The company's year-end 2021 assets had been $43,000,000, Carisbad Corporation would need additional funds of approximately $671,500, Capital Intensity Ratio: 8.6.
To forecast the additional funds Carisbad Corporation will need for the coming year, we can use the Additional Funds Needed (AFN) equation:
AFN = (A*/S)(ΔS) - (L*/S)(ΔS) - MS1
Where:
A* = Target assets
S = Sales
ΔS = Change in sales
L* = Target liabilities
MS1 = Increase in retained earnings
Let's calculate the AFN based on the given information:
Sales in 2021 = $5,000,000
Sales in 2022 = $6,000,000
ΔS = $6,000,000 - $5,000,000 = $1,000,000
Assets in 2021 = $52,000,000
Target assets (A*) = $6,000,000 / $5,000,000 * $52,000,000 = $62,400,000
Current liabilities in 2021 = $51,000,000
Target liabilities (L*) = $51,000,000
Profit margin = 5% = 0.05
Retention ratio = 40% = 0.40
MS1 = $6,000,000 * 0.05 * (1 - 0.40) = $180,000
AFN = ($62,400,000 / $6,000,000) * $1,000,000 - ($51,000,000 / $6,000,000) * $1,000,000 - $180,000
= $104,000 - $8,500 - $180,000
= -$84,500
Therefore, Carisbad Corporation would need additional funds of approximately -$84,500 (rounded to the nearest dollar).
If the company's year-end 2021 assets had been $43,000,000, we can repeat the calculation:
Target assets (A*) = $6,000,000 / $5,000,000 * $43,000,000 = $51,600,000
AFN = ($51,600,000 / $6,000,000) * $1,000,000 - ($51,000,000 / $6,000,000) * $1,000,000 - $180,000
= $860,000 - $8,500 - $180,000
= $671,500
Therefore, if the company's year-end 2021 assets had been $43,000,000, Carisbad Corporation would need additional funds of approximately $671,500 (rounded to the nearest dollar).
Regarding the company's "capital intensity," it refers to the ratio of total assets to sales. In the initial situation, the capital intensity ratio can be calculated as:
Capital Intensity Ratio = Assets / Sales
= $52,000,000 / $5,000,000
= 10.4
In the new situation where the year-end 2021 assets are $43,000,000, the capital intensity ratio would be:
Capital Intensity Ratio = $43,000,000 / $5,000,000
= 8.6
Therefore, the company's capital intensity ratio is different in the new situation compared to the initial situation, indicating a lower capital intensity ratio.
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make a trial balance!!!! asap need done
company has cash 13k and builiding has been valued at 51k
corporate issued common stock in exchanee for these investments
borrowed 53k from bank on note payable
paid 59k for equipment
purchashed suppliesnon account 1100
paid salaries 1,200
received 950 for serive thag has been permored
performed services to customers kn account 4,700
paid 150 on account payable
receirved 400 ultility bill
received cash on account 3000
paid rent 800
ad expense 600
Sure! Here's a step-by-step process to create a trial balance based on the given information:
1. Start by listing all the accounts and their balances. We have the following accounts:
Cash: $13,000
Building: $51,000
Common Stock: $64,000 (Total of cash and building)
Note Payable: $53,000
Equipment: $59,000
Supplies: $1,100
Salaries Expense: $1,200
Service Revenue: $4,700
Accounts Payable: $150
Utility Expense: $400
Accounts Receivable: $3,000
Rent Expense: $800
Advertising Expense: $600
2. Now, we need to determine the balance of each account. For assets like cash, building, equipment, supplies, and accounts receivable, the balance is their original value. 3. For liabilities like note payable and accounts payable, the balance is the amount owed. 4. For equity accounts like common stock, the balance is the total value of the assets invested. 5. For revenue accounts like service revenue, the balance is the amount earned. 6. For expense accounts like salaries expense, utility expense, rent expense, and advertising expense, the balance is the amount incurred.
