Answer:
$253,372
Explanation:
Face Value = 3,400,000
Issue Price = 3,619,600
Bond Premium = 219,600
Jan 01, 2019
Balance in Bond Payable = 3,400,000
Book Value of Bonds = 3,619,600
Balance in Bond Premium = 3,619,600 - 3,400,000 = $219,600
30 June, 2019
Interest Payment = Balance in Bond Payable Jan 1 * 16%/2 = 3,400,000 * 14%/2 = $272,000
Interest expenses = Book Value of Bonds Jan 1 * 14%/2 = 3,619,600 * 14%/2 = $253,372.
Thus, the interest expense for the six months ending July 1, 2019 is $253,372
Eileen and Hal, a married couple filing jointly, received $10,000 of Series I bond interest in 2020. If all the proceeds of the redeemed bond were used to pay qualified education expenses and their modified adjusted gross income exceeded the applicable dollar amount by $30,000, how much of the bond interest could they exclude from income?
Answer:
$0 amount of interest to be excluded from Income
Explanation:
Interest income on bond can be excluded from Income if following two condition are fulfill.,
a) Bond are Series 1 or Series EE bond bought after 1989
b) Redemption money is used for the payment or Expense of Qualified Education expense
If the boNd amount is more then Qualified Expense only amount of Interest can be excluded from the Income . and Further this interest are phase out if exceed the threshold based on the level of Modified Adjusted Gross Income. Phaseout Threshold for Couple filling jointly for 2020 is $123,550 and phaseout limit is $153,550
As Given that MAGI exceeds the phaseout threshold by $30000
Phaseout Reduction = Redemption amount × Income Exceed by Phaseout thresold / (Differences of Phaseout thresold - Phaseout limit ie $30000)
Phaseout Reduction = 10000×30000/(153550-123550)
Phaseout Reduction = 10000
Tax free Redemption amount of Bond = $10000-$10000
Tax free Redemption amount of Bond = $0
$0 amount of interest to be excluded from Income
Let's solve this step by step:
Interest income on bond can be excluded from Income if following two condition are fulfill.,
a) Bond are Series 1 or Series EE bond bought after 1989
b) Redemption money is used for the payment or Expense of Qualified Education expense
If the bond amount is more then Qualified Expense only amount of Interest can be excluded from the Income and further this interest are phase out if exceed the threshold based on the level of Modified Adjusted Gross Income.
Phaseout Threshold for Couple filling jointly for 2020 is $123,550 and phaseout limit is $153,550
As Given that MAGI exceeds the phaseout threshold by $30000
Phaseout Reduction = Redemption amount × Income Exceed by Phaseout thresold / (Differences of Phaseout thresold - Phaseout limit i.e. $30000)
Phaseout Reduction = [tex]\frac{10000 *30000}{(153550-123550)}[/tex]
Phaseout Reduction = 10000
Tax free Redemption amount of Bond = $10000-$10000
Tax free Redemption amount of Bond = $0
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The next dividend payment by Skippy, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 4.8 percent, forever. If the stock currently sells for $53.10 per share, what is the required return?A) 2.67%
B) 5.56%
C) 4.80%
D) 10.36%
E) .27%
Answer:
the correct option is D. 10.36%
Explanation:
The computation of the required return is shown below:
As we know that
Current Price = Expected Dividend ÷ (Required Return - Growth Rate)
(Required Return - Growth Rate) = Expected Dividend ÷ Current Price
Required Return = (Expected Dividend ÷ Current Price ) + Growth rate
= ($2.95 ÷ $ 53.10) + 4.8%
= 10.36%
hence, the correct option is D. 10.36%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
In staple merchandise management systems, the ______ is the amount of inventory below which the quantity available shouldn't go or the item will be out of stock before the next order arrives. A) service level B) order point C) base stock D) perpetual inventory E) average inventory.
Answer:
B) order point
Explanation:
A merchandise management systems can be defined as a strategic technique used by business firms to measure and understand the buying habits of the consumers of an organization in order to effectively and efficiently source, plan, display and properly stock the finished goods (products).
