Ian loaned his friend $20,000 to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an interest rate of 7% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial investment and earn the agreed-upon 7% on his investment.

Required:
Calculate the annual payment and complete the following capital recovery schedule:

Year Beginning Amount Payment Interest Paid Principal Paid Ending Balance

Answers

Answer 1

Answer:

Ian and His Friend's Business Loan

a. Annual payment = $5,904.56

b. Capital Recovery Schedule:

Year   Beginning            Payment     Interest        Principal         Ending

           Amount                                      Paid             Paid            Balance

1          $20,000          $-5,904.56    $1,400        $4,504.56   $15,495.44

2        $15,495.44       $-5,904.56    $1,084.68   $4,819.88    $10,675.56

3.       $10,675.56       $-5,904.56    $747.29      $5,157.27     $5,518.29

4.       $5,518.29         $-5,904.56    $386.27      $5,518.29    $0

Explanation:

Ian's loan to his friend = $20,000

Interest rate = 7%

Payback period = 4 years

Repayment = annual at the end of each year.

Ian can retrieve $5,904.56 at the end of each period to reach the future value of $20,000.00 and total interest of $3,618.25.

Using an online financial calculator:

N (Number of Periods) 4.000

I/Y (Interest Rate) 7.000%

PMT (Periodic Payment) $-5,904.56

Starting Investment $20,000.00

Total Interest $3,618.25


Related Questions

Etxuck327 Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:

Answers

Answer:

539,000.00  

Explanation:

As per the contribution margin analysis concept, the break-even point is obtained by dividing fixed cost by contribution margin per unit.

For Etuck327,

The selling price is $39

Variable expense is $28

Break-even in units is 49,000 books.

Contribution margin per unit = selling price - variable costs

=$39- $28

=$11

if Break-even = fixed cost/ contribution margin per unit, then

49,000= fixed cost / 11

fixed costs = 11 x 49000

Fixed costs = 539,000.00    

                   

You want a seat on the board of directors of Red Cow, Inc. The company has 260,000 shares of stock outstanding and the stock sells for $51 per share. There are currently 5 seats up for election. The company uses straight voting. How much will it cost you to guarantee that you will be elected to the board

Answers

Answer:

$2,210,051

Explanation:

The computation of the cost that would be guaranteed is shown below:

first find the number of shares controlled which is

= (S x N) ÷  (D + 1) ] + 1

Where,

S = the total number of shares

N  = the number of directors required

D  = total number of directors i.e. elected

So,

= (260,000 × 1) ÷ (5 + 1) + 1

= 43,334

Now the cost is

= 43,334 × $51

= $2,210,051

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.

January February
Sales $428,400 $476,000
Direct materials purchases 142,800 148,750
Direct labor 107,100 119,000
Manufacturing overhead 83,300 89,250
Selling and administrative expenses 94,010 101,150

All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,190 of depreciation per month.

Other data:
1. Credit sales: November 2019, $297,500; December 2019, $380,800.
2. Purchases of direct materials: December 2019, $119,000.
3. Other receipts: January—Collection of December 31, 2019, notes receivable $17,850; February—Proceeds from sale of securities $7,140.
4. Other disbursements: February—Payment of $7,140 cash dividend.

The company’s cash balance on January 1, 2020, is expected to be $71,400. The company wants to maintain a minimum cash balance of $59,500.

Required:
Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February.

Answers

Answer:

I used an excel spreadsheet since there is not enough room here.  

                   

The stock of Static Corporation has a beta of 0.7. If the expected return on the market increases by 6%, the expected return on Static Corporation should increase by

Answers

Answer:  4.2%

Explanation:

Beta is a measure of sensitivity of a stock in that it measures how the stock reacts to a movement in market return. The Beta of the Market is 1.

If a Stock's Beta is 2, this means that if expected market return increases by 1%, the stock's expected return will increase by 2%. If a Stock's beta is 0.5 then if the expected return on the market increases by 1%, the stock's expected return will increase by 0.5%.