7. Now, we can prepare the trial balance. The format will be as follows:
Account | Debit | Credit
--------|-------|-------
Cash | $13,000 |
Building | $51,000 |
Common Stock | $64,000 |
Note Payable | | $53,000
Equipment | $59,000 |
Supplies | $1,100 |
Salaries Expense | | $1,200
Service Revenue | $4,700 |
Accounts Payable | | $150
Utility Expense | | $400
Accounts Receivable | $3,000 |
Rent Expense | | $800
Advertising Expense | | $600
8. Finally, calculate the total debits and total credits. In a trial balance, the total debits should equal the total credits to ensure that the accounting equation is balanced.By following these steps, you should be able to create a trial balance for the given information.
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The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed long-term debt of $2.25 million, and the 2018 balance sheet showed long-term debt of $3.95 million. The 2018 income statement showed an interest expense of $380,000. What was the firm's cash flow to creditors during 2018? Multiple Choice $−1,320,000 $1,700,380
The firm's cash flow to creditors during 2018 was $1,700,380.
The cash flow to creditors is the amount of money that is used by a company to pay back its creditors or debt holders. Cash outflows from a company are recorded in this category when they repay creditors, repay the principal amount on outstanding debt, or pay interest on outstanding debt. The formula for cash flow to creditors is Cash Flow to Creditors = Interest Paid – Net Increase in Long-Term Debt The long-term debt of Kerber's Tennis Shop, Inc. increased from $2.25 million to $3.95 million between 2017 and 2018. This corresponds to a net increase of $1.7 million in long-term debt. The interest expense in the 2018 income statement is $380,000. Cash Flow to Creditors = Interest Paid – Net Increase in Long-Term Debt Cash Flow to Creditors = $380,000 – $1,700,000Cash Flow to Creditors = $1,700,380Therefore, the firm's cash flow to creditors during 2018 was $1,700,380. Answer: $1,700,380.
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A large producer of household products purchases a glyceride used in one of its deodorant soaps from outside of the company. It uses the glyceride at a fairly steady rate of 40 pounds per month, and the company uses a 23 percent annual interest rate to compute holding costs. The glyceride can be purchased from two suppliers, A and B. Supplier A offers the following all- units discount schedule: Supplier A For all units of order size 0
To determine the optimal order quantity from Supplier A, we need to consider the holding costs and the order costs associated with each order size.
Let's start by calculating the total cost for each order size. The holding cost is given by the formula: holding cost = order quantity * holding cost rate * unit cost, where the holding cost rate is the annual interest rate divided by the number of periods in a year.
For Supplier A, the unit cost is not provided, so we cannot calculate the holding cost directly. However, we can determine the optimal order quantity based on the discount schedule provided.
For order sizes less than or equal to 100 units, the price per unit is $1.50. So, if the order quantity is 100 or less, the total cost will be: total cost = order quantity * unit cost.
For order sizes greater than 100 units, the price per unit is reduced to $1.30. So, if the order quantity is more than 100, the total cost will be: total cost = order quantity * unit cost.
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What do you credit in your entry for transportation costs that you pay out? None of the choices are correct. Delivery Expense Accounts Payable Cash
When recording the payment for transportation costs, you would credit the "Cash" account, this credit entry represents the decrease in cash or bank balance resulting from the payment. (d) cash is correct.
The "Delivery Expense" account mentioned is not typically credited in this scenario. Instead, it is used as an expense account that is debited when recording the transportation costs incurred.
The "Accounts Payable" account is also not credited when paying transportation costs.
Accounts Payable is a liability account used to track amounts owed to suppliers or vendors. If you had previously recorded the transportation costs as a liability (e.g., through a purchase on credit), you would debit the Accounts Payable account when initially recording the expense.
However, when making the payment, you would credit the Cash account and debit the Accounts Payable account to reduce the liability.
In summary, when paying transportation costs, you would credit the "Cash" account to reflect the decrease in cash or bank balance.
The "Delivery Expense" account is debited when initially recording the transportation costs as an expense, and the "Accounts Payable" account is debited when reducing the liability associated with the payment.