In staple merchandise management systems, the order point is the amount of inventory below which the quantity available shouldn't go or the item will be out of stock before the next order arrives. The order point is the minimal amount of goods (products) that a business firm allows itself to have before restocking or ordering for more products.
Blue Spruce Corp. started the year with total assets of $304000 and total liabilities of $244000. During the year the business recorded $630000 in revenues, $325000 in expenses, and dividends of $61000. The net income reported by Blue Spruce Corp. for the year was:_____________
Answer:
$305,000
Explanation:
Net income is the amount of money available to a company after the deduction of expenses from revenue. It is calculated as;
Net income = Revenues - Expenses
Given that;
Revenues = $630,000
Expenses = $325,000
Net income = $630,000 - $325,000
Net income = $305,000
Therefore the net income reported by Blue Spruce Corp. For the year is $305,000
Southern Home Cookin' just paid its annual dividend of $0.42 a share. The stock has a market price of $20 and a beta of 0.8. The return on the U.S. Treasury bill is 3 percent and the market return is 14 percent. What is the cost of equity? A. 8.8 percent B. 11.2 percent C. 11.8 percent D. 14.2 percent E. None of the above
Answer:
C. 11.8 percent
Explanation:
The computation of the cost of equity is shown below:
= Risk free rate of return + Beta × market risk premium
= 3% + 0.8 × (14% - 3%)
= 3% + 0.8 × 11%
= 3% + 8.8%
= 11.8%
Hence, the cost of equity is 11.8%
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
What are some actions that may be taken by a nation to reduce interest rates in a country?
Answer:
The solution to this question can be defined as follows:
Explanation:
Its federal reserve of a nation will undertake several measures mostly on a bid to avoid the interest rate in the world. Using an exchange rate process, they increase the supply of money, lessen the number of discounts or even the money supply. Each of these steps raises the availability of resources as well as the rate of interest on the economy drops with a primary component of capital.
Summarize the ways through which sales and operations planning can be integrated. Then, extend your findings to additional supply chain management processes that you feel could be better integrated. Which two (or more) processes did you integrate? Why and how?
Answer:
Sales and Operation Planning is integrated to achieve business goals. The executives and business managers will be able to focus on achievement of company goals.
Explanation:
Sales and operations planning integration is a key function for any business. The leadership management is able to focus on strategic planning based on demand and supply of the products. They are able to improve their forecasting and bring accuracy in budgeting. Companies are able to improve their business profits based on integrated planning.
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:
Activity Cost Pool Total Cost
of Pool Cost Driver Estimated Total of Cost Driver
Machining $ 312,000 Number of machine hours 80,000
Designing costs 73,600 Number of design hours 8,000
Setup costs 71,600 Number of batches 500
Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows:
Product A Product B Product C
Number of machine hours 30,000 40,000 10,000
Number of design hours 3,200 1,800 3,000
Number of batches 50 175 275
Required:
Determine the amount of overhead assigned to each product.
Answer:
Results are below.
