Answer:
$1,000
Explanation:
A bond's par value is the bond's face value or maturity value. This is the amount that the bondholder will collect once the bond matures. The coupon is calculated by multiplying the bond's par value times the coupon rate (interest rate). In this case, the coupon rate is 9% / 2 = 4.5% because it pays a semiannual coupon.
coupon = bond's par value x coupon rate
$45 = bond's par value x 4.5%
bond's par value = $45 / 4.5% = $1,000
In Year 1 Cypress, who is married but filing separately, incurred a net capital loss in the amount of $25,000. Cypress also had the following net capital gains in Year 1:
ABC stock Short-term $7,000
DEF stock Short-term 2,000
GHI stock Short-term 5,000
JKL stock Long-term 4,000
MNO stock Long-term 3,000
Total $21,000
What amount, if any, of the Year 1 capital loss will Cypress carry over to Year 2 if the Year 1 deduction is maximized?
a. $4,000
b. $1000
c. $2.500
Answer:
c. $2.500
Explanation:
The maximum capital loss deduction per year for a married person filing separately or a single filer is $1,500 per year (if filing jointly the maximum deduction is $3,000).
net capital loss/gain = -$25,000 + $7,000 + $2,000 + $5,000 + $4,000 + $3,000 = -$4,000
-$4,000 loss + $1,500 capital gains deduction = -$2,500 carryover loss
Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Average accounts receivable = $20,000 What is the average collection period in days (rounded to the nearest whole day)?
Answer:
73 days
Explanation:
average collection period = number of days in a period / receivables turnover
receivables turnover = revenue / average receivables = $100,000 / $20,000 = 5
average collection period = 365 / 5 = 73 days
I hope my answer helps you
A bank has $10,000 in excess reserves and the required reserve ratio is 20 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in total reserves.
Answer: $100,000; $30,000
Explanation:
The reserve rate is the amount of money that is made compulsory by the central bank of a country to the commercial banks to keep with them. It is a way of controlling the money in circulation.
A bank has $10,000 in excess reserves and the required reserve ratio is 20 percent. This means the bank could have $100,000 in checkable deposit liabilities and $30,000 in total reserves.
Since deposit is $100,000 and reserved rate is 20%, this will give an amount of: 20% × $100,000 = $20,000. Adding the $10,000 excess reserve will make $30,000 to which is the total reserve
Bonds owned by investors whose names and addresses are recorded by the issuing company, and for which interest payments are made with checks or cash transfers to the bondholders, are called:
Answer: Registered Bonds
Explanation:
A registered bond is one that has the owner's name and contact information recorded by the issuer so as to ensure that interest payments depending on the bond terms are rightly given out and also to track claims to coupons.The two ways bonds can be registered and transferred
1. Physically by printing owners details at the back of the certificate and BY signing or endorsing a certificate during transfer of bonds,
2. Electronically bY recording on a system database for ownership claim and for transfer of bonds.
The opposite of a Registered bond is a Bearer bond, Here, the owner"s details and information are not recorded.
You are going to deposit $24,500 today. You will earn an annual rate of 5.5 percent for 8 years, and then earn an annual rate of 4.9 percent for 11 years. How much will you have in your account in 19 years
Answer:
Future value at the end of 19 years =$63,637.94
Explanation:
The Future value (FV) of an investment is the total amount (principal plus interest) that will accumulate in the future where interest is paid and compounded at a particular rate per period for a certain number of periods.
This can be done using the formula below
FV = PV × (1+r)^(n)
FV- Future Value
PV- amount invested, n- number of years, r - interest rate
The amount due after 19 years would be determined in two steps
Step 1: FV of 24,500 at 5.5% for 8 years
FV = 24,500× (1+0.055)^8 =37,599.819
Step 2 : FV of 37599.81962 invested for 11 years at 4.9% p.a
FV = ? P=37,599.81, n- 11, r- 4.9%
FV = 37,599.81 × (1.049)^11= 63,637.94
Future value at the end of 19 years =$63,637.94
Yuhu manufactures cell phones and is developing a new model with a feature (aptly named Don't Drink and Dial) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 A.M. The new phone model has a target price of $380. Management requires a 25% profit on new product revenues.
Required:
a. Calculate the amount of desired profit.
b. Calculate the target cost.
