g "At the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of Florida sells for 54 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain?"
Answer:
The price will fall to 44.47 pounds
Explanation:
Calculation for what will happen to the price of a one-day pass sold in Great Britain
Using this formula for the First step
Sales pounds × Current exchange rate
54 pounds x $1.40 = $75.6
Second step
75.6/Increase in exchange rate of $1.70
= 44.47 pounds
Therefore the price will fall to 44.47 pounds
The implication of the expectations theory that expected returns for a holding period must be the same for bonds of different maturities depends on the assumption that________.
1. Yiels curves usually slope downward
2. Yiels curves usually slope downward
3. Instruments with different maturities are perfect subtitute
4. Savers are usually risk averse
Answer:
i think the answer is intruments with different matuirties are perfect subtitute. i'm not sure but i think this is the answer.
Explanation:
Advertising expenses are a significant component of the cost of goods sold. Listed below is a frequency distribution showing the advertising expenditures for 40 manufacturing companies. Estimate the mean, median, and standard deviation of advertising expense.
Advertising Expenditure ($millions) Number of companies
$20 to under $30 9
30 to under 40 13
40 to under 50 21
50 to under 60 18
60 to under 70 14
Total 75
Answer:
Mean = 47
Median = 47.38
Standard Deviation = 12.73
Explanation:
Note: You wrote " 40 manufacturing companies, but the total number of companies you actually listed is 75, definitely you meant 75.
Let y represent the range of advertising expenditure, f represent the number of companies, x represent the midpoint of the range of advertising expenditure.
y f x fx fx²
$20 to under $30 9 25 225 5625
$30 to under $40 13 35 455 15925
$40 to under $50 21 45 945 42525
$50 to under $60 18 55 990 54450
$60 to under $70 14 65 910 59150
n = 75 [tex]\sum fx = 3525[/tex]
[tex]\sum fx^2 = 177675[/tex]
Mean, [tex]\bar{X} = \frac{\sum fx}{n}[/tex]
[tex]\bar{X} = \frac{3525}{75} \\\bar{X} = 47[/tex]
Standard Deviation:
[tex]SD = \sqrt{\frac{n \sum fx^2 - (\sum fx)^2}{n(n-1)} } \\SD = \sqrt{\frac{(75*177675) - (3525)^2}{75(75-1)} }\\SD = 12.73[/tex]
Median:
Get the cumulative frequencies(cf)
y f cf
$20 to under $30 9 9
$30 to under $40 13 22
$40 to under $50 21 43
$50 to under $60 18 61
$60 to under $70 14 75
N = 75
Median = Size of (N/2)th item
Median = Size of (75/2)th item
Median = Size of (37.5)th item
The median class = 40 to under 50
Lower limit, L₁ = 40
Cumulative frequency, cf = 22
f = 21
Class Width, h = 10
Median = [tex]L_1 + \frac{ (N/2) - cf}{f} * h\\[/tex]
Median = [tex]40 + \frac{ (75/2) - 22}{21} * 10\\[/tex]
Median = 47.38
An American company recently won a huge contract with a company in Indonesia, by gifting the Indonesian government officials with American cars and an assurance of monetary gifts. Clearly, this procedure.
a. defines the terms of the business contract, and as long as both parties sign, the agreement is binding.
b. violates the Fair and Balanced Competitive Practices Act.
c. defines the common business practices of the foreign nation and should be respected.
d. violates the Foreign Corrupt Practices Act.
Answer:
d
Explanation:
it is international traveling
The correct answer is option D.
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.
What does the Foreign Corrupt Practices Act do?Under the Foreign Corrupt Practices Act (FCPA), it is unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business.
Learn more about Foreign Corrupt Practices Act here https://brainly.com/question/26495697
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When you take your first job, you decide to start saving right away for your retirement. You put $5,000 per year into a saving plan, which interest rate 10% per year. Five years later, you move to another job and stop making contributions to the saving plan. If the first plan continued to earn interest for another 35 years, determine the future worth in year 40.
