Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,550, $1,750, $1,750, and $2,050. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
You are looking to buy a car. You can afford $360 in monthly payments for four years. In addition to the loan, you can make a $1,900 down payment. If interest rates are 9.25 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Answers
Answer: a) total value of deposits becomes $18,332
b) price of car affordable is $17716.93364
Explanation:detailed calculation and explanation is shown in the image below
Final answer:
You can calculate the future value of deposits made in different years and determine the maximum price of a car you can afford based on monthly payments and down payment with a given interest rate.
Explanation:
Future Value of Deposits:
Year 1: $1,550(1.03)^5 = $1,818.35Year 2: $1,750(1.03)^4 = $1,932.73Year 3: $1,750(1.03)^3 = $1,868.13Year 4: $2,050(1.03)^2 = $2,121.32Car Affordability Calculation:
Monthly payment for 4 years: $360, Down payment: $1,900, Interest rate: 9.25%
Using the loan payment formula, you can afford a car priced at approximately $15,338.43.
Related Questions
On January 1, 2017, Doone Corporation acquired 80 percent of the outstanding voting stock of Rockne Company for $688,000 consideration. At the acquisition date, the fair value of the 20 percent noncontrolling interest was $172,000 and Rockne's assets and liabilities had a collective net fair value of $860,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $320,000 in 2018. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $380,000 in 2017 and $480,000 in 2018. Approximately 30 percent of the inventory purchased during any one year is not used until the following year. What is the noncontrolling interest's share of Rockne's 2018 income? Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers.
Answers
Final answer:
The noncontrolling interest's share of Rockne's 2018 net income is $64,000. Done needs to prepare consolidation entries to adjust for intra-entity inventory mark-up, which includes a COGS decrease and an increase in Inventory by $28,500 for 2017 inventory used in 2018 and a future $36,000 adjustment for the inventory purchased in 2018 to be used in 2019.
Explanation:
The noncontrolling interest's share of Rockne's 2018 net income can be calculated as follows:
First, we find the total net income for 2018 - which is given as $320,000. The noncontrolling interest owns 20% of Rockne, so we multiply the total net income by 20%:
$320,000 × 20% = $64,000
This is the amount attributed to the noncontrolling interest.
Next, we prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers. Since Rockne sells inventory to Doone at a markup of 25%, part of the 2018 income from Rockne to Doone is overstated.
The markup from 2017 sales that carried over to 2018 is:
$380,000 × 25% = $95,000
The inventory from 2017 not used until 2018 is 30% of this amount:
$95,000 × 30% = $28,500
Therefore, in 2018, when preparing the consolidation entry, the Cost of Goods Sold (COGS) will be reduced (25% markup adjustment) by $28,500, and the Inventory account will be increased by the same amount.
For the 2018 sales to Doone, the markup is:
$480,000 × 25% = $120,000
And the inventory remaining at the end of 2018 that will be used in 2019 is 30% of the 2018 sales:
$120,000 × 30% = $36,000
This $36,000 will be used to adjust the 2019 COGS and Inventory accounts similarly.
Use your newly found knowledge to explain credit card disclosure statements to someone who has never received one. Write a one to two paragraph explanation that teaches how to read a credit card disclosure statement. Include a minimum of four of the terms from lesson 4.08 in your explanation
Answers
Answer:
Credit card disclosure statements include almost everything you need to know about credit cards. The statements include the APR rates, Annual Fee, Late Fees, and Introductory Rates. Annual Percentage Rates are one of the most important things to do with credit cards. They are the costs of the loan each year expressed as a percentage. Loans are used for pretty much everything nowadays. Most people only use them for things like buying cars or buying a house. Lenders for loans often check your credit score, years of employment and other things. Having credit card debt affects your ability to get loans. That is why it’s important to pay off credit cards on time rather then late. Disclosure statements help everyone figure out the information on their credit card and their payments.
What is the journal entry required to recognize a deferred tax asset of $50,000? Dr. Deferred Tax Asset $50,000, Cr. Income Tax Benefit $50,000 Dr. Deferred Tax Asset $50,000, Cr. Equity $50,000 Dr. Income Tax Expense $50,000, Cr. Deferred Tax Asset $50,000 Dr. Deferred Tax Asset $50,000, Cr. Deferred Tax Liability $50,000
Answers
Answer:
Dr. Deferred Tax Asset $50,000, Cr. Income Tax Benefit $50,000
Explanation:
A deferred tax asset is an asset created as a result of overpayment or advance payment of taxes. It is the opposite of a deferred tax liability, which represents income taxes owed that will be settled in the future. Deferred tax assets and liabilities usually result from the differences between the accounting and tax systems of recognition of transactions. One of such is depreciation.
When a deferred tax asset is to be recognized,
Debit Deferred Tax Asset
Credit Income Tax Benefit
Recall, deferred tax asset is an advance payment of income tax.
The correct journal entry to recognize a deferred tax asset of $50,000 is a debit to Deferred Tax Asset and a credit to Income Tax Benefit, both for the amount of $50,000.