In this case the expected return on the market increases by 6% so the expected return on Static Corporation should increase by;

= 0.7 * 6%

= 4.2%

Managers must be able to determine whether their workers are doing an effective and efficient job, with a minimum of errors and disruptions. They do so by using a performance appraisal, an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination. Managing effectively means getting results through top performance. That's what performance appraisals at all levels of the organization are for—including at the top, where managers benefit from review by their subordinates. In the 360-degree review, management gathers opinions from all around the employee, including those under, above, and on the same level, to get an accurate, comprehensive idea of the worker's abilities.

a. True
b. False

Answers

Answer:

a. True

Explanation:

This system of performance review is a 360-degree review or feedback process where a given employee receives inputs on her performance (or other criteria such as behaviors, competencies and results achieved) from different employees with varying working relationships and at different levels.  The idea is to ensure that the employee's performance is not partial or biased.  Using this system, the employee who may be a manager will have her performance reviewed by employees below, above, and on the same level with her.

A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $12,600 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1,400. A new power line will cost $11,000 to install, with power costs expected to be $800 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year, which alternative should be selected on the basis of a future worth analysis?

Answers

Answer:

Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it implies that it will be cheaper to run an electric line than to use solar cells. Therefore, running an electric line should be selected.

Explanation:

The future worth analysis refers to an act of determining what the the worth of present amount of money or stream of money invested at an interest rate will after in some period or years to come.

To determine which one to select between solar cells and running an electric line, the we need to calculate the future worth of both and compared as follows:

a. Calculation of future value of solar cells

Calculation of future worth of $12,600 installation cost

FW of $12,600 = PW of $12,600 * (1 + r)^n ................ (1)

Where;

FW of $12,600 = Future worth of $12,600 installation cost = ?

PW of $12,600 = Present worth of $12,600 installation cost = $12,600

r = interest rate = 10%, or 0.10

n = number of years = 4

Substitute the values into equation (1), we have:

FW of $12,600 = $12,600 * (1 + 0.10)^4

FW of $12,600 = $12,600 * 1.4641

FW of $12,600 = $18,447.66

Calculation of future worth of annual costs for inspection, cleaning, etc. of $1,400

The future worth of annual costs for inspection, cleaning, etc. of $1,400 can also be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FW of $1,400 = M * (((1 + r)^n - 1) / r) ................................. (2)

Where,

FW of $1,400 = Future value of Annual costs for inspection, cleaning, etc. of $1,400 =?

M = Annual costs for inspection, cleaning, etc. = $1,400

r = interest rate = 10%, or 0.10

n = number of years = 4

Substitute the values into equation (2), we have:

FW of $1,400 = $1,400 * (((1 + 0.01)^4 - 1) / 0.01)

FW of $1,400 = $1,400 * 4.060401

FW of $1,400 = $5,684.56

Calculation of total future worth of solar cells

This is calculated by simply adding the FW of $12,600 and FW of $1,400 as follows:

Total future worth of solar cells = FW of $12,600 + FW of $1,400 = $18,447.66 + $5,684.56 = $24,132.22

Therefore, the total future worth of solar cells is $24,132.22.

b. Calculation of future value of running an electric line

Calculation of future worth of $11,000 installation cost

FW of $11,000 = PW of $11,000 * (1 + r)^n ................ (3)

Where;

FW of $11,000 = Future worth of $11,000 installation cost = ?

PW of $11,000 = Present worth of $11,000 installation cost = $11,000

r = interest rate = 10%, or 0.10

n = number of years = 4

Substitute the values into equation (3), we have:

FW of $11,000 = $11,000 * (1 + 0.10)^4

FW of $11,000 = $11,000 * 1.4641

FW of $11,000 = $16,105.10

Calculation of future worth of expected annual power costs of $800

The future worth of expected annual power costs of $800 can also be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FW of $800 = M * (((1 + r)^n - 1) / r) ................................. (4)

Where,

FW of $800 = Future value of expected annual power costs of $800 =?

