BUSINESS COLLEGE

You are about to purchase a new car from a dealer who has a new and unusual payment plan. You have the choice to pay $29,000 cash today or $32,000 in 4 years. If you have the opportunity to borrow the cash price value of the car at a rate of 3.0% and repay the loan in a lump sum in 4 years, which option should you take and why? HTML Editor Keyboard Shortcuts

Answers

Answer 1
Answer:

Answer:

It would be bettter to make an agreement with the car dealer for the 32,000 in 4 years.

Explanation:

We will y comparing the value of the loan in 4 years;¿ with the 32,000 in for years option:

Principal \: (1+ r)^(time) = Amount

Principal $    29,000.00

time             4 years

rate                     3% = 3/100 = 0.030

29000 \: (1+ 0.03)^(4) = Amount

Amount $   32,639.76

Which is higher than the 32,000 option. Therefore, the loan option is more expensive than the financing through the car dealer.

It is a better option to make deal with the car seller.

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The following data (in millions) are taken from the financial statements of Tarrow Corporation: Recent Year Prior Year Revenue $386,972 $356,000 Operating expenses 326,634 303,000 Operating income $60,338 $53,000 a. For Tarrow Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: Revenue Operating expenses Operating income Amount of Change (in millions) Percent of Change (round to 1 decimal place) Increase or Decrease 1. Revenue $fill in the blank 1 30,976 fill in the blank 2 % 2. Operating expenses fill in the blank 4 fill in the blank 5 3. Operating income fill in the blank 7 fill in the blank 8 b. During the recent year, revenue and operating expenses . As a result, operating income , from the prior year.

Answers

Answer:

Tarrow Corporation

a) Amount of change in millions and the percent of change:

                                   Amount      Percentage   Direction

                                of Change     of Change   of Change

Revenue                    $30,972           8.7%          Increase

Operating expenses   23,634           7.8%          Increase

Operating income       $7,338          13.8%          Increase

b) During the recent year, revenue and operating expenses increased by 8.7% and 7.8% respectively.  As a result, the operating income increased by 13.8%, from the prior year.

Explanation:

a) Data and Calculations:

Tarrow Corporation:

                                Recent Year    Prior Year    Change  Percentage

Revenue                   $386,972      $356,000    $30,972   8.7% Increase

Operating expenses 326,634         303,000      23,634    7.8% Increase

Operating income     $60,338        $53,000       $7,338  13.8% Increase

New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $1,000,000 before taxes each year. The corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%. The firm does not need to retain any earnings, so all of its after-tax income will be paid out as dividends to its investors. The investors will have to pay personal taxes on whatever they receive. How much additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation? Group of answer choices $26,078 $20,332 $22,763 $19,006 $22,100

Answers

The additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation is $22,100.

  • The calculation is as follows:

Income if formed as corporation in hands of each shareholder should be

= 1,000,000 ×  10% ×  ( 1- .34 ) × (1- .35)

= 100,000 × .66 × .65

= $42,900

Now  

Income will be taxable in hands of partner = 1,000,000 ×10% ×(1-.35)

= 100,000 ×.65

= 65000

Now  

Additional income should be

= $65,000 - $42,900

= $22,100

Learn more: brainly.com/question/24908711?referrer=searchResults

Answer:

$22,100

Explanation:

Calculation for the additional spendable income

First step is to find the Corporation Spendable income amount

Corporate taxes$340,000

($1,000,000*34%)

Income after corporate tax $660,000

($1,000,000-$340,000)

Tax on dividends $231,000

($660,000*35%)

Spendable income $429,000

($660,000-$231,000)

Second step is to find the Partnership Spendable income amount

Taxes paid by business $0

Income received by investors $1,000,000

Taxes paid by partners as personal income $350,000

($1,000,000*35%)

Spendable income $650,000

($1,000,000-$350,000)

Last step is to find the Difference between Corporation Spendable income amount and the Partnership Spendable income amount

Using this formula

Difference in Spendable income=Corporation Spendable income amount - Partnership Spendable income amount

Let plug in the formula

Difference in Spendable income=$429,000-$650,000

Difference in Spendable income=$221,000

Which means that the amount of $221,000 is the

Total gain amount from being a partnership.

