tex]\ unpaid \ balance = P(1+r)^n-K\times \frac{(1+r)^n-1}{r}[/tex]
[tex]=20,000(1+0.0175)^6-699.44\times \frac{(1+0.0175)^6-1}{0.0175}\\\\=20,000(1.0175)^6-699.44\times \frac{(1.0175)^6-1}{0.0175}\\\\=20,000\times 1.10970235-699.44\times \frac{1.10970235-1}{0.0175}\\\\=22,194.047-699.44 \times \frac{0.10970235}{0.0175}\\\\=22,194.047-699.44 \times 6.26870571\\\\=22,194.047-4384.58352\\\\=17809.4635\\\\[/tex]
The final answer is "[tex]\bold{= 17809.46}\\[/tex]".
g the company purchased an equipment at $55,275. Two years later, the equipment is sold for $24,120. The equipment is classified as five-year property for MACRS. The MACRS annual depreciation rates are 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%, for Years 1 to 6, respectively.What is the after tax salvage value of this sale at the year 2
Answer:
to determine the after tax salvage value I assumed a 21% corporate tax rate (no tax rate was given in the question):
after tax salvage value = salvage value - [(book value - market value) x tax rate] = -$2,412 - [($24,120 - $26,532) x 21%] = -$2,412 - (-$506.52) = $1,905.48
Explanation:
original purchase cost $55,275
depreciation year 1 = $55,275 x 0.2 = $11,055, book value $44,220
depreciation year 2 = $55,275 x 0.32 = $17,688, book value $26,532
equipment is sold at $24,120 resulting in a net loss = $24,120 - $26,532 = -$2,412