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Question-
What do you credit in your entry for transportation costs that you pay out?
a) None of the choices are correct.
b) Delivery Expense
c) Accounts Payable
d) Cash
Braxton Technologies, Inc., constructed a conveyor for A\&G Warehousers that was completed and ready for use on January 1,2021. A&G paid for the conveyor by issuing a $125,000, four-year note that specified 6% interest to be paid on December 31 of each year, and the note is to be repaid at the end of four years. The conveyor was custom-built for A\&G, so its cash price was unknown. By comparison with similar transactions it was determined that a reasonable interest rate was 12%. (FV of $1,
PV
of $1, EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 ) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry for A\&G's purchase of the conveyor on January 1, 2021. 2.Prepare an amortization schedule for the four-year term of the note. 3. Prepare the journal entry for A\&G's third interest payment on December 31, 2023. 4.If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31,2021 , what would be the amount of each installment? 5. By considering the installment payment of requirement 4, prepare an amortization schedule for the four-year term of the installment note. 6. Prepare the journal entry for A\&G's third installment payment on December 31, 2023. Journal entry worksheet Note: Enter debits before credits. Prepare an amortization schedule for the four-year term of the note. (Round intermediate calculations and final answers to ine nearest whole dollar.) Journal entry worksheet Note: Enter debits before credits. If A\&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31 , 2021 , what would be the amount of each installment? (Round intermediate calculations and final answer to the nearest whole dollar.) By considering the installment payment of requirement 4, prepare an amortization schedule for the four-year term of the installment note. (Round intermediate calculations and final answers to the nearest whole dollar.) Journal entry worksheet Note: Enter debits before credits.
Journal entry:
Debit: Conveyor (asset)
Credit: Notes Payable
1.Journal entry for A&G's purchase of the conveyor on January 1, 2021:
Date: January 1, 2021
Debit: Conveyor (Custom-built asset)
Credit: Notes Payable (Face value of the note)
Explanation: A&G purchased the conveyor from Braxton Technologies, Inc. by issuing a four-year note for $125,000.
2. Amortization schedule for the four-year term of the note:
Year Beginning Balance Interest Expense (12%) Principal Payment Ending Balance
--------------------------------------------------------------------------------------
2021 $125,000 $15,000
2022
2023
2024
To calculate the interest expense for each year, multiply the beginning balance by the interest rate (12%). The principal payment is the difference between the annual interest expense and the total payment due ($125,000 / 4 = $31,250 per year).
3. Journal entry for A&G's third interest payment on December 31, 2023:
Date: December 31, 2023
Debit: Interest Expense
Credit: Notes Payable
Explanation: A&G makes an interest payment on the note for the third year.
4. If A&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31, 2021, the amount of each installment would be:
Installment amount = Total note amount / Number of installments
Installment amount = $125,000 / 4 = $31,250
5. Amortization schedule for the four-year term of the installment note:
Year Beginning Balance Interest Expense (12%) Principal Payment Ending Balance
--------------------------------------------------------------------------------------
2021 $125,000 $15,000 $31,250
2022 $93,750 $11,250 $31,250
2023 $62,500 $7,500 $31,250
2024 $31,250 $3,750 $31,250
6. Journal entry for A&G's third installment payment on December 31, 2023:
Date: December 31, 2023
Debit: Notes Payable (Principal Payment)
Credit: Cash
Explanation: A&G makes the third installment payment on the installment note.
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Describe the 3 business organizations and pros and cons of each with regards to number of owners,
There are three types of business organizations; sole proprietorship, partnership, and corporation. The advantages and disadvantages of each of these are described below:
Sole proprietorship: Sole proprietorship is a business owned by a single individual. It is simple to set up, and the owner has complete control over the company.
The advantages of sole proprietorship include complete control of the company, flexibility, and ease of setup. However, the disadvantages of sole proprietorship include unlimited personal liability for business debts and no outside investments.
Partnership: Partnership is a business structure in which two or more people own and operate the company together. The advantages of partnership include shared risk, shared investment, and shared workload. However, the disadvantages of partnership include a lack of control over the company, shared profits, and potential conflict between partners.
Corporation: A corporation is a business structure in which the company is a separate legal entity from its owners. The advantages of corporation include limited liability for owners, greater access to capital, and a separate legal identity. However, the disadvantages of corporation include greater legal complexity, less control over the company, and higher taxation.
Partnership offers shared risk, shared investment, and shared workload, but it also has a lack of control over the company, shared profits, and potential conflict between partners. A corporation has limited liability for owners, greater access to capital, and a separate legal identity, but it also has greater legal complexity, less control over the company, and higher taxation.
