It will take you 6years. The final deposit will be $3,458. The final date on which you can make a deposit into a Cash ISA, as specified in the additional terms and conditions provided to you when you open your specific Cash ISA.
What is interest?Interest is the payment of an amount above the principal sum by a borrower or deposit-taking financial institution to a lender or depositor at a specific rate. It is distinct from a fee paid by the lender to the borrower or a third party.In its most basic form, interest is calculated as a percentage of the principal. For example, if you borrow $100 from a friend and agree to repay it with 5% interest, your interest payment would be 5% of $100: $100(0.05) = $5.Here,
The initial deposit will be $1,250.
We will have $1,400 at the end of the year. We employ an interest formula.
A=P (1+r)ⁿ
A=Final total
P stands for Principal ( deposit)
r = the interest rate
n= time
A=1250 (1+0,12)¹=1400
We will deposit $1,250 in year 2 and have accumulated $1,400.
As a result, P will be $1250 + $1400 = $2650.
A=2650 (1+0,12)¹=$2.968
Year 3 = deposit 1250+ total 2.968
A= 4.724,16
Year 4 = deposit 1250+ totalled 4.724,16
A= 6.691,06
Year 5 = deposit 1250+ totalled 6.691,06
A= 8.893,99
We are almost there, so we must perform another calculation.
Year 6 = A Final = 10000= (deposit +accumulated) * 112
So here,
deposit=(10000/112)-8.893,99
Last deposit= $3,458.
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Final answer:
To reach a $10,000 goal with deposits of $1,250 per year and 12% interest compounded annually, it will take approximately 9.85 years. The last deposit will be $750.
Explanation:
To calculate how many years it will take to reach your $10,000 goal, we can use the formula for compound interest:
Final Amount = Principal Amount × (1 + Interest Rate)^Number of Years
In this case, the final amount is $10,000, the principal amount is $1,250, and the interest rate is 12%. Let's solve for the number of years:
$10,000 = $1,250 × (1 + 0.12)^Number of Years
To find the number of years, we can divide both sides of the equation by $1,250 and take the logarithm of both sides:
Number of Years = log(10,000/1,250)/log(1.12)
Using a calculator, we find that it will take approximately 9.85 years to reach the $10,000 goal. Since you make deposits yearly, the last deposit will be made in the 10th year. To calculate the amount of the last deposit, we subtract the sum of the previous deposits (9 deposits of $1,250) from the $10,000 goal:
Last Deposit = $10,000 - (9 × $1,250)
Last Deposit = $10,000 - $11,250
Last Deposit = $750
When responding to questions face-to-face, how should you organize your response?
(A) Using the same format you would use if you were responding in writing.
(B) Using a direct format.
(C) Using the same format as a goodwill message.
(D) By asking for clarification.
(E) Using an indirect format.
Answer:
A. Using the same format you would use if you were responding in writing
Explanation:
here the answer should be A that is
A. Using the same format you would use if you were responding in writing.
What this means is that, the response should be neutral and catered in a way that we would if we're writing the answer in order to allow a better, more neutral understanding of the process, unless otherwise stated.
which of the following scenarios most accuratley reflects the concept of scarcity?
(A) john decides not to purchase a new bike.
(B) anna decides to spend her evening babysitting rather than spending time with friends
(C) ned pays his personal income taxes before the april deadline.
(D) morgan earns an a on her economics erxam
Answer: "(B) anna decides to spend her evening babysitting rather than spending time with friends" reflects the concept of scarcity.".
Explanation: Scarcity is the lack or insufficiency of resources needed to meet a need. This example demonstrates the scarcity of the labor resource.
In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Each of the following questions is independent of the others.
Refer to the above information. Tiffany is paid $56,000, and all implied goodwill is recorded. What is the total amount of goodwill recorded?
A. $0
B. $6,000
C. $30,000
D. $36,000
Answer: Option (D) is correct.
Explanation:
Given that,
Ron's capital = $80,000
Stella's = $75,000
Tiffany's = $50,000
Income sharing ratio = 3:2:1
Tiffany is retiring from the partnership
Amount paid to Tiffany = $56,000
Bonus = Amount paid to Tiffany - Tiffany's capital
= $56,000 - $50,000
= $6,000
Above bonus is 1/6th of goodwill.
Therefore, the total amount of goodwill recorded would be:
Goodwill = [tex]\frac{6,000}{\frac{1}{6} }[/tex]
= $36,000
Kangaroo Company had the following amounts on its balance sheet as of December 31, 2018: Inventory $325,000 Notes Payable 100,000 Cash 150,000 Common Stock 750,000 Net Property, Plant, & Equipment 600,000 Accounts Receivable 30,000 Accounts Payable 45,000 Retained Earnings ? What is the balance of retained earnings? 210,000 180,000 310,000 750,000
Answer:
The balance of retained earning is $210,000
Explanation:
In this question, we have to apply the accounting equation which is shown below:
Total assets = Total liabilities + shareholder's equity
where,
Total assets = Inventory + Cash + Net Property, Plant, & Equipment + Accounts Receivable
= $325,000 + $150,000 + $600,000 + $30,000
= $1,105,000
Total liabilities = Notes payable + account payable
= $100,000 + $45,000
= $145,000
And, the shareholder equity = Common stock + retained earnings
Now put these values to the above formula
So, the answer would be equal to
$1,105,000 = $145,000 + $750,000 + retained earnings
$1,105,000 = $895,000 + retained earnings
So, retained earnings = $210,000
The balance of retained earnings can be calculated using the formula: Retained Earnings = Beginning Retained Earnings + Net Income - Dividends. However, without information on net income or dividends, the precise balance cannot be determined.