Answer:
1. $95
2. $285
Explanation:
1) Calculate the desire profit of the company
25% profit on Product revenue
Desired Profit=Target price*25%
=380 * 0.25
= $95
The desire profit of the company is $95
2) Calculate the target cost
Total Sales Price $380
Less: Desired profit ($95)
Target cost $285
When organizations, in an attempt to prevent _____ asks customers to not enter characters but instead select them one by one from boxes, intruders may counter with
Answer: a. keyloggers, screen scrapers
Explanation:
When organizations, in an attempt to prevent keyloggers asks customers to not enter characters but instead select them one by one from boxes, intruders may counter with screen scrapers
Keyloggers is a program that allows another person to record the keys struck on a keyboard without the person typing knowing. The person recording can them compile the information to find out very confidential information. By asking customers to select characters this can be mitigated.
Screen Scrapers on the other hand are more lethal because they record that is being displayed on a screen and transmit it to another person thereby enabling them to see what the target is doing even if they select characters from boxes.
The jewelry department has an initial markup of 55.6%, with total retail reductions of 15%. There are no alteration costs or cash discounts. What is the maintained markup percentage and the gross margin percentage
Answer:
Maintained markup percentage = 48.9%
Gross margin percentage = 48.9%
Explanation:
Given:
Initial markup = 55.6%
Total retail reductions = 15%
To find the maintained markup percentage use the formula below:
%MMU = Initial MU% - Retail reductions% (100% - Initial MU%)
Substitute figures:
%MMU = 55.6% - 15% (100% - 55.6%)
= 55.6% - 15% (44.4%)
= 55.6% - 6.66%
= 48.9%
Therefore, the maintained markup percentage = 48.9%
To find the gross margin percentage, use the formula below:
GM% = (Net sales - Total cost of goods) /Net sales
We can also use this formula below to find the maintained markup percentage:
MMU% = (Net sales - Gross cost of goods) /Net sales
But we are told that there are no alteration costs or cash discounts here. Therefore the gross cost is the same as the total cost of goods.
This means that the mantained markup percentage and the gross margin percentage are equal.
GM% = 48.9%
The nominal interest rate is 9 percent in Brazil and 6 percent in Japan. Applying the international Fisher effect, the Brazilian real should
Answer:
appreciate by 3%
Explanation:
the international fischer effect states that the difference between the nominal interest rate of two countries is equal to the changes in the exchange rate of their currencies.
the country with the lower interest rate appreciates by the difference between the exchange rate.
9% - 6% = 3%
the Brazilian real should appreciate by 3%
Mobile visual search (MVS) apps generate graphic images that are superimposed on pictures of real things (e.g., people, rooms, buildings, roads, and so on). For instance, a mobile phone user might point her phone camera at an office building and activate an app that generates the logos of all foodservice outlets (e.g., Starbucks, Subway, McDonalds) inside the building. True or False
Answer: False
Explanation:
Mobile Visual Apps were made.more along the lines of linking different content from a single picture. For instance, a single picture of a logo could link the user to the social media pages, products and other content belonging to the owner of the logo.
The product described in the text above is ' Augmented Reality '.
Currently, a U.S. trader notes that in the 6-month forward market, the Japanese yen is selling at a premium (that is, you receive more dollars per yen in the forward market than you do in the spot market), while the British pound is selling at a discount. Which of the following statements is correct?
a) If interest rate parity holds among the three countries, the United States should have the highest 6-month interest rates and Britain should have the lowest rates.
b) If interest rate parity holds among the three countries, the United States should have the highest 6-month interest rates and Japan should have the lowest rates.
c) If interest rate parity holds among the three countries, Japan should have the highest 6-month interest rates and Britain should have the lowest rates.
d) If interest rate parity holds, 6-month interest rates should be the same in the U.S., Britain, and Japan.
e) If interest rate parity holds among the three countries, Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
Answer:
Hence correct answer is option e) If interest rate parity holds among the three countries, Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
Explanation:
Which of the following statements is CORRECT?
a. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due.
b. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different.
c. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%.
d. The proportion of the payment that goes toward interest on a fully amortized loan increases over time.
e. If a loan has a nominal annual rate of 8%, then the effective rate will never be less than 8%.
Answer:
e. If a loan has a nominal annual rate of 8%, then the effective rate will never be less than 8%.
Explanation:
As we know that
EAR = (1 + r ÷ n)^n -1
where,
EAR = Effective annual rate
r = interest rate
n = number of years
By applying the above formula we know that the effective annual rate should always be greater than the normal annual rate
Hence, the correct option is e.