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Sam's Season: The first week of the summer, Juliette got worried that she had too much money tied up into her younger brother's stand. So she borrowed \$50 from their dad and said she'd pay him back at the end of the summer, plus an additional $5 of interest. Sam said that he had worked a total of 15 days and already taken the $30 that he said he had earned. He claimed to have sold 45
∘
or so" cups of lemonade, and there was a total of $117 cash on hand at season's end, crumpled up in a can Sam handed to her. Sam swore that he had sold \$153 worth of lemonade, and he also remembered selling lemonade to a group of five kids who said they 'd drop by at some point to pay up. He had no idea who they were but thought two of them looked familiar. There were no cups left, no lemonade mix was in sight, and the pitcher was broken. Juliette took $8 from Sam's stand during the season to buy some pizza for herself and her friends. There was a note from a neighbor indicating that Sam took some lemonade mix when he supposedly ran out and still owed \$4. The table looked pretty rough and Juliette figured that it only had two years of life left on it. Juliette talked to Sam about pink slips, reductions in staff, and layoffs, and she blamed it all on some sort of banking crisis permeating the Eurozone.
Based on the information provided, it seems that there are some financial discrepancies and challenges in Sam's lemonade stand operation during the summer.
Let's analyze the situation:
1. Loan from Dad: Juliette borrowed $50 from their dad and agreed to pay him back at the end of the summer, along with $5 of interest.
2. Sam's Earnings: Sam claimed to have worked for a total of 15 days and earned $30. However, he had already spent the money.
3. Sales and Cash on Hand: Sam stated that he sold around 45 cups of lemonade and had $117 in cash at the end of the season. However, he claimed to have sold $153 worth of lemonade and expected payment from a group of five kids who promised to pay later.
4. Expenses and Losses: Juliette took $8 from Sam's stand to buy pizza. There was also a note from a neighbor indicating that Sam took some lemonade mix without paying, resulting in a $4 owed. The lemonade stand's equipment, specifically the table, appeared to be in poor condition and had only two years of life left.
5. Banking Crisis Reference: Juliette mentioned a banking crisis in the Eurozone, seemingly attributing the lemonade stand's challenges to external economic factors.
Based on this information, there are several financial issues within Sam's lemonade stand operation. These include inconsistencies in Sam's earnings and sales figures, unaccounted expenses, potential losses from unpaid debts, and the deteriorating condition of the equipment. The reference to the banking crisis appears to be a fictional element added to the story.
Juliette's concerns about having too much money tied up in the lemonade stand may stem from the uncertainty surrounding Sam's management and the financial challenges they are facing. It seems there is a need for better financial tracking, expense control, and management of debts and assets within the lemonade stand operation.
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The use of technology and career development have been identified as two of the major categories of work stress. True False
The statement is True. The use of technology and career development have been identified as two major categories of work stress.
Technology can contribute to work stress by causing information overload, constant connectivity, and increased expectations for productivity. It can also lead to feelings of being overwhelmed and difficulty in achieving work-life balance.
Career development can also be a source of stress as individuals may feel pressure to continuously improve their skills, meet performance targets, or compete for promotions. Additionally, uncertainty about the future of one's career or job security can contribute to stress. Therefore, both technology and career development are recognized as significant factors that can contribute to work-related stress.