Explanation:
First, we need to calculate the activity rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machining= 312,000/80,000= $3.9 per machine hour
Designing costs= 73,600/8,000= $9.2 per design hour
Setup costs= 71,600/500= $143.2 per batch
Now, we can allocate overhead to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product A:
Machining= 3.9*30,000= 117,000
Designing costs= 9.2*3,200= 29,440
Setup costs= 143.2*50= 7,160
Total overhead= $153,600
Product B:
Machining= 3.9*40,000= 156,000
Designing costs= 9.2*1,800= 16,560
Setup costs= 143.2*175= 25,060
Total overhead= $197,620
Product C:
Machining= 3.9*10,000= 39,000
Designing costs= 9.2*3,000= 27,600
Setup costs= 143.2*275= 39,380
Total overhead= $105,980
Overhead assigned to product A, B and C are $153,600 , $197,620 and $105,980
Overhead based problem:Computation of activity rate;
Cost (A) Cost Driver(B) Activity Rate(A / B)
Machining $312000 $80000 3.9
Designing $73600 $8000 9.2
Setup $71600 $500 143.2
Overhead assigned = Machining + Designing + Setup
Overhead assigned to product A = (3.9)(30,000) + (9.2)(3200) + (143.2)(50)
Overhead assigned to product A = 117,000 + 29440 + 7160
Overhead assigned to product A = $153,600
Overhead assigned to product B = (3.9)(40,000) + (9.2)(1800) + (143.2)(175)
Overhead assigned to product B = 156,000 + 16,560 + 25,060
Overhead assigned to product B = $197,620
Overhead assigned to product C = (3.9)(10,000) + (9.2)(3,000) + (143.2)(275)
Overhead assigned to product C = 39,000 + 27,600 + 39380
Overhead assigned to product C = $105,980
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Which of the following accounts is a temporaryâ account? A. Accounts Receivable B. Supplies C. Withdrawals D. Cash
Answer:
C. Withdrawals
Explanation:
The temporary account refer to the account that are closed at the closing accounting period. It involves the revenue, expenses, and the withdrawal account. it is also called the nominal account that involves these type of accounts
According to the given options, the option C is correct
And, the rest of the options of the wrong
The relevant production range for Challenger Trailers, Inc. is between 120,000 units and 190,000 units per month. If the company produces beyond 190,000 units per month:__________. A. the fixed costs and the variable cost per unit will not change B. the fixed costs may change, but the variable cost per unit will remain the same C. the fixed costs will remain the same, but the variable cost per unit may change D. both the fixed costs and the variable cost per unit may change
Answer: D. both the fixed costs and the variable cost per unit may change
Explanation:
It is said that Fixed costs do not change regardless of production level but this is not entirely true. Fixed costs usually do not change for a production range but if the range is passed, the fixed costs might then increase and a new fixed cost for the new relevant range will be charged.
Variable costs are variable because they change with production so if the company is producing more units, they will be incurring more variable costs.
In conclusion therefore, if the company produces more units than its relevant production range, it risks both fixed and variable costs changing.
In a SWOT analysis, what are strengths?
Answer:
A SWOT analysis is an evaluation of your company's strengths, weaknesses, opportunities, and threats.
Explanation:
The SWOT approach is a useful tool to support various brainstorming sessions due to its benefits, such as its ability to address a variety of business difficulties.
What is SWOT analysis?Strengths, Weaknesses, Opportunities, and Threats is referred to as SWOT. Your company's internal strengths and weaknesses are factors over which you have some control and which you can make changes. Examples include your team members, your intellectual property and patents, and your location.
A SWOT analysis is a strategic planning tool that assists businesses in gaining a comprehensive understanding of their key difficulties and in choosing actions that will actually support their success.
The acronym stands for the four principles of strengths, weaknesses, opportunities, and threats in English.
An organization or project's strengths, weaknesses, opportunities, and threats are identified using a SWOT analysis, a planning technique.
With this approach, you concentrate your analysis on the three Cs, or strategic triangle, which are the company, the competitors, and the customers.
Finding the key success factor (KSF) and developing a workable marketing strategy can both be accomplished by carefully examining these three components.
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Why is credit an important part of the economy?
A. It allows people and businesses to pay off expensive purchases
over time.
B. It helps workers find higher-paying jobs that take advantage of
their skills.
C. It encourages businesses to sell products both domestically and
internationally
D. It prevents banks from charging companies interest on long-term
loans.
Answer:
A. It allows people and businesses to pay off expensive purchases
over time.
Explanation:
A credit facility is an arrangement where a buyer obtains goods or services and pays for them over a long time. Credit contrasts cash payment, where the buyer pays make full payment for a product when acquiring it.
Credit allows a business to acquire expensive items and assets. Should a business be in need of something that it cannot afford to pay on a cash basis, it can negotiate favorable credit terms with the seller. Payments for such an item are spread over an agreed period. The buyer pays through small and affordable installments until they clear the debt.
Which of the following transactions are included in gross domestic product, and by how much does the GDP raise?