Therefore all other options would be wrong
Determine the uniform annual value for the cash flow below at an interest rate of 11% per year.
Year 0 1 2 3 4 5 6 7 8 9
Cash Flow, 0 $ 30,000 30,000 30,000 30,000 45,000 45,000 45,000 45,000 45,000
a. $38,474
b. $37,744
c. $36,595
d. $39,595
Answer:
$36,595
Explanation:
The computation of the uniform annual value is shown below:;
Before that we need to find out the present worth which is
= $30,000 × (P/A , 11%, 4) + $45,000 × (P/A , 11%, 4) × (P/F , 11%, 4)
= $30,000 × (3.1025) + $45,000 × (3.69590) (0.65873)
= $202,630.51
Now the annual worth is
= Present value × (A/P, 11%,9)
= $202,630.51 × 0.18060
= $36,595
Two partners, Small and Big, form a partnership in which Small invested $40,000 and Big invested $60,000 for a total capital of $100,000. But Small devotes more time to the business and earns more from the firm. They have agreed to share the profits as follows:
1. The first $20,000 is allocated on the partner's capital balances.
2. The next $30,000 is allocated based on service: Small gets $20,000, and Big gets $10,000.
3. Any remaining profits are allocated equally.
4. The partnership's net income is $100,000.
Requried:
a. What is Small's portion of the net income?
b. What is Big's portion of the net income? Make the entry for this allocation.
c. What would be the right parts to the journal entry for this question?
Answer:
a. What is Small's portion of the net income?
$53,000b. What is Big's portion of the net income? Make the entry for this allocation.
Big's portion = $47,000Dr Income Summary 47,000 Cr Big, capital 47,000c. What would be the right parts to the journal entry for this question?
Debit Income summary and credit capital accountsExplanation:
partnership's net income $100,000
first $20,000
Small $8,000Big $12,000next $30,000
Small $20,000Big $10,000Remaining $50,000
Small $25,000Big $25,000total Small = $53,000
total Big = $47,000
The Internal Rate of Return (IRR) represents which of the following: Multiple Choice The discount rate that must be lower than the required rate of return. The discount rate that makes the net present value equal to zero. The discount rate that makes the net present value positive. The discount rate that makes the net present value negative. The discount rate that is affected by the cash flows external to the project.
Answer:
The discount rate that makes the net present value equal to zero.
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
It is the discount rate that makes the net present value equal to zero.
I hope my answer helps you
The core CPI looks at the price changes of a market basket without Select one: a. luxury goods b. taxes c. food and energy d. imported goods
Answer:
The correct answer is the option C: food and energy.
Explanation:
On the one hand, the concept known as "Consumer Price Index" or CPI is refered to the measure that is basically used in economics in order to obtain the variation of prices in general that happens in a certain period of time, so that means that it focus in calculating the inflation of an economy by examinating the weighted average of prices of a basket of predetermined goods.
On the other hand, the "Core CPI" calculates the inflation in the costs of goods and services of a predetermined basket by does not include the ones from the food an energy sectors.
As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy; b) The total capital budget for next year is likely to be $8,000,000; c) The forecasted level of earnings next year is $8,000,000; d) The target or optimal capital structure is a debt ratio of 40%;
Answer:
a. Amount funded with equity is $4,800,000
b. Dividend is $3,200,000
c. Dividend Payout ratio is 40.00%
Explanation:
Note: This question is incomplete, and the complete one is as follows:
As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy; b) The total capital budget for next year is likely to be $8,000,000; c) The forecasted level of earnings next year is $8,000,000; d) The target or optimal capital structure is a debt ratio of 40%;
Please answer the following questions:
a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)
b. Compute the amount of the dividend . (Keep the answer to a whole number. Example of answer format: $1,000,000)
c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)
The following are therefore the explanation of the answers to the question:
a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)
Given that the target or optimal capital structure is a debt ratio of 40%, this implies that there will be 40% debt finance and 60% (100% - 40%) equity finance. Therefore, we have:
Amount funded with equity = Total capital budget for next year * Percentage of equity finance = 8,000,000 * 60% = $4,800,000
b. Compute the amount of the dividend. (Keep the answer to a whole number. Example of answer format: $1,000,000)
Since the company follows a residual dividend policy, it implies that the earnings available are employed to finance capital expenditure budget first before dividends are paid to the shareholders.