The journal entry required to recognize a deferred tax asset of $50,000 is: Dr. Deferred Tax Asset $50,000, Cr. Income Tax Benefit $50,000. This entry reflects the recognition of a temporary difference that will result in deductible amounts in future years, giving rise to a deferred tax asset on the balance sheet. The credit to Income Tax Benefit represents the expected reduction in future income tax payments attributed to the deferred tax asset.
Liu Company has sales of $48,500,000, and the break-even point in sales dollars is $31,040,000. Determine the company's margin of safety as a percent of current sales. Enter your answer as a whole number.
Answers
Final answer:
The Liu Company's margin of safety as a percent of current sales is approximately 36% when calculated using the given sales figures and break-even point.
Explanation:
To determine the margin of safety as a percent of current sales for the Liu Company, you can use the following formula: Margin of Safety = (Current Sales - Break-even Sales) / Current Sales. We are given that Current Sales are $48,500,000 and the Break-even Sales are $31,040,000.
Thus, the calculation for the Liu Company would be:
Margin of Safety = ($48,500,000 - $31,040,000) / $48,500,000Margin of Safety = $17,460,000 / $48,500,000Margin of Safety ≈ 0.36To express this as a percentage, we multiply by 100:
Margin of Safety Percentage ≈ 36%Therefore, the Liu Company's margin of safety, as a percent of current sales, is approximately 36% (rounded to the nearest whole number).
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company’s accounting records:
From the Income Statement
Depreciation expense $ 870
Loss on sale of equipment 2,900
From the Balance Sheet
Beginning equipment 20,300
Ending equipment 11,000
Beginning accumulated depreciation 1,980
Ending accumulated depreciation 1,750
No new equipment was bought during the period.
Required:
1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.)
2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? (Input the amount as positive value.)
3. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities? (Input the amount as positive value.)
Answers
Answer:
Part 1
Cost of Equipment Sold = $9300
Accumulated Depreciation of Equipment Sold = $ 1100
Cash received from Sale = $5300
Part 2
Net Cash Flows from Operating Activities
Add Back (Positive) to Operating Profit for the year : Loss on sale of equipment $ 2900
Part 3
Net Cash flows from Investing Activities
Add (Positive) Proceeds from Sale of Equipment $ 5300
Explanation:
Part 1
Cost of Equipment Sold:
The figure is obtained from Equipment At Cost Account.
Open the Account as follows:
Beginning Balance $ 20300 (debit), Ending Equipment $ 11000, Balancing figure $ 9300 (20300-11000) is the cost of equipment sold.
Accumulated Depreciation of Equipment Sold
The figure is obtained from Accumulated Depreciation.
Open the Account as follows:
Beginning Balance $ 1980 (credit), Profit and loss - Depreciation $ 870 (credit), Ending Balance $ 1750 (debit), Balancing figure $ 1100 (1980+870-1750) is the Accumulated Depreciation on Equipment Sold
Cash Received on Sale
This figure is figure is obtained from Equipment Disposal Account.
Open the Account as follows:
Cost of Equipment Sold $ 9300 (debit), Accumulated depreciation on equipment sold $1100(credit),Loss on Sale of Equipment $2900(credit),the Balancing figure $5300 (9300-1100-2900)
Part 2
Loss on sale of Equipment is the only Income Statement Item affecting the Operating Activity of the Cash Flow Statement.
Add back to Operating profit since this is a non-cash item and was initially deducted in the calculation of Operating Profit.
Part 3
Sale of Equipment results in Cash Inflow and affects the Cash Flows from Investing Activities Section of Cash Flow Statement.
Hence a positive amount should be added to reflect this inflow.
The original cost of the equipment is $9,300, its accumulated depreciation is $1,100 and the cash received from the sale is $11,100. In the Operating Activities section of the cash flow statement, $870 (depreciation expense) would be added. In Investing Activities, $11,100 (cash inflow from the sale) is added.
Explanation:1. The original cost of the equipment can be determined by comparing the beginning and ending balances of the equipment. Here, the beginning equipment <>20,300, and the ending is $11,000, so: $20,300 - $11,000 = $9,300 (original cost).
The accumulated depreciation can be calculated by adding the depreciation expense for the period to the decrease in the accumulated depreciation on the balance sheet. Here, the depreciation expense is $870 and the decrease in accumulated depreciation is $1,980 - $1,750 = $230, so: $870 + $230 = $1,100. The cash received from the sale can be found by adding the loss on the sale to the book value of the equipment (original cost - accumulated depreciation): $9,300 - $1,100 + $2,900 = $11,100.
2. For the operating activities section, only the depreciation expense ($870) is added back to the Net Cash Flows as it is a non-cash expense. The loss on the sale of equipment is not absorbed here as it is taken into account in the investing activities section.
3. In the investing activities section, the cash inflow from the sale of the equipment ($11,100) would be added to the net cash flows. This reflects the company's generation of cash from selling its long-term assets.
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Create the amortization schedule for a loan of $10,500, paid monthly over three years using an APR of 8 percent. Enter the data for the first three months. (Round your answers to 2 decimal places.)