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Vuican Companyss contribution format income statement for June is as follows: Management is disappointed with the company's performance and is wondering what can be done to improve profts. Ey examining tales and cost records, you have deterntned the following a. The company is divided into two sales termoties-Northern and Southern. The Northem Temtory recorded $400.000 m saies and $168.000 in vartable expenses dunng June, the remaining sales and varlable expenses were recorded in the Sourthem Territory. Fixed expenses of $212.000 and $130,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fired expenses are common to the two terntones. D. The company it the exclusive distrbut of for two products-Paks and Tibs. Sales of Paks and Tibs totaled $200$00 and $200,000. respectively, in the Northern terrtory during June. Variable expenses are 25% of the selling price for Paks and 59% for Tios. Cost. tecords show that $90.000 of the Northern Territorys fixed expenses are traceable to Paks and $40.000 to Tios, with the remainder commen to the fwo products. Required: 1-a. Prepare conthbution format segmented income statements for the total compary broken down Detween sales temorimos 1.b. Prepare contributon format segmented income statements for the Northern Territory broken down by product une Answer is not complete. Complete this question ty entering your answers in the tabs below. Prepare contribution format segmented income statements for the total company broken down between sales territones (Round the percentage answers to one decimal place (i.6.1234 should be entered as 12.3).) Required: Wa Prepare contnbution format segmented income statements for the total company broken down between sales territories 1-b. Prepare contrbution format segmented income statements for the Northern Teritory broken down by product line Answer is not completn. Complete this question by entering your answers in the tabs below. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (found the percentage ancwern to one decimal place (i.e .1234 should be entered as 123) ).)
The required values of sales, and expenses are:
- Sales: $200,000
- Variable expenses: 59% of the selling price ($200,000 * 59%)
- Fixed expenses: $40,000
To prepare a contribution format segmented income statement for the total company broken down between sales territories, we need to calculate the total sales, variable expenses, and fixed expenses for both the Northern and Southern territories.
For the Northern Territory:
- Sales: $400,000
- Variable expenses: $168,000
- Fixed expenses: $212,000
For the Southern Territory:
- Sales: Total sales of the company - Sales in Northern Territory
- Variable expenses: Total variable expenses of the company - Variable expenses in the Northern Territory
- Fixed expenses: Total fixed expenses of the company - Fixed expenses in Northern Territory
Once we have these values, we can prepare the contribution format segmented income statements for both territories.
To prepare a contribution format segmented income statement for the Northern Territory broken down by product line, we need to calculate the sales, variable expenses, and fixed expenses for each product (Paks and Tibs) in the Northern Territory.
For Paks:
- Sales: $200,000
- Variable expenses: 25% of the selling price ($200,000 * 25%)
- Fixed expenses: $90,000
For Tibs:
- Sales: $200,000
- Variable expenses: 59% of the selling price ($200,000 * 59%)
- Fixed expenses: $40,000
Once we have these values, we can prepare the contribution format segmented income statements for the Northern Territory broken down by product line.
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"View Policies Current Attempt in Progress These financial statement items are for Cullumber Company at year-end, July 31, \( 2025 . \)
Prepare an income statement for the year, (Enter negative amount"
To prepare an income statement for Cullumber Company at year-end, July 31, 2025, you need the financial statement items.
Unfortunately, you have not provided any financial statement items for me to work with.
1. Start with the revenues: List all the revenues earned by the company during the year. This includes sales revenue, service revenue, and any other sources of income.
2. Deduct the cost of goods sold: If applicable, subtract the cost of producing the goods or services sold from the revenues.
This will give you the gross profit.
3. Deduct operating expenses: Include expenses such as salaries, rent, utilities, advertising, and other costs incurred to operate the business.
4. Deduct non-operating expenses: Include any non-operating expenses such as interest expense or losses from the sale of assets.
5. Add non-operating revenues: Include any non-operating revenues such as interest income or gains from the sale of assets.
6. Calculate the net income or loss: Subtract the total expenses from the total revenues.
Remember to enter negative amounts in the appropriate places if applicable. I hope this guidance helps you in preparing the income statement for Cullumber Company.
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Taking shopping mall as project charter defines the context, create the project objectives, milestones using frantt chart and project integration
A shopping mall can be used as a project charter to define the project context. The project objectives and milestones can be created using the Frantt chart. The project integration is also a crucial part of the project to ensure that the project is done in an organized and structured way.
Project charter is a document that authorizes the existence of a project and provides a project manager with the ability to utilize the resources that the project requires.
Project Objectives:
The objectives of the project can be to construct a shopping mall within a year's time and within a budget of $500,000. Other project objectives can include ensuring that the shopping mall is sustainable and that it incorporates environmental and social factors.
Milestones:
Milestones can be set at different intervals throughout the project to track progress and ensure that the project is on track. Some milestones for the shopping mall project could include acquiring the land for the project, completing the architectural plans for the shopping mall, obtaining all necessary permits, beginning construction, and completing construction.