Since amount funded with equity is $4,800,000 as obtained in part a, it implies that this must be deducted first from the forecasted level of earnings next year to obtain the residual that will be paid as dividend as follows:
Dividend = Forecasted level of earnings next year - Amount funded with equity = $8,000,000 - $4,800,000 = $3,200,000
c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)
Dividend payout ratio refers to the percentage of the earnings or net income of a company that is paid by the company to its shareholders as dividend. This can therefore be calculated
Dividend Payout ratio = Dividend / Earnings = $3,200,000 / $8,000,000 = 0.40, or 40.00%
Therefore, WillPower, Inc is expected to pay 40% of its earnings as dividend to its shareholders.
A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $355 per pair and cost $262.70 per pair in variable costs to make. (Round your answers to 2 decimal places.)
Required:
a. Compute the contribution margin per pair.
b. Compute the contribution margin ratio.
Answer:
a.$92.30
b.27.55%
Explanation:
a. Computation for the contribution margin per pair
Sales 355.00 per pair
Less:Variable cost $262.70 per pair
Contribution margin $92.30 per pair
Therefore the Contribution margin per pair will be $92.30
b. Computation for the contribution margin ratio.
Using this formula
Contribution margin ratio=Contribution margin per unit/Selling price per unit
Where,
Contribution margin per unit =$92.30
Selling price per unit =$335.00
Let plug in the formula
Contribution margin ratio=$92.30/$335.00
Contribution margin ratio =27.55%
Therefore the Contribution margin ratio will be 27.55%
Magnolia, Inc. manufactures bedding sets. The budgeted production is for 31,600 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 4,980 yards with the desired ending balance of 4,200 yards of material. If the material costs $3.10 per yard, determine the materials budget for the year.
Answer:
$683,302
Explanation:
The computation of the materials budget for the year is shown below:-
Total Material required = Budgeted production units × Material Required per unit
= 31,600 × 7
= 221,200
Material to be purchased (Yards) = Total Material required + Desired Ending material inventory - Beginning Material inventory
= 221,200 + 4,200 - 4,980
= 220,420
Cost of Material to be purchased = Material to be purchased (Yards) × Price Per yard
= 220,420 × $3.10
= $683,302
Sebastian purchases two pieces of equipment for $189,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $132,300 and that of the second piece of equipment is $207,900. What is Sebastian's basis in these two assets? If required, round your interim calculations to two decimal places. Use rounded amounts in subsequent computations. If required, round final answers to the nearest dollar. Sebastian's basis for the first piece of equipment is $ and $ for the second piece of equipment.
Answer:
Sebastian basis in first piece of assets is $73,500 and second piece of assets is $115,500
Explanation:
Calculation of the total fair market value
Total fair market value = Fair market value of first piece of equipment + Fair market value of second piece of equipment
Total fair market value = $132,300 + $207,900
Total fair market value = $340,200
Therefore, the total fair market value is $340,200.
Calculation of Sebastian “S” basis in assets:
“S” basis in assets in first piece of assets = Fair market value of first piece of equipment / Total fair market value * Purchase cost
= $132,300 / $340,200 * $189,000
= $73,500
“S” basis in assets in second piece of assets = Fair market value of second piece of equipment / Total fair market value * Purchase cost
= $207,900 / $340,200 * $189,000
= $115,500
“S” basis in first piece of assets is $73,500 and second piece of assets is $115,500.
At an output level of 6,000 units, you have calculated that the degree of operating leverage is 2.3. The operating cash flow is $12,000 in this case. a. Ignoring the effect of taxes, what are fixed costs
Answer: $15,600
Explanation:
The following information can be gotten from the question:
Output level = 6,000 units
Degree of operating leverage = 2.3
Operating cash flow = $12,000
Contribution margin = Degree of operating leverage × Operating cash flow
= 2.3 × $12,000
= $27,600
Fixed cost = contribution margin - Operating cash flow
= $27,600 - $12,000
= $15,600
The lender usually has the right to collect the principal, but is NOT allowed to collect the interest if the loan is:
Answer:
This question is incomplete, the options are missing. The options are the following:
a) For consumer purposes
b) For commercial purposes
c) Usurious
d) An online contract
And the correct answer is the option C: Usurious.
Explanation:
To begin with, in the area of law, the term known as "Usury" is refer to the practice that focuses on making the lender richer in unethical ways so therefore that this practice is considered to be the one that makes inmoral monetary loans that try to affect the borrower in order to benefit the lender. One example of the use of this term could be the case in where the lender charges or try to charges a higher interest rate to the borrower than the one that is prohibited by law as a maximun rate.
