Answers
Answer:
$958.78
Explanation:
The computation of the present value is shown below:
Given that
Future value = $1,000
NPER = 25
PMT = $1,000 × 7.5% = $75
RATE = 8%
The formula is shown below:
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $958.78
The same is to be considered
Related Questions
Bob purchased a truck for $53,000 with a residual value of $26,000 and a life expectancy of 5 years; using straight-line depreciation, the amount of the depreciation adjustment for the first year would be:
Answers
Answer:
the depreciation adjustment for the first year is $5,400
Explanation:
The computation of the amount of depreciation adjustment for the first year is shown below:
= (Purchase cost - residual value) ÷ (expected life)
= ($53,000 - $26,000) ÷ ( 5 years)
= ($27,000) ÷ ( 5 years)
= $5,400
Hence, the depreciation adjustment for the first year is $5,400
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Which kind of monetary policy would you expect in response to high inflation:
a. Expansionary
b. Contractionary
Answers
Answer:
B. Contractionary Monetary Policy
Explanation:
According to Investopedia, inflation is a quantitative measure of the rate at which average price level of selected goods and services in an economy increases over a period of time which causes the purchasing power of the currency to fall.
One popular method of controlling high inflation is the Contractionary Monetary Policy. The aim of the contractionary monetary policy is to cut the supply of money within an economy by decreasing bond prices and increasing interest rates through the central bank.
When the Central Bank increases their interests rates, banks become forced to increase their rates as well which discourages consumers from borrowing and makes saving more attractive.
These help to cut down spending, causes prices of goods and services to drop and consequently causes inflation to slow down.
Sundown LLC makes patio heating lamps. Their factory in Topeka has 800 in stock, the factory in Dallas has 700, while the warehouse in Memphis needs 500, and the warehouse in Austin needs 650. It costs $12 to ship each lamp from Topeka to Memphis, $20 for Topeka to Austin, $15 from Dallas to Memphis, and $22 from Dallas to Austin. What is the most economical way to minimize its shipping costs and meet the demands of the two warehouses
Answers
Answer:
500T1 + 300T2 + 350D2 = $19,700
500 units shipped from Topeka to Memphis300 units shipped from Topeka to Austin350 units shipped from Dallas to AustinExplanation:
minimize the following equation:
12T1 + 20T2 + 15D1 + 22D2
where:
T1 = lamp sent from Topeka to Memphis
T2 = lamp sent from Topeka to Austin
D1 = lamp sent from Dallas to Memphis
D2 = lamp sent from Dallas to Austin
T1 + D1 = 500
T2 + D2 = 650
T1 + T2 ≤ 800
D1 + D2 ≤ 700
using solver, the optimal solution is: 500T1 + 300T2 + 350D2 = $19,700
A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include:
$100 for transportation-in.
$170 for shipping insurance.
$800 for car import duties.
$140 for advertising.
$1,400 for sales staff salaries.
$150 for trimming shrubs.
Required:
For computing inventory, what cost is assigned to the used car?
Answers
Answer:
$13,070
Explanation:
The Cost of inventory according to IAS 2 include all cost of purchase, cost of conversion and other cost incurred in bringing the inventory to their present location and condition.
Calculation of Inventory Cost
Cost of Purchase $12,000
Transportation-in $100
Shipping insurance $170
Car import duties $800
Total Cost $13,070
The following events took place at a manufacturing company for the current year: (1) Purchased $95,000 in direct materials. (2) Incurred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600. (3) Other manufacturing overhead was $107,000, excluding indirect labor. (4) Transferred 80% of the materials to the manufacturing assembly line. (5) Completed 65% of the Work-in-Process during the year. (6) Sold 85% of the completed goods. (7) There were no beginning inventories. What is the journal entry to record the direct labor costs for the period? A. Labor Inventory XXX Wages Payable XXX B. Work-In-Process Inventory XXX Wages Payable XXX C. Manufacturing Overhead Control XXX Wages Payable XXX D. Wages Expense XXX Cash XXX
Answers
Answer: B. Work-In-Process Inventory XXX Wages Payable XXX
Explanation:
The method of accounting for Direct labor during production is to apportion it to Work in Process inventory because as a direct cost, it should form a part of the cost of producing the good.
The Work in Process Inventory will therefore be debited to reflect an increase and the Wages Payable will be credited to reflect that the wages are a liability owed to workers.