Answer:
FV= $857,840.94
Explanation:
Giving the following information:
First investment:
Annual deposit= $5,000 per year
Interest rate= 10%
Number of years= 5
Second investment:
Number of years= 35
Interest rate= 10%
Lumpsum= first investment
First, we need to calculate the future value of the first investment. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.1^5) - 1]} / 0.10
FV= $30,525.5
Now, the future value of the second investment.
FV= PV*(1+i)^n
FV= 30,525.5*(1.1^35)
FV= $857,840.94
All automobile makers around the world are in the same strategic group because they manufacture automobiles.
a) true
b) false
Answer:
The answer is False.
Explanation:
False, all automobile maker of the world does not form the same strategic group on the basis of manufacturing the automobiles because the strategic group refers to the process to follow the same strategy. Since all around the world different automobile maker work in different economies with a different set of strategies that varies according to the economic situations. For example, the strategy to work in a developed economy will be different from the developing economy. Therefore, all automobile makers will not follow the same strategy so it will not be in the same strategic group.
The market risk premium is defined as __________. A. the difference between the return on an index fund and the return on Treasury bills B. the difference between the return on a small-firm mutual fund and the return on the Standard
Answer:
A. the difference between the return on an index fund and the return on Treasury bills.
Explanation:
This term can be primarily used in denoting of opportunity cost in an investment, and also for risk assessment.
It is primarily defined to be the difference between an expected return on a market investment against the risk free rate. When a graph is been put to consideration, the market risk premium equals the security market line.
It is also primarily known also for its provision of quantitative measure found in the extra return demanded by market participants for the increased risk. At this summation, it is denoted that it is the difference between the return on an index fund and the return on Treasury bills.
Knowledge Check 01 Assume that salaried employees of Mayer, Inc., earn 2 weeks of vacation per year. The salaried employees accrue a total of $160 each pay period. Mayer's first payroll of the year is on January 7. Prepare the January 7 journal entry for Mayer by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Vacation Benefits Expense $160
To Vacation Benefits Payable $160
Explanation:
The journal entry is shown below:
Vacation Benefits Expense $160
To Vacation Benefits Payable $160
(Being vacation pay expense is recorded)
For recording this we debited the vacation benefits expense as it increased the expense and credited the vacation benefit payable as it also increased the liabilities
A customer has a discretionary account at a brokerage firm. The customer calls the registered representative handling the account and states "Buy $50,000 of investment grade corporate bonds" with at least 5 years to maturity and a minimum 8% yield. To comply with the customer's instructions, the registered representative must choose bonds that are rated, at a minimum:
Answer: C. Ваa
Explanation:
Moody's is a Credit Rating company that rates Bonds. They have a classification scheme that works with letters with Aaa being the highest rated bonds there are. These are considered the least risky.
After grade Aaa there is grade A and then there is Grade Baa. Grade Baa is considered to be the lowest Investment Grade security there is so if the client asks for anything in investment grade bonds, the minimum rated bonds to buy have to be level Baa.
Lincoln Restaurants reported net income in 2019 of $48.10 million and depreciation expense of $51.00 million. It also reported additions to property and equipment of $165.10 million. Using the indirect method of preparing the statement of cash flows, how will these items impact the 2019 statement of cash flows
Answer and Explanation:
The impact of each item is as follows
Net income reported = shown in the operating activities
Depreciation expense = added to the net income and shown in the operating activities
Additions to the property and equipment = Since there is an addition that means the property and equipment are purchased so it would be shown in the investing activities under the negative sign as it is cash outflow
You short-sell 600 shares of Rock Creek Fly Fishing Co., now selling for $38 per share. If you want to limit your loss to $3,600, you should place a stop-buy order at ___.A. A. $32.00 B. $38.00 C. $44.00 D. $64.00
Answer:
$44.00
Explanation:
You are required to find where to place a stop-buy order
Amount received from short sale
= 600 x $38
= $22,800
Loss = $3,600 = 600p - 22,800
=3,600 + 22800 = 600p
26400 = 600p
P = 26400/600
P = $44.00
you should place a stop-buy order at $44.00
A company has net income of $199,000, a profit margin of 9.50 percent, and an accounts receivable balance of $106,108. Assuming 74 percent of sales are on credit, what is the company's days' sales in receivables
Answer:
Receivables days = 25 days
Explanation:
The receivable days is the average length of time it takes a business to receive cash from customers in respect of credit sales made.