Project Integration: Project integration refers to the coordination of all aspects of the project to ensure that the project is completed in a structured and organized manner. This can include establishing communication channels between different teams and stakeholders, setting up project schedules and timelines, and tracking progress through regular status meetings.
A Frantt chart can be used to visually display the timeline of the project and identify areas where adjustments need to be made to keep the project on track.
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Virtual disks using the _____ format have increased protection against file corruption related to power failures.
Virtual disks using the NTFS format have increased protection against file corruption related to power failures.
What is the NTFS format?NTFS (New Technology File System) is a file system format used by Windows operating systems to organize and store files on a storage device, such as a hard disk drive. It offers advanced features compared to older file system formats like FAT (File Allocation Table).
NTFS provides enhanced protection against file corruption caused by power failures. It achieves this through several mechanisms, including:
1. ˣ ˣ Transaction loggingˣ ˣ : NTFS uses a transaction logging system that keeps track of changes made to the file system. In the event of a power failure or system crash, the transaction log helps recover and restore the file system to a consistent state, minimizing the risk of file corruption.
2. ˣ ˣ Metadata redundancyˣ ˣ : NTFS maintains redundant copies of critical file system metadata, such as the master file table (MFT). This redundancy helps safeguard against data loss or corruption due to power interruptions during write operations.
3. ˣ ˣ Journalingˣˣ : NTFS uses a journaling mechanism that records all changes to the file system in a log file. If a power failure occurs, the journal can be used to quickly identify and restore any incomplete or interrupted operations, ensuring data integrity.
Overall, the NTFS format provides robust measures to protect against file corruption caused by power failures, making it a reliable choice for virtual disks in scenarios where data integrity is crucial.
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this compensation is received in return for an employee’s work effort and may include health, disability, and life insurance; retirement, pension, and profit-sharing plans; child and elder care; and/or educational assistance programs.
It's important to note that compensation packages can vary between employers and industries. The specific benefits and programs offered will depend on the company's policies and the needs of its employees.
The compensation mentioned in the question refers to the benefits that an employee receives in exchange for their work effort. These benefits can include various forms of insurance, such as health, disability, and life insurance. They can also include retirement options like pension plans and profit-sharing plans. Additionally, child and elder care services, as well as educational assistance programs, can be part of an employee's compensation package.
To provide a step-by-step explanation:
1. The compensation mentioned is given to employees for their work effort.
2. It includes health insurance, which helps cover medical expenses for the employee and potentially their dependents.
3. Disability insurance provides income protection in case the employee becomes disabled and is unable to work.
4. Life insurance offers financial support to the employee's beneficiaries in the event of their death.
5. Retirement options like pension plans are designed to provide employees with income after they retire.
6. Profit-sharing plans allow employees to receive a portion of the company's profits.
7. Child and elder care programs assist employees in managing their family responsibilities.
8. Educational assistance programs can help employees further their education and career development.
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Derek borrows $31,300.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 5.25%. What will the payments be?
Derek borrows $40,404.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 5.18%. After a 12.00 months Derek decides to pay off his car loan. How much must he give the bank?
Derek would need to give the bank approximately $32,435.28 to pay off his car loan after 12 months. To calculate the monthly payments for Derek's car loan, we can use the formula for calculating loan payments.
The formula is:
[tex]P = (r * A) / (1 - (1 + r)^(-n))[/tex]
Where:
P = monthly payment
r = monthly interest rate (annual interest rate divided by 12)
A = loan amount
n = total number of payments
For the first scenario, where Derek borrows $31,300.00 for 6 years with an interest rate of 5.25%, we can plug the values into the formula:
A = $31,300.00
r = 5.25% / 12 = 0.004375
n = 6 years * 12 months/year = 72
P = [tex](0.004375 * $31,300.00) / (1 - (1 + 0.004375)^(-72))[/tex]P ≈ $511.77
So, the monthly payments for Derek's car loan would be approximately $511.77.
For the second scenario, where Derek borrows $40,404.00 for 6 years with an interest rate of 5.18%, and decides to pay off the loan after 12 months, we can calculate the remaining loan amount.