The specific The specific identification inventory costing method: Select one: A. Measures the ending inventory at the actual prices of the specific units sold during the period B. Is more appropriate for a firm selling construction equipment than for a firm selling greeting cards C. Is not a generally accepted method of pricing inventories D. Uses expected future acquisition costs rather than historical costs to measure the ending inventoryinventory costing method:
Answers
Answer:
A. Measures the ending inventory at the actual prices of the specific units sold during the period
Explanation:
The Specific identification inventory costing method is a strategy of getting the actual ending inventory cost. To get this cost requires the deliberate manual calculation of each of the remaining commodities brought on certain dates, at year-end inventory. The number gotten is then multiplied by their actual cost of purchase date. The result is then taken as the ending inventory cost.
Consequently, the purpose is to allocates the specific cost of each inventory item to cost of goods sold.
Hence, in this case, the correct answer is option A. Measures the ending inventory at the actual prices of the specific units sold during the period.
Crador Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,100 units. 14,000 units were started into the process during January. On January 31, the inventory consisted of 800 units. Equivalent units for conversion costs were 14,800. What percentage complete was the ending inventory with respect to conversion costs on January 31 using the weighted-average method
Answers
Answer: 62.5%
Explanation:
Equivalent units = Units completed and transferred out + percentage completed of ending inventory
14,800 = (1,100 + 14,000 - 800) + Percentage
14,800 = 14,300 + Percentage amount completed
Percentage amount completed = 14,800 - 14,300
Percentage amount completed = 500 units
Percentage = Ending equivalent units / ending inventory
= (500/800) * 100
= 62.5%
Schaeffer Corporation reports $52 million accumulated other comprehensive income in its balance sheet as a component of shareholders’ equity. In a related statement reporting comprehensive income for the year, the company reveals net income of $520 million and other comprehensive income of $27 million. What was the balance in accumulated other comprehensive income in last year’s balance sheet? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)
Answers
Answer:
$25,000,000
Explanation:
Schaeffer corporation reports $52 million accumulated other comprehensive income in its balance sheet
The company reveals a net income of $520 million
Other comprehensive income is $27 million
Therefore the balance accumulated in last year's balance sheet can be calculated as follows
= $52,000,000 - $27,000,000
= $25,000,000
what is acknowledgement
Answers
Answer: it means to accept something or recognition
Use the following information for ECE incorporated: Shareholder Equity $100 million Assets $200 million Sales $300 million Net Income $15 million Interest Expense $2 million If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding, then ECE's market-to-book ratio is closest to:
Answers
Answer:
6.0
Explanation:
Market to book ratio is calculated as ; Market capitalization / Net book value.
Where,
Market capitalization = Price per share × Total shares outstanding
= $24 × 25,000,000 shares
= $600,000,000
Then,
Net book value = Total assets - Total liabilities
= $200,000,000 - $100,000,000
= $100,000,000
Therefore,
Market to book ratio = $600,000,000 / $100,000,000
= 6.0
Which of the following statements is most correct? Select one: a. Other things equal, the interest rate in an area with young population would likely be lower than that in an area with old population. b. If the Fed maintains a policy to expand money supply for several years, the entire yield curve will fall due to a higher expected future inflation. c. Short-term interest rates are less volatile than long-term interest rates because the Fed operates mainly in the long-term sector. d. Immediately after the Fed announces to expand the money supply, the long-term interest rate will drop while the short-term interest rates will raise due to a higher expected future inflation. e. An upward-sloping Treasury yield curve suggests that long-term interest rates are higher than short-term interest rates.
Answers
Answer: e. An upward-sloping Treasury yield curve suggests that long-term interest rates are higher than short-term interest rates.
Explanation:
The Yield curve is used to compare interest rates across different periods as it uses the yields of securities that have the same credit risk/ rating but different maturity periods.
A Treasury yield curve will therefore show treasury rates across different periods. If the yield curve is upward sloping, it means that long term rates are higher than short term rates because the curve starts by plotting short term rates and then moving long-term.
Choosing to go to get a job right out of high school instead of going to college is an example of a(n) _____.
fixed cost
opportunity cost
variable cost
none of the above
Answers
Answer:
opportunity cost
Explanation:
Opportunity cost is the forfeited benefits from the next best alternative. In every decision, one has to choose from several available options. Each of the options has its advantages. After selecting the best option, the benefits of the second-best alternatives is the opportunity cost.