It is calculated as follows:
Receivables days = Receivables / Credit sales × 365 days.
The credit sales is missing , hence we need to work it out as follows:
Net income =profit margin × total sales revenue
let sales value be represented by "y"
199,000 = 9.50% × y
y = 199,000/0.095
y= 2,094,736.84
Total sales revenue = 2,094,736.84
Credit sales = 74% × total sales revenue
= 74% × 2,094,736.84=1,550,105.263
Receivables days =106,108/1,550,105.26× 365 days= 24.98
Receivables days = 25 days
The main goal of monetary policy is to shift Choose one or more: A. aggregate demand. B. short-run aggregate supply. C. long-run aggregate supply.
Answer: aggregate demand
Explanation:
Monetary policy, is the demand side of an economic policy that is used by the government through the central bank in order to control the money supply that is available in the economy so as to achieve macroeconomic goals that will bring about economic growth.
The main goal of monetary policy is to shift the aggregate demand. Increase or decrease in money supply can either shift the aggregate demand to the right or to the left depending on whether the government wants to use the expansionary or the contractionary method.
Your firm has net income of $260 on total sales of $1,160. Costs are $650 and depreciation is $110. The tax rate is 35 percent. The firm does not have interest expenses. What is the operating cash flow
Answer:
The answer is $650
Explanation:
Net income = $260
Total sales = $1,160
Costs = $650
Depreciation = $110
Earnings before Interest and tax(EBIT) =
Total sales - Cost - depreciation
$1,160 - $650 - $110
= $400
Tax =[260 ÷ (1 - 0.35)] - 260
$400 - $260
$140
Operating cash flow is therefore,
Earnings before Interest and tax(EBIT) + depreciation + tax
$400 + $110 + $140
= $650
How can Growing Minds attract the best applicants for jobs at its new retail outlets? On what groups, if any, should the company’s recruiting efforts focus? How should the recruiting be done?
Answer:
Hi your question is incomplete here is the complete question
Growing Minds, Inc. is a national chain of retail outlets specializing in creative toys and innovative learning materials for children. The company caters to the upper end of the market and focuses on customer service for a competitive advantage. It provides workshops for parents and children on topics such as learning with the computer and indoor gardening and offers crafts classes ranging fropapier-mâché to pottery. Growing Minds plans to expand and to open five new retail outlets in the coming quarter. This may mean up to 200 new hires, and the executive team wants to make sure that the best people are hired and retained. It has issued a challenge to its retail management personnel to design a staffing process that will accomplish these goals. The children’s market in which Growing Minds operates demands service personnel who are endlessly patient; knowledgeable about children, toys, and learning; and, perhaps most important, sociable,enthusiastic, and engaging. Excellent customer service is the top priority at Growing Minds, and obtaining the desired performance from personnel has meant a major investment in training. Unfortunately, new workers often leave within a year of being hired. This means that the company barely gets an adequate return on the training it has invested in its new hires. Apparently, turnover is due (at least in part) to the demanding nature of the job. Recently, Growing Minds has been emphasizing the establishment of work teams to improve the quality of its services, identify and fix any problems in service delivery, and brainstorm new opportunities. This approach has yielded better-than-anticipated results, so the team concept will be central to the new outlets.
