Answer:
Explanation:
Because nothing is worth risking when you can have someone back you up. If something ever happens to you that you can't afford, insurance companies will have your back. If your house gets destroyed in a hurricane, you can recover the exact value of the house if you have insurance. However, if you don't have insurance, you bascially just lost your house. You can have insurance for many things such as car insurance, life insurance, health insurance.
Earnings Per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Monarch Resources Inc. for December 31 of the current year: Common stock, $125 par value (no change during the year) $12,500,000 Preferred $6 stock, $90 par (no change during the year) 2,250,000 The net income was $1,300,000, and the declared dividends on the common stock were $460,000 for the current year. The market price of the common stock is $92 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. Round to one decimal place except earnings per share and dividends per share, which should be rounded to the nearest cent. a. Earnings per share $fill in the blank 1 b. Price-earnings ratio fill in the blank 2 c. Dividends per share $fill in the blank 3 d. Dividend yield fill in the blank 4 %
Answer:
Monarch Resources Inc.
a. Earnings per share:
= $ 11.50
b. Price-earnings ratio:
= 8x
c. Dividends per share:
= $4.60 per share
d. Dividend yield:
= 5%
Explanation:
a) Data and Calculations:
Common stock, $125 par value = $12,500,000
Number of common stock shares = 100,000 ($12,500,000/$125)
$6 Preferred stock, $90 par value = $2,250,000
Number of preferred stock shares = 25,000 ($2,250,000/$90)
Net income = $1,300,000
Dividends on the Preferred stock = $150,000 ($2,250,000/$90 * $6)
Net income after preferred dividend = $1,150,000 ($1,300,000-$150,000)
Dividends on the Common stock = $460,000
Common stock market price = $92 per share
a. Earnings per share
= Net income after preferred dividend/number of shares
= $1,150,000/100,000
= $ 11.50
b. Price-earnings ratio:
= Market price/EPS
= $92/$11.50
= 8x
c. Dividends per share:
= Common stock dividends/number of common stock shares
= $460,000/100,000
= $4.60 per share
d. Dividend yield:
= Market price/Dividend per share
= $4.60/$92 * 100
= 5%
Explain the significance of capital structure.
Why is it necessary to track the progress of a plan?
O A. To create a progress chart for employees to help them calculate
their pay
O B. To ensure the plan is based on faulty assumptions
O C. To identify potential problems that could impact the schedule
O D. To provide information for manager's reports
Answer:
to identify potential problems that could impact the schedule
Explanation:
a p e x
It is important for an organization to track the process of a plan in order to identify potential problems that could impact the schedule. Hence, option C holds true.
What is planning?Planning is the most basic function of management of a business organization. It is a continuous process. Planning involves setting up the goals and objectives and the actions needed to achieve them.
Furthermore, because planning is a continuous process, it helps in identification of difficulties that may create obstacles in achievement of organizational goals.
Hence, option C holds true regarding planning.
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You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays no dividends, its current price is $100, and you believe it has a 50% chance of increasing to $130 and a 50% chance of decreasing to $70. The risk-free rate of interest is 10%. Calculate the call option's value using the two-state stock price model. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$18.18
Explanation:
Calculation to determine the call option's value using the two-state stock price model
Based on the information given since the two possible stock prices are: S+ = $130 Increase and and S- = $70 decrease which means that If the exercise price is the amount of $100 the first step will be to determine the corresponding two possible call values.
First step is to determine the corresponding two possible call values.
Hence, the corresponding two possible call values are:
Cu = ($130-$100) and Cd = $0
Cu = $30 and Cd = $0
Second step is to Calculate the hedge ratio using this formula
Hedge ratio= (Cu - Cd)/(uS0 - dS0)
Hedge ratio= (30- 0)/(130 - 70)
Hedge ratio=30/60
Hedge ratio= 0.50
Third step is form the cost of the riskless portfolio and end-of-year value
Cost of the riskless portfolio = (S0 - 2C0)
Cost of the riskless portfolio = 100 - 2C0
End-of-year value =$70
Fourth step is to calculate the present value of $70 with a one-year interest rate of 10%:
Present value=$70/1.10
Present value= $63.64
Now let estimate the call option's value by first Setting the value of the hedged position to equal to the present value
Call option's value=$100 - 2C0 = $63.64
Hence,
C0=$100-$63.64/2
C0=$36.36/2
C0=$18.18
Therefore the call option's value using the two-state stock price model will be $18.18
Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time. $322 per month invested at 4%, compounded monthly, for 5 years; then 440$ per month invested at 5%, compounded monthly, for 5 years.