Choosing between working and attending college is an example of opportunity. Each of the two options has its advantages. Preferring one alternative means sacrificing the benefits of the other.
An investor plans to divide $200,000 between two investments. The first yields a certain profit of 10%, whereas the second yields a profit with expected value 18% and standard deviation 6%. If the investor divides the money equally between these two investments, find the mean and standard deviation of the total profit.
Answers
Answer:
mean = 14%; standard deviation = 3%
Explanation:
We treat the combined investment as a portfolio, with 50% each of the portfolio size invested in each asset.
Asset A: return (r) = 10%; standard deviation (s) = 0
Asset B: return (r) = 18%; standard deviation (s) = 6%
Portfolio mean (R) =
[tex](w_{1}*r_{1})+(w_{2}*r_{2})\\=(0.5*0.1)+(0.5*0.18)\\=0.05+0.09\\=0.14[/tex]
Therefore, portfolio mean = 14%.
Portfolio standard deviation (S) = [tex][(w_{1}^{2}*s_{1}^{2})+(w_{2}^{2}*s_{2}^{2})+(2w_{1} w_{2}COV_{12} )]^{\frac{1}{2}}[/tex]
Since no information was given about portfolio covariance, we will assume it is zero.
[tex]S=[(w_{1}^{2}*s_{1}^{2})+(w_{2}^{2}*s_{2}^{2})]^{\frac{1}{2}}\\=[(0.5^{2} *0^{2} )+(0.5^{2} *0.06^{2} )]\\=0.25*0.0036\\=0.03[/tex]
Therefore, portfolio standard deviation = 3%.
5. The average total cost to produce 100 cookies is $0.25 per cookie. The marginal cost is constant at $0.10 for all cookies produced. What is the total cost to produce 50 cookies
Answers
Answer:
$20
Explanation:
First, we need to find the total cost of producing 100 cookies.
From the above question, the total cost to produce 100 cookies is given by the average total cost of $0.25 multiplied by 100 units
TC = $0.25 × 100 = $25.
Therefore, the total cost to produce 50 cookies, is equal to the cost of producing 100 units minus the marginal cost ($0.10 per unit) of the additional 50 units.
TC = $25 - ($0.1 × 50) = $20
Nancy Smith is the sole shareholder and employee of White Corporation, a calendar year C corporation that is engaged exclusively in accounting services. During the current year, White has operating income of $320,000 and operating expenses (excluding salary) of $150,000. Further, White Corporation pays Nancy a salary of $100,000. The salary is reasonable in amount and Nancy is in the 32% marginal tax bracket regardless of any income from White. Assuming that White Corporation distributes all after-tax income as dividends, how much total combined income tax do White and Nancy pay in the current year
Answers
Answer:
$63,325
Explanation:
Calculation for how much total combined income tax do White and Nancy pay in the current year
First step is to compute Corporate income tax
Since The Corporation is a personal service corporation which means that 35% flat tax rate will be applies to the Corporation taxable income which is calculated as:
Corporate income tax=($320,000-$100,000-$150,000)*35%
Corporate income tax=$70,000*35%
Corporate income tax=$24,500
Second step is to find the after-tax income that was distributed to Nancy
After-tax income = ($70,000 – $24,500)
After-tax income=$45,500
Third step is to compute for the income tax incur by Nancy on the salary income and on the dividend income
Income tax on salary income=($100,000×32%)
Income tax on salary income=$32,000
Income tax on dividend income=($45,500 ×15%)
Income tax on dividend income= $6,825
Total tax=$32,000+$6,825
Total tax=$38,825
Last step is to compute the total combined income tax
Total combined income tax =$24,500+$38,825
Total combined income tax= $63,325
Therefore the total combined income tax that White and Nancy pay in the current year will be $63,325
The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 40 $ 10 July 13 Purchase 200 11 July 25 Sold ( 100 ) $ 14 July 31 Ending Inventory 140 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average cost. Assume a periodic inventory system is used.
