Answers
Answer:
It will take 3 years to have enough money to purchase the car.
Explanation:
We can use either Compounding or Discounting Formula to determine the time it will take to make $19,970 from $15,000 when the investment rate is 10%. Lets go with the Compounding Formula:
Future Value = Present Value * (1 + i) ^ n
Re-arrange equation for "n" which is the Time Period:
⇒ FV / PV = (1 + i) ^ n
Taking log on both sides;
⇒ log (FV / PV) = log (1 + i) ^ n
OR log (FV / PV) = n log (1 + i)
OR n = log (FV / PV) / log (1 + i)
Simply put values now;
⇒ n = log (19,970 / 15,000) / log (1 + 10%) = log (1.33) / log (1.1) = .12 / .04
OR n = 3
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Answers
Answer:
See explaination and attachment
Explanation:
Stockholders' equity is the amount of assets remaining in a business after all liabilities have been settled. It is calculated as the capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business, less any dividends issued.
Balance Sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
See attachment for the step by step solution of the given problem.
Final answer:
The total stockholders' equity for Finishing Touches as of December 31, 2021, is calculated by adding the value of issued common and preferred stocks, and adjusting for treasury stocks and retained earnings. The total is $3,403,600.
Explanation:
The stockholders' equity section of Finishing Touches as of December 31, 2021, includes several items. These include the issuance of common stock, issuance of preferred stock, purchase and resale of treasury stock, the net income, and the payment of dividends. Let's break them down:
- Common Stock: 100,000 shares were issued at $35 per share, amounting to $3,500,000.
- Preferred Stock: 3,000 shares were issued at $11 per share, amounting to $33,000.
- Treasury Stock: The company bought 11,000 shares at $40 per share (creates a decrease in equity amounting to -$440,000) and sold 5,500 of these shares at $45 per share (creates an increase in equity of $247,500). The net decrease in equity due to treasury stock transactions is -$192,500.
- Retained Earnings: The company earned net income of $160,000 but paid out dividends ($94,500 to common stockholders and $2,400 to preferred stockholders), resulting in an increase in retained earnings of $63,100.
So, the total stockholders' equity for Finishing Touches as of December 31, 2021, would be $3,403,600 ($3,500,000 + $33,000 - $192,500 + $63,100).
Learn more about Stockholders' Equity here:
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Answers
Complete question:
A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are: P1 = 15 - Q1MR1 = 15 - 2Q1P2 = 25 - 2Q2MR2 = 25 - 4Q2. The monopolist’s total cost is C = 5 + 3(Q1 + Q2 ).
What are price, output, profits, marginal revenues, and dead-weight loss
(i) if the monopolist can price discriminate?
(ii) if the law prohibits charging different prices in the two regions?
Solution:
Through price control, the monopolist selects quantity in each sector in such a manner that total income of each business is equivalent to total expense. The marginal cost is equivalent to three (the slope of the overall cost curve).
In the first market
15 - 2Q1 = 3, or Q1 = 6.
In the second market
25 - 4Q2 = 3, or Q2 = 5.5
Substituting into the respective demand equations, we find the following prices for the two markets : P1 = 15 - 6 = $9 and P2 = 25 - 2(5.5) = $14.
Noting that the total quantity produced is 11.5, then
π = ((6)(9) + (5.5)(14)) - (5 + (3)(11.5)) = $91.5.
The monopoly dead-weight loss in general is equal to
DWL = (0.5)(QC - QM)(PM - PC ).
Here, DWL1 = (0.5)(12 - 6)(9 - 3) = $18 and
DWL2 = (0.5)(11 - 5.5)(14 - 3) = $30.25.
Therefore, the total dead-weight loss is $48.25.
Without pricing disparity, the monopoly holder would demand a single price for the whole sector. To optimize income, we find that the total revenue is equivalent to the total expense. Using demand calculations, we note that the complete market curve is kinked to Q = 5:
P=25-2Q, if Q≤518.33-0.67Q, if Q5 .
This implies marginal revenue equations of MR=25-4Q, if Q≤518.33-1.33Q, if Q5
With marginal cost equal to 3, MR = 18.33 - 1.33Q is relevant here because the marginal revenue curve “kinks” when P = $15.
To determine the profit-maximising quantity, equate marginal revenue and marginal cost: 18.33 - 1.33Q = 3, or Q = 11.5.
Substituting the profit-maximizing quantity into the demand equation to determine price :P = 18.33 - (0.67)(11.5) = $10.6.
With this price, Q1 = 4.3 and Q2 = 7.2.
(Note that at these quantities MR1 = 6.3 and MR2 = -3.7).
Profit is(11.5)(10.6) - (5 + (3)(11.5)) = $83.2.
Dead-weight loss in the first market is DWL1 = (0.5)(10.6-3)(12-4.3) = $29.26.
Answers
Answer:
The amount in Bob's account is $26320.516
Explanation:
The total amount saved each month for the down payment (A ) = $315
The interest rate per month (r ) = 0.41 %
Number of years (n ) = 6 years
Below is the calculation to find the total amount in Bob’s account. Here, we will take the number of compounding period as 72 because the interest rate is monthly compounded and there are 72 months in 6 years.
Answers
Answer:
The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.
Explanation:
- Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000
- Income tax expense for 2019 = 180.000-28.000=152.000
Answers
Answer:
Future Account Value = $ 161,327.31
Explanation:
Investment Amount (PV)
The starting amount you invest in the account or your current balance in an existing investment account
Future Account Value (FV)
The return amount you want to attain. Your target amount.
Number of Years (n)
Several years you will invest.
Interest Rate (R)
The annual interest rate you expect on your invested money
Compounding (m)
The periodic compounding of your investment account
Contributions (PMT)
The payment amount you will contribute to your investment account periodically
Frequency of Contributions (q)
The periodic timing of your contributions
Answers
Answer:
In a closed economy, public saving is the amount of
d. tax revenue that the government has left after paying for its spending.
Explanation:
Public saving or budget surplus in a closed economy describes the excess of government revenue (obtained through taxation of individuals and businesses in the economy) and government expenditures on goods and services. In an open economy, transfers are deducted before arriving at the public saving. In all economies, the addition of private (individual and business) and public savings result to national investments.