Answer:
Total value of the investment= $57,320.73
Explanation:
First, we need to calculate the future value of the first part of the investment. We will calculate the future value for the monthly deposit for five years and then the lump sum for another five years.
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
i= 0.04/12= 0.003333
n= 5*12= 60 months
FV= {322*[(1.003333^60) - 1]} / 0.003333
FV= $21,348.05
For the lump sum:
FV= PV*(1+i)^n
n= 12*5= 60
i= 0.05/12= 0.004167
FV= 21,348.05*(1.004167^60)
FV= $27,397.75
Now, the future value of the second part of the investment:
n= 60
i= 0.0041667
A= 440
FV= {440*[(1.004167^60) - 1]} / 0.004167
FV= $29,922.98
Total value of the investment= 27,397.75 + 29,922.98
Total value of the investment= $57,320.73
Skysong, Inc. sells office equipment on July 31, 2022, for $17,400 cash. The office equipment originally cost $72,400 and as of January 1, 2022, had accumulated depreciation of $42,300. Depreciation for the first 7 months of 2022 is $5,250. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.
Answer:
(a) update depreciation to July 31, 2022
Debit : Depreciation expense $5,250
Credit : Accumulated depreciation $5,250
(b) record the sale of the equipment.
Debit : Accumulated depreciation $47,550
Debit : Cash $17,400
Debit : Profit and Loss $7,450
Credit : Cost $72,400
Explanation:
Accumulated Depreciation is the total depreciation charged on the asset during its tie in use in the business Accumulated depreciation is $47,550 ($42,300 + $5,250 ).
The Sale has resulted in a loss of $7,450 ($72,400 - $17400 - $47,550)
The aggregate supply curve Multiple Choice is explained by the interest rate, real-balances, and foreign purchases effects. gets steeper as the economy moves from the top of the curve to the bottom of the curve. shows the various amounts of real output that businesses will produce at each price level. is downsloping because real purchasing power increases as the price level falls.
Answer:
. shows the various amounts of real output that businesses will produce at each price level
Explanation:
Aggregate supply can be regarded as " domestic final supply" in domain of economics, it is the overall supply of services/ goods that is been produced at a particular overall price within an economy at a given period. It should be noted that aggregate supply shows the various amounts of real output that businesses will produce at each price level
Gartner Manufacturing Inc. purchases a component from a Malaysian supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20%. The company's order cost is $30.00. How many orders per year will be made, when using the EOQ
Answer:
Number of orders= 28.59 = 29 orders
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
D= 70*250= 17,500
S= $30
H= 14*0.2= $2.8
Now, using the formula:
EOQ= √[(2*17,500*30) / 2.8]
EOQ= √375,000
EOQ= 612.37 = 612
Finally, the number of orders:
Number of orders= total demand / EOQ
Number of orders= 17,500 / 612
Number of orders= 28.59 = 29 orders
Suppose that a worker in Radioland can produce either 5 radios or 1 television per year, and a worker in Teeveeland can produce either 1 radios or 5 televisions per year. Each nation has 100 workers. Also, suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Radioland trades 50 radios to Teeveeland in exchange for 50 televisions each year, then each country's maximum consumption of new radios and televisions per year will be
Answer:
450 radios 50 televisions in radioland and 50 radios 450 televisions in Teeveeland.
Explanation:
In radioland 5 radios are equivalent to one television. Then 1 radio will be equivalent to 0.2 of television. The opportunity cost for each radio is 0.2. In teeveeland the cost of 1 radio is 5 televisions. Hence radioland has comparative advantage in producing radios and Teeveeland has comparative advantage is producing televisions.