Answers
Answer:
(a) FIFO (b) LIFO (c) weighted
average cost:
Cost of goods available for sale $2,600 $2,600 $2,600
Ending inventory 1,540 1,500 1,516
Sales $1,400 $1,400 1,400
Cost of goods sold 1,060 1,100 1,083
Gross profit $340 $300 $317
Explanation:
a) Data and Calculations:
Units Unit Cost Unit Selling Price
July 1 Beginning Inventory 40 $ 10 $400
July 13 Purchase 200 11 2,200
July 25 Sold ( 100 ) $ 14 (1,400)
July 31 Ending Inventory 140
July 31 Goods available 240
Average unit cost = $10.83 ($2,600/240)
FIFO:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,540 (140 * $11)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,060 (40 * $10 + 60 * $11)
Gross profit $340
LIFO:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,500 (40 * $10 + 100 * $11)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,100 (100 * $11)
Gross profit $300
Weighted Average:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,516 (140 * $10.83)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,083 (100 * $10.83)
Gross profit $317
Leno Company sells goods to the Fallon Company for $11,000. It offers credit terms of 3/10, n/30. If Fallon Company pays the invoice within the discount period, Leno Company will record a debit to Cash in the amount of:
Answers
Answer:
the amount that debited to the cash account is $10,670
Explanation:
The computation of the amount that debited to the cash account is shown below:
= Account receivable - discount allowed
= $11,000 - $11,000 × 3%
= $11,000 - $330
= $10,670
Hence the amount that debited to the cash account is $10,670
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Assume real per capita GDP in North Metropolania is $4,000 while in East Quippanova it is $1,000. The annual growth rate in North Metropolania is 2.33%, while in East Quippanova it is 7%. How many years will it take for East Quippanova to catch up to the real per capita GDP of North Metropolania?
a. about 10 years
b. about 30 years
c. about 40 years
d. about 120 years
e. East Vice City will never be able to catch up with North Midgar.
What will the income of the two countries be when it is equal?
Answers
Answer:
B
Explanation:
Rule of 70
70/2.33=30.04
Income will be $8,000
Both Bond Bill and Bond Ted have 5.8 percent coupons, make semiannual payments,
and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 25
years to maturity
a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price
of these bonds? (A negative answer should be indicated by a minus sign. Do not
round intermediate calculations and enter your answers as a percent rounded to 2
decimal places, e.g., 32.16.)
b. If rates were to suddenly fall by 2 percent instead, what would be the percentage
change in the price of these bonds? (Do not round intermediate calculations and
enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answers
Answer:
a.
Percentage change in Bill Price = (91.8486 - 100) / 100 = -0.0815 or -8.15%
Percentage change in Bill Price = (78.1448 - 100) / 100 = -0.2186 or -21.86%
b.
Percentage change in Bill Price = (109.0298 - 100) / 100 = 0.0903 or 9.03%
Percentage change in Bill Price = (132.0946 - 100) / 100 = 0.3209 or 32.09%
Explanation:
To calculate the percentage change in the price of both the bonds, we assume that the par value of both the bonds is $100 each.
a.
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) both Bill and Ted = 100 * 0.058 * 6/12 = $2.9
Total periods (n) - Bill= 5 * 2 = 10
Total periods (n) - Ted= 25 * 2 = 50
As the bonds were previously price at par, the YTM or market interest rate would have been same as the coupon rate. Thus, the old market interest rate was 5.8%. Now as the interest rates have risen by 2% new interest rate will be = 5.8 + 2 = 7.8%
New r or YTM - both Bill and Ted = 7.8% * 6/12 = 3.9% or 0.039
The formula to calculate the price of the bonds today is attached.
Bond Price - Bill = 2.9 * [( 1 - (1+0.039)^-10) / 0.039] + 100 / (1+0.039)^10
Bond Price - Bill = $91.8486
Percentage change in Bill Price = (91.8486 - 100) / 100 = -0.0815 or -8.15%
Bond Price - Ted = 2.9 * [( 1 - (1+0.039)^-50) / 0.039] + 100 / (1+0.039)^50
Bond Price - Ted = $78.1448
Percentage change in Bill Price = (78.1448 - 100) / 100 = -0.2186 or -21.86%
b.
As the bonds were previously price at par, the YTM or market interest rate would have been same as the coupon rate. Thus, the old market interest rate was 5.8%. Now as the interest rates have fallen by 2% new interest rate will be = 5.8 - 2 = 3.8%
New r or YTM - both Bill and Ted = 3.8% * 6/12 = 1.9% or 0.019
The formula to calculate the price of the bonds today is attached.