M = Expected annual power costs = $800

r = interest rate = 10%, or 0.10

n = number of years = 4

Substitute the values into equation (4), we have:

FW of $800 = $800 * (((1 + 0.01)^4 - 1) / 0.01)

FW of $800 = $800 * 4.060401

FW of $800 = $3,248.32

Calculation of total future worth of running an electric line

This is calculated by simply adding the FW of $11,000 and FW of $800 as follows:

Total future worth of running an electric line = FW of $11,000 + FW of $800 = $16,105.10 + $3,248.32 = $19,353.42

Therefore, the total future worth of running an electric line is $19,353.42.

c. Conclusion

Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it implies that it will be cheaper to run an electric line than to use solar cells. Therefore, running an electric line should be selected.

Question # 5

Multiple Select

Aside from distributing investments and savings, the primary tasks of the financial service system

are (Select all that apply.)

U providing avenues to borrow money

growing the country's economy

aiding in the creation of capital formation

U managing and mitigating the risks

© 2015 Glynlyon, Inc.

< PREVIOUS

NEXT >

D SAVE

C SUBMIT

v6.0.3-0038.20200504.mainline

© 2016 Glynlyon, Inc. All rights reserved.

Answers

Answer:

Growing the country's economy Aiding in the creation of capital formation Managing and mitigating the risks

Explanation:

The Financial system is very important because it helps grow the economy of the country. They do this by creating capital when they transfer funds from those who have it (savers) to those who need it (borrowers). These borrowers will then use it to invest in projects that will grow the economy.

The Financial system also works to manage and mitigate risk because they have experience in such areas and are able to discern which projects to go after to avoid or properly manage risk.

The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the tradeoff between time spent sleeping and working and to look at other factors affecting sleep:

sleep = β0 + β1totwrk + β2educ + β3age + u,

where sleep and totwrk (total work) are measured in minutes per week and educ and age are measured in years. (See also Computer Exercise.)

(i) If adults trade off sleep for work, what is the sign of β1?

(ii) What signs do you think β2 and β3 will have?

(iii) Using the data in SLEEP75.RAW, the estimated equation is

= 3,638.25 - .148 totwrk - 11.13 educ + 2.20 age n = 706, R2 = .113.

If someone works five more hours per week, by how many minutes is sleep predicted to fall? Is this a large tradeoff?

(iv) Discuss the sign and magnitude of the estimated coefficient on educ.

(v) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factors might affect the time spent sleeping? Are these likely to be correlated with totwrk?

Use the data in SLEEP75.RAW from Biddle and Hamermesh (1990) to study whether there is a tradeoff between the time spent sleeping per week and the time spent in paid work. We could use either variable as the dependent variable. For concreteness, estimate the model

sleep =β0+ β1totwrk+u, where sleep is minutes spent sleeping at night per week and totwrk is total minutes worked during the week.

(i) Report your results in equation form along with the number of observations and R2. What does the intercept in this equation mean?

(ii) If totwrk increases by 2 hours, by how much is sleep estimated to fall? Do you find this to be a large effect?

Answers

Answer:

1. I²1 will have a negative sign

This is because the more work the adults do, the less sleep they will utilize.

2. The sign of i²2 is likely to be negative. This is because due to the demands placed on them, more educated people are likely to sleep less. Also, general as age increases some people sleep less. While some others sleep more as it increases. So i²3 is a bit complicated to judge.

3. Using the data

^sleep = 3638.24-0.148toteork-11.13educ + 2.20age

N = 706 r² = 0.113

We will convert 5 hours to minutes = 60x5 = 300

Coefficient of totwork = 0.148

O.148x300 = 44.4 minutes

In a week approximately 45 minutes of less sleep is not too much a change.

4. We are to discuss the sign and magnitude of estimated education

More education indicates less sleeping time. This is obvious given the sign of the variable educ. It is negative, but it's effect is quite small. Magnitude is -11.13.

So as education increases by 1 year, expected sleeping time decreases by 11.13 minutes weekly.