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 290,000 $ 290,000 Purchases 622,000 920,000 Freight-in 18,000 Net markups 30,000 Net markdowns 5,000 Net sales 900,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided
Answer:
Estimated ending inventory at retail $335,000
Estimated ending inventory at cost $251,250
Explanation:
Calculation to determine the December 31, 2021, inventory by applying the conventional retail method using the information provided
COST RETAIL
Merchandise inventory, January 1, 2021
$290,000 $ 290,000
Purchases $622,000 $920,000
Freight-in 18,000 $0
Net markups$0 30,000
Total $930,000 $1,240,000
Less Net markdowns $0 $5,000
Goods available for sale $930,000 $1,235,000
($930,000-$0=$930,000)
($1,240,000-$5,000=$1,235,000)
Cost-to-retail percentage 75%
($930,000/$1,235,000)
Less Net sales $0 $900,000
Estimated ending inventory at retail $335,000
($1,235,000-$900,000)
Estimated ending inventory at cost $251,250
($335,000 x 75%)
Therefore the December 31, 2021, inventory by applying the conventional retail method using the information provided will be:
Estimated ending inventory at retail $335,000
Estimated ending inventory at cost $251,250
Suppose that the global crude oil price has risen due to refinery breakdowns caused by middle-east politics and warfare. Crude oil is an input in the gasoline production. At the same time, the demand for driving and, therefore, the demand for gasoline has also risen in the United States. You can accurately predict that the domestic price of gasoline is:_______
Answer:
"Definitely increase" is the correct approach.
Explanation:
As fuel demand rises, consumption exceeds the amount, as manufacturers are unable to cope with either the surge in demand whenever the profit margin is still rising.We could perhaps state precisely that consumption overtakes the output of petrol or the curve of availability to that same right as well as would therefore be at that same greater degree.Thus the above is the correct answer.
Ron was vacationing in France, when his camera was stolen. As he walked into a camera store, Ron noticed that camera prices were in euros. If Ron was willing to pay $ for a new digital camera and the exchange rate is $ per euro, how much will Ron be paying in euros? Ron will be paying nothing euros for the camera. (Instructions: Enter your response by rounding two places after the decimal.)
Answer:
130.43 euros
Explanation:
Since Ron willing to Pay is $150
Now we have to convert $150 in euros
As we know that
exchange rate × willing to pay in euro = Willing to pay in Dollar
i.e.
willing to pay in euro = Willing to pay in Dollar ÷ Exchange rate
= 150 ÷ 1.15
= 130.43 euros
Hence, the ron be paying in euros is 130.43
The same would be relevant
Plymouth Company owns equipment with a cost of $600,000 and accumulated depreciation of $375,000 that can be sold for $300,000, less a 4% sales commission. Alternatively, Plymouth Company can lease the equipment for four years for a total of $320,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Plymouth Company on the equipment would total $40,000 over the four-year lease.
A. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment.
B. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?
Answer:
A. We have:
Profit from Lease Equipment (Alternative 1) = $280,000
Profit from Sell Equipment (Alternative 2) = $288,000
Differential Effects = Net gain from selling = $8,000
B. Since the net gain from selling is $8,000, Plymouth Company should sell (Alternative 2) the equipment.
Explanation:
A. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment.
Note: See the attached excel file for the differential analysis.
In the attached excel file, the following calculation is made:
Cost of Sell Equipment (Alternative 2) = Sales commission = Revenue * Sales commission percentage = $300,000 * 4% = $12,000
From attached excel file, we have:
Profit from Lease Equipment (Alternative 1) = $280,000
Profit from Sell Equipment (Alternative 2) = $288,000
Differential Effects = Net gain from selling = $8,000
B. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?
Since the net gain from selling is $8,000, Plymouth Company should sell (Alternative 2) the equipment.
) Prestwich Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Production in units 60,000 80,000 90,000 70,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound. Prestwich pays for 60% of the purchases in the month of purchase and 40% in the following month. a. What would be the budgeted purchases of material A in pounds for the second quarter
Answer:
165,000 pounds ($495,000)
Explanation:
To determine the budgeted purchases of material A in pounds for the second quarter, prepare a Materials Purchases Budget as follows :
Materials Purchases Budget
Pounds
Materials Required for Production (80,000 x 2) 160,000
Add Closing Materials Inventory (90,000 x 2 x 25%) 45,000
Total Materials 205,000
Less Opening Materials Inventory (80,000 x 2 x 25%) (40,000)
Material Purchases 165,000
Cost per unit $3
Budgeted Materials Cost $495,000
The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000. Accounts receivable are currently $525,000 and are expected to increase by 9 percent if this project is accepted. What is the project's initial cash flow for net working capital
Answer:
$607,250 outflow
Explanation:
Net Working Capital is the amount of money needed to maintain operations on a day to day basis.