Bond Price - Bill = 2.9 * [( 1 - (1+0.019)^-10) / 0.019] + 100 / (1+0.019)^10
Bond Price - Bill = $109.0298
Percentage change in Bill Price = (109.0298 - 100) / 100 = 0.0903 or 9.03%
Bond Price - Ted = 2.9 * [( 1 - (1+0.019)^-50) / 0.019] + 100 / (1+0.019)^50
Bond Price - Ted = $132.0946
Percentage change in Bill Price = (132.0946 - 100) / 100 = 0.3209 or 32.09%
(A) When The Percentage change in Bill Price is = (78.1448 - 100) / 100 = -21.86%
(B) When Percentage change in Bill Price is= (132.0946 - 100) / 100 = 32.09%
Compute The Bond Price
To compute the percentage change in the price of both the bonds, we suppose that the par value of both the bonds is $100 each.
(A) To estimate the price of the bond today, we will use the formula for the price of the bond. We suppose that the interest rate supplied is stated in annual terms. As the bond is a semi-annual bond, the coupon payment, number of times, and semi-annual YTM will be,
Coupon Payment (C) both Bill and Ted is = 100 * 0.058 * 6/12 = $2.9
The Total periods (n) - Bill is= 5 * 2 = 10
The Total periods (n) - Ted is = 25 * 2 = 50
As the bonds were previously priced at par, the YTM or market interest rate would have been the same as the coupon rate. Therefore, the old market interest rate was 5.8%. Present as the interest rates have risen by 2% new interest rate will be = 5.8 + 2 is = 7.8%
When New r or YTM - both Bill and also Ted is = 7.8% * 6/12 is = 3.9% or 0.039
Then The formula to estimate the price of the bonds today is attached.
Bond Price - Bill is = 2.9 * [( 1 - (1+0.039)^-10) / 0.039] + 100 / (1+0.039)^10
Then Bond Price - Bill is = $91.8486
When the Percentage change in Bill Price is = (91.8486 - 100) / 100 = -0.0815 or -8.15%
Then Bond Price - Ted = 2.9 * [( 1 - (1+0.039)^-50) / 0.039] + 100 / (1+0.039)^50
Then Bond Price - Ted = $78.1448
The Percentage change in Bill Price is = (78.1448 - 100) / 100 = -0.2186 or -21.86%
(B) Now As the bonds were theretofore priced at par, the YTM or market interest rate would have been identified as the coupon rate. Therefore, the old market interest rate was 5.8%. Present as the interest rates have fallen by 2% new interest rate will be = 5.8 - 2 is = 3.8%
New r or YTM - both Bill and Ted = 3.8% * 6/12 is = 1.9% or 0.019
The formula to compute the price of the bonds today is attached.
Then Bond Price - Bill = 2.9 * [( 1 - (1+0.019)^-10) / 0.019] + 100 / (1+0.019)^10
After that Bond Price - Bill = $109.0298
Now the Percentage change in Bill Price = (109.0298 - 100) / 100 = 0.0903 or 9.03%
Then Bond Price - Ted = 2.9 * [( 1 - (1+0.019)^-50) / 0.019] + 100 / (1+0.019)^50
Then Bond Price - Ted = $132.0946
Therefore, Percentage change in Bill Price = (132.0946 - 100) / 100 = 0.3209 or 32.09%
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A company reported net income of $290,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $21,000 respectively. Ending balances in these accounts were $11,500 and $29,000, respectively. Assuming that all relevant information has been presented, what is the company's net cash flows from operating activities?
