Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 not due for three years. The interest rate on the note is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Answers

Answer 1

Answer:

Canliss Mining Company borrowed $41,006.

To find out how much Canliss Mining Company borrowed, we'll work step by step.

Future Value of $1 (FV): This factor calculates the future value of a present sum after a certain number of periods.

Given that the annual installment payments of $10,000 are not due for three years, we'll find the future value of this annuity.

The FV factor for 7% over three years is approximately 1.225.

So, the future value of the annuity is

$10,000 * 1.225 = $12,250$

Present Value of $1 (PV): This factor calculates the present value of a future sum. In this case, we want to find out how much the $12,250 due in three years is worth in present terms.

Using the PV factor for 7% over three years, we find it's approximately 0.816.

So, the present value is

$12,250 * 0.816 \approx $10,002$

This means that Canliss Mining Company borrowed approximately $10,002 from the local bank.

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Scuba Diving. Marcy invented a new type of mask for scuba divers that was not subject to fogging. She agrees to allow Jenny to manufacture and sell the mask. She receives a sum of money for every mask that Jenny sells. Similarly, Marcy entered into an agreement with Frank to allow him to sell the masks, but only if he also purchased non-patented diving suits from Marcy. All parties proceeded to do very well with their sales. Which of the following describes the agreement between Marcy and Frank?1)It is a legal tying arrangement.
2)It is a legal cross-licensing agreement.
3)It is an illegal tying arrangement.
4)It is an illegal cross-licensing agreement.
5)It is both a legal tying and a legal cross-licensing agreement.

Answers

Answer:

3) It is an illegal tying arrangement.

Explanation:

Tying is said to be an illegal arrangement where, for one to buy a product, the consumer must purchase another product that exists in a separate market. There isn't any legal backing but things work out well for all parties involved.

Nuzum Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: Total Company Division M Division N Sales $557,000 $254,000 $303,000 Variable expenses 144,910 81,280 63,630 Contribution margin 412,090 172,720 239,370 Traceable fixed expenses 273,000 128,000 145,000 Segment margin 139,090 44,720 94,370 Common fixed expenses 94,690 43,180 51,510 Net operating income $ 44,400 $ 1,540 $ 42,860 Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division N is closest to:

Answers

Answer:

$ 183,544.30 = $ 183,544

Explanation:

Nuzum Corporation

Total Division M Division N

Sales $557,000 $254,000 $303,000

Variable expenses 144,910 81,280 63,630

Contribution margin 412,090 172,720 239,370

Traceable fixed expenses 273,000 128,000 145,000

Segment margin 139,090 44,720 94,370

Common fixed expenses 94,690 43,180 51,510

Net operating income $ 44,400 $ 1,540 $ 42,860

First we find the Segment CM ratio by the following formula:

Segment Contribution Margin Ratio= Segment Sales- Segment Variable Expenses/ Sales

Segment Contribution Margin Ratio= 303,000 -63630/303000

Segment Contribution Margin Ratio= 239370/303000=0.79

Then we find the break even sales in dollars.

Break Even Sales in Dollars= Traceable Fixed Expense/ Segment Contribution Margin Ratio

Break Even Sales in Dollars =145,000/0.79= $ 183,544.303

During 2016, Ayayai Corporation spent $144,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $17,400 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answers

Answer:

Please see below the journal entries of Ayayai Corporation for the year ending 2016 and 2017 respectively.

Explanation:

Ayayai Corporation

Journal Entries

For the Year ending 2016

Debit: Research & Development Expense $144,000

Credit: Cash $144,000

To record research and development expense.

Debit: Patent $17,400

Credit: Cash $17,400

To record legal cost relating to Patent.

Debit: Amortization Expense $435

Credit: Patent $435

To record amortization expense for the pro rated year.

Ayayai Corporation

Journal Entries

For the Year ending 2017

Debit: Amortization Expense $1,740

Credit: Patent $1,740

To record amortization expense for year.

AMORTIZATION EXPENSE CALCULATION:

Legal Cost = $17,400

Useful Life = 10 Years

Amortization Expense = Legal Cost / Useful Life

Amortization Expense = $17,400 / 10

Amortization Expense = $1,740 per year

But since in 2016 the patent was obtained on October 1, so Ayayai Corporation will have to pro rate the Amortization Expense in 2016 as below:

Amortization Expense = Annual Amortization Expense x No. of months / Total no. of months

Since patent was obtained in October so the No. of months is '3'

Amortization Expense = $1,740 x 3 / 12

Amortization Expense = $435

Answer:

AYAYAI CORPORATION

JOURNAL ENTRIES

Date Description DR CR

2016

Research and developemnt $144,000

Cash $144,000

Being the amount spend on research and development

OCt 1 Patent $17,400

Cash 17,400

Dec 31 Amortization Expense $435

Accumulated amortization $435

2017 Amortization Expense $1,740

Accumulated amortization $1,740

Explanation:

Investing in stocks is like gambling when:a. both have a short time horizon

b. both involve risk

c. both involve an initial outflow of cash

d. both result in long-term loses.

Answers

If so maybe see hope help

A company is considering investing in a project that costs $300,000. The company uses straight-line depreciation and estimates that the project has a useful life of 10 years with no salvage value. This project is expected to produce NET INCOME of $42,000 each year. Assuming a minimum rate of return of 10%, indicate the NET PRESENT VALUE of this project. a. $41,928
b. $258,072
c. $120,000
d. $142,409

Answers

Answer:

NPV = $-41,928.18

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-300,000

Cash flow each year from year 1 to 10 = $42,000

I = 10%

NPV = $-41,928.18

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

Answer:

b. $258,072

Explanation:

PERIOD CASH FLOW NET PRESENT VALUE

Year 1 $42,000 $(42000)/((1 + 0.10)^(1)) = 38181.82$

Year 2 $42,000 $(42000)/((1 + 0.10)^(2)) = 34710.74$

Year 3 $42,000 $(42000)/((1 + 0.10)^(3)) = 31555.22$

Year 4 $42,000 $(42000)/((1 + 0.10)^(4)) = 28686.57$

Year 5 $42,000 $(42000)/((1 + 0.10)^(5)) = 26078.70$

Year 6 $42,000 $(42000)/((1 + 0.10)^(6)) = 23707.91$

Year 7 $42,000 $(42000)/((1 + 0.10)^(7)) = 21552.64$

Year 8 $42,000 $(42000)/((1 + 0.10)^(8)) = 19593.31$

Year 9 $42,000 $(42000)/((1 + 0.10)^(9)) = 17812.10$

Year 10 $42,000 $(42000)/((1 + 0.10)^(10)) = 16192.82$

Total $258,071.83

Your parents are giving you $205 a month for 4 years while you are in college. At an interest rate of .48 percent per month, what are these payments worth to you when you first start college