Wanda is the project manager of her organization and is creating a checklist for her project team. She is working on the XYZ project. In this project, the team will be installing electrical fixtures throughout the office building and she wants to confirm that the installations will be done correctly each time. Her goal is that the project deliverables will be of quality throughout the project installation process. In what project processes will Wanda's team use the checklist?
Answer:
Control quality
Explanation:
Control quality or Quality control which is also known as (QC) can be defined as way in which a business decide to seeks in order to ensure that product quality is maintained or or the product qualitity is improved which is why Quality control often requires that the business create an environment in which both management and employees can strive for perfection and it is as well part of quality management which focused on fulfilling all the quality requirements an help to evaluate whether the product or service meets all the quality requirements that are specified for the project just as in the case of Wanda the project manager.
Kano International Publishing, headquartered in Berlin, Germany, is a leading global publisher of scientific, technical, and medical journals and books for researchers in academia, scientific institutions, and corporate R&D departments. For print publications, assume that Kano owns a Didde press (now manufactured by Graphic Systems Services) that was acquired at an original cost of $330,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $43,000 estimated residual value. At the end of the prior year, the press had been depreciated for a full five years. At the beginning of January of the current year, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $83,000 would be more realistic. The accounting period ends December 31.Required:a. Compute the amount of depreciation expense recorded in the prior year.b. Compute the book value of the printing press at the end of the prior year.c. Compute the amount of depreciation that should be recorded in the current year.d. Prepare the adjusting entry for depreciation at December 31 of the current year.
Answer:
a. Compute the amount of depreciation expense recorded in the prior year.
$71,750b. Compute the book value of the printing press at the end of the prior year.
$258,250c. Compute the amount of depreciation that should be recorded in the current year.
$8,762.50d. Prepare the adjusting entry for depreciation at December 31 of the current year.
December 31, 202x, depreciation expenseDr Depreciation expense 8,762.50 Cr Accumulated depreciation - Didde press 8,762.50Explanation:
depreciation expense per year of Didde press = ($330,000 - $43,000) / 20 years = $14,350 per year
accumulated depreciation = 5 years x $14,350 = $71,750
net book value = $258,250
adjusted useful life of 25 years, 20 remaining
new residual value of $83,000
depreciation expense per year = ($258,250 - $83,000) / 20 years = $8,762.50 per year
Joseph contributed $25,750 in cash and equipment with a tax basis of $14,800 and a fair market value of $19,500 to Berry Hill Partnership in exchange for a partnership interest.a. What is Joseph’s tax basis in his partnership interest?b. What is Berry Hill’s basis in the equipment?
Answer:
a. Joseph’s tax basis in his partnership interest=$40,550
b. Joseph contributed equipment with a tax basis of $14,800, therefore, Berry Hill’s basis in the equipment is $14,800
Explanation:
a. In order to calculate Joseph’s tax basis in his partnership interest we would have to make the following calculation:
Joseph’s tax basis in his partnership interest=amount contributed in cash+tax basis equipment
According to given data:
amount contributed in cash=$25,750
equipment tax basis =$14,800
Therefore, Joseph’s tax basis in his partnership interest=$25,750+$14,800
Joseph’s tax basis in his partnership interest=$40,550
Joseph's tax basis in his partnership interest is $40,550
b. According to the given data Joseph contributed equipment with a tax basis of $14,800, therefore, Berry Hill’s basis in the equipment is $14,800
In the current year, Woodpecker, Inc., a C corporation with $8,500,000 in assets, reported amortization of $40,000 on its financial statements and deducted amortization of $55,000 on its Federal tax return.
(1) Is Woodpecker required to file a Schedule M-3?
If Woodpecker is required to file a Schedule M-3, the difference in amortization amounts treated on that schedule is reported on line 28, Part III as follows:
(2) $40000 in column (a) _____________.
(3) $15000 in column (b) _____________.
(4) $55000 in column (d) _____________.