Answer :
The company should post its vacancies ad on social media sites and career pages and also offer competitive salary structureGrowing minds should focus on The Millennial with sound behavioral competencies and Technological knowledgerecruiting should be done through; planning,sourcing, selecting and welcoming the new employeesExplanation:
Growing Minds been a chain of retail outlets that are specialized in creative toys and other innovative learning materials for children. catering to the upper end of the market and focusing on customer service for a competitive advantage. hence Growing minds needs to get the best hands to successfully satisfy their customer and one way to do that is ;
posting its vacancies ad on social media sites and career pages and also offer competitive salary structure : this is because the technological advanced applicants who can fit into the job of properly handling and understanding the creative toys and other innovative learning materials can be found there ( social media sites and career pages ) the group of people they should focus on are Millennial with the technology know how and also with the sound behavioral competencies
A risky portfolio pays a 15% rate of return with probability 60% in a good state or a 5% return with probability 40% in a bad state, and a T-bill pays 5%. The risk premium on the risky investment is
Answer:
The risk premium on the risky investment is 8%
Explanation:
The first portfolio pays 15% rate of return with probability 60% in a good
The second portfolio 5% return with probability 40% in a bad state
The risk port-folio expected return = 60% * 15% + 40% * 5%
Expected return = 0.6 * 15% + 0.4* 5%
Expected return = 0.09 + 0.02
Expected return = 0.11
Expected return = 11%
Risk premium on the risky investment = Expected return - Risk free rate
= 11% - 5%
= 8%
The risk premium on the risky investment is 8%
Units-of-Output DepreciationA tractor acquired at a cost of $420,000 has an estimated residual value of $30,000, has an estimated useful life of 25,000 hours, and was operated 1,850 hours during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places.(a) The depreciable cost $ (b) The depreciation rate $ per hour(c) The units-of-output depreciation for the year $
Answer:
a. $390,000
b. $15.6
c. $28,860
Explanation:
depreciable cost = cost of asset - salvage value = $420,000 - $30,000 = $390,000
(b) The depreciation rate $ per hour = depreciable cost / estimated useful life = $390,000 / 25,000 = $15.6
The units-of-output depreciation for the year = $15.6 x 1,850 hours = $28,860
Which of the following statements regarding a firm’s optimal capital structure is true? The optimal capital structure maximizes the firm’s earnings per share (EPS). The optimal capital structure maximizes the firm’s cost of equity. The optimal capital structure maximizes the firm’s cost of debt. The optimal capital structure maximizes the firm’s stock price.
Answer: The optimal capital structure maximizes the firm’s stock price.
Explanation:
The Capital Structure of a company refers to the proportion of debt vs equity that it chooses to use to fund its Assets and operations.
The goal of management is to use the capital structure to fund the company in such a way that the market value of a company increases.
The Market value is reflected by the firm's stock price so the optimal capital structure is meant to maximize the firm’s stock price.
The manufacturers of several designer purses have met and agreed not to sell their purses to Jolie's Department Store because of Jolie's practice of discounting all items 20 percent below the retail costs at other stores. The manufacturers are concerned about maintaining their images of exclusivity and quality. The agreement among the manufacturers:
Answer:
b. violates the Sherman Act because it is a boycott.
Explanation:
Since the manufacturers have decided to team boycott the Jolie's Department Store, the Sherman Act is also known as the form of civil conspiracy by just not selling their immoral and also unconstitutional and violet hand bags to them.
Hence, the correct option is b as it violates the Sherman act
Therefore all the other options are wrong
An investor has sold short stock worth $20,000 in a margin account, depositing the Regulation T margin requirement. If the market value of the stock falls to $16,000, what is the Selling Power in the account
Answer:
The selling power in the account is $20,000.
Explanation:
Credit - Short market value = Equity %
Sale $20,000 $20,000
Margin $10,000 $10,000
Total $30,000 $20,000 $10,000 50%
If the market value falls to $16,000, the account will show;
Credit - Short market value = Equity %
$30,000 $16,000 $14,000
To support a $16,000 stock position at 50% margin, equity of $8,000 is required. Since the account has $14,000 of equity, the excess of $10,000 may be borrowed and it's the
SMA amount. With $10,000 of SMA amount, twice this amount may be purchased or sold short in other marginal securities.
Formal proposals are different from informal proposals in that they are used to respond to large projects and are therefore often longer. Formal proposals contain special components in addition to the six basic components of informal proposals.
a. True
b. False
You have just taken out a $ 23 comma 000 car loan with a 4 % APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Answer:
Interest = $75.90
Principal = $347.64
Explanation:
First find the payment that is required per month. It will be an Annuity payment as the present value of the loan is given.
