Answer:
Total expense= $104,022.6
Explanation:
Giving the following information:
The company expects to spend $6000 one year from now, $9000 three years from now, and $10,000 each year in years 6 through 10.
The interest rate is 12%.
We need to use the following formula:
FV= PV*(1+i)^n
FV= 6000*(1.12)^9= 16,638.47
FV= 9000*(1.12)^7= 19,896.13
Total= $36,534.6
For the last three we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {10000*[(1.12^3)-1]}/0.12= 67,488
Total expense= 67,488 + 36,534.6= $104,022.6
Answer:
Financial institutions assess the probability of the business paying the loan back, and to do so, they evaluate the financial position of the business, mainly using financial ratios to do so.
For example, to analyze liquidity, the use liquidity rations like the current ratio, the acid test, and the cash ratio.
The also analyze the firm from a revenue standpoint, meaning that the financial institution tries to determine how profitable the company is, and how its profitability will evolve in the term of the loan. To do so, they use asset turnover ratios, economic value added ratios, net income, and even the weighted average cost of capital.
Answer:
The $8 million is the amount which should Carter report as net cash from investing activities.
Explanation:
Cash flow from investing activities : It includes all types of transactions whether it is a sale or purchase of fixed assets and intangible assets.
So, the net cash flow amount from investing activities is equals to
= Sale of marketable securities + Sale of land - Purchase of equipment - purchase of patent
= $30 million + $15 million - $25 million - $12 million
= $8 million
The sale of common stock and purchase of treasury stock is a part of financing activities. Hence, it is not considered in the computation part.
Thus, the $8 million is the amount which should Carter report as net cash from investing activities.
Carter Containers' cash inflows from selling marketable securities, land, and common stock total $85 million. The cash outflows from buying treasury stock, equipment, and a patent total $58 million. Therefore, the net cash from investing activities is $27 million.
To figure out the net cash from investing activities for Carter Containers, we begin by looking at the inflows of cash. These are generated by the sales of marketable securities, land, and common stock for $30 million, $15 million, and $40 million, respectively.
We then take into consideration the outflows, which are the result of purchasing treasury stocks, equipment, and a patent, costing $21 million, $25 million, and $12 million respectively.
Summing up all the cash inflows gives us a total of $85 million. The total outflows, which are the company's expenses, amount to $58 million. To determine the net cash from investing activities, we subtract the total cash outflows from the total inflows.
Therefore, Carter's net cash from investing activities is $27 million ($85 million - $58 million).
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b.$1,721
c.$1,700
d.$2,163
e.$2,230
Answer:
option (b) $1,721
Explanation:
Given:
Job # Total Cost Complete Sold
803 $611 yes yes
804 $423 yes no
805 $805 no no
806 $682 yes yes
807 $525 yes no
808 $250 no no
809 $440 yes yes
810 $773 yes no
811 $267 no no
812 $341 no no
Now,
The total in Finished Goods will be the jobs that are completed and not sold
thus,
The total in Finished Goods = $423 + $525 + $773 = $1,721
Hence,
The correct answer is option (b) $1,721
Answer:
The measures is to get the Government in developing and shaping of contents of the e-learning software.
Explanation:
By getting the Government agent(s) or authority in the development and shaping of contents of the software, you are not only creating harmony with the local government but also ensuring that the agent helps scrutinizing the content of the software and also ensuring that the software does not contain any content that is objectionable to the government and this measure will definitely help Gerlach Publishing acquire a trade license.
To acquire a trade license in Volonia, Gerlach Publishing should adhere to local regulations, ensure their content respects societal norms, engage local legal consultants, and maintain open communication with authorities.
In light of the Volonian government's previous cancellation of trade licenses in the e-learning market due to censorship issues, the approach Gerlach Publishing should take needs to focus on compliance and transparency. This includes strict adherence to local regulation laws and ensuring non-violation of any censorship rules.
Depicting strong commitment towards promoting free and respectful dialogue in their e-learning materials could be beneficial. This can be achieved by implementing robust internal review processes to ensure all content is suitable and respects the norms and values of Volonian society.
Engaging local legal consultants to understand the nuances of Volonian law can also aid in the process. Lastly, establishing and maintaining open communication with the authorities demonstrating their dedication to lawful practices could be advantageous.
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b. What would be the effect of this purchase on income before income taxes using FIFO method?
Answer:
1. Net income decreases by $3,000
2. The amount of net income would be remains the same.
Explanation:
1. Under LIFO method
(i) Before 8,000 units purchased:
sales = 67,000 units
Cost of goods sold = Quantity × Price
= (66,000 × $13) + (1,000 × $10)
= $858,000 + $10,000
= $868,000
(ii) If 8,000 units purchased at $13 each then,
Cost of goods sold = Quantity × Price
= 67,000 × $13
= $871,000
As the cost of goods increases as a result there will be decrease in the net income before tax under LIFO method.
The amount of net income would be decreased by:
= $871,000 - $868,000
= $3,000
2. Under FIFO method:
(i) Before 8,000 units purchased:
sales = 67,000 units
Cost of goods sold = Quantity × Price
= (16,000 × $10) + (51,000 × $13)
= $160,000 + $663,000
= $823,000
(ii) If 8,000 units purchased at $13 each then,
Cost of goods sold = Quantity × Price
= (16,000 × $10) + (51,000 × $13)
= $160,000 + $663,000
= $823,000
As there will be no change in the cost of goods sold, so, there will be no change in the net income before tax under FIFO method.
The amount of net income would be remains the same.
The following information should be considered:
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Answer:
1. Is it an order outside normal market.
2.other orders at the going price.
Explanation:
Decision making in managerial accounting should focus on both the quantitative (dollars) and qualitative (other factors) effects of a decision.
Kitchens Sales Inc. should also consider if it is an order outside the normal market for cherry cabinets.Reducing prices in Normal Market in an attempt to unload spare capacity may lead to a fall in market price.
Also they should consider if accepting the special order may prevent company from accepting other orders that may be obtained during the period at the going price.