Answers
Answer:
$310,500
Explanation:
The first step is to calculste the increase in account payable
= ending amount-beginning balance
= $29,000-$11,500
= $17,500
Decrease in account receivable
= $21,000-$18,000
= $3,000
Therefore the cash flow can be calculated as follows
= $290,000 + $17,500 + $3000
= $310,500
The following information, based on the 12/31/2021 Annual Report to Shareholders of Krafty Foods ($ in millions):
Accounts payable 1,997
Accounts receivable (net) 3,231
Accrued liabilities 4,205
Cash and cash equivalents 172
Cost of goods sold 17,631
Other current payables 1,752
Current portion of long-term debt 550
Other long-term liabilities 10,411
Retained earnings as of 12/31/202
12,491
Goodwill and other intangible assets (net)
36,257
Salaries expense 1,665
Interest and other debt expense, net
1,537
Inventories 3,126
Long-term debt 8,234
Long-term notes payable 5,100
Marketing, general and administration expenses
11,560
Operating revenues 34,375
Other current assets 697
Other noncurrent assets 3,826
Other shareholders’ equity (2,668)
Common stock 23,755
Property, plant and equipment (net)
9,209
Short-term borrowings 691
Required:
Based on the information presented above, prepare the Income Statement for Krafty Foods for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Answers
Answer:
Net income$ 1,982
Explanation:
Preparation of income statement for Krafty Foods for the year ended December 31, 2021
Krafty Foods Income Statement For the Year Ended December 31, 2021
($ in millions)
Operating revenues 34,375
Less Cost of goods sold 17,631
Gross profit 16,744
Marketing, general and administration expenses
11,560
Operating income 5,184
(16,744-11,560)
Interest and other debt expense, net
1,537
Income before taxes 3,647
(5,184-1,537)
Income tax expense 1,665
Net income$ 1,982
(3,647-1,665)
Therefore the Net income of the income statement for Krafty Foods for the year ended December 31, 2021 will be $1,982
Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank emails a signed electronic memorandum to a representative of Hardell Lumber Co. offering to sell the mature trees and rich topsoil to Hardell for lumber and agricultural purposes. The electronic memorandum includes the parties' typed names, the consideration, the price, and a description of the property, lumber, and soil. Hardell replies via email to Westbank that it accepts Westbank's terms, electronically signs the memorandum, and will start removing the trees and soil next month. Before Hardell can begin clearing the land, Westbank changes its mind, wants to keep the land forested, and prevents Hardell from accessing the property claiming no contract has been formed.
2. Does the electronic agreement for the sale of trees and soil fall under the statute of frauds? (YES / NO)
3. Under which category? (CONTRACTS INVOLVING LAND/ CONTRACTS THAT BY THEIR TERMS CANNOT BE PREFORMED IN LESS THAN A YEAR AFTER THE DATE OF AGREEMENT/ A PROMISE TO ANSWER FOR A DEBT OF ANOTHER/ A PROMISE MADE IN CONSIDERATION OF MARRIAGE/ CONTRACTS FOR THE SALE OF GOODS OVER $500)
4. An electronic memorandum (DOES/ DOES NOT) satisfy the writing requirements for the Statute of Frauds.
5. Land is considered to be (REAL PROPERTY/ PERSONAL PROPERTY)
6. The definition of land includes (NO/ SOME/ ALL) physical objects that are permanently attached to the property.
7. Examples of physical objects that constitute land for purposes of the statute of frauds include (BUILDINGS/ FENCES/ TREES/ SOIL/ ALL OF THESE)
8. A written or electronic memorandum evidencing a contract will suffice provided that the writing is signed by (THE PERSON WHO IS ENFORCING THE CONTRACT/ THE PERSON AGAINST WHOM THE CONTRACT IS BEING ENFORCED)
9. Who signed the e-mails? (WESTBANK REAL ESTATE/ HARDELL LUMBER/ BOTH PARTIES)
10. What type of signature must be on an e-mail in order to enforce an electronic record? (A TYPED NAME/ AN OFFICIAL SIGNATURE/ A NOTARIZED SIGNATURE/ AN ENCRYPTED SIGNATURE)
11. Does the electronic memorandum have the parties' typed names? (YES/ NO)
12. Does the electronic memorandum describe the property involved?(YES/ NO)
13. Is it likely a court would find that the electronic memorandum satisfied the statue of frauds? (YES/ NO)
14. As a result, Hardell (WILL/ WILL NOT) likely be able to enforce the contract against Westbank.
Answers
Answer:
Westbank Real Estate, Inc. and Hardell Lumber Co.