A = $40,404.00
r = 5.18% / 12 = 0.00431667
n = 6 years * 12 months/year = 72
P = (0.00431667 * $40,404.00) / (1 - (1 + 0.00431667)^(-72))
P ≈ $664.06
After 12 months, Derek would have made 12 payments of $664.06 each, totaling $7,968.72. To pay off the remaining loan, he would need to give the bank the original loan amount minus the payments made:
Remaining loan amount = $40,404.00 - $7,968.72 = $32,435.28
Therefore, Derek would need to give the bank approximately $32,435.28 to pay off his car loan after 12 months.
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Additional information: 1. Supplies on hand are $4,500. 2. Salaries are $500 per day. At March 31 , five days' salaries have been incurred but not paid. 3. Received a $1,500 advance cash payment from a client for services to be performed in the future. Required: a) Prepare adjusting entries for the month. b) Prepare an adjusted trial balance at March 31. c) Prepare a (1) statement of income, (2) statement of retained earnings, and (3) statement of financial position.
a) Statement of income is mentioned below:
b) Statement of retained earnings, is mentioned below:
c) Statement of financial position, is mentioned below:
Financial position refers to the overall health and status of an individual, organization, or entity's financial situation at a specific point in time. It provides a snapshot of the financial resources, obligations, and equity of the entity, allowing stakeholders to assess its financial stability, solvency, and ability to meet financial obligations.
a) Adjusting Entries for the Month:
Supplies Expense:
Debit: Supplies Expense - $4,500
Credit: Supplies - $4,500
Accrued Salaries:
Debit: Salaries Expense - $2,500 (5 days * $500/day)
Credit: Salaries Payable - $2,500
Unearned Revenue:
Debit: Unearned Revenue - $1,500
Credit: Service Revenue - $1,500
b) Adjusted Trial Balance at March 31:
(Account Title - Debit - Credit)
Cash - - -
Accounts Receivable - - -
Supplies - - $4,500
Prepaid Insurance - - -
Equipment - - -
Accumulated Depreciation - Equipment - - -
Accounts Payable - - -
Salaries Payable - - $2,500
Unearned Revenue - - $1,500
Common Stock - - -
Retained Earnings - - -
Service Revenue - - $1,500
Salaries Expense - - $2,500
Supplies Expense - $4,500 -
Insurance Expense - - -
Depreciation Expense - - -
Total - $4,500 - $4,500
c) Financial Statements:
Statement of Income:
Service Revenue - $1,500
Salaries Expense - $2,500
Supplies Expense - $4,500
Insurance Expense - -
Depreciation Expense - -
Total Expenses - $7,000
Net Income - (-$5,500)
Statement of Retained Earnings:
Retained Earnings (beginning) - -
Net Income - (-$5,500)
Total - (-$5,500)
Statement of Financial Position:
Assets:
Cash - -
Accounts Receivable - -
Supplies - $4,500
Prepaid Insurance - -
Equipment - -
Accumulated Depreciation - Equipment - -
Total Assets - $4,500
Liabilities:
Accounts Payable - -
Salaries Payable - $2,500
Unearned Revenue - $1,500
Total Liabilities - $4,000
Equity:
Common Stock - -
Retained Earnings - (-$5,500)
Total Equity - (-$5,500)
Total Liabilities and Equity - (-$1,500)
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Precous Metal Mining has $20 million in sales, its MOE is 12%, and its total assets turnover is 2.5×. Common equity on the fitm's balance sheet is 50% of its total assets. What is its net income? Do not round intermediate calculations. Round your answer to the nearest cent
To calculate the net income, we need to multiply the sales by the profit margin and then subtract the interest expense. The net income of Precous Metal Mining is $1.8 million.
To calculate the net income, we need to multiply the sales by the profit margin and then subtract the interest expense. The profit margin is equal to 1 minus the margin of error (MOE), which is given as 12% or 0.12. The formula for net income is as follows:
Net Income = (Sales * Profit Margin) - Interest Expense
Given that the sales are $20 million and the MOE is 12%, we can calculate the profit margin:
Profit Margin = 1 - MOE = 1 - 0.12 = 0.88
Next, we need to determine the interest expense. Since the problem does not provide any information about the interest expense, we assume it to be zero.