Answer:
(1) No
(2) $40000 in column (a) Book Amortization
(3) $15000 in column (b) Temporary Difference
(4) $55000 in column (d) Tax Amortization
Explanation:
1. Woodpecker is not required to file a Schedule M-3
In a situation where Woodpecker is been required to file a Schedule M-3, the difference in amortization amounts treated on that schedule will be reported as :
(2) $40,000 in column (a) Book Amortization
Because based on the information given about Woodpecker, Inc. We were told the company reported amortization of $40,000 on its financial statements which means the $40,000 reported is the BOOK AMORTIZATION
(3) $15000 in column (b) Temporary Difference
The $15,000 is the TEMPORARY DIFFERENCE between $40,000 Book Amortization and $55,000 Tax Amortization ($55,000-$40,000=$15,0000)
(4) $55000 in column (d) Tax Amortization
Based on the information given about
Woodpecker, Inc. We were told that the Corporation deducted amortization of $55,000 on its Federal tax return, hence the amount deducted is the TAX AMORTIZATION
Corporation is expected to pay the following dividends over the next four years: $13, $9, $8, and $3.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price?
Answer:
Price of share $ 59.747
Explanation:
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
This model would be applied as follows:
PV of dividend from Year 1 to Year 4
(13× 1.12^-1) + (9× 1.12^-2 ) + ( 8 ×1.12^-3 ) + (3.50 ×1.12^-3 )= 26.38
PV of dividend from year 5 and beyond
This will be done in two steps
PV in year 4 terms
PV = D× (1+g)/ke- g
D- 3.50, g- 5%, ke- 12%
PV = 3.50× 1.05/ (0.12- 0.05)
PV = 52.5
PV in year 0 terms
52.5 × 1.12^(-4)= 33.36469912
Total PV = 26.38 + 33.36 = 59.747
Price of share $ 59.747
Another bank is also offering favorable terms, so Rahul decides to take a loan of $12,000 from this bank. He signs the loan contract at 5% compounded daily for 12 months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan's term
Answer:
$12,615.21
Explanation:
we need to determine the future value of the loan:
future value = present value x (1 + interest rate)ⁿ
present value = $12,000n = 365 days (compounded daily)interest rate = 5% / 365 days = 0.05/365 = 0.000136986future value = $12,000 x (1 + 0.000136986)³⁶⁵ = $12,000 x 1.051267496 = $12,615.21
The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following:
A. Cash balance on June 1 is $736.
B. Actual sales for April and May are as follows:
April May
Cash sales $10,000 $18,000
Credit sales 28,900 35,000
Total sales $38,900 $53,000
C. Credit sales are collected over a three-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible.
D. Inventory purchases average 64% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month.
E. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner.
F. Rent is $4,100 per month.
G. Taxes to be paid in June are $6,780.
The owner also tells you that he expects cash sales of $18,600 and credit sales of $54,000 for June. No minimum cash balance is required. The owner of the company doesn't have access to short-term loans.
Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final answers to the nearest dollar.
Answer and Explanation:
The Preparation of the cash budget for June is prepared below:-
Cash Budget
For the month of June
Particulars Amount
Begining cash $736
Add:
Collections:
Cash sales $18,600
Credit sales
Current month $21,600 ($54,000 × 30%)
May credit $10,500 ($35,000 × 30%)
Credit sales of April $5,896 (explained in note 1)
Total cash available $57,332
Less: Disbursement
Purchase of inventory
Current month $9,293 (explained in note 2)
($46,464 × 20%)
Prior month $27,136 (explained in note 2)
($33,920 × 80%)
Salary $11,750 (explained in note 3)
Rent $4,100
Taxes $6,780
Need's total -$1,727
Excess for cash available
over needs
Note:-
1. Amount which is received in June is
= $28,900 × 20%
= $5,780
Late fees = $5,780 × 2%
= $116
June receipts is
= $5,780 + $116
= $5,896
2. Purchase of inventory is
= $53,000 × 64%
= $33,920
Total sales = Cash + Credit sales
= $72,600
Puchase of inventory = $72,600 × 64%
= $46,464
3. Entirely amount is taken of salaries and wages if it paid or not.
Kyle accepted a job at Brenton Manufacturing. During his training, he was told that defective and poor-quality products were unacceptable, and the goal is to manufacture goods that met 100 percent of standards. What methodology does this company use
Answer:
TQM (Total quality management)
Explanation:
Total Quality Management is process by which all members of an organisation take part in improving products, services, processes, and the culture of the workplace.
The aim of TQM is to achieve long term success of the business through customer satisfaction.
Kyle was made to understand that defective and poor-quality products were unacceptable, and the goal is to manufacture goods that met 100 percent of standards.
This is a TQM strategy that ensures customer is always satisfied with the company's product.