Answers
Answer: Going by the calculation to generate the amount that will be paid for the three months are as follows -
The amount to be paid in the three months are as follows 1. $7980 2.$5430 3.$2910
Explanation: loan amount = N10,500, APR=8%, NO of years =3. therefore the calculation goes thus
10,500x 8x3/100= N2520.
Yr1 = 10,500-2520= $7980, Yr 2= 7980-2520= $5430, Yr3 5430-2520=$2910
Final answer:
An amortization schedule for a $10,500 loan with an 8% APR to be paid over 3 years involves calculating the monthly payment and splitting it between interest and principal. The monthly payment is calculated approximately as $329.16. For the first three months, payments are allocated towards both interest and reducing the principal, with the remaining balance decreasing each month.
Explanation:
Creating an amortization schedule entails calculating the monthly payment that will be made and how it will be divided between interest and principal repayment over the life of a loan. The given information is a loan amount of $10,500 with an annual percentage rate (APR) of 8%, to be repaid monthly over three years. To begin, we need to calculate the monthly interest rate, which is the APR divided by 12 months. In this case, it is 8% / 12 = 0.6667% per month.
Next, we use the formula for the monthly payment: P = [Pv*R*(1+R)^n] / [(1+R)^n - 1], where P is the monthly payment; Pv is the present value of the loan; R is the monthly interest rate as a decimal; and n is the total number of payments.
For our loan: P = [$10,500*0.006667*(1+0.006667)^36] / [(1+0.006667)^36 - 1]. Calculating this gives us a monthly payment of approximately $329.16.
Now we can create the amortization schedule for the first three months. Here's how it looks like:
Month 1: Interest = $10,500 x 0.006667 = $70.00. Principal = $329.16 - $70.00 = $259.16. Remaining Balance = $10,500 - $259.16 = $10,240.84.
Month 2: Interest = $10,240.84 x 0.006667 = $68.27. Principal = $329.16 - $68.27 = $260.89. Remaining Balance = $10,240.84 - $260.89 = $9,979.95.
Month 3: Interest = $9,979.95 x 0.006667 = $66.53. Principal = $329.16 - $66.53 = $262.63. Remaining Balance = $9,979.95 - $262.63 = $9,717.32.
These values are rounded to two decimal places as requested.
Pollution Buster, Inc., in considering a pruchase of 10 additional carbon sequesters for $100,000 a piece. The sequesters lasts for only one year until saturated with carbon. Then the carbon is removed and sold.
a) Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is guaranteed to be $115,000. How would you determine the opportunity cost of capital for this investment?
b) Suppose instead that the sequested carbon has to soldon the London Carbon Exchange. Carbon prices have been extremely volatile, but Pollution Busters' CFO learns that average rates of return from investment on that exchange have been about 20%. She thinks that is reasonable forceast for the furture. What is the opportunity cost of capital in this case? Is the purchase of an additional sequester a worthwhile capital investment if she expects that the price of extracted carbon will be $115,000?
Answers
Answer and Explanation:
The answer is attached below
Answer:
opportunity cost of capital for the investment = 15%opportunity cost would be 20% and it is worth buying an additional sequesterExplanation:
opportunity cost of capital is the return on investment that a company loses when it decides to invest in internal projects rather than investing in save market securities like stocks and bonds that could be marketable in the long and short run.
opportunity cost of investment is calculated as
( market value - cost ) / cost
market value = $115000
cost = $100000
therefore opportunity cost of investment will be
= ( 115000 - 100000 ) / 100000
= 15000/100000 = 0.15 in percentage it will be 15%
Average rate of returns from investment can also be said to be the opportunity cost of the business hence the new opportunity cost will be
20% and also the purchase of additional sequester will be worth it becomes it will increase the rate off return ( opportunity cost ) to 20%
A statistical test with a rejection region comprised of both tails of the sampling distribution of the test statistic is called a (an) _________ test. (Choose all that apply)
Answers
Answer:
two tailed and non- directional
Explanation:
A statistical test with a rejection region comprised of both tails of the sampling distribution of the test statistic is called a two tailed and a non-directional test.
Final answer:
A statistical test with rejection regions on both tails of the sampling distribution is a two-tailed test, used when the direction of the difference is not specified and is more conservative, requiring a larger difference for rejecting the null hypothesis.
Explanation:
A statistical test with a rejection region comprised of both tails of the sampling distribution of the test statistic is called a two-tailed test. In a two-tailed test, the alternative hypothesis (HA) indicates that the parameter of interest is different from the null hypothesis value but does not specify the direction of the difference. This means we look for evidence that the parameter is either greater than or less than the null hypothesis value, which leads to rejection regions on both ends (or tails) of the sampling distribution curve. For a significance level (a) of 0.05, the rejection regions combined account for 5% of the area under the curve, with 2.5% in each tail. This approach is more conservative because rejecting the null hypothesis requires a larger difference between the observed and expected values, often making it the appropriate choice when we have no prior expectation of the direction of the difference.
Sicora Inc. reported installment sales totaling $670,000 in its income statement for Year 1, its first year of operations. Sicora is not required to report installment sales income on its tax return until the cash is collected. Sicora will make the collections on these installment sales as follows: Year 1 $ 70,000 Year 2 130,000 Year 3 140,000 Year 4 160,000 Year 5 170,000 Total $ 670,000 The enacted tax rate is 30% in each of these years. What is the ending balance in the deferred tax liability account related to these installment sales at the end of Year 1?