Explanation:The balance of retained earnings can be calculated by adding the net income or profit for the year to the beginning balance of retained earnings and then subtracting any dividends paid. In this case, we don't have information on net income or dividends, but we can calculate retained earnings by using the formula:
Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
Since we don't have the net income or dividends, we can't calculate the precise balance of retained earnings.
At Backstreet Books, Inc., the department manager uses a hand-held scanner to determine the quantity of each best seller the bookstore has on its shelves, how many copies of each book was sold the past week and the past month, and exactly when the next shipment of these books is expected to arrive. Backstreet Books embraces the strategy of _______.
Answer: Using technology
Explanation: The backstreet books is using technology to say aware of the needs of customers and make their business operations more fast.
In the given case, the company is using the scanner so that they can keep records of inventory and sales they made. They are using the technological advancement in their business operations for running the activities more efficiently.
The use of scanner for inventory and best selling book records will help the company to keep up with the demand of customers and also helps in future planning.
In a free market, if the price of a good is above the equilibrium price, then;
A. suppliers, dissatisfied with growing inventories, will raise the price.
B. demanders, wanting to ensure they acquire the good, will bid the price lower.
C. government needs to set a lower price.
D. suppliers, dissatisfied with growing inventories, will lower the price.
Answer: (B) demanders, wanting to ensure they acquire the good, will bid the price lower.
Explanation:
In the free market, if the product price are above the equilibrium price then, the demand of the product rise and the demanders ensure that they acquire good quality products in the low price. Then, the quality and quantity both demand increases until the equilibrium are reached.
On the other hand, if the quantity of the product demand is less as compared to the quantity supply then it create shortage of the product.
Therefore, Option (B) is correct.
In a free market, if a good's price is above the equilibrium, suppliers will lower the price due to dissatisfaction with increasing inventories. This occurs because there's a surplus in the market, and the decline in price aims to clear that surplus.
Explanation:In a free market, if the price of a good is above the equilibrium price, then suppliers, dissatisfied with growing inventories, will lower the price. This is because suppliers recognize there's a surplus of goods, with more supply available than demand from consumers. Consequently, they will reduce the price with the aim of selling the surplus and clearing the inventories. It's also important to understand that in a free market, consumers aren't willing to pay more than the equilibrium price, and the market forces tend to restore the balance, hence the decrease in the price to meet the equilibrium stage again.
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At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $309,000 and $600 (credit) in Allowance for Uncollectible Accounts. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. Bad debt expense for the year should be:
Answer:
Bad debt expense for the year should be: $14.850
Explanation:
Balance
Accounts Receivable $ 309.000
Allowance for Uncollectible Accounts $ 600
Suggestion
Allowance for Uncollectible Accounts 5%
Allowance for Uncollectible Accounts $15.450
Complement
Bad debt expense $ 14.850
Allowance for Uncollectible Accounts $ 14.850
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.25 . Michelle was willing to pay up to $7.75 for the cappuccino and Paul's Cafe and Bakery was willing to accept $0.75 for the cappuccino. Based on this information, answer the questions.
(a) Michelle's consumer surplus: $ ____
(b) Paul's Cafe and Bakery's producer surplus: $ ____
Answer:
a. Michelle's consumer surplus: $3.5
b. Paul's Cafe and Bakery producer surplus: $3.5
Explanation:
This one is simple I attached a graphic so you can understand me better:
The consumer surplus is just the difference between the price payed and the price willed to pay by the consumer, in this case the price payed was $4.25 but Michelle was willing to pay up to $7.75 so we just substract this numbers
7.75 - 4.25 = 3.5
Same for the producer surplus which is the difference between the price the consumer pay and the price that the producer was willing to accept.
4.25 - 0.75 = 3.5
Michelle's consumer surplus is $3.50 and Paul's Cafe and Bakery's producer surplus is also $3.50.
Explanation:In the context of this question, the consumer surplus refers to the difference between the maximum price a consumer is willing to pay and the actual price paid. Similarly, the producer surplus is the difference between the lowest price at which a producer is willing to sell a product and the actual price received.
Therefore, in Michelle's case:
(a) Consumer Surplus = Willingness to pay - Actual price = $7.75 - $4.25 = $3.50(b) For Paul's Cafe and Bakery, Producer Surplus = Actual price - Cost of production = $4.25 - $0.75 = $3.50Learn more about Surplus here:https://brainly.com/question/35248992
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Audits can be categorized into five types: (1) financial statement audits,(2) audits of internal control, (3) compliance audits, (4) operational audits,and (5) forensic audits.
Required:
For each of the following descriptions, indicate which type of audit (financial statement audit, audit of internal control, compliance audit, operational audit, or forensic audit) best characterizes the nature of the audit being conducted. Also indicate which type of auditor (external auditor, internal auditor, government auditor, or forensic auditor) is likely to perform the audit engagement.
a. Evaluate the policies and procedures of the Food and Drug Administration in terms of bringing new drugs to market.
b. Determine the fair presentation of Ajax Chemical’s balance sheet, income statement, and statement of cash
flows.
c. Review the payment procedures of the accounts payable department for a large manufacturer.
d. Examine the financial records of a division of a corporation to determine if any accounting irregularities have occurred.
e. Evaluate the feasibility of forecasted rental income for a planned low income public housing project.
f. Evaluate a company’s computer services department in terms of the efficient and effective use of corporate resources.
g. Audit the partnership tax return of a real estate development company.
h. Investigate the possibility of payroll fraud in a labor union pension fund.