Net Working Capital = Current Assets - Current Liabilities
where,
Current Assets are calculated as :
Inventory $216,000
Accounts Receivable ($525,000 x 1.09) $575,250
Total $788,250
and
Current Liabilities = $181,000
therefore,
Net Working Capital = $788,250 - $181,000 = $607,250
Conclusion
The project's initial cash flow for net working capital is $607,250 outflow.
Presented below is information related to Pharoah Corporation for the current year. Beginning inventory $ 590,300 Purchases 1,472,500 Total goods available for sale $2,062,800 Sales revenue 2,455,000 Compute the ending inventory, assuming that (a) gross profit is 46% of sales, (b) gross profit is 60% of cost, (c) gross profit is 36% of sales, and (d) gross profit is 25% of cost.
Answer:
a. $948,888
b. $773,550
c. $1,237,680
d. $412,560
Explanation:
The Ending Inventory is calculated using the missing figure approach or the Gross Margin technique.
that is,
Ending Inventory = Cost of Goods Available for Sale - Cost of Sales
thus,
This can be clearly done by writing up a Trading Account as shown below for each scenario.
also remember,
Cost + Profit = Sales
so for those based on cost use this formula.
for example : gross profit is 60% of cost
will be : 100 % + 60 % = 160 %
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part b
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($773,550) ($1,289,250)
Gross Profit $773,550
Part c
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($1,237,680) ($825,120)
Gross Profit $1,237,680
Part d
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($412,560) ($1,650,240)
Gross Profit $412,560
Decision Case F:2-1 Your friend, Dean McChesney, requested that you advise him on the effects that certain transactions will have on his business, A-Plus Travel Planners. Time is short, so you cannot journalize the transactions. Instead, you must analyze the transactions without a journal. McChesney will continue the business only if he can expect to earn a monthly net income of $6,000. The business completed the following transactions during June:
A. McChesney deposited $10,000 cash in a business bank account to start the compan The company issued common stock to McChesney.
B. Paid $300 cash for office supplies.
C. Incurred advertising expense on account, $700.
D. Paid the following cash expenses: administrative assistant's salary, $1,400: office tent, $1,000.
E. Earned service revenue on account, $8,800.
F. Collected cash from customers on account, $1,200.
Answer:
A-Plus Travel Planners
Analysis of transactions:
A. Cash $10,000 (Increase Assets) Common Stock $10,000 (Increase Equity)
B. Office Supplies $300 (Decrease Profit) Cash $300 (Decrease Assets)
C. Advertising expense $700 (Decrease Profit) Cash $700 (Decrease Assets)
D. Salary expense $1,400 (Decrease Profit) Rent Expense $1,000 (Decrease Profit) Cash $2,400 (Decrease Assets)
E. Accounts Receivable $8,800 (Increase Assets) Service Revenue $8,800 (Increase Profit)
F. Cash $1,200 (Increase Assets) Accounts Receivable $1,200 (Decrease Assets)
Explanation:
a) Data and Calculations:
Expected net income = $6,000
Service Revenue $8,800
Expenses:
Office Supplies $300
Advertising 700
Admin. Salary 1,400
Rent 1,000 $3,400
Net income $5,400
Expected profit 6,000
Required improvement $600
b) To achieve profit target of $6,000 under the current revenue profile, A-Plus Travel Planners must decrease expenses by at least $600. Alternatively, it can increase its revenue by the same amount, while maintaining its costs at current level.
Daniel, age 38, is single and has the following income and expenses in 2020:
Salary income $87,000
Net rent income 2,500
Dividend income 1,300
Payment of alimony (divorce finalized in March 2019) 26,000
Mortgage interest on residence 5,700
Property tax on residence 2,600
Contribution to traditional IRA (assume the amount is fully deductible) 2,400
Contribution to United Church 2,700
Loss on the sale of real estate (held for investment) 825
Medical expenses 4,600
State income tax 2,100
Federal income tax 7,100
Required:
What is Daniel's gross income and his AGI?