5. R² is 0.113. the 3 predictor variables gives us 11.3% of total variations in sleep and rest. 88.7% is unexplained.

Some factors that might also affect it are general health, number and age of children are factors that could correlate with totwork

You see me now 4 kkt

Answers

Answer:

ncvbhrdfh

Explanation:

Answer:

hgfjttfgk,jnhlkgfk,hjlhj

Explanation:

Use the information from the balance sheet and income statement below to calculate the following ratios:

a. Current Ratio
b. Acid-test ratio
c. Times interest earned
d. Inventory turnover
e. Total asset turnover
f. Operating profit margin
g. Days in receivables
h. Operating return on assets
i. Debt ratio
j. Fixed asset turnover
k. Return on equity

Balance Sheet ASSETS

Cash $100,000
Accounts receivable 30,000
Inventory 50,000
Prepaid expenses 10,000
Total current assets $190,000
Gross plant and equipment 401,000
Accumulated depreciation (66,000)
Total assets $525,000

LIABILITIES AND OWNERS' EQUITY

Accounts payable $90,000
Accrued liabilities 63,000
Total current liabilities $153,000
Long-term debt 120,000
Common stock 205,000
Retained earnings 47,000
Total liabilities and equity $525,000
Income Statement Sales* $210,000
Cost of goods sold (90,000)
Gross profit $120,000
Selling, general, and
administrative expenses (29,000)
Depreciation expenses (26,000)
Operating profits $65,000
Interest expense (8,000)
Earnings before taxes $57,000
Taxes (11,970)
Net income $45,030

Answers

Answer:

a. Current Ratio  = current assets / current liabilities = 190,000 / 153,000 = 1.24

b. Acid-test ratio  = (current assets - inventory) / current liabilities = (190,000 - 50,000) / 153,000 = 0.92

c. Times interest earned  = EBIT / interest expense = 65,000 / 8,000 = 8.13

d. Inventory turnover  = COGS / inventory = 90,000 / 50,000 = 1.8

e. Total asset turnover  = net sales / total assets = 210,000 / 525,000 = 0.4

f. Operating profit margin  = operating income / total sales = 65,000 / 210,000 = 0.31

g. Days in receivables  = (accounts receivables / total sales) x 365 = (30,000 / 210,000) x 365 =  52.14 days

h. Operating return on assets  = operating income / total assets = 65,000 / 525,000 = 0.12

i. Debt ratio  = total liabilities / total assets = 273,000 / 525,000 = 0.52

j. Fixed asset turnover  = total sales / fixed assets = 210,000 / 335,000 = 0.63

k. Return on equity = net income / total equity = 45,030 / 252,000 = 0.18

Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $2. In year 2, the quantity produced is 5 bars and the price is $4. In year 3, the quantity produced is 7 bars and the price is $6.

Required:
Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.

Answers

Answer:

Nominal GDP in year 1 = $6

Nominal GDP in year 2 = $20

Nominal GDP in year 3 =  $42

Real GDP in year 1 = $6

Real GDP in year 2 = $10

Real GDP in year 3 =  $14

GDP deflator in year 1 = 100

GDP deflator in year 2 = 200

GDP deflator in year 3 = 300

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Nominal GDP = quantity produced x current year price

Nominal GDP in year 1 = (3 x $2) = $6

Nominal GDP in year 2 = 5 x $4 = $20

Nominal GDP in year 3 = 7 x $6 = $42

Real GDP = quantity produced x base year price

Real GDP in year 1 = (3 x $2) = $6

Real GDP in year 2 = 5 x $2 = $10

Real GDP in year 3 = 7 x $2 = $14

GDP deflator = nominal GDP / Real GDP x 100

GDP deflator in year 1 = $6 / $6 x 100 = 100

GDP deflator in year 2 = $20 / $10 x 100= 200

GDP deflator in year 3 = $42 / 14 x 100 = 300

Which section of a CAR Residential Purchase Agreement is a provision divided into three sections: mediation, arbitration of disputes, and additional terms?

Answers

Answer: Appraisal contingency and Removal.

Explanation:

The appraisal contingency, is a kind of CAR residential purchase agreement, which allows a buyer to back out of the deal if the house appraises for less than the already agreed-upon value. and the loan contingency, this term lets the buyer back out if he/she can't get their loan approved for the said purposes.

The section of a car residential purchase agreement that separates it into three sections would be:

Section 9C

The section titled 9C functions to separate the property purchase provisions into three varied divisions. These divisions include mediation followed by arbitration of disputes, and the external terms that fulfill the remaining ones.The other options are present in order to fulfill if either of them fails to resolve the dispute.

Thus, "section 9C" is the correct answer.