Answer:
The list is as follows:
a. Evaluate the policies and procedures of the Food and Drug Administration in terms of bringing new drugs to market - Operational - Government
b. Determine the fair presentation of Ajax Chemical’s balance sheet, income statement, and statement of cash flows - Financial Statement - External
c. Review the payment procedures of the accounts payable department for a large manufacturer - Compliance or operational or possibly internal control - Internal or external
d. Examine the financial records of a division of a corporation to determine if any accounting irregularities have occurred - Forensic/Financial - Internal, external or forensic
e. Evaluate the feasibility of forecasted rental income for a planned low income public housing project - Operational - Government, external, or internal
f. Evaluate a company’s computer services department in terms of the efficient and effective use of corporate resources - Operational - Internal or external
g. Audit the partnership tax return of a real estate development company - Compliance - Government
h. Investigate the possibility of payroll fraud in a labor union pension fund - Compliance or forensic - Government, external, or forensic
The answer describes which types of the audit correspond to each description provided and indicates the type of auditor who would be responsible for conducting the audit. The audits can be compliance, financial statement, audit of internal control, operational, or forensic, with related auditors being external, internal, government, or forensic auditors.
Explanation:a. The description corresponds to a compliance audit, typically performed by a government auditor to determine whether the FDA is in compliance with laws and regulations.
b. This falls under a financial statement audit, conducted by an external auditor to ensure that all financial statements are accurately presented.
c. This is an audit of internal control, which could usually be performed by an internal auditor to assess the effectiveness of internal controls in the accounts payable department.
d. This is a type of forensic audit which will usually be conducted by a forensic auditor to determine if there have been any inconsistencies or fraud in the financial records.
e. This is an example of an operational audit, which is likely to be done by either a government auditor or internal auditor to review feasibility of income projections.
f. This scenario indicates an operational audit, looking specifically at the effective use of resources in the computer services department, typically conducted by an internal auditor.
g. This is usually categorized as a financial statement audit performed by an external auditor to verify the fairness and accuracy of the tax return.
h. This task is an example of a forensic audit often performed by a forensic auditor to uncover potential fraud in payroll accounting.
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You will make the following investments for a trip around the world: $2,600 today, $4,000 at the end of year two, and $1500 at the end of year five. (A) How much will you have in six years if you can earn 4.2% on your investments? (B) What equivalent amount could you put away today as a lump sum and have the same amount in six years?
Answer:
a) $9606.53
b) $7505.16
Explanation:
Giving the following information:
Investment
$2,600 year 0
$4,000 at the end of year two
$1500 at the end of year five.
i=0,42
A) FV=2600*(1,042^6)= $3328
FV=4000*(1,042^4)= $4715,53
FV=1500*(1,042^1)= $1563
Total= $9606.53
B) We need to find the present value of $9606.53
PV= FV/[(1+i)^n]
PV= 9606.53/1,042^6= $7505.16
Suppose that France and Sweden both produce oil and shoes. France's opportunity cost of producing pair of shoes is 4 barrels of oil, while Sweden's opportunity cost of producing a Pair of shoes is 8 barrels of oil. By comparing the opportunity cost of producing shoes in the two countries, you can tell that has a comparative advantage in the production of shoes and has a comparative advantage in the production of oil. Suppose that France and Sweden consider trading shoes and oil with each other. France can gain from specialization and trade as long as it receives more than of oil for each pair of shoes it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than of shoes for each barrel of oil it exports to France. Based on your answer to the last question, which of the following terms of trade (that is, price of shoes in terms of oil) would allow both Sweden and France to gain from trade? Check all that apply. 3 barrels of oil per pair of shoes 1 barrel of oil per pair of shoes 5 barrels of oil per pair of shoes 9 barrels of oil per pair of shoes
Explanation:
France's opportunity cost of producing a pair of shoes is
= 4 barrels of oil
Sweden's opportunity cost of producing a pair of shoes is
= 8 barrels of oil
France's opportunity cost of producing a barrel of oil is
= [tex]\frac{1}{4}[/tex]
= 0.25 pairs of shoes
Sweden's opportunity cost of producing a barrel of oil is
= [tex]\frac{1}{8}[/tex]
= 0.125 pairs of shoes
A country is considered to be having a comparative advantage in producing a good if it can produce it at a lower opportunity cost as compared to the other country.
Here, France has a lower opportunity cost of producing shoes. So we can say that it has a comparative advantage in making shoes.
Sweden has a lower opportunity cost in producing oil so it has a comparative advantage in making oil.
France can gain from trade if it gets more than 4 barrels of oil for a pair of shoes. While Sweden can gain from trade if it gets more than 0.125 pairs of shoes for a barrel of oil.
The price for trade to happen should be 5 barrels of oil per pair of shoes as France want more than 4 barrels of oil which is its opportunity cost.
9 barrels of shoes is more than Sweden's opportunity cost of producing a pair of shoes, so Sweden will not be willing to pay it.
Current information for the Stellar Corporation follows:
Beginning work in process inventory $ 34,900
Ending work in process inventory 36,300
Direct materials 164,000
Direct labor 102,000
Total factory overhead 80,100
Stellar Corporation's Cost of Goods Manufactured for the year is:
(A) $346,100
(B) $347,500
(C) $381,000
(D) $309,800
Final answer:
To find the Cost of Goods Manufactured, we add Direct Materials, Direct Labor, Total Factory Overhead, and the beginning work in process inventory, then subtract the ending work in process inventory. The calculation yields $344,700, which does not match any of the provided answers. It is possible there is a typo in the options or an error in the question's calculations.