Answer:
A. $90,800
B. $87,575
Explanation:
Calculation to determine Daniel's gross income and his AGI
A. Calculation for the Gross income using this formula
Gross income=Salary income + Net rent income + Dividend income
Let plug in the formula
Gross income= $87,000 + 2,500 + 1,300
Gross income=$90,800
Therefore her Gross income is $90,800
B. Calculation to determine the AGI using this formula
AGI=Gross income - (Contribution to traditional IRA + Loss on sale of real estate)
Let plug in the formula
AGI= $90,800 - ($2,400 + $825)
AGI=$90,800-$3,225
AGI=$87,575
Therefore her AGI is $87,575
Walnut has forecast sales for the next three months as follows: July 4,900 units, August 6,900 units, September 8,000 units. Walnut's policy is to have an ending inventory of 50% of the next month's sales needs on hand. July 1 inventory is projected to be 2,200 units. Selling and administrative costs are budgeted to be $20,000 per month plus $9 per unit sold. What are budgeted selling and administrative expenses for July
Answer:
the budgeted selling and administrative expenses for July is $64,100
Explanation:
The computation of the budgeted selling and administrative expenses for July is shown below:
= Budgeted selling & admin cost + (per unit sold × July units)
= $20,000 + ($9 × 4,900 units)
= $20,000 + $44,100
= $64,100
hence, the budgeted selling and administrative expenses for July is $64,100
We simply applied the above formula
Mission Corp. borrowed $50,000 cash on April 1, 2019, and signed a one-year 12%, interest-bearing note payable. The interest and principal are both due on March 31, 2020. Assume that the appropriate adjusting entry was made on December 31, 2019 and that no adjusting entries have been made during 2020. How much interest expense should Mission Corp. record on March 31, 2020?
Answer:
The amount of interest expense that Mission Corp. should record on March 31, 2020 is $1,500.
Explanation:
This can be calculated as follows:
Monthly interest expense = (Amount borrowed * Interest rate) / Number of months in a year = ($50,000 * 12%) / 12 = $500
Remaining number of months = Number of months from January 1, 2020 to March 31, 2020 = 3
Interest expense to record on March 31, 2020 = Monthly interest expense * Remaining number of months = $500 * 3 = $1,500
ando Company incurs a $10.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $5.00 per unit and sell it for $11.90 per unit. If it does so, unit sales would remain unchanged and $5.00 of the $10.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale
Answer and Explanation:
The preparation of the Incremental cost analysis is presented below:
Particulars Product A Purchase
Sales $13.50 $11.90
less: cost
Avoidable cost $5
Unavoidable cost $5 $5
Purchase cost $5
Net income $3.50 $1.90
Since the net income is higher in the manfufacture so the company should continue with manfuacture the product A
Performance management includes standards for measuring how well
individual performance supports the company's goals, practices for
measuring performance against those standards, and .
O A. procedures for giving feedback to employees
0 B. preparation for moving into managementjobs
O C. hands-on learning methods
0 D. presentations by a trainer
the answers A, procedures for give feedback to employees.
Performance management includes standards for measuring how well individual performance supports the company's goals, practices for measuring performance against those standards, and procedures for giving feedback to employees.
What is an employee?
A worker or manager who works for a business, group, or community is referred to as an employee. The organization's personnel consists of these people. There are various types of employees, but in general, any individual engaged by an employer to do a specific task in exchange for remuneration is considered an employee.
An employee benefit plan known as a pension is one that offers retirement income or postpones income until the end of covered employment or beyond. It may be developed or managed by an employer, an employee group (such as a union), or both.
The process of ensuring that a set of actions and outputs achieves the objectives of an organization effectively and efficiently is known as performance management. Performance management can be used to evaluate an employee, a department, a whole business, or the systems in place to handle certain tasks.
Therefore, Thus option (A) is correct
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On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%.