Learn more about "Residential Agreement" here:

brainly.com/question/10539028

Help me please thank you

Answers

Answer:

You have to be intelligent, risk taking and you haver to care about your people.

Explanation:

Question 3
20 pts
Solve the problem
A normal distribution has a limited range and can be skewed in either direction.
True
0 False
Next >

Answers

The answer is false....
The answer is false

Svetlana won $1,000,000 in a contest, to be paid in twenty $50,000 payments at yearly intervals, the first payment paid at the time of the contest. (Of course, the present value of her winnings is less than $1,000,000.) Svetlana decided to keep X each year to spend and deposit the remaining $50;000 X into an account earning an annual effective interest rate of 5%. She chose the value X to be as large as possible so that, at the moment of the 20th deposit, the account would have grown to such a size that it would provide Svetlana and her heirs at least X per year in interest forever. Find X.

Answers

Answer: 31155.5

Explanation:

The following can be deduced from the question:

Money won = $1,000,000

Installments made yearly = $50,000

Interest rate = 5%

The yearly deposits made by Svetalana will be: = 500000-x

The future Value of the yearly deposits made by Svetalana will be:

= (50000-x) × (1/(1.05) + (1/(1.05)^2 .....(1/(1+0.05)^20))

= (500000-x) × 33.066

We should recall that the interest from the question is equated to x. This will be:

33.066 × (50000-x) × 0.05 =x

1.6533(50000 - x) = x

82665 - 1.6533x = x

2.6533x = 82665

x = 82665/2.6533

x = 31155.5

asper makes a $28,000, 90-day, 8.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)

Answers

Answer:

$595

Explanation:

The computation of the amount of interest is shown below:-

Amount of interest = Loan amount × Interest rate × Number of days ÷ Number of days in a year

= $28,000 × 8.5% × 90 ÷ 360

= $595

Therefore for computing the amount of interest we simply applied the above formula.

And the same is to be considered

Below are cash transactions for a company, which provides consulting services related to mining of precious metals.

a. Cash used for purchase of office supplies, $1,600.
b. Cash provided from consulting to customers, $42,600.
c. Cash used for purchase of mining equipment, $67,000.
d. Cash provided from long-term borrowing, $54,000.
e. Cash used for payment of employee salaries, $23,400.
f. Cash used for payment of office rent, $11,400.
g. Cash provided from sale of equipment purchased in c. above, $21,900.
h. Cash used to repay a portion of the long-term borrowing in d. above, $37,000.
i. Cash used to pay office utilities, $3,700.
j. Purchase of company vehicle, paying $9,400 cash.

Required:
Calculate cash flows from operating activities.

Answers

Answer:

                      Cash Flow Statement

         Cash Flow from Operating Activities

Cash received from customers                     $42,600

Cash payment to salaries                             -$23,400

Cash used for purchase of office supplies  -$1,600

Office rent paid                                              -$11,400

Payment for office utilities                             -$3,700

Net Cash Inflow from Operating activities  $2,500

The following summary transactions occurred during 2021 for Bluebonnet Bakers:
Cash Received from:
Collections from customers $490,000
Interest on notes receivable 11,500
Collection of notes receivable 54,000
Sale of investments 34,000
Issuance of notes payable 175,000
Cash Paid for:
Purchase of inventory 235,000
Interest on notes payable 7,500
Purchase of equipment 90,000
Salaries to employees 95,000
Payment of notes payable 40,000
Dividends to shareholders 35,000
The balance of cash and cash equivalents at the beginning of 2021 was $26,000.
Required:
Prepare a statement of cash flows for 2021 for Bluebonnet Bakers. Use the direct method for reporting operating activities

Answers

Answer and Explanation:

The preparation of the statement of cash flows is presented below:

