Answers
Answer:
$9,566.33
Explanation:
We need to determine the present value of the notes receivable using the pv excel function below:
=-pv(rate,nper,pmt,fv)
rate is the interest rate of 12%
nper is the number of years before the amount on the note is received which is 2 years
pmt is the amount of fixed interest(there is no fixed interest in this case)
fv is the future value of the loan in year 2 i.e $100,000
=-pv(12%,2,0,100000)=$79,719.39
Now,after a year 12% interest is applied to the pv:
interest=$79,719.39 *12%=$9,566.33
Related Questions
Find the account balance at the end of the second period for $3,000.00 invested at 9% compounded quarterly.
endrik is in charge of his company’s subsidiary in Beijing. He recently received a large bonus check because the subsidiary had exceeded sales expectations by 25 percent. What aspect of organizational architecture did Kendrik benefit from? Multiple Choice processes incentives forecasts norms
Shown below are selected data from the financial statements of the Supreme Company. (Dollar amounts are in millions, except for the per share data). Income statement data: $'000 Net sales $1,230 Cost of goods sold $520 Operating expenses $440 Net income $390 Balance sheet data: $'000 Average total equity $2,400 Average total assets $4,000 Supreme reported earnings per share for the year of $4 and paid cash dividends of $1 per share. At year-end, the Wall Street Journal listed Supreme's capital stock as trading at $88 per share. Required: Compute the following: a). Gross profit rate b). Supreme's operating income (in millions) c). Return on assets d). Return on equity e). Price-earning ratio
One of the primary goals of stabilizing the economy is toA) increase income levels. B) maintain low unemployment. C) raise the standard of living. D) increase profits and spending.
B) False
Answers
Answer:
The correct answer is letter "A": True.
Explanation:
Goals represent the objectives companies set that must be achieved within a specified period of time. Goals represent what firms want to achieve and where they want to be positioned in the market. Goals have the characteristic of being measurable, which means entities can monitor the progress of the path of reaching a goal and observable, which implies they are realizable.
Final answer:
The statement is true. A 'goal' represents a commitment to a specific, measurable outcome to be achieved within a defined time frame; this concept is often referred to as SMART goals.
Explanation:
The statement 'A goal is a specific commitment to achieve a measurable result within a stated period of time' is indeed true. Also known as SMART goals, this concept is frequently used in business and personal development contexts. The SMART acronym stands for Specific, Measurable, Achievable, Relevant, and Time-based, which succinctly sums up the essential elements of an effective goal. For example, a student might set a goal to 'Achieve an A grade in history this semester,' which is specific, measurable, presumably achievable, relevant to their academic success, and time-bound by the length of the semester.
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Answers
Answer:
The amount that could be justified now for the purchase of this piece of equipment is $73,747.41.
Explanation:
Note: This question is not complete as all the data in it are omitted. A complete question is therefore provided before answering the question as follows:
It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials cost. The equipment has an expected life of five years and no market value. If the company must earn a 15% annual return on such investments, how much could be justified now for the purchase of this piece of equipment?
The explanation to the answer is now given as follows:
To calculate this, the formula for calculating the present value of an ordinary annuity is used as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value of the amount to justify the equipment purchase = ?
P = yearly savings in labor and materials costs = $22,000
r = annual return rate = 15% = 0.15
n = Equipment has an expected life = 5
Substitute the values into equation (1) to have:
PV = $22,000 * [{1 - [1 / (1 + 0.15)]^5} / 0.15]
PV = $22,000 * [{1 - [1 / 1.15]^5} / 0.15]
PV = $22,000 * [{1 - 0.869565217391304^5} / 0.15]
PV = $22,000 * [{1 - 0.497176735298289} / 0.15]
PV = $22,000 * [0.502823264701711 / 0.15]
PV = $22,000 * 3.35215509801141
PV = $73,747.41
Therefore, the amount that could be justified now for the purchase of this piece of equipment is $73,747.41.
Final answer:
The question asks about the amount a company can justify spending on equipment, based on expected savings and a required rate of return. This requires understanding the concept of Present Value in financial calculations, using the formula PV = CF / (1 + r.
Explanation:
The problem is related to the concept of Present Value in finance. Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return. In this scenario, the stream of cash flows is the annual savings in labor and materials costs due to the equipment. The return rate is the annual return the company requires on such investments.
To calculate the present value, use the formula:
PV = CF / (1 + r
Where:
PV is the Present Value
CF is the annual savings (Cash flow)
r is the annual return rate
n is the expected life of the equipment.