2. Does the electronic agreement for the sale of trees and soil fall under the statute of frauds? (YES / NO)
3. Under which category? (CONTRACTS INVOLVING LAND/ CONTRACTS THAT BY THEIR TERMS CANNOT BE PERFORMED IN LESS THAN A YEAR AFTER THE DATE OF AGREEMENT/ A PROMISE TO ANSWER FOR A DEBT OF ANOTHER/ A PROMISE MADE IN CONSIDERATION OF MARRIAGE/ CONTRACTS FOR THE SALE OF GOODS OVER $500)
4. An electronic memorandum (DOES/ DOES NOT) satisfy the writing requirements for the Statute of Frauds.
5. Land is considered to be (REAL PROPERTY/ PERSONAL PROPERTY)
6. The definition of land includes (NO/ SOME/ ALL) physical objects that are permanently attached to the property.
7. Examples of physical objects that constitute land for purposes of the statute of frauds include (BUILDINGS/ FENCES/ TREES/ SOIL/ ALL OF THESE)
8. A written or electronic memorandum evidencing a contract will suffice provided that the writing is signed by (THE PERSON WHO IS ENFORCING THE CONTRACT/ THE PERSON AGAINST WHOM THE CONTRACT IS BEING ENFORCED)
9. Who signed the emails? (WESTBANK REAL ESTATE/ HARDELL LUMBER/ BOTH PARTIES)
10. What type of signature must be on an email in order to enforce an electronic record? (A TYPED NAME/ AN OFFICIAL SIGNATURE/ A NOTARIZED SIGNATURE/ AN ENCRYPTED SIGNATURE)
11. Does the electronic memorandum have the parties' typed names? (YES/ NO)
12. Does the electronic memorandum describe the property involved?(YES/ NO)
13. Is it likely a court would find that the electronic memorandum satisfied the statute of frauds? (YES/ NO)
14. As a result, Hardell (WILL/ WILL NOT) likely be able to enforce the contract against Westbank.
Explanation:
The memoranda exchanged between Westbank Real Estate and Hardell Lumber Co provides the evidence of their oral contract. The statute of fraud covers most oral contracts, especially those involving real property or sale of land. It is important to note that land includes all its permanent attachments.
Waterway Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows.
WATERWAY BEAUTY CORPORATION
Income Statement For the Year Ended December 31, 2020
Sales $79,000,000
Cost of goods sold
Variable $32,390,000
Fixed 8,750,000 41,140,000
Gross margin $37,860,000
Selling and marketing expenses
Commissions $16,590,000
Fixed costs 10,607,200 27,197,200
Operating income $10,662,800
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $9,480,000.
Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g 2,510.)
Break-even point: $ _ _ _ _ _ _
Answers
Answer:
$50,940,000
Explanation:
Calculate the Bonita Beauty Corporation's break even point in sales dollars for the year 2017.
Please see as attached, detailed solution to the above question.
The balance sheet of Hidden Valley Farms reports total assets of $815,000 and $955,000 at the beginning and end of the year, respectively. The return on assets for the year is 15%. What is Hidden Valley's net income for the year
Answers
Answer:
$132,750
Explanation:
Calculation for Valley net income for the year
Net income=[815,000+955,000/2]*15%
Net income=(1,770,000/2)*15%
Net income=885,000*15%
Net income=$132,750
Therefore Valley net income for the year will be $132,750
g Toyota has announced that it will offer free financing for 36-month loans on selected new models. How much is the zero-interest offer worth to you on a 36-month $25,000 loan if the market rate on loans of this type is 8%
Answers
Answer:
$2,839.02
Explanation:
The computation of zero-interest offer is shown below:-
monthly payment = $25,000 ÷ 36
= $694.44
PV of loan = PMT × [1 - (1 + i) ^-n)] ÷ i
$25,000 = PMT × [1 - (1 + 0.67%) ^-36] ÷ 0.67%
PMT = $783.41
Now, the difference in monthly payment with and without interest is
= $783.41 - $694.44
= $88.96
PV of saving = $88.96 × [1 - (1 + 0.67%) ^-36] ÷ 0.67%
= $2,839.02
A perpetuity pays $170 per year and interest rates are 8.2 percent. How much would its value change if interest rates increased to 9.7 percent
Answers
Answer:
$320.59 decrease
Explanation:
The computation of the change in the value is shown below:
As we know that
The Value of perpetuity is
= Annual inflows ÷ interest rate
Current value is
= $170 ÷ 0.082
= $2,073.17
And,
New value is
= $170 ÷ 0.097
= $1,752.58
Now change in value is
= $2,073.17 - $1,752.58
= $320.59 decrease
We simply applied the above formula
On January 1, 20Y8, Crabb & Co. sold land to ASP, Inc. and accepted a two-year, $500,000 face value note as payment. 6% interest is due each December 31. ASP’s market rate of borrowing is 12%. Crabb originally purchased the land for $80,000 in 20Y1. REQUIRED Answer the following questions regarding the exchange. Round all amounts to the nearest whole dollar. 1. Was the note issued at a discount or a premium? Discount 2. What is the fair market value of the land at the date of exchange? $449,297 3. What is the gain or loss on the sale of the land? $369,297 4. How does this transaction affect Crabb & Co.’s balance sheet on the date of the exchange? Please include account names, dollar values, and whether the account increased or decreased.