Bluebonnet Bakers

Cash flow statement

For the year 2021

Cash flow from operating activities

Collections from customers $490,000

Interest on notes receivable 11,500

Less: Interest on notes payable 7,500

Less: Purchase of inventory 235,000

Less: Salaries to employees 95,000

Net cash flow from operating activities $164,000

Cash flow from investing activities

Collection of notes receivable 54,000

Sale of investments 34,000

Less: Purchase of equipment 90,000

Net cash flow from investing activities -$2,000

Cash flow from financing activities

Issuance of notes payable 175,000

Less: Payment of notes payable 40,000

Less: Dividends to shareholders 35,000

Net cash flow from financing activities $100,000

Net increase or decrease in cash $262,000

Add: Opening cash balance $26,000

Ending cash balance $288,000

Suppose that, in a competitive market without government regulations, the equilibrium price of milk is $2.50 per gallon, and employees at grocery stores earn $21.50 per hour. Indicate the following whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market.

a. There are many teenagers who would like to work at grocery stores, but the minimum-wage law sets the hourly wage at $25.00.
b. The government has instituted a legal minimum price of $2.30 per gallon for milk.
c. The government prohibits grocery stores from selling milk for more than $2.30 per gallon.

Answers

Explanation:

at price ceiling we have price set at a maximum level. it cannot be raised beyond this level. At binding price ceiling, price would be set to be lower than what is the equilibrium price level.  a non binding price ceiling is set to be higher than equilibrium level.

At price floor, price is set to a particular minimum level.  It cannot fall lower than this. At binding price floor, price is higher than equilibrium price' at non binding price floor, it is set to be lower than equilibrium price level.

this expalnation should help us to answer this question.

(a) Many teenagers would like to work but minimum wage is set at 25.00 we have Price floor, Binding

(b) Government instituted legal minimum price of a gallon of milk at $2.30 we have Price floor, Non-binding

(c) if the Government prohibits from selling milk for more than $2.30 per gallon then we have Price ceiling, Binding

3. The last dividend paid by New Technologies was an annual dividend of $1.40 a share. Dividends for the next 3 years will be increased at an annual rate of 8 percent. After that, dividends are expected to increase by 3 percent each year. The discount rate is 16 percent. What is the current value of this stock

Answers

Answer:

$12.60

Explanation:

The computation of the current value of the stock is shown below:-

= $1.40 × (1.08) ÷ 1.16 + 1.40 × (1.08)^2 ÷ (1.16)^2 + 1.40 × (1.08)^3 ÷ (1.16)^3 + 1.40 × (1.08)^3 × (1.03) ÷ (0.16 - 0.03) × (1.16)^3

= $1.3034 + $1.2136 + $1.1299 + $8.9520

= $12.60

Therefore for computing the current value of stock we simply solved the above equation.

connecting u dropped its price from $20 to $16 per gigabyte of data. Joe according to the midpoint formula, Connecting U reduced its price by what percentage?

Answers

Answer:

-$22.2

Explanation:

The computation of price by percentage is shown below:-

Price by percentage = (End price - Beginning price) ÷ (End price - Beginning price) ÷ 2 × 100

= ($16 - $20) ÷ ($16 - $20) ÷ 2 × 100

= -$4 ÷ $18 × 100

= -$400 ÷ $18

= -$22.2

So, we have applied the above formula.

And, the same is to be considered

Connecting u dropped price in percentage is 22.2%

Midpoint formula:

Given that;

Old price = $20

New price = $16

Find:

Connecting u dropped price in percentage

Computation:

[tex]Dropped\ price\ in\ percentage=[\frac{16-20}{\frac{16+20}{2} }]100\\\\Dropped\ price\ in\ percentage=[\frac{16-20}{18}]100\\\\Dropped\ price\ in\ percentage=[\frac{-4}{18}]100\\\\Dropped\ price\ in\ percentage=22.2[/tex]

Connecting u dropped price in percentage = 22.2%

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Bird Corp.'s trademark was licensed to Brian Co. for royalties of 15% of the sales of the trademarked items. Royalties are payable semiannually on March 15 for sales in July through December of the prior year, and on September 15 for sales in January through June of the same year. Bird received the following royalties from Brian:
March 15 September 15
20X4 $5,000 $7,500
20X5 6,000 8,500
Brian estimated that the sales of the trademarked items would total $30,000 for July through December 20X5. In Bird's 20X5 Income Statement, the royalty revenue should be:______.
a. $13,000.
b. $14,500.
c. $19,000.
d. $20,500.