Finally, we can calculate the net income:
Net Income = ($20 million * 0.88) - 0 = $17.6 million
Rounding to the nearest cent, the net income of Precous Metal Mining is $17.6 million.
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Well, a blogger who recently asserted that "the pervasive use of email for business has made the work of writing well even more difficult because it invites relentlessly hitting Send before you have thought through, organized, reviewed, and even rewritten your message." Do you agree that the process of writing has become more difficult with e-mail?
The assertion made by the blogger can be subjective, as the difficulty of writing can vary from person to person.
While email communication has undoubtedly changed the way we communicate in the business world, whether it has made the process of writing more difficult is a matter of perspective.
On one hand, the ease and speed of sending emails can lead to hastily written messages without careful consideration. The convenience of hitting the "Send" button immediately can result in less time spent on drafting, editing, and revising. This may lead to potential issues such as unclear messages, miscommunication, or unintended tone.
On the other hand, email has also provided benefits to the writing process. It enables asynchronous communication, allowing individuals to compose their messages at their own pace and review them before sending. Additionally, email provides a written record of conversations, which can be useful for reference and clarification.
Ultimately, the difficulty of writing well is not solely attributed to email itself, but rather to the practices and habits of individuals. It is important for professionals to prioritize thoughtful composition, effective organization, and careful review, regardless of the medium they are using. By employing good writing practices and taking the time to craft clear and concise messages, the potential drawbacks associated with email can be mitigated.
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Assume the real rate of interest is 4.00% and the inflation rate is 6.00% What is the value today of receiving 14,177.00 in 15.00 years? Submit Answer format: Currency Round to 2 decimal places 12 Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 74.00. During these years of part-time work he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 74.0 when he fully retres he will begin to make annual withdrawals of S119,176 00 from his retirement account until he turns 86.00. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday, To reach his goal, what must the contributions be?Assume a 6.00% interest rate Submit Answer format: Currency Round to 2 decimal proces
1. The value today of receiving $14,177.00 in 15 years, accounting for inflation, is approximately $5,933.02.
2. To reach his retirement goal, Derek must make annual contributions of approximately $3,239.92 from his 26th birthday to his 65th birthday, assuming a 6.00% interest rate.
To calculate the value today of receiving $14,177.00 in 15 years, we need to account for the effects of inflation. Given a real interest rate of 4.00% and an inflation rate of 6.00%, we can use the formula for present value adjusted for inflation:
Present Value = Future Value / (1 + Inflation Rate)^n
where n is the number of years.
Using the formula, we have:
Present Value = $14,177.00 / (1 + 0.06)^15
Present Value ≈ $5,933.02
Therefore, the value today of receiving $14,177.00 in 15 years, accounting for inflation, is approximately $5,933.02.
2. To determine the contributions required to reach the retirement goal, we can use the formula for the future value of a series of periodic deposits:
Future Value = Contribution × [(1 + Interest Rate)^n - 1] / Interest Rate
Given an interest rate of 6.00% and a withdrawal period from age 74 to age 86, we can calculate the contributions required. Let's assume contributions are made annually from age 26 to age 65.
Using the formula, we have:
$119,176.00 = Contribution × [(1 + 0.06)^(86 - 65) - 1] / 0.06
Simplifying the equation, we have:
Contribution ≈ $3,239.92
Therefore, to reach his retirement goal, Derek must make annual contributions of approximately $3,239.92 from his 26th birthday to his 65th birthday, assuming a 6.00% interest rate.
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Suppose there are 2 periods t=1,2. In period t, consumption is c
t
. Income y is the same for both periods. The consumer's utility function is U(c
1
,c
2
)=c
1
α
c
2
1−α
,α∈(0,1) 1. When there is no financial market, i.e., the consumer cannot save or borrow via banks. Suppose y=10, find out the consumer's optimal bundle of (c
1
,c
2
) for α=1/2,α=1/4,α=3/4 2. Now suppose there are banks, the annual interest rate is r, find out for what range of α is the consumer a saver, and for what range of α is she a borrower.
Therefore, for any value of α, the consumer will be a saver if (1+r) > 1, which implies r > 0. In summary, for any range of α, the consumer is a saver if the interest rate r