Plug in the given values into this formula to get the amount the company could justify for the purchase of this equipment. Do remember, the rate (r) is expressed in decimal, so if the annual return is say, 5%, use 0.05 in the formula.
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The president of the United States argues that the United States should threaten to impose a tariff on Chinese steel rods in order to induce the Chinese to remove its tariff on American cars.
Which of the following justifications is the pundit using to argue for the trade restriction on steel rods?
a. National-security argument
b. Infant-industry argument
c. Jobs argument
d. Using-protection-as-a-bargaining-chip argument
e. Unfair-competition argument
Answers
Jobs argument justifications is the pundit using to argue for the trade restriction on steel rods
Explanation:
A main argument often put forward to curb trade would be that trade decreases the amount of jobs domestically available.
The point about maintaining jobs is often put forward by employers to protect union jobs. Nevertheless, unions are undermining the market by prohibiting businesses from receiving their products at lower prices, causing them to increase prices. Moreover, businesses are often discouraged from using automation or robotics to retain jobs, which is ironic because automation and robotics improve the productivity of workers, thereby encouraging companies to pay employee salaries and benefits.
Answers
Answer:
See explanation section.
Explanation:
Sage Hill Company
Journal entries
Requirement A.
March 2 Account receivable - Oriole Company debit $891,900
Sales revenue credit $891,900
Note: Assume that the company used gross method under a perpetual inventory system, during the sales, the company did not deduct the discount.
Cost of good sold Debit $527,400
Merchandise inventory Credit $527,400
Note: Under the perpetual inventory system, a seller has to record cost of good sold journal.
Requirement B & C.
B.
March 6 Sales Returns and Allowances Debit $114,400
Account Receivable Credit $114,400
Note: As the company did not calculate the cost of return goods, we did not give the cost of merchandise journal.
C.
March 12 Cash Debit $891,900
Sales Discounts Debit $26,757
Account Receivable Credit $891,900
Note: Calculation: (891,900-(891,900 × 3%) = (891,900 - 26,757) = $865,143.
As the company received the amount with in the discount period, the customer got the discount from the seller.
Answers
Answer:
Please see answers below
Explanation:
Joan may as well put a call through to Maria in addition to his previous mail. Several remedial options are available to Juan and each has its own merits and demerits. It is proper for the tenant to consider each options carefully and seek legal opinion where necessary. However, if Maria declines to do the repairs, Juan may seek the following remedies
• Repair and deduct remedy . In this type of remedy, a tenant may deduct money that is equivalent of a month's rent to cover the cost of the repair or defect. Rental unit 156 covers a condition whether faulty or substandard rented unit could affect the tenant's health and safety. Since the landlord has refused to do the repair, she is guilty of implied warranty of habitability which includes leak in the roof, gas leak, no running water etc. Also, the tenant may not have to file a lawsuit against the landlord since this type of remedy has legal aid. Other conditions attached in addition to the above are ; the repairs cannot cost more than a month's rent, the tenant cannot use the repair and deduct remedy more that twice in any 12 month period, tenant must have informed the landlord in writing and through calls of the faulty area that requires repair. His family or pets must not be the cause of the faulty area that needed to be repaired etc.
• The abandonment remedy . Here, the tenant could move out of the faulty unit or defective rental unit due to its substandard condition which could affect his health and safety. Where the tenant uses the abandonment remedy judiciously, he is not liable to pay any other rent once he has abandoned or moved out of the defective rental unit. The conditions attached are that; the defects must be serious and directly related to the tenant's health and safety, the tenant or his family must not be the cause of the faulty space that requires repair. Moreover, the tenant must have informed the landlord whether in writing or orally telephone calls of the defects that requires repair.
• The rent withholding remedy. Legally, a tenant could withhold house rent if the landlord fails to take care of serious defects that negates the implied warranty of habitability. Conditions attached to this type of remedy are; the defects to be repaired must have threatened the tenant's safety and wellbeing. Again, the faulty or defective unit must be such that it becomes uninhabitable for the tenant . The tenant, his family or pets must not be the cause of the defects that requires repairs. The tenant must have also notified the landlord either through phone calls on in writing, amongst others.
• The tenant could also file a lawsuit against the landlord to recover the cost expended to fixing the faulty repairs where the landlord was not willing to do so. Conditions that must be met before this option could stand in the court of law are; the rental unit has serious defect that is not safe for living. A housing inspector has inspected the house and found to be short of minimum requirements for habitable place etc. A tenant may seek this type of redress where the option for out of court settlement has failed with the landlord.
Answers
Answer:
False
Explanation:
If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but it does not represent a real financial cost to your firm as long as the customer periodically pays off its entire balance.