Explanation:
To calculate Stellar Corporation's Cost of Goods Manufactured (COGM), we will add up all manufacturing costs and then adjust for the change in work in process inventory:
Begin with the total of Direct Materials, Direct Labor, and Total Factory Overhead.
Add the beginning work in process inventory.
Subtract the ending work in process inventory to find the COGM.
Thus, the calculation is:
Direct Materials ($164,000) + Direct Labor ($102,000) + Total Factory Overhead ($80,100) + Beginning work in process inventory ($34,900) - Ending work in process inventory ($36,300) = COGM
$164,000 + $102,000 + $80,100 + $34,900 - $36,300 = $344,700
Therefore, none of the options provided (A) $346,100, (B) $347,500, (C) $381,000, (D) $309,800 precisely match the calculated COGM of $344,700. There might be a typo in the options or a mistake in the calculations within the question. It is important to double-check the calculations and the given answer choices.
At the beginning of the year (January 1), Buffalo Drilling has $10,000 of common stock outstanding and retained earnings of $7,000. During the year, Buffalo reports net income of $7,300 and pays dividends of $2,000. In addition, Buffalo issues additional common stock for $6,800.Prepare the statement of Shareholer'sequity in the end of the year.
Answer:
Shareholders Equity
INITIAL Shareholders Equity $ 17.000
Common Stock $ 6.800
Retained Earnings $ 5.300
FINAL Shareholders Equity $ 29.100
Explanation:
Retained Earnings Report
Opening retained earnings $ 7,000
Add: Net Income $ 7,300
Subtotal $ 14,300
Less: Dividens -$ 2,000
Total $ 12,300
Stockholders' Equity INITIAL FINAL
Common Stock $ 10,000 $ 16,800
Retained Earnings $ 7,000 $ 12,300
TOTAL EQUITY $ 17,000 $ 29,100
Your wealthy uncle established a $2,200 bank account for you when you were born. For the first 8 years of your life, the interest rate earned on the account was 6%. Since then, rates have been only 4%. Now you are 21 years old and ready to cash in. How much is in your account? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$5.838,52
Explanation:
First of all, you have to calculate the future value of your money with a compound interest rate, but initially you have to calculate the first 8 years with the interest rate of 6% so you have to do the next operation:
Future Value= Present Value *(( 1+ interest rate)^(n))
where n represents the number of years
Future Value= 2.200* (( 1+ 6%)^(8))
Future Value 8 year = $3.506,47
Now that you have that value you need to calculate the money generated in the next 13 years with the same formula but with the new amount of money
Future value 21 year= $3.506,47 *(( 1+4%)^(13))
Future value 21 year= $5.838,52
Finally, you can ask to the bank the $5.838,52 cash
The amount in your account at age 21 is $5,841.22. This includes the interest accrued over both periods.
Step 1
To determine the amount in the bank account at age 21, we need to calculate the compound interest in two phases: from birth to age 8 (at 6%) and from age 8 to age 21 (at 4%).
Phase 1: From Birth to Age 8 (6% Interest)
The formula for compound interest is:
[tex]\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \][/tex]
where:
- A = the future value of the investment/loan, including interest
- P = the principal investment amount ($2,200)
- r = the annual interest rate (6% or 0.06)
- n = the number of times that interest is compounded per year (assumed to be 1 for simplicity)
- t = the number of years the money is invested (8 years)
First, calculate the amount after 8 years:
[tex]\[ A_1 = 2200 \left(1 + 0.06\right)^8 \][/tex]
[tex]\[ A_1 = 2200 \left(1.06\right)^8 \][/tex]
[tex]\[ A_1 = 2200 \times 1.593848 \][/tex]
[tex]\[ A_1 = 3506.47 \][/tex]
Step 2
Phase 2: From Age 8 to Age 21 (4% Interest)
Now we use the amount from Phase 1 as the principal for the next period.
- [tex]\( P = 3506.47 \)[/tex]
- [tex]\( r = 0.04 \)[/tex]
- [tex]\( t = 21 - 8 = 13 \)[/tex]
Calculate the amount after the next 13 years:
[tex]\[ A_2 = 3506.47 \left(1 + 0.04\right)^{13} \][/tex]
[tex]\[ A_2 = 3506.47 \left(1.04\right)^{13} \][/tex]
[tex]\[ A_2 = 3506.47 \times 1.665318 \][/tex]
[tex]\[ A_2 = 5841.22 \][/tex]
We calculate the future value of the initial deposit over the first 8 years at a 6% interest rate, then use the resulting amount as the principal for the remaining 13 years at a 4% interest rate. The compound interest formula is applied in both phases to determine the final amount.
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you received your salary of $52,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.2 percent per year. Your salary will increase at 3 percent per year throughout your career. How much money will you have on the date of your retirement 40 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
FV = 2,621,048.23
Explanation:
we will calcualte the future value of an annuity with an geometric progression:
[tex]\frac{(1+r)^{n} -(1+q)^{n}}{r - q} = FV[/tex]
g 0.03
r 0.092
C 5,356 ( we will save next year (52,000 x 1.03) the 10% )
n 39 (we start saving next year)
[tex]\frac{(1+0.092)^{39} -(1+0.03)^{39}}{0.092 - 0.03} = FV[/tex]
FV = 2,400,227.319
As we deposit at the first day of the year this will be an annuity-due so we will multiply by (1 +r)
FV = 2,621,048.23
Answer:
the answer is $2 830 830. 09
Explanation:
The first thing to calculate is the growth of salary o fwhich it grows by 3%
$52000*1.03=53560
The for the first year of saving we calculate the portion to be saved
53560*0.1= 5356
in order to find the future value of savings we will use the pv of perpetuity to find the value of the deposit today
PV = C{(1/(r-g)) - (1/(r-g)*(1+g)/(1+r)^t}
=5356*{(1/0.092-0.03) - (1/(0.092-0.03)*(1.03)/(1.092)^40}
=83754.52289
Then from the PV we can calculate the future value as
FV = 83754.52289 *(1.092)^40
=2 830 830 .09
You are saving for the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $40,000 per year per child, payable at the beginning of each school year. The appropriate interest rate is 7 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college for each child. How much money must you deposit in an account each year to fund your children’s education?