A. Smith pays a carpenter $50,000 to build a garage.
B. Smith purchases $10,000 worth of materials and builds a garage, which is worth $50,000.
C. Smith goes to the woods, cut down a tree, and uses the wood to build himself a garage that is worth $50,000.
D. The Jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000.
E. You purchase a used computer from a friend for $200.
F. Your university purchases a new mainframe computer from IBM, paying $25,000.
G. You win $100 in an Atlantic City casino.
H. You make $100 in the stock market.
I. You sell a used economics textbook to your college bookstore for $60.
J. You buy a new economics textbook from your college bookstore for $100.
Answer:
A. Smith pays a carpenter $50,000 to build a garage. ⇒ INCLUDED, increases GDP by $50,000 because Smith paid for the garage.
B. Smith purchases $10,000 worth of materials and builds a garage, which is worth $50,000. ⇒ INCLUDED, increases GDP by $10,000 only because Smith built the garage himself.
C. Smith goes to the woods, cut down a tree, and uses the wood to build himself a garage that is worth $50,000. ⇒ NOT INCLUDED, no services or goods were exchanged, it is the same as growing your own food.
D. The Jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000. ⇒ INCLUDED, increases GDP by $500,000 because the Joneses purchased anew house.
E. You purchase a used computer from a friend for $200. ⇒ NOT INCLUDED, only new goods and services are included.
F. Your university purchases a new mainframe computer from IBM, paying $25,000. ⇒ INCLUDED, increases GDP by $25,000 because the university purchased a new computer.
G. You win $100 in an Atlantic City casino. ⇒ NOT INCLUDED, casino earnings or lottery earnings are not considered new products or services.
Answer:
G. You win $100 in an Atlantic City casino. ⇒ INCLUDED, casino industry contributes significantly to a country's economy. It accounts for 0.45% of the US GDP.
Explanation:
Samuel, Inc. has Accounts Receivable of $110,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer account balance of $1,700, what is the amount of its net accounts receivable?A) 591,300. B) $108,300. C) $110,000. D) $93,000.
Answer:
the net account receivable is d. $93,000
Explanation:
The computation of the net account receivable is shown below:
= (Account receivable - written off amount) - (Allowance for doubtful accounts - written off amount)
= ($110,000 - $1,700) - ($17,000 - $1,700)
= $108,300 - $15,300
= $93,000
Hence, the net account receivable is $93,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
The time value of moneyConsider the following scenarios:Simon FamilyThe Simons have saved $5,000 towards their goal to have $45,000 for a down payment on a house in 6 years. They will put the $5,000 in an account along with money they will deposit annually. They donât know how much that annual deposit should be, so theyâve asked you to calculate it. They have found a savings institution that will pay 6% interest.Perkette FamilyThe Perkettes have set a goal to have $45,000 for a down payment on a house in 6 years. They have not saved anything so far. They have asked you to calculate how much they will need to put away each year to achieve their $45,000 down-payment goal. They have found a savings institution that will pay 6% interest.Use the scenarios along with the following factor table data. Note that the complete Future Value and Future Value Annuity tables (as well as the Present Value and Present Value Annuity tables) are located in the appendix in your text.Table of Future Value Factors:Interest RateYear 5% 6% 8%1 1.050 1.060 1.0802 1.102 1.120 1.1663 1.158 1.190 1.2604 1.216 1.260 1.3605 1.276 1.340 1.4696 1.340 1.420 1.5878 1.477 1.590 1.85110 1.629 1.790 2.159Table of Future Value Annuity Factors:Interest RateYear 5% 6% 8%1 1.000 1.000 1.0002 2.050 2.060 2.0803 3.152 3.180 3.2464 4.310 4.380 4.5065 5.526 5.630 5.8676 6.802 6.970 7.3368 9.549 9.890 10.63710 12.578 13.180 14.4871. What is the amount of money the Simons will need to deposit annually (rounded to the nearest two decimal places) to achieve their down-payment goal?2. What is the amount of money the Perkettes will need to deposit annually (rounded to the nearest two decimal places) to achieve their down-payment goal?