Answers

Answer:

a. $13,000

Explanation:

Calculation for what royalty revenue should be

First step is to find the estimated amount for the second half of the year

Royalties for the second half =

15%*$30,000

Royalties for the second half= $4,500

Now let Compute for the total royalty revenue

Total royalty revenue for 20X5=$8,500+$4,500

Total royalty revenue for 20X5=$13,000

Therefore the royalty revenue should be $13,000

Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimated residual value at the end of its useful life. The remaining useful life of the leased equipment is 15 years. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $60,000 are due at the beginning of each year beginning January 1, 2021. Both companies use the straight-line method in depreciation/amortization their assets.

Answers

Answer:

The requirements are missing, so I looked for a similar question. This is a financial lease since the PV of the lease payments represents 97% of the asset's value.

 

January 1, 2021, equipment leased from Deal leasing

Dr Right of use asset 405,541.20

    Cr Lease liability 405,541.20

the right of use asset = PV of lease payments = $60,000 x 6.75902 (PV annuity due, 10%, 10 periods) = $405,541.20

January 1, 2021, first lease payment

Dr Lease liability 60,000

    Cr Cash 60,000

December 31, 2021, depreciation expense on leased asset

Dr Depreciation expense 40,554.12

    Cr Accumulated depreciation 40,554.12

depreciation expense = $405,541.20 / 10 = $40,554.12

December 31, 2021, interest expense on asset lease

Dr Interest expense 34,554.12

    Cr Interest payable 34,554.12

interest expense = ($405,541.20 - $60,000) x 10% = $34,554.12  

Calloway Company recorded a right-of-use asset of $790,000 in a 10-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after two years will be:

Answers

Answer:

$632,000

Explanation:

The computation of the amount of balance in the right of use asset after two years is shown below:

Balance in right of use asset after 2 years is

= Recorded value - ((Recorded value × rate of interest) × number of years)

= $790,000 - (($790,000 × 10%) × 2)

= $790,000 - ($79,000 × 2)

= $790,000 - $158,000

= $632,000

hence, the balance is $632,000

The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $273,000 at the end of each of the next two years. At the end of the third year the company will receive payment of $650,000. Assume the IRR of this option exceeds the cost of capital. The company can speed up construction by working an extra shift. In this case there will be a cash outlay of $595,000 at the end of the first year followed by a cash payment of $650,000 at the end of the second year. Use the IRR rule to show the (approximate) range of opportunity costs of capital at which the company should work the extra shift.

The company should work the extra shift if the cost of capital is between ___________ % and ___________ %

Answers

Answer:

19% to 19.7%

Explanation:

Cost of capital is the firm cost of sources of financing. It includes debt, equity and all other sources of finance with keeping the track of their required rate of return. The cost of capital is the expected return which is required by the lenders of fund.

g you are eligible for a 30 year fixed rate home mortgage with 3.6% interest rate what is the maximum loan you can get

Answers

Answer:

the maximum loan is $379,417

Explanation:

The computation of the maximum loan is shown below:

As we know that

Maximum Loan = Present Value of all monthly Payments

=  $1,725 × PVAF(0.3%,360 months)

= $1,725 × [1- (1+0.003)^-360] ÷ 0.003

= $1,725 × 219.9517

=  $379,417

hence, the maximum loan is $379,417

Here the interest rate is divided by 12 and the months should be multiplied by 12 as this is the case of monthly basis

Answer:

money

Explanation:

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:

a. Beginning balances were: Cash, $98,000; Taxes Receivable, $197,000; Accounts Payable, $56,000; and Fund Balance, $239,000.
b. The budget was passed. Estimated revenues amounted to $1,280,000 and appropriations totaled $1,276,400. All expenditures are classified as General Government.
c. Property taxes were levied in the amount of $940,000. All of the taxes are expected to be collected before February 2021.
d. Cash receipts totaled $910,000 for property taxes and $310,000 from other revenue.
e. Contracts were issued for contracted services in the amount of $104,000.
f. Contracted services were performed relating to $93,000 of the contracts with invoices amounting to $90,400.
g. Other expenditures amounted to $986,000.
h. Accounts payable were paid in the amount of $1,130,000.
i. The books were closed.

Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.