Answers
The ending balance in the deferred tax liability account related to installment sales for Sicora Inc. at the end of Year 1 is $180,000, calculated by applying the 30% tax rate to the deferred income amount of $600,000.
Explanation:To calculate the ending balance in the deferred tax liability account for Sicora Inc. at the end of Year 1, we first identify the total installment sales which are not recognized for tax purposes in Year 1 because Sicora only recognizes income on cash received. The total installment sales are $670,000, but only $70,000 of that is collected in Year 1. Therefore, the deferred income on which taxes have not been paid is $670,000 - $70,000 = $600,000.
The deferred tax liability for Year 1 is then calculated based on the tax rate of 30% applied to the $600,000 of income that is deferred, which gives us a total deferred tax liability of $600,000 * 30% = $180,000.
This calculation is critical for understanding how installment sales and tax treatments influence a company's financial reporting and tax liability. Recognizing the deferred tax helps in aligning the tax expenses with the actual cash flow from sales, providing a more accurate financial position of the company.
Use the following information to answer the question about BobCat Co. at the end of 2017:
Accounts receivable $44,890
Accounts payable 6,405
Cash 16,070
Common stock 42,500
Long-term notes payable 20,600
Merchandise inventory 28,475
Salary Payable 28,170
Retained earnings 50,465
Prepaid insurance 2,365
Current liabilities are:
A. 6,405
B. 20,600
C. 34,575
D. 36,940
Answers
Answer:
c. $34,575
Explanation:
Data provided in the question
Accounts receivable = $44,890
Accounts payable = $6,405
Cash = $16,070
Common stock = $42,500
Long-term notes payable = $20,600
Merchandise inventory = $28,475
Salary Payable = $28,170
Retained earnings = $50,465
Prepaid insurance = $2,365
So, The computation of the current liabilities are as follows
= Accounts payable + salary payable
= $6,405 + $28,170
= $34,575
Therefore, the current liabilities only includes the account payable and the salary payable.
Madsen Motors's bonds have 7 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 8%, and the yield to maturity is 11%. What is the bond's current market price? Round your answer to the nearest cent.
Answers
Answer:
Bond Price $858.63
Explanation:
We have to solve for the present value of the bond which is the coupon payment and maturity disconted at the yield to maturity:
PV of the coupon payment
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 80.000 (1,000 x 8%)
time 7
rate 0.11
[tex]80 \times \frac{1-(1+0.11)^{-7} }{0.11} = PV\\[/tex]
PV $376.9757
PV of the maturity
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 7.00
rate 0.11
[tex]\frac{1000}{(1 + 0.11)^{7} } = PV[/tex]
PV 481.66
PV c $376.9757
PV m $481.6584
Total $858.6341
Sean is spending the day at the water park. He paid to enter the park and can use any water ride an unlimited number of times throughout the day. His favorite ride is the Twisty River.
a. Sean's marginal utility of riding the Twisty River the first time is 50 utils. Sean's marginal utility of riding the Twisty River the second time is likely
O greater than 50 utils.
O less than 50 utils.
O equal to 50 utils
b. If Sean's total utility begins to decrease after his fifth ride on the Twisty River, we can conclude
O Sean's marginal utility is starting to increase.
O Sean's marginal utility has become negative.
O Sean has maximized his marginal utility
c. Suppose instead of an entrance fee that Sean must pay each time he rides the Twisty River. Compared to the entrance fee, Sean will likely ride the Twisty River
O fewer times
O more times.
O the same number of times.
Answers
Final answer:
The student's question examines the economic concept of marginal utility. For Sean's second ride, the marginal utility would likely be less than 50 utils, it becomes negative after the fifth ride, and if Sean has to pay per ride, he'll likely ride less often.
Explanation:
The concept being questioned here involves understanding the economic principle of marginal utility, which is often discussed in the context of business or economics classes. When Sean rides the Twisty River the first time, he receives 50 utils of satisfaction. It is common in economics to assume that the marginal utility of a product or experience will generally decrease as a person consumes more of it, due to the law of diminishing marginal utility.
a. Therefore, the marginal utility of riding the Twisty River the second time is likely less than 50 utils, as each additional ride will tend to yield less satisfaction than the previous one.
b. If Sean's total utility begins to decrease after his fifth ride, it indicates that the marginal utility of the subsequent ride is negative; because total utility is the sum of marginal utilities, and the sum is decreasing, this means the marginal utility is less than zero.
c. When Sean has to pay for each ride individually instead of one entrance fee, it introduces a cost per ride, which will likely result in Sean riding the Twisty River fewer times due to the added cost each time.
West Virginia has one of the highest divorce rates in the nation with an annual rate of approximately 5 divorces per 1000 people (Centers for Disease Control and Prevention website, January 12, 2012). The Marital Counseling Center, Inc. (MCC) thinks that the high divorce rate in the state may require them to hire additional staff. Working with a consultant, the management of MCC has developed the following probability distribution for x = the number of new clients for marriage counseling for the next year.