Answer:
annual payment = $5,496.25
Explanation:
the $5,000 that they deposit today will be worth $5,000 x (1 + 6%)⁶ = $6,691.13 in 6 years.
this means that they need to save an extra $45,000 - $6,691.13 = $38,308.87
we can calculate the amount that they need to deposit at the end of every year to have $38,308.87 in 6 years by using the future value of an annuity formula:
FV = payment x annuity factor
payment = FV / annuity factor
FV = $38,308.87 FV annuity factor, 6%, 6 periods = 6.970annual payment = $38,308.87 / 6.97 = $5,496.25
Year Cash Flow 0 –$5,500 1 1,300 2 1,500 3 1,900 4 1,400 What is the payback period for the set of cash flows given above?
Answer: 3.57 years
Explanation:
Payback period is the amount of time it would take for a project to pay back its initial investment.
Investment = $5,500
Year 1 + 2 + 3 = 1,300 + 1,500 + 1,900 = $4,700
With cash flow of $1,400 coming in fourth year and $800 remaining for payback, investment will be paid back in fourth year.
Payback period = Year before payback + Amount left/ Cashflow in year of payback
= 3 + (5,500 - 4,700) / 1,400
= 3.57 years
how to get money fast
Answer:
social media
Explanation:
nothing social media cant do , put up ads or fliers for ur buisness, along with a side job . have friends promote whatever your doing, make a website. do something that draws audience attention.
QUESTIONS
1. Explain how the procurement process is handled by the city of Copenhagen
Answer:um
Explanation:
Arturo and Dina are married with two dependents. They enrolled in a qualified plan through the Marketplace at a cost of $2,700 per year. Their household income was $31,000. Their SLCSP premium is $3,600. What is their premium tax credit?
Answer:
$2,261
Explanation:
I calculated this tax credit using 2019 information:
household income = $31,000
household income as a % of poverty line = $31,000 / $25,100 = 123.5%
applicable percentage = 4.32%
required contribution = $31,000 x 4.32% = $1,339.20 ≈ $1,339
SLCSP = $3,600
SLCSP - required contribution = $3,600 - $1,339 = $2,261
$2,261 ≤ $2,700 (cost of qualified plan)
we must choose the lower between $2,261 and $2,700 ⇒ $2,261
If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry, what impact would this have on the supply and demand in the market for airline service, assuming no other changes take place in this market?
Answer:
Salaries are an important input in any industry, including airlines, so a decrease in the cost of inputs should result in a rightward shift of the supply curve, decreasing equilibrium price and total quantity supplied. But this shift in the supply curve will not shift the demand curve, the equilibrium point will change but following the existing demand curve.
The common stock of Contemporary Interiors has a beta of 1.13 and a standard deviation of 21.4 percent. The market rate of return is 12.7 percent and the risk-free rate is 4.1 percent. What is the cost of equity for this firm?
A. 11.76 percent
B. 14.40 percent
C. 12.08 percent
D. 13.05 percent
E. 13.82 percent
Answer:
E. 13.82 percent
Explanation:
Calculation for the cost of equity for this firm
Cost of equity= .041 + 1.13 × (.127-.041)
Cost of equity= .1382*100
Cost of equity=13.82
Therefore the Cost of equity for this firm will be 13.82%
Click this link to view O*NET's Work Activities section for Electrical Power-Line Installers and Repairers. Note that
common activities are listed toward the top, and less common activities are listed toward the bottom. According to
O*NET, what are some common work activities Electrical Power-Line Installers and Repairers perform? Check all
that apply.
communicating with supervisors, peers, or subordinates
inspecting equipment, structures, or material
getting information
O staffing organizational units
operating vehicles, mechanized devices, or equipment
fundraising to pay for work activities
Answer 1,2,3,5
Answer:
2 4 5 6
Explanation:
I had to get the question wrong so i could give the right answer
brainliest please
edit:i put the wrong numbers, i added the right ones
Answer:
Its , 1, 2, 5, 6 or A, B, E, F edge 2021
Explanation:
(ignore this I had to put this so that it would add my answer)
Suppose you want to predict sneaker sales on the basis of advertising expenditures and sneaker color, red or blue. You create one dummy variable for the sneaker color (Red = 1 for red sneakers and Red = 0 for blue sneakers) and run the regression on data collected over ten years using the dummy variable and advertising expenditures as your independent variables.