Answer:
It will deposit $ 10,082.68 per yearto fund their children tuiton
Explanation:
We calculate the present value of the tuiton:
We must notice payment are made atthe beginning of the year. So this will be an annuity-due
[tex]C \times \frac{1-(1+r)^{-time} }{rate}(1+r) = PV\\[/tex]
C 40,000 per year
time 4 year
rate 7% = 7/100 = 0.07
[tex]40000 \times \frac{1-(1+0.07)^{-4} }{0.07} (1+0.07) = PV\\[/tex]
PV $144,972.6418
we round to 144,972.64
Then, we have two children and we stop the payment when the oldest children goes into college.
so one tuiton must be carryied two years into the future:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $144,972.64
time 2 years
rate 0.07000
[tex]144972.64 \: (1+ 0.07)^{2} = Amount[/tex]
Amount 165,979.18
We add both to get the total value of our fund:
144,972.64 + 165,979.18 = 310,951.82 = 310,952
Finally we calculate the couta of this annuity for 17 years
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV $310,952.00
time 17 years
rate 7% = 0.07
[tex]310952 \times \frac{1-(1+0.07)^{-17} }{0.07} = C\\[/tex]
C $ 10,082.68
Based o the fact that there are two children involved and the annual savings have to be uniform, the annual amount to fund your children's education will be $10,808.
How much should you deposit yearly?The amount needed for both children is:
= 2 students x ( College expenses x Present value factor for Annuity due, 7%, 4 years)
= 2 x (40,000 x 3.6243)
= $271,597
This is the total amount to be saved so the amount to be saved yearly is:
271,597 = Amount x ( ( 1 + 7%)¹⁵ - 1) / 7%
Amount = 271,597 / 25.1290
= $10,808
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Lucas Co. has a job-order cost system. For the month of April, the following debits (credits) appeared in the general ledger account, work-in-process: April 1 Balance $ 24,000 30 Direct materials 80,000 30 Direct labor 60,000 30 Factory overhead 54,000 30 To finished goods (200,000) Lucas applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 100, the only job still in process at the end of April, has been charged with factory overhead of $4,500. The amount of direct materials charged to Job No. 100 was
To find the amount of direct materials charged to Job No. 100, you need to calculate the total direct materials used in April and allocate it proportionally to the jobs. Based on the provided information, the amount of direct materials charged to Job No. 100 is $56,000.
Explanation:In a job-order cost system, direct materials are charged to each specific job. To find the amount of direct materials charged to Job No. 100, we need to calculate the total direct materials used in the month of April and allocate it proportionally to the jobs.
Based on the information provided:
Total direct materials used in April = Direct materials debited in general ledger - Initial balance = $80,000 - $24,000 = $56,000Total direct labor cost in April = $60,000Factory overhead applied to Job No. 100 = $4,500To find the amount of direct materials charged to Job No. 100, we can use the predetermined overhead rate:
Direct materials charged to Job No. 100 = Total direct materials used in April × (Direct labor cost of Job No. 100 / Total direct labor cost in April)
Direct materials charged to Job No. 100 = $56,000 × ($60,000 / $60,000) = $56,000
Final answer:
To calculate the amount of direct materials charged to Job No. 100, we would typically subtract direct labor and factory overhead from the ending work-in-process inventory and to finished goods costs. However, not all necessary figures are provided in the question.
Explanation:
The student is asking how to calculate the amount of direct materials charged to Job No. 100 given factory overhead and a predetermined overhead rate based on direct labor cost. Lucas Co. applies overhead to production at a predetermined rate of 90% of direct labor cost. Since Job No. 100 was charged with $4,500 in factory overhead, we find the direct labor cost by dividing the factory overhead by the predetermined rate:
$4,500 ÷ 0.90 = $5,000 (direct labor cost for Job No. 100)
To find the direct materials cost, we use the information on the job-order cost system and the fact that the ending balance of work-in-process inventory will consist of the direct materials, direct labor, and applied overhead for Job no. 100. Given that Job No. 100 is the only job still in process, we need to use the following equation:
Ending Work-in-Process Inventory = Beginning Balance + Direct Materials + Direct Labor + Factory Overhead - To Finished Goods
Since we're solving for Direct Materials in this case and we have all other values, we can rearrange the equation:
Direct Materials charged to Job No. 100 = Ending Work-in-Process Inventory + To Finished Goods - Beginning Balance - Direct Labor (already found) - Factory Overhead (already found)
However, the question does not provide all of the necessary figures to find the ending balance of work-in-process or the total charges to finished goods for the period; additional information is needed to answer this calculation.
What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?
a. Small automobiles become more fashionable:
b. The price of large automobiles rises (with the price of small autos remaining the same):
c. Income declines and small autos are an inferior good:
d. Consumers anticipate that the price of small autos will greatly come down in the near future:
e. The price of gasoline substantially drops:
Answer:
a. Demand will increase.
b. Demand will increase.
c. Demand will increase.
d. Demand will decline.
e. Demand will increase.