West Virginia has one of the highest divorce rates
a. Is this probability distribution valid?
SelectYesNoItem 1
Explain.
f(x) Selectgreater than or equal to 0less than or equal to 0greater than or equal to 1less than or equal to 1Item 2
?f(x) Selectequal to 1not equal to 1greater than 1less than 1Item 3
b. What is the probability MCC will obtain more than 30 new clients (to 2 decimals)?
c. What is the probability MCC will obtain fewer than 20 new clients(to 2 decimals)?
d. Compute the expected value and variance of x.
Expected value clients per year
Variance squared clients per year
Answers
Answer:
a. Yes. It is a probability density function because \sum f(x) =1
. b. probability MCC will obtain more than 30 new clients=P(40)+P(50)+P(60)= 0.20+0.35+0.20=0.75
c. probability MCC will obtain fewer than 20 new clients= P(10)= 0.05
d.
x f(x) x*f(x) x*x*f(x)
10 0.05 0.5 5
20 0.1 2 40
30 0.1 3 90
40 0.2 8 320
50 0.35 17.5 875
60 0.2 12 720
1 43 2050
expected value = \sum xf(x) = 43
Variance = 2050-43^2= 201
Explanation:
The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead Select one: a. has been overapplied b. has been underapplied c. has not been applied d. shows a zero balance
Answers
Answer:a) has been over applied
hope this helps
Explanation:
Answer:A. has been overapplied.
Explanation:An overapplied Manufacturing overhead means that the net credit to the Manufacturing overhead account is more than the net debits as seen in this case where there were debits as follows;
$30,000,$24,000 and $28,000 which is equal to a total net debit of $82,000.
The total net credit in the Manufacturing overhead was $86,000.
THE EXCESS APPLIED TO OVERHEAD IS TOTAL CREDIT MINUS TOTAL DEBITS
=$86,000-82,000
=$4,000.
THIS MEANS THAT THE MANUFACTURING OVERHEAD HAS BEEN OVERAPPLIED WITH A VALUE OF $4,000.
After saving money in her piggy bank for 3 years, Beverly decided to deposit $5,000 of the money in the Millertown Bank. If the bank were fully "loaned out" and the required reserve ratio were 20%, then the maximum change in the money supply due to this deposit would be $25,000. $20,000. $5,000. $4,000. $1,000.
Answers
Answer:
$25,000
Explanation:
The computation of the maximum change in money supply is shown below:
= Deposit amount × money multiplier
= $5,000 × 5
= $25,000
Where, money multiplier is
= 1 ÷ required reserve ratio
= 1 ÷ 20%
= 5
So by multiplying with the deposit amount with the money multiplier we can get the maximum change in the money supply
has sales of $15 million, total assets of $9 million, and total debt of $3.7 million. If the profit margin is 7 percent what is net income? What is ROE? What is ROA?
Answers
Answer:
Net Income = $ 1.05 million; you can calculate the amount using the profit margin which will be the 7% from the sales.
ROE = 19.8%, the formula is Net Income/Owners Equity. To obtain the amount for Owners Equity you can use the information provided using the Assets and the Total Debt, the difference will be the amount for Owners Equity $ 5.3million.
ROA = 11.7% , the formula is Net Income/Assets.
Assume that currently banks pay 2% interest on money that customers deposit in savings accounts. As the overall amount of money held in savings accounts increases, in financial markets Group of answer choices both supply and demand are increasing. the supply of savings decreases. the demand for savings increases. the supply of savings increases.
Answers
Answer:
The supply of savings increases.
Explanation:
We know that the supply of loanable funds is dependent upon the amount of deposits in the savings account. Supply curve of loanable funds represents the direct relationship between the quantity supplied and the interest rate. It is a upward sloping curve which indicates that an increase in the interest rate will lead to increase the quantity supply of loanable funds.
There is a change in the supply of loanable funds if there is any change in the savings behavior of the customers. If the savings of the customers increases then as a result the supply of savings also increases.
Recent financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at the beginning of the year and $953,000,000 at the end of the year. Compute General Mills' accounts receivable turnover. (Round answer to 2 decimal places, e.g. 15.25.) Accounts receivable turnover times LINK TO TEXT Compute General Mills' average collection period for accounts receivable in days. (Round answer to 2 decimal places, e.g 15.25.)
Answers
Answer:
General Mills' accounts receivable turnover: 13.34 times
General Mills' average collection period for accounts receivable in days: 27.36 days
Explanation:
The accounts receivable turnover is an efficiency ratio that measures how many times a company can collect its receivables or money owed by clients during the year.
Accounts receivable turnover is calculated by following formula:
Accounts Receivable Turnover = Net Credit Sales /Average Accounts Receivable
In there:
Average Accounts Receivable = (The beginning accounts receivable of the year balance + The ending accounts receivable of the year balance)/2
In General Mills, Inc.:
Average Accounts Receivable = ($912,000,000 + $953,000,000)/2 = $932,500,000
General Mills' accounts receivable turnover = $12,442,000,000/$932,500,000 = 13.34 times
General Mills' average collection period for accounts receivable in days = 365/Accounts receivable turnover = 365/13.34 = 27.36 days
To compute General Mills' accounts receivable turnover, we divide their net sales by the average accounts receivable. This gives us a value of 13.34. The average collection period for accounts receivable can be calculated by dividing 365 days by the accounts receivable turnover, resulting in an average collection period of 27.38 days.