Required:
Prepare the journal entry to record the transaction of December 31, 2015
Answer:
Date Account titles and Explanation Debit ($) Credit ($)
Notes receivable 200,000
Discount on notes receivable 34,711
Sales revenue 165,289
(To record notes receivable)
Workings:
The PV of $200,000 due in 2 years at 10% = $200,000*0.82645 = $165,290
A student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high school graduation present. How much must the student save each year if he deposits the $10,000 today and can earn 12% on both the $10,000 and his earnings in a mutual fund his grandfather recommends
Answer:
Annual deposit= $2,984.69
Explanation:
First, we need to calculate the Future Value of the lumpsum investment using the following formula:
FV= PV*(1+i)^n
FV= 10,000*(1.12^4)
FV= $15,735.19
Now, the annual deposit to cover the difference:
Difference= 30,000 - 15,735.19= 14,264.81
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (14,264.81*0.12) / [(1.12^4) - 1]
A= $2,984.69
You are on a TV game show and can choose one of the following. Which would you
take?
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for
local, state, or federal governments.
nonprofit organizations that use unions.
companies that use self-employed contractors.
private companies and businesses.
HELP PLEASE
Answer:
A.) local, state, or federal governments.
Explanation:
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for local, state, or federal governments. Thus, option A is correct.
What is Transportation?Transportation, the development of merchandise and people from one spot to another, and the different means by which such development is achieved.
Laborers in Transportation and Logistics vocations who have confidence in the advantages of an association are probably going to work for it. not-for-profit associations that utilize associations.
Laborers in operations vocations who put stock in the advantages of an association are probably going to work for neighborhood, state, or central legislatures.
Union have better work well-being securities and preferred paid leave over non-association laborers, and are safer practicing their freedoms in the workplace.
Therefore, option A is correct.
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On January 1, Year 1, Canseco Plumbing Fixtures purchased equipment for $52,000. Residual value at the end of an estimated four-year service life is expected to be $4,000. The company uses the straight-line method. For how much would each item below be reported at the end of Year 2?
Answer:
Reported for Year 2 will be :
Depreciation Expense = $12,000
Accumulated Depreciation = $24,000
Book Value = $28,000
Explanation:
Straight line method charges a fixed amount of depreciation for the period that the asset is in use in the business.
Depreciation Charge = (Cost - Salvage Value) ÷ Estimated Useful Life
therefore,
Depreciation Charge = ($52,000 - $4,000) ÷ 4
= $12,000
we know that,
Accumulated depreciation = Sum of all depreciation to date
and
Book Value is the Costs less Accumulated depreciation
thus,
Balances for the Next 2 years will be as follows
Year 1
Depreciation Expense = $12,000
Accumulated Depreciation = $12,000
Book Value = $40,000
Year 2
Depreciation Expense = $12,000
Accumulated Depreciation = $24,000
Book Value = $28,000
What is three ways eBay helps support small businesses? Full sentences please :)
Answer:
1. Gets you customers fast
2. There is a 95% chance you will make a profit
3. eBay is a big platform with multiple users
Graymont Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.10 per gallon. However, because Graymont purchases a high volume of Solvate, ChemMaster grants the company a 14 percent discount off the list price. Charges for shipping Solvate from ChemMaster to Graymont's factory are $130 for a shipment of twenty-five 49-gallon drums. Special storage requirements cost $0.59 per gallon.
Calculate Graymont's standard price for a gallon of Solvate. (Round answer to 2 decimal places, e.g. 3.51)
Answer:
the standard price for a gallon of Solvate is $5,942 per gallon
Explanation:
The computation of the standard price for a gallon of Solvate is shown below:
List Price $6.1 per gallon
Less: Discount at 14% 0.854 per gallon
Charges (130 ÷ (25 × 49) 0.106 per gallon
Special Storage $0.59 per gallon
Total Cost $5.942 per gallon
Hence, the standard price for a gallon of Solvate is $5,942 per gallon
The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $24 million Operating costs (not including depreciation) $9 million Depreciation $5 million Interest expense $4 million The company faces a 25% tax rate. What is the project's operating cash flow for the first year (t = 1)? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar.
Answer: $12,500,000
Explanation:
Sales = $24,000,000
Less: Operating cost = $9,000,000
Less,l: Depreciation = $5,000,000
Earning before interest and tax = $10,000,000
Less: Tax at 25% EBIT = $2,500,000
Net income before interest = $7,500,000
Add: Depreciation = $5,000,000
Operating cashflow = $12,500,000