The equation you obtain is:
Sales = 631,085 + 533,024(Red) + 50.5(Advertising)
a. How would you interpret the regression model?
b. How would you interpret the coefficient for red sneakers?
Answer:
a. This implies the sales of sneaker increase when the color of the sneaker is red and Advertising expenses increase.
This implies that the sneaker sales increases by $533,024 when the sneaker color is red.
Explanation:
a. How would you interpret the regression model?
The estimated regression model given in the question is as follows:
Sales = 631,085 + 533,024(Red) + 50.5(Advertising) ................ (1)
From equation (1), Sales is the estimated dependent variables; 631,085 is the estimated constant; 533,024 is the estimated coefficient of the red color; and 50.5 is the estimated coefficient of the advertising expenditures
The interpretation of the above is that sneaker color and the advertising expenditures have positive effect on the sales of sneaker. This implies the sales of sneaker increase when the color of the sneaker is red and Advertising expenses increase.
b. How would you interpret the coefficient for red sneakers?
From equation (1) in part a above, the estimated coefficient of the sneaker color is 533,024.
Since the sign in front of it is positive, this implies that the sneaker sales increases by $533,024 when the sneaker color is red.
Regression equation are used to model the mathematical relationship between an independent and dependent variable. Hence, the interpretation of the model goes thus :
There is a positive relationship between the dependent variable(sales) and the independent variables (Red sneakers aan advertising) Sales realized on sneakers increases by $533,024 when sneaker color is Red.The coefficients of the independent variable gives information about the kind of association between the variables.
Positive Coefficient values indicate, positive association while negative Coefficient depicts negative relationship.
The values of the coefficient also denotes the numerical change experienced by the dependent variable as changes is being made to the independent variable.
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Which of the following best shows how the farmer’s records can help develop an accurate yield estimate in the scenario below?
A farmer has been keeping a complete crop nutrient management plan (CNMP) for the past decade.
A.)the CNMP provides previous years’ best timing, indicating optimal planting and harvest times
B.)the CNMP provides the farmer information on what inputs have been effective previously
C.)the CNMP records exact information regarding property and prior yield, allowing precise estimates
D.)the CNMP records prior estimated crop yields, allowing the farmer to average previous estimates
Answer:
A
Explanation:
During March, a firm expects its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. The contribution margin for March is:a. $65,000.b. $90,000.c. $120,000.d. $40,000.e. $25,000.
Answer:
a. $65,000
Explanation:
Calculation for the contribution margin for March
Total sales 160,000
Less total variable 95,000
Contribution margin 65,000
(160,000-95,000)
Therefore the The contribution margin for March is: $65,000
Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50 per unit. If it sells the product for $75 per unit, what is the break-even quantity?
Answer: 20000
Explanation:
Fixed Operating cost = $500,000
Variable cost = $50 per unit
Selling price = $75 per unit
Break Even Quantity can be calculated as:
Fixed Cost/Unit contribution margin
= 500,000/(75-50)
= 500,000/25
= 20,000
Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $665,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $40,000 at the beginning of 2021 and $25,000 in receivables were written off during the year as uncollectible. Also, $2,000 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year.
Required:
Prepare journal entries to record the write-off of receivables, the collection of $2,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.