Explanation:To compute General Mills' accounts receivable turnover, we use the formula:
Accounts Receivable Turnover = Net Sales / Average Accounts Receivable
Substituting the given values, we have:
Accounts Receivable Turnover = $12,442,000,000 / ((912,000,000 + 953,000,000) / 2)
Calculating the average accounts receivable, we find:
Accounts Receivable Turnover = $12,442,000,000 / 932,500,000 = 13.34 (rounded to 2 decimal places)
To calculate General Mills' average collection period for accounts receivable, we use the formula:
Average Collection Period = 365 days / Accounts Receivable Turnover
Substituting the found value, we have:
Average Collection Period = 365 / 13.34 = 27.38 (rounded to 2 decimal places)
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Karl Yates needs $24,000 to pay for the remodeling work on his house. A contractor agrees to do the work in 10 months. How much should Karl deposit at 7.4% in order to accumulate the $24,000 by that time?
Answers
Answer:
$22614 needs to be deposited today.
Explanation:
Let x be the amount we will initially invest. The investment will be made for 10 months while the interest rate given here as 7.4% is the annual interest rate.
So,
24000 = x * ( 1 + 0.074 )^10/1224000 / ( 1 + 0.074)^10/12 = x x = $22613.84 rounded off to $22614Thus if Karl makes an initial investment of $22614 at 7.4% annual interest rate, then he will be able to withdraw a combined Principal + Interest of $24000 after 10 months.
Karl Yates should deposit approximately $22,105.82. By doing this, he will accumulate the necessary $24,000 by 10 months using the annual interest rate of 7.4%.
Explanation:To solve this problem, we turn to the formula for compound interest that is compounded annually. This formula is A = P + P*r*t, where A is the final amount of money, P is the principal amount (initial money), r is the annual interest rate, and t is the time in years.
In this case, Yates needs $24,000, therefore A = 24,000. The interest rate is 7.4%, or 0.074 when expressed as a decimal. The time frame is 10 months, which is approximately 0.83 years when converted (10/12).
Substituting these values into the equation, we get 24,000 = P + 0.074*P*0.83. Simplifying the equation, we find that P (the amount that Karl should deposit) is roughly $22,105.82. Therefore, Yates needs to deposit this amount so that he will accumulate a total of $24,000 by 10 months to pay the contractor.
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The causes of variation in statistical process control are:
A) cycles, trends, seasonality, and random variations.
B) natural causes and assignable causes.
C) producer's causes and consumer's causes.
D) mean and range.
E) Type I and Type II.
Answers
Answer:
The correct answer is letter "B": natural causes and assignable causes.
Explanation:
Statistical Process Control or SPC is a quality-control production process for outputs that can be measured. The approach aims to improve the stability and capability of the production process by reducing variables. Those variables could be natural -arise by common causes, and assignable -arise because of special causes.
In statistical process control, variations can be categorized into two types: natural causes and assignable causes. Natural causes are inherent in a process, while assignable causes are identifiable factors causing significant process changes.
Explanation:In statistical process control, the sources of variations can usually be attributed into two categories: natural causes and assignable causes.
Natural causes, also known as common causes, refer to the inherent variation in a process over time. These are normally unavoidable and intrinsic to the process.
Assignable causes, on the other hand, refer to any identifiable factors that cause a significant change in the process. These are not inherently part of the process and therefore can be investigated and potentially eliminated.
So, the answer to your question is option B) natural causes and assignable causes.
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In May 2005, a 1963 painting by Andy Warhol called Liz was sold in New York for $12.6 million. 1.) Using the line drawing tool, illustrate the supply curve that would be consistent with a price of $12.6 million. Properly label this line.
Answers
Answer:
Since there is only one painting by Andy Warhol called liz, the supply is fixed at 1 unit. The demand and supply curve meet at E to determine the price of 12.6 million. The graph is plotted on price and quantity demanded. Therefore the line, illustrate the supply curve is consistent with a price of $12.6 million.
The supply curve for a one-of-a-kind artwork like 'Liz' by Andy Warhol would be a vertical line. The quantity supplied wouldn't increase regardless of the price because there's only one original. So, at the sale price of $12.6 million, the supply curve is a straight vertical line at the quantity of 1.
Explanation:The question relates to the concept of supply curves in economics. A supply curve illustrates the quantity of a good a producer is willing to produce and sell at different price points. In the case of the Andy Warhol painting, given that it was a one-off piece, the supply is completely inelastic which means it is represented by a vertical line on a supply curve diagram.
In a typical supply curve, the x-axis represents the quantity and the y-axis represents a price. However, for the painting 'Liz' by Andy Warhol, since there's only one original in existence, irrespective of price, the quantity supplied wouldn't increase. Therefore, the line illustrating the supply curve for the scenario you provided (the sale of the painting for $12.6 million) would be a straight vertical line at the quantity of 1.