The loan is for 5 years compounded monthly so period is;
= 5 years * 12 months
= 60
Interest = 4/12
Present Value of Annuity= Payment * (1 - (1 + r) ^ -n)/r
23,000 = Payment * (1 - ( 1 + 4/12%) ^ -⁶⁰)/ 4/12%
23,000 = Payment * 54.304
Payment = 23,000/54.304
= $423.54
Interest Payment is;
= 4/12% * 23,000
= $75.90
Amount going towards Principal;
= 423.54 - 75.90
= $347.64
An evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or termination is called an A. employment assessment. B. a performance appraisal. C. a job specification. D. a job analysis.
Answer:
B. a performance appraisal
Explanation:
A performance appraisal is the regular review of an employee's performance to analyze his level of personal development and contribution to the progress of the company. Companies carry out a performance appraisal so as to know which employees are deserving of a pay raise, salary cut, promotion, more training, and even termination of the job in cases where the employee's performance is way below acceptable standards. Some types of performance appraisal include;
1. The 360-degree feedback appraisal where opinions about the employee's performance are sourced from the employee's subordinates, his peers, and seniors in the organization.
2. Peer assessment where opinions about the employee's performance are gotten from his peers.
3. Self-assessment where the employee gives his own personal opinion about his performance level.
. The set of activities used to obtain a sufficient number of the right people at the right time in order to select those who best meet the needs of the organization is called
Answer:
Interview
Explanation:
This set of activities done by an organization is called an Interview. All companies/organizations do this in order to find the best candidate for a specific position within their company. Although there are different types of interviewing methods (face-to-face, group interview, online interview, etc.) all of which include a set of questions or activities that show the employer/hiring manager that you can complete the tasks and responsibilities that the job position demands.
A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that completely prevents hay fever. The consensus analyst forecast for the company’s earnings per share (EPS) is $4.50, but insiders know that, with this new drug, earnings will increase and drive the EPS to $5.00. What will happen when the company releases its next earnings report?
Answer:
stock price will not change at all
Explanation:
Based on the information provided it can be said that when the company releases its next earnings report the stock price will not change at all. This is because stock markets move fast, the stock price of EPS moved when the in the announcement about FDA approval was made. Therefore the markets already expect these changes to reflect on the earnings report so prices will not move. Just as the saying goes, "Buy the Rumor, Sell the news."
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents.
January 2,2015 Paid $87,000 cash to purchase storage shed components.
January 3;2015 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $6,000.
April 1,2015 Paid $39,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $4,000.
May 13,2015 Paid $400 cash for repairs to the pickup truck.
July 1,2015 Paid $28,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years.
December 31,2015 Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
June 30,2016 Sold the pickup truck for $33,000 cash. (Record the depreciation on the truck prior to recording its disposal.)
December 31,2016 Recorded depreciation on the storage shed. Determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero).
Required:
Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Answer:
Gravure Graphics International
General Journal:
Jan 2, 2015:
Debit Storage Shed $87,000
Credit Cash Account $87,000
To record the purchase of storage shed components.
Jan 3, 2015:
Debit Storage Shed $3,000
Credit Cash Account $3,000
To record the payment for shed erection.
April 1, 2015:
Debit Pickup Truck $39,000
Credit Cash Account $39,000
To record the purchase of a pickup Truck
May 13, 2015:
Debit Truck Repair Expense $400
Credit Cash Account $400
To record the payment for repairs.
July 1, 2015:
Debit Patent Rights $28,000
Credit Cash Account $28,000
To record the purchase of patent rights.
Dec. 31, 2015:
Debit Depreciation Expense - Storage Shed $8,400
Credit Accumulated Depreciation - Storage Shed $8,400
To record the depreciation expense for the year.
Debit Depreciation Expense - Pickup Truck $5,250
Credit Accumulated Depreciation - Pickup Truck $5,250
To record the depreciation expense for the 9 months.
Debit Impairment Expense - Patent Rights $2,800
Credit Accumulated Impairment- Patent Rights $2,800
To record the impairment expense for the 6 months.
June 30, 2106:
Debit Depreciation Expense- Pickup Truck $3,500
Credit Accumulated Depreciation- Pickup Truck $3,500
To record depreciation expense for the half year.