Answers
Answer:
1. Discount
2. $449,298.47
3. $369,298.47 gain
4. land reduces by $80,000, investment increases by $449,298.47, reserves increases by $369,298.47
Explanation:
Question 1
Using the formula below
[tex]Price=\frac{I_{1}}{1+r} +\frac{I_{2}+F}{(1+r)^{2}}[/tex]
where
I = interest rate, which is 6% of 500,000 = 30,000
F = Face value, 500,000
r = borrowing cost = 12%
Therefore, the price of the note at the time it was used for payment was
[tex]Price=\frac{30,000}{1.12} +\frac{30,000+500,000}{(1.12)^{2}}[/tex]
= $449,298.47.
As the price is lower than the face value of the note, the note was issued at a discount.
Question 2
The fair market value of the note is $449,298.47, the compute price in question 1.
Question 3
The gain/loss on the sale of the land
= sale price - purchase price
= $449,298.47 - 80,000
= $369,298.47.
Question 4
The transaction would affect Crabb & Co's balance sheet as follows.
Asset side:
land reduces by $80,000
investment increases by $449,298.47
Equity & liabilities side:
reserves increases by $369,298.47
ancy operates a business that uses the accrual method of accounting. In December, Nancy asked her brother, Hank, to provide her business with consulting advice. Hank billed Nancy for $8,700 of consulting services in year 0 (a reasonable amount), but Nancy was only able to pay $5,200 of the bill by the end of this year. However, Nancy paid the remainder of the bill in the following year. a. How much of the $8,700 consulting services will Hank include in his income this year if he uses the cash method of accounting
Answers
Answer: $5200
Explanation:
Cash accounting method occurs when transactions are recorded in an accounting book only when payment has been made for the goods sold or the goods received.
Out of the $8,700 consulting services, the amount that'll be included by Hank in his income this year if he uses the cash method of accounting will be $5200. This is because only $5200 was paid out of the $8700.
You have just moved to San Diego, and in your new job you get $1000 a month in disposable income. Suppose you wish to purchase new Oakley sunglasses. Online, they cost $200. But, you hear a rumor that the same glasses can be bought in Tijuana for $20. However, it costs you $50 to make the trip to and from Tijuana. Suppose your utility is given by: Utility = ln(Y), where Y is your income after buying the sunglasses.
Required:
a. What is your utility if you buy them online?
b. What is your utility if you can get them in Tijuana?
c. The probability that the sunglasses can be purchased in Tijuana is p. At what probability are you indifferent between buying them online and checking out Tijuana?
d. At a probability of 0.6, if you doubt the rumor and think that in Tijuana the glasses actually will cost $60, will you buy them online or check out Tijuana?
Answers
Answer:
All requirements solved
Explanation:
Utility if you buy them online or if you can get them in Tijuana can be calculated as follows
Requirement a. Buy online
Y=1000-200=800
U=ln(800)=2.90
Requirement b. Buy from Tijuana
Y=1000-20-50=930
U=ln(930)=2.97
Requirement c.
p(1000-20-50)=(1-p)(1000-200)
930p=800-800p
p=0.46
Requirement d. expected income from buying in tijuana:
=0.6(1000-60-50)+0.4(1000-20-50)
=534+372
=906 > 800(income from buying online)
So buy from tijuana
What makes penny stocks risky investments with uncertain rates of return? Choose four correct answers.
They generally have a low trading volume.
They have a low market price of less than $5.
They represent a share of a company’s value.
It is difficult to find reliable information about the company.
They are more likely to be a part of a “pump and dump” scheme.
Answers
Answer:1,2,4,5
Explanation: just took the assignment
Answer:
1, 2, 4, 5
Explanation:
Got it right on edge 2020