Explanation:
a. If small automobiles become more fashionable, people will prefer them more. This will lead to an increase in demand for autos.
b. If there is an increase in the price of large automobiles and the price of the small automobiles remain the same, people will prefer the cheaper substitutes. This will cause the demand for small automobiles to increase.
c. Inferior goods have a negative income effect. SO, when income declines the demand for small autos will increase and vice versa.
d. If consumers expect the price of small autos to fall in the near future, they will hold their money to buy autos when their price fall. This will cause the current demand to fall.
e. When the price of gasoline drops it will become cheaper to use autos. This will lead to an increase in demand for autos.
Answer:
(a) This will lead to an increase the demand for small automobiles such as mini-cooper and fiat 500.
(b) An increase in the price of its related good, will lead to an increase the demand for small automobile.
(c) There is an inverse relationship between the income of an individual and the demand for an inferior good. So, if the income of an individual declines as a result the demand for small autos increases.
(d) This will reduces the demand for small automobiles as future prices of small autos are expected to be fall.
(e) This is ambiguous. We know that autos and gasoline are complimentary goods, so if there is a decrease in the price of gasoline then this will result in rising demand for all the cars.
Assume the following information pertaining to Moonbeam Company: Beginning Ending Finished goods inventory $ 140,500 $ 133,450 Work in process inventory 92,000 112,750 Direct materials 125,750 140,150 Costs incurred during the period are as follows: Total manufacturing costs $ 910,000 Factory overhead 206,000 Direct materials used 161,950 Materials purchases are calculated to be:
Answer:
The material purchase is $176,350
Explanation:
The computation of material purchase is to be done by applying the formula which is shown below:
= Direct material used + ending balance of direct materials - beginning balance of direct material
= $161,950 + $140,150 - $125,750
= $176,350
The other items which are mentioned in the question are irrelevant. Hence, it is not to be considered in the computation part.
The calculated materials purchases for Moonbeam Company total approximately (E) $176,350.
To calculate the materials purchases for Moonbeam Company, we start by using the formula:
Calculate the direct materials used:
Direct materials used = Beginning direct materials + Purchases - Ending direct materialsGiven:
Beginning direct materials = $125,750Ending direct materials = $140,150Direct materials used = $161,950Substitute into the formula:
$161,950 = $125,750 + Purchases - $140,150Simplify and solve for Purchases:
Purchases = $161,950 + $140,150 - $125,750Purchases = $176,350Therefore, the materials purchases for Moonbeam Company are $176,350.
Complete Question:
Assume the following information pertaining to Moonbeam Company:
Beginning Ending
Finished goods inventory $140,500 $133,450
Work in process inventory $92,000 $112,750
Direct materials $125,750 $140,150
Costs incurred during the period are as follows:
Total manufacturing costs $910,000
Factory overhead $206,000
Direct materials used $161,950
Materials purchases are calculated to be:
A. $147,850
B. $163,900
C. $156,250
D. $152,300
E. $176,350
You have 25 years left until retirement and want to retire with $1.1 million. Your salary is paid annually, and you will receive $61,000 at the end of the current year. Your salary will increase at 4 percent per year, and you can earn a return of 10 percent on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?
Answer:
percentage of your salary save each year is 13.24%
Explanation:
given data
time period t = 25 year
amount = $1.1 million
salary = $61000
increase r1 = 4 percent per year = 0.04
return r2 = 10 percent = 0.1
to find out
what percentage of your salary must you save each year
solution
we consider here annual saving = A
so amount formula is
amount = A × [tex]\frac{(1+r1)^t -(1+r2)^t}{r1-r2}[/tex]
here A is annual saving and r1 is increase rate and r2 is return rate
1100000 = A × [tex]\frac{1.1^{25} - 1.04^{25}}{0.1-0.04}[/tex]
A = $8079.45
so
proportion of salary is [tex]\frac{8079.45}{61000}[/tex]
proportion of salary = 13.24%
so percentage of your salary save each year is 13.24%
Stimpleton Company engages in the following cash payments:
Purchase equipment $4,000
Pay rent 700
Repay loan to the bank 5,900
Pay workers' salaries 1,050
What is the total amount of cash paid for operating activities?
A.$1,750
B.$4,000
C.$6,950
D.$9,900
Answer:
A. $ 1.750
Explanation:
from the given infomation, the operating activities are:
1. pay rent = $ 700
2. pay workers salaries = $ 1.050
The total cash paid fpr operating activities = $ 700 + $ 1.050
= $ 1.750
Therefore, the total amount of cash paid for operating activities is $ 1.750.
The total cash paid for operating activities by Stimpleton Company is $1,750, which includes rent and workers' salaries, as purchase of equipment and loan repayment are not operating activities.
Explanation:The total amount of cash paid for operating activities by Stimpleton Company can be calculated by adding up only those expenses that are related to the company's primary operations. In this case, that includes the payment of rent and salaries to workers. The purchase of equipment and repayment of a loan are not considered operating activities; these are investing and financing activities, respectively. To find the total, we sum the rent payment of $700 and the workers' salaries of $1,050 which equals $1,750 (Option A).
All of the following are methods that aid management in analyzing the expected results of capital budgeting decisions EXCEPT:
a. accrual accounting rate-of-return method
b. discounted cash-flow method
c. future-value cash-flow method
d. payback method
Answer: Option A
Explanation: Capital budgeting is the process by which an analyst using different tools such as discounted cash flow, future cash flow and payback period tries to evaluate the prospective long term investments of an organisation.