Hence, the Individual investor gain will be calculated as $221,000*10%

Individual investor gain=$22,100

Therefore the amount of spendable income that each investor will have if the business is organized as a partnership rather than as a corporation will be $22,100

what is the fastest way to grow your account (in followers and likes) on social media? this doesn't have to be "right" just say what has helped you grow on social media​

Answers

Answer:

I think is just be nice like thier pics leave nice comments cause if ur nice to them they might think Oh that was nice I'm gonna follow them and just put cute pics and things that are trendy so people will see them and always stay nice and polite

Explanation:

Assume that your credit sales for March was $12,764,for April was $27,406 and May was $28,706. If credit sales are collected 55% during the month of sale, 25% the month following the sale, and 15% in the second month following the sale, what is the total expected cash collections to be received in May? Round your answer to one dollar.

Answers

Answer:

Total expected cash collections for May are $24554

Explanation:

The May's cash collections will include collections from March's credit sales worth 15% of March's sales, collections for April's credit sales worth 25% of April's credit sales and collections worth 55% of t=May's credit sales. Thus the collections are,

Collection for March's sales = 12764 * 0.15  =  $1914.6

Collection for April's sales = 27406 * 0.25 = $6851.5

Collection for May's sales = 28706 * 0.55 = $15788.3

Total expected cash collections for May = 1914.6  +  6851.5  +  15788.3

Total expected cash collections for May = $24554.4 rounded off to $24554

Tony purchased 100 shares of T-Rex stock for $43 a share. On the same day, Sam also purchased 100 shares of T-Rex stock for $43 a share. Tony paid cash for his purchase while Sam used margin. The initial margin requirement on this stock is 60 percent while the maintenance margin is 40 percent. Both Tony and Sam sold their shares after eight months at a price of $40 a share. The stock pays no dividends. Tony had a holding period percentage return of _____ percent as compared to Sam's _____ percent return. Ignore margin interest and trading costs.

Answers

Answer:

Explanation:

Tony purchased 100 shares of T-Rex stock for $43 a share. On the same day, Sam also purchased 100 shares of T-Rex stock for $43 a share. Tony paid cash for his purchase while Sam used margin. The initial margin requirement on this stock is 60 percent while the maintenance margin is 40 percent. Both Tony and Sam sold their shares after eight months at a price of $40 a share. The stock pays no dividends. Tony had a holding period percentage return of -6.98 percent as compared to Sam's -11.63 percent return. Ignore margin interest and trading costs.

Tony HPR without margin= [100 - ($40-$43)]/(100 x $43)

                                          = -6.98%

Sam HPR without margin= [100 - ($40-$43)]/(100 x $43 x 60%)

                                         = -11.63%

Sarah and Wei have an opportunity to buy a large parcel of land on the Willamette River, just two miles south of Salem. They want to build an amusement park on the land. Sarah approaches you and says, "Hey, I know you took that BA 333 class, so maybe you can help me figure out what to do. Wei and I need a lot of money to start up our amusement park and buy the land we want, and we're a little nervous about getting sued if someone gets thrown out of our roller coaster. What kind of business do you think we should we set up? We were thinking maybe we could just be partners. We'd prefer not to have anything formal written down--we think that might be bad for our friendship. What's your advice?"Draft an answer to Sarah and Wei and include it in your document. Your answer should include: 1) your recommendation for the best entity choice; 2) a complete explanation of why this is the best option; 3) a secondary recommendation, in case Sarah and Wei don't like your first option; 4) an explanation as to why this is your second choice (i.e., compare to your first choice and explain why this is not as good, but still an acceptable option).

Answers

Answer:

Explanation below.

Explanation:

The recommendation that I will give or propose is that the agreement must have a legal backing.

This is the best recommendation that a wise person can proposes. It is a show of height of stupidity when an individual go into conjunction with another person without any written agreement that is backed legally. This because, when there is a problem in the future, the documents will be a way to solve it.

The other secondary option is written and signed agreement with video recording. This is not as good as the one mentioned above, but can still be considered as an alternative.
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