Answers

Answer:

Please see attached for the detailed solution.

Explanation:

a. Prepare Journal

b. Prepare statement

c. Prepare balance sheet

Please find attached solution to the above questions.

Consider the experiments. Experiment 1: A study is done to determine which of two fuel mixtures allows a rocket to travel farther over a period of time. Rocket A, which requires additional equipment to keep it stable, is used to test one fuel mixture, and rocket B is used to test the other. Both rockets are identical aside from their mass. The results indicate that rocket B traveled farther than rocket A over the same period of time. Experiment 2: A double-blind experiment is performed to test whether a new drug is effective in lowering blood pressure. A random sample of subjects with high blood pressure is assigned to two groups. One group receives the new drug and the other group does not. Neither group is permitted to take any other medications during the experiment or to change their lifestyles in any way. The results of the experiment show that the drug is effective in lowering blood pressure.

Identify the experiment in which confounding occurs and the reason for its occurrence.

a. Neither experiment has a confounding variable.
b. Experiment 1 has a confounding variable related to the fuel mixtures. Varying the fuel mixture could skew the results of the study and should be kept constant.
c. Experiment 2 has a confounding variable related to the type of experiment. A double-blind experiment may increase the risk of the placebo effect and possibly skew the results.
d. Experiment 1 has a confounding variable related to the mass of the rockets. Any variation in mass may cause a discrepancy in the distance traveled.
e. Experiment 2 has a confounding variable related to the subjects used. Choosing a sample of subjects with high blood pressure instead of individuals with different blood pressure levels may confuse the results.

Answers

Answer:

d. Experiment 1 has a confounding variable related to the mass of the rockets. Any variation in mass may cause a discrepancy in the distance traveled.

Explanation:

Both experiments have confounding variables.  But the reasons given for the occurrence of the confounder in experiment 2 do not justify (c) and (e) as correct answers.  By definition, confounders are factors other than the independent variable that cause differences in outcome.  For experiment 1, the different masses of the two rockets affect the independent variable (fuel mixture) being studied, and actually cause the discrepancy in the distance traveled as indicated in answer (d).  Other examples of confounders are placebo, weather, age, and experimenter bias which a double-blind can eliminate.

Seiko’s current salary is $85,000. Her marginal tax rate is 32 percent and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for an Idaho Office Supply. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $75,000 per year, but it allows employees to purchase one new car per year at a discount of $15,000. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $10,000 raise. Answer the following questions about this analysis.
Problem 12-41
Part a a. Assuming it has a 21 percent marginal tax rate, what is the annual after-tax cost to Idaho Office Supply to provide Seiko with the $10,000 increase in salary?

Answers

Answer:

$7,900

Explanation:

Calculation for the annual after-tax cost

Additional salary = $ 10,000

Marginal tax rate=21%

First step is to find the income tax benefit

Income tax benefit = $ 10,000 x 21%

Income tax benefit= $ 2,100

Second step is to find the Annual after tax cost of additional salary

Annual after tax cost of additional salary = $ 10,000 - $2,100

Annual after tax cost of additional salary = $7,900

Therefore the annual after-tax cost will be $7,900

Jane is planning to go on a camping trip. She purchases a bottle of mineral water, a pack of biscuits, a small tube of toothpaste, and a toothbrush from the supermarket near her house. The items that Jane has purchased from the supermarket are _____.

Answers

franchise

Explanation:

right granted to an individual or group to the market for a business goods or services within a certain area

Jane is planning to go on a camping trip. The items that Jane has purchased from the supermarket are non durable goods.

What do you mean by the non durable goods?

The lifespan of consumer nondurable items, which are bought for immediate or nearly immediate consumption, ranges from minutes to three years. These frequently include things like meals, drinks, clothes, shoes, and gasoline.

Non-durable commodities are typically produced, delivered, and sold to consumers quickly.

These products are frequently used very rapidly as well, thus consumers require a constant supply in order to keep stocking up.

Therefore, Jane is planning to go on a camping trip. She purchases a bottle of mineral water, a pack of biscuits, a small tube of toothpaste, and a toothbrush from the supermarket near her house. The items that Jane has purchased from the supermarket are non durable goods.

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