Accrual accounting method is an accounting convention and not a capital budgeting tool. It states that every transaction of the entity must be recorded on accrual basis.
Thus from the above we can conclude that the correct option is A.
The future-value cash-flow method is not typically used in analyzing the expected results of capital budgeting decisions. Instead, the accrual accounting rate of return, discounted cash flow, and payback methods are commonly used.
Explanation:All of the options provided are methods that may help management to analyze the expected results of capital budgeting decisions except for the future-value cash-flow method. The accrual accounting rate of return method, the discounted cash-flow method, and the payback method are all widely utilized to analyze capital budgeting. However, the future-value cash-flow method is not typically used in this context as capital budgeting is about evaluating the present value of future cash inflows and outflows relevant to a project, rather than the future value of these cash flows.
Learn more about Capital Budgeting here:https://brainly.com/question/34912837
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The stockholders' equity section of Gunkel Corporation as of December 31, 2014, was as follows:
Common stock, par value $2; authorized 20,000 shares;
issued and outstanding 10,000 shares
$20,000
Paid-in capital in excess of par
30,000
Retained earnings
95,000
$145,000
On March 1, 2015, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2015, the fair value of the stock was $6 per share. For the two months ended February 28, 2015, Gunkel sustained a net loss of $15,000.
What amount should Gunkel report as retained earnings as of March 1, 2015?
Answer:
The ending balance of the retained earning is $71,000
Explanation:
For computing the ending balance of the retained earning account, we need to apply the equation which is presented below:
Ending retained earning balance = Beginning retained earning balance - net loss - dividend declared
= $95,000 - $15,000 - (1,500 shares × $6 per share)
= $95,000 - $15,000 - $9,000
= $71,000
The 15% dividend represents additional shares issued
There is a 20 percent probability the economy will boom, 70 percent probability it will be normal, and a 10 percent probability of a recession. Stock A will return 18 percent in a boom, 11 percent in a normal economy, and lose 10 percent in a recession. Stock B will return 9 percent in boom, 7 percent in a normal economy, and 4 percent in a recession. Stock C will return 6 percent in a boom, 9 percent in a normal economy, and 13 percent in a recession. What is the expected return on a portfolio which is invested 20 percent in Stock A, 50 percent in Stock B, and 30 percent in Stock C
Answer:
8.65%
Explanation:
this question is solved taking two steps, lets first calculate the individual expected return per stock based on the probabilities of growing economy:
[tex]E(r)=P_{boom}*R_{boom}+P_{normal}*R_{normal}+P_{recession}*R_{recession}[/tex]
here E(r) represents the expected return of any stock based on the probability of boom, normal and recession in economy, and the return for each one of those states, so applying to this data we have:
Stock A
[tex]E(r)=20\%*18\%+70\%*11\%+10\%*10\%[/tex]
[tex]E(r)=12.3\%[/tex]
Stock B
[tex]E(r)=20\%*9\%+70\%*7\%+10\%*4\%[/tex]
[tex]E(r)=7.1\%[/tex]
Stock C
[tex]E(r)=20\%*6\%+70\%*9\%+10\%*13\%[/tex]
[tex]E(r)=8.3\%[/tex]
now we have to agregate for total portfolio the return, and this can be done using the next formula:
[tex]E(r)_{p}= E(r)_{A}*w_{A}+E(r)_{B}*w_{B} +E(r)_{C}*w_{C}[/tex]
where E(r) (A) for example represents the expected return of A stock and w(A) is the weight of A stock in total portafolio, so we have:
[tex]E(r)_{p}= 12.3\%*20\%+7.1\%*50\%+8.8\%*30\%[/tex]
[tex]E(r)_{p}= 8.65\%[/tex]
Yield to Call and Realized Rates of Return Six years ago, Goodwynn & Wolf Incorporated (G&W) sold a 17-year bond issue with a 12% annual coupon rate and a 7% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. Round your answer to two decimal places.
Answer:
YTC = IRR = 12.844% (exact using excle of financial calculator)
using approximation formula: 12.72%
Explanation:
The call premium means it were called at 107 of the face value
1,000 x 107/100 = 1,070
The investment was for 1,000
The bond yield a six years annuity of 120
and then called at 1,070
We need to know teh YTC:
[tex]YTC = \frac{C + \frac{P-F}{n }}{\frac{P+F}{2}}[/tex]
Coupon payment =1,000 x 12% = 120
Call Price: 1070
Face Value: 1000
n: 6 years
[tex]YTC = \frac{120 + \frac{1,070-1,000}{6}}{\frac{1,070+1,000}{2}}[/tex]
YTC = 12.7214171%
This method is an aproximation to the YTC
To solve for the YTC we can use excel IRR funtion
we write
-1,000 (investment)
120
120
120
120
120
+1,070+120 = 1,190 (total cashflow at year 6 call price and coupon)
and we calculate IRR selecting this values:
which give us 12.844%
Which is close to our approximation.
On June 1, 20x1, ABC Corp. invested $250,000 into a certificate of deposit for 9-months, earning 9% APR. Principal and interest will be received at maturity on March 1, 20x2. ABC's year end is December 31st. At year end, the appropriate adjusting journal entry was recorded to accrue interest. To record the appropriate journal entry at maturity on March 1, 20x2 for receipt of principal plus interest at maturity, ABC would:
Answer:
note payable 250,000
interest payable 13,125
interest expense 3,750
cash 266,875
to record payment of note at maturirty
Explanation:
June 20X1
250,000 at 9% annual rate
At december 31th the company accrued the interest from June 1st to December 31th
That is 7 months.