Answer:
Bad debt expenses is $82,750
Explanation:
Recording the write off receivables
Date Account Titles and Explanation Debit Credit
Allowances for uncollectible accounts $25,000
Accounts receivables $25,000
(To write off an uncollectible amount)
Recording the reinstatement of an account previously written off
Date Account Titles and Explanation Debit Credit
Account receivables $2,000
Allowances for uncollectible accounts $2,000
(To reinstatement of an account previously written off)
Recording collection of account previously written off
Date Account Titles and Explanation Debit Credit
Cash $2,000
Account receivables $2,000
(To record the cash received)
Recording bad debt expenses for the year
Date Account Titles and Explanation Debit Credit
Bad debt Expenses $82,750
Allowances for doubtful accounts $82,750
(To record estimated bad debts)
Workings
Particulars Amount
Beginning balance $40,000
Less: Receivables write off $25,000
Add: Collection of receivables $2,000
previously written off
$17,000
Less: Required allowances $99,750 ($665,000*15%)
Bad debt expenses $82,750
Thus, the bad debt expenses is $82,750
Mike Finley wishes to become a millionaire. His money market fund has a balance of $403,884 and has a guaranteed interest rate of 12%. How many years must Mike leave that balance in the fund in order to get his desired $1,000,000?
Assume that Sally Williams desires to accumulate $1 million in 15 years using her money market fund balance of $209,004. At what interest rate must Sallyâs investment compound annually? (Round answer to 0 decimal places, e.g. 5%.)
Answer:
Mike Finley
t = 7.999983133 years rounded off to 8 years
Sally Williams
r = 0.110000123 or 11.0000123% rounded off to 11.00%
Explanation:
Mike Finley
To calculate the time period it will take Mike Finley to become a millionaire, we will use the formula of future value of cash flow. The formula for future value of cash flow is as follows,
Future value = Present value * (1+r)^t
Where,
r is the interest rate or rate of returnt is the time period in yearsPlugging in the values for Future value, present value and r in the formula, we can calculate the t to be,
1000000 = 403884 * (1+0.12)^t
1000000 / 403884 = 1.12^t
2.475958444 = 1.12^t
Taking log on both sides.
ln(2.475958444) / ln(1.12) = t
t = 7.999983133 years rounded off to 8 years
Sally Williams
We will use the same formula for future value of cash flows as we used above to calculate the rate at which investment should be compounded annually to grow to $1 million.
1000000 = 209004 * (1+r)^15
1000000 / 209004 = (1+r)^15
4.784597424 = (1+r)^15
Taking root of 1 on both sides.
(4.784597424)^1/15 = (1+r)^15 * 1/15
1.110000123 = 1+r
1.110000123 - 1 = r
r = 0.110000123 or 11.0000123% rounded off to 11.00%
A Chinese company exchanges yuan (Chinese currency) for dollars. It uses these dollars to purchase scrap metal from a U.S. company. As a result of these transactions, Chinese net exports a. increase, and U.S. net capital outflow increases. b. decrease, and U.S. net capital outflow decreases. c. increase, and U.S. net capital outflow decreases. d. decrease, and U.S. net capital outflow increases.
Answer:
d. decrease, and U.S. net capital outflow increases.
Explanation:
Yuan is the currency of the country China and the currency of United States of America is dollar. Every country in the world does imports of some goods to meet the demands of the country and exports some items to the other countries that is produced in abundance in the parent country. In this way, countries earn huge capital by doing importing and exporting.
In the context, China will buy scrap metal from United States, thus China is importing a good from U.S. So China will have more of import. Hence China net export will decrease. While U.S. is selling goods to China in exchange of dollar and earning capital. So, net capital outflow of the United States will increase.
Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1909. It is now 2016.
Required:
a. If someone invested $1,000 in 1909, how much would that investment be worth today?
b. If an investment from 1903 has grown to $1 million, how much was invested in 1903?
c.
Answer:
a. If someone invested $1,000 in 1909, the investment's worth today is $185,035.48
b. If an investment from 1903 has grown to $1 million, the amount invested in 1903 is $4,032.82
Explanation:
a) FV (Future Value) $185,035.48
PV (Present Value) $1,000.00
N (Number of Periods) 107.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) $0.00
Starting Investment $1,000.00
Total Principal $1,000.00
Total Interest $184,035.48
b) You will need to invest $4,032.82 at the beginning to reach the future value of $1,000,000.00.
FV (Future Value) $999,999.00
PV (Present Value) $4,032.82
N (Number of Periods) 113.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) $0.00
Starting Investment $4,032.82
Total Principal $4,032.82
Total Interest $995,966.1