Debit Accumulated Depreciation - Pickup Truck $8,750
Credit Sale of Truck $8,750
To transfer the balance to Sale of Truck.
Debit Sale of Truck $39,000
Credit Pickup Truck $39,000
To record the transfer to Sale of Truck.
Debit Cash Account $33,000
Credit Sale of Truck $33,000
To record the sale of the pickup truck for cash.
Dec. 31, 2016
Debit Sale of Truck $2,750
Credit Gain on Sale of Truck $2,750
To record the gain on sale of truck.
Debit Depreciation Expense - Storage Shed $8,400
Credit Accumulated Depreciation - Storage Shed $8,400
To record the depreciation expense for the year.
Debit Impairment Expense - Patent Rights $25,200
Credit Accumulated Impairment- Patent Rights $25,200
To write down the book value to zero.
Explanation:
a) Depreciation / Impairment Expenses:
1) Storage Shed = $8,400 ($87,000 + 3,000 - 6,000) / 10
2) Pickup Truck = $7,000 ($39,000 - 4,000) / 5
for 2015 = $5,250 ($7,000 x 9/12)
3) Patent Rights = $5,600 ($28,000/5)
for 2015 = $5,600 /2 = $2,800
4) Truck for 2016: $7,000/2 = $3,500
5) Depreciation is an accounting method for expensing the cost of a fixed asset over its useful life. It is based on estimate and there are many methods for estimating the depreciation expense for the various fixed assets.
6) Impairment is like depreciation as a method for expensing cost of an asset. The difference is that while depreciation is used for tangible non-current assets, impairment is for intangible non-current assets. Another difference is that impairment is determined at the end of the period when the asset is checked for impairment based on fair value.
Companies can and often do use different costing methods for financial reporting and tax reporting. An exception to this is the:
Answer:
LIFO conformity rule.
Explanation:
LIFO refers to the Last in first out method. In this inventory system, the firm sells last units at first stage and then sells according to that
According to the given situation, the LIFO conformity rule requires that the taxpayer follow the same inventory cost flow as used for tax reporting purposes in the financial statement.
Therefore the correct answer is LIFO conformity rule.
Government organizations such as the IRS and other government regulatory agencies are interested in a firm's accounting information in order to help the firm strategize about ways to cut costs in order to minimize net income before taxes.
a. True
b. False
Answer: False
Explanation:
The role of the IRS and other Government regulatory agencies is to collect taxes as well as to ensure that companies follow the prescribed Generally Accepted Accounting Principles. This is the main purpose that they go through a firm's Accounting records. To ensure that they are paying the correct amount of taxes and to ensure that they are not engaging in illegal and unacceptable accounting practices.
The sales budget for Perrier Inc. is forecasted as follows:
Month Sales Revenue
May $130,000
June 150,000
July 200,000
August 130,000
To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale.
5 percent uncollectible.
60 percent in the month of sale.
20 percent in the month following sale.
15 percent in the second month following sale.
The company gives a 2 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $22,000, of which $7,000 represents uncollected March sales and $15,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections.
Answer:
budgeted cash collections
May June July
sales revenue 130,000 150,000 200,000
cash sales (60% x 0.98) 76,440 88,200 117,600
accounts receivable (March) 5,250
accounts receivable (April) 7,500 5,625
accounts receivable (May) 26,000 19,500
accounts receivable (June) 30,000
total cash collections 219,190 269,825 367,100
I used net accounts receivables, that means I already discounted the 5% of collectibles.
You have just received an offer in the mail from Friendly Loans. The company is offering to loan you $4,250 with low monthly payments of $90 per month. If the interest rate on the loan is an APR of 15.3 percent compounded monthly, how long will it take for you to pay off the loan
Answer:
73 months
approximately 6 years
Explanation:
The period of time it would take to pay off the loan can be determined using excel nper function as below:
=nper(rate,pmt,-pv,fv)
rate is the interest expressed in monthly terms which is 15.3%/12
pmt is the amount payment per month i.e $90
pv is the amount of loan which is $4250
fv is the balance of the loan after all payments have been made i.e $0
=nper(15.3%/12,90,-4250,0)= 73 months
73 months/12 months=approximately 6 years