250,000 x 9% x 7/12 = 13,125 accrued interest for the year ended X1
Then, on March 1st The company accrued the remaining two months.
250,000 x 0.09 x 2/12 = 3,750
The company will record on March 1st:
The write-off of the principal
The payment of the accrued interest for the previous year
The accrued interest for the period
the cash disbursement to settle all these obligation:
note payable 250,000
interest payable 13,125
interest expense 3,750
cash 266,875
to record payment of note at maturirty
How does the pay-as-you-go procedure apply to wage earners? To persons who have income from sources other than wages?
Answer:
Pay as you go require employers to withhold taxes from the employee wages. Other persons have to make payments quarterly to IRS.
Explanation:
This mean that the employers will act as an IRS agent
Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows tells you what a cash flow will be worth in future years at a specified rate of return. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
Answer: The statement 2, "Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return." Is TRUE.
Explanation: "Finding the FUTURE VALUE of cash flows tells you what a cash flow will be worth in future years at a specified rate of return." is the definition for FUTURE VALUE.
Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
Understanding the present value (PV) of cash flows is essential in financial planning and investment analysis.
The present value calculation allows investors to determine the current worth of a future sum of money, factoring in a specific rate of return or discount rate. This is critical because money has a time value, meaning a certain amount today is worth more than the same amount in the future due to its potential earning capacity.Here's a detailed breakdown:
Concept: Present value helps in determining how much to invest today to reach a desired future value. Application: It is used in various fields like finance, real estate, and retirement planning to make informed investment decisions. Importance: It accounts for the time value of money, helping investors understand the worth of future cash flows in today's terms.For instance, if you want $1,000 in 5 years and the annual interest rate is 5%, you would need to invest approximately $783.53 today, calculated using the PV formula.
Hokey Min's Kleen Karpet cleaned 85 rugs in October, consuming the following resources:Labor: 525 hours at $17 per hourSolvent: 120 gallons at $8 per hourMachine Rental: 20 days at $50 per hour(a) Labor productivity per dollar = ____ rugs/dollar (round your response to four decimal places).(b) Multifactor productivity =_____rugs/dollar (round your response to four decimal places).
Answer:
(a) The Labor productivity per dollar = 0.0095 rugs/dollar.
(b) The Multifactor productivity = 0.0078 rugs/dollar.
Explanation:
Given information:
Number of rugs = 85
Labors: 525 hours at $17 per hour.
Total cost of labors = 525 × 17 = $8925
Solvent: 120 gallons at $8 per hour.
Total cost of solvent = 120 × 8 = $960
Machine Rental: 20 days at $50 per hour.
Total rent = 20 × 50 = $1000
Total cost = Total cost of labors + Total cost of solvent + Total rent
Total cost = $8925 +$960 +$1000 =$10885
(a)
We need to find Labor productivity per dollar.
[tex]\text{Labor productivity}=\frac{outpu t}{\text{Labor cost}}[/tex]
[tex]\text{Labor productivity}=\frac{85}{8925}[/tex]
[tex]\text{Labor productivity}=0.0095238[/tex]
[tex]\text{Labor productivity}\approx 0.0095[/tex]
Therefore the Labor productivity per dollar = 0.0095 rugs/dollar.
(b)
We need to find the Multifactor productivity.
[tex]\text{Multifactor productivity}=\frac{Outp ut}{\text{Total cost}}[/tex]
[tex]\text{Multifactor productivity}=\frac{85}{10885}[/tex]
[tex]\text{Multifactor productivity}=0.0078089[/tex]
[tex]\text{Multifactor productivity}\approx 0.0078[/tex]
Therefore the Multifactor productivity = 0.0078 rugs/dollar.
Final answer:
Labor productivity per dollar for Hokey Min's Kleen Karpet is 0.009526 rugs/dollar, and the multifactor productivity is 0.004275 rugs/dollar, both rounded to four decimal places.
Explanation:
To answer the question about labor productivity per dollar and multifactor productivity for Hokey Min's Kleen Karpet, we need to calculate these based on the information given about the resources consumed.
(a) To find the labor productivity per dollar, we use the total number of rugs cleaned and divide that by the total labor cost:
Labor cost = 525 hours × $17 per hour = $8,925Labor productivity per dollar = 85 rugs / $8,925 = 0.009526 rugs/dollar (rounded to four decimal places)(b) To calculate the multifactor productivity, we sum all the costs and divide the number of rugs cleaned by this total cost:
Total solvent cost = 120 gallons × $8 per gallon = $960.Total machine rental cost = 20 days × $50 per hour = Assume a 10-hour day, $50 × 10 hours = $500/day, so $500/day × 20 days = $10,000.Total cost = Labor cost + Solvent cost + Machine cost = $8,925 + $960 + $10,000 = $19,885.Multifactor productivity = 85 rugs / $19,885 = 0.004275 rugs/dollar (rounded to four decimal places).You paid $713 last year for a zero-coupon bond that promised to pay you $1,000 at the end of 5 years. Rather than hold it for the remaining four years, you have decided to sell it today. The prevailing effective annual interest rate is 9%. To the nearest dollar, what price do you expect to get for your bond?
Answer:
The bond today will be valued at 708.4252
Explanation:
The price for the bond will be the present value of 1,000 at the current market rate of 9%
We will use the present value of a lump sum to calculate this:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000 dollars
time 4 years
rate 9% = 9/100 = 0.09
[tex]\frac{1000}{(1 + 0.09)^{4} } = PV[/tex]
PV $708.4252
This will be the expected market value for the bond.