With the price of $12.6 million on the y-axis and the quantity of 1 (representing the single unique painting) on the x-axis, your supplier curve would be a straight vertical line.
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Vivi Corporation had net income of $401,000 in 2015. The company's Common Stock account balance all year long was $267,000 ($10 par stock). The company does not hold any Treasury Stock. The market price per share as of December 31, 2015, was $33.50. Calculate the price-earnings ratio for 2015.
Answers
Answer:
Explanation:
Earning per share = Net income/ Total Stock
Earning per share = 401000/26700
Earning per share = 15.019
Price earning = price per share/EPS
Price earning = 33.5/15.019
Price earning = 2.23
Suppose that a lumberyard has a supply of 10-ft boards, which are cut into 3-ft, 4-ft, and 5-ft boards according to customer demand. The 10-ft boards can be cut into several sensible patterns. each in such a way that there the leftover material is less than 3-ft. The lumberyard just received an order for 90 3-ft boards, 60 4-ft boards. and 60 5-ft boards. a. Determine all sensible patterns the lumberyard may use to cut the 10-ft boards.b. The lumberyard would like to use as few 10-ft boards as possible in meeting the demand. Write out a mathematical formulation for the problem as an integer linear program ILP), and setup/solve this problem using Microsoft Excel solver. What is the optimal number of each pattern, and what is the minimum number of boards to cut?
Answers
Answer :
Some answers are attached below
Explanation:
a) Based on the information provided, below are the all possible sensible patterns the lumberyard may use to cut the 10-ft boards -
Pattern Number 3-ft boards 4-ft boards 5-ft boards Waste (<3-ft)
1 3 0 0 1
2 2 1 0 0
3 1 0 1 2
4 0 1 1 1
5 0 2 0 2
6 0 0 2 0
b) ILP Formulation
Objective Function
Minimize Number of 10 ft-boards to be cut
Z = x1+x2+x3+x4+x5+x6 where xi is the number of boards for pattern i
subject to constraints -
3x1+2x2+x3>=90 ----> 3-ft boards
x2+x4+2x5>=60 ----->4-ft boards
x3+x4+2x6>=60 ----->5-ft boards
Xi>=0 ---->Non-negativity constraint
Below is the excel solver formulation and solution -
The optimal number of Pattern 1,5,6 =0, Pattern 2,3 and 4 = 30
The minimum number of 10 ft-boards to be cut = 90
Answer:
Explanation:
please find the answer in the attached
Smith Company reported pretax book income of $419,000. Included in the computation were favorable temporary differences of $53,800, unfavorable temporary differences of $21,900, and favorable permanent differences of $41,900. Smith's deferred income tax expense or benefit would be:
Answers
Answer:
Smith’s deferred income tax expense or Benefit would be $10,846
Explanation:
In this question, we are asked to calculate Smith’s deferred income tax expense or benefit. We proceed as follows:
Firstly, we calculate the net favorable temporary difference.
Mathematically, the net favorable temporary difference = Favorable temporary difference - Unfavorable temporary difference.
From the question, we can identify that:
Favorable temporary difference = $53,800
Unfavorable temporary difference = $21,900
Hence, the net favorable temporary difference = $53,800 - $21,900 = $31,900
Now, using a tax rate of 34%, Smith’s deferred income tax expense or Benefit would be 34% of $31,900
= 34/100 * 31,900 = $10,846
Butcher Company plans to issue bonds to raise $10 million to finance expansion. It could use 10-year mortgage bonds backed by the firm's fixed assets, 10-year debentures that are not backed by any specific assets but are backed by the firm's general earning power, or 10-year subordinated debentures that would be subordinated to all of the firm's other debt. If it uses mortgage bonds, they would be rated A by Moody's and S&P, and their market interest rate would be 7.5%. Given this information, which of the following statements is most correct? (A) The subordinated debentures would be rated highest, probably AA. (B) Given the 7.5% interest rate on the mortgage bonds, the subordinated debentures might carry an interest rate of 8.0% and the plain debentures a rate of 8.5%.(C) Since bond ratings are highly subjective, information about the rating and interest rate on the A-rated bond tells us nothing about how the two types of debentures would be rated, or about their likely interest rates.(D) The debentures would be rated highest, probably AA.(E) Given the 7.5% interest rate on the mortgage bonds, the plain debentures might carry an interest rate of 8.0% and the subordinated debentures a rate of 8.5%.
Answers
Answer:
(E) Given the 7.5% interest rate on the mortgage bonds, the plain debentures might carry an interest rate of 8.0% and the subordinated debentures a rate of 8.5%.
Explanation:
In the problem shown above, the company wants to create a financial expansion by issuing bonds. The company has three different options to use for the bond issuing and plans to select the best options by considering different variables. Based on the available options, if the mortgage bond has an interest rate of 7.5%, there will be an approximately 8% interest rate on the plain debentures and 8.5 interest rate on the subordinated debentures.
Harte Systems, Inc., a maker of electronic surveillance equipment, is considering selling to a well-known hardware chain the rights to market its home security system. The proposed deal calls for the hardware chain to pay Harte $30,000 and $25,000 at the end of years 1 and 2 and to make annual year- end payments of $15,000 in years 3 through 9. A final payment to Harte of $10,000 would be due at the end of year 10.
a. Lay out the cash flows involved in the offer on a time lin
b. If Harte applies a required rate of return of 12% to them, what is the present value of this series of payments?
c. A second company has offered Harte an immediate one-time payment of $100,000 for the rights to market the home security system. Which offer should harte accept?
Answers
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The proposed deal calls for the hardware chain to pay Harte $30,000 and $25,000 at the end of years 1 and 2 and to make an annual year-end payments of $15,000 in years 3 through 9. The final payment to Harte of $10,000 would be due at the end of year 10.
1)
Cash flows:
Year 1= 30,000
Year 2= 25,000
Year 3= 15,000
Year 4= 15,000
Year 5= 15,000
Year 6= 15,000
Year 7= 15,000
Year 8= 15,000
Year 9= 15,000
Year 10= 10,000
2) To calculate the present value we need to use the following formula for each cash flow:
PV= FV/(1+i)^n
Year 1= 30,000/1.12= 26,785.71
Year 2= 25,000/1.12= 22,321.43
Year 3= 15,000/1.12= 13,392.86
....
Year 10= 10,000/1.12^10= 3,219.73
PV= $104,508.27
3) The present value of cash inflows is higher than $100,000. It is more convenient to decline the $100,000.
In the first month of operations, the total of the debit entries to the Cash account amounted to $3540 and the total of the credit entries to the Cash account amounted to $2120. The Cash account has a balance of ________.
Answers
Answer:
$1,420
Explanation:
Cash account is normally a debit balance (as an asset) and debit entries represent a receipt of cash (an increase) while credit entries represent an outflow (a reduction) of cash.
The cash balance is as such the net between the debit balances and the credit entries posted.
The Cash account has a balance of
= $3540 - $2120
= $1,420
A refinery produces both gasoline and fuel oil and sells gasoline for $1/gallon and fuel oil for $0.90/gallon. The refinery can produce at most 600,000 gallons a day, but must produce at least 2 gallons of fuel oil for every gallon of gasoline. At least 150,000 gallons of fuel oil must be produced each day to meet current demands. How much of each type of fuel should produce to maximize daily profits
Answers
Final answer:
To maximize daily profits, the refinery needs to determine the optimal amounts of gasoline and fuel oil to produce. The optimal values can be found by solving a system of constraints and a profit function.
Explanation:
To maximize daily profits, the refinery needs to determine the optimal amounts of gasoline and fuel oil to produce. Let's assume the refinery produces x gallons of gasoline and y gallons of fuel oil. The constraints for production are:
The refinery can produce at most 600,000 gallons a day, so x + y ≤ 600,000.The ratio of fuel oil to gasoline must be at least 2:1, so y ≥ 2x.At least 150,000 gallons of fuel oil must be produced, so y ≥ 150,000.The objective is to maximize profits. The profit function can be defined as P = 1x + 0.90y. By solving the system of constraints and the profit function, we can find the optimal values for x and y that maximize profits.
At 6 percent interest, how long does it take to double your money? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years At 6 percent interest, how long does it take to quadruple your money? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years
Answers
Answer:
1. 11.90
2. 23.79
Explanation:
How Long Does It Take To Double Your Money?
A=P(1+r/100)^n
where
A=future value($2x say)
P=present value($x say)
r=rate of interest
n=time period.
SOLUTION
A=P(1+r/100)^n
2x=x(1+6/100)^n
Divide both side by x
2=(1+6/100)^n
2=(1.06)^n
Taking log on both sides;
log 2=n*log 1.06
Making n subject of the formular
n=log 2/log 1.06
=11.90 years(Approx).
How Long Does It Take To Quadruple Your Money?
We use the same formula:
A=P(1+r/100)^n
where
A=future value($4x say)
P=present value($x say)
r=rate of interest
n=time period.
SOLUTION
A=P(1+r/100)^n
4x=x(1+6/100)^n
Divide both side by x
4=(1+6/100)^n
4=(1.06)^n
Taking log on both sides;
log 4=n*log 1.06
Making n subject of the formular
Hence n=log 4/log 1.06
=23.79 years(Approx).
statement. Credit sales $678,000 Bad debt expense as a percentage of sales 2% Write-off of accounts receivable $1,000 Tax rate 30% Estimated tax payment $31,000 Incorrect income statement, for the year ended December 31 Sales $678,000 Expenses 549,200 Bad debt expense 1,000 Pretax income 127,800 Tax expense 38,340 Net income 89,460 1) What is the allowance for doubtful accounts in 20X1?
Answers
Answer:
12,560 allowancwe for doubtful accounts
Explanation:
The company will recognize an allowance for 2% of the credit saleS:
678,000 x 2% = 13,560
Now, we write-off for 1,000 this decrease the allowance
Thhs, the balance will be for the difference
13,560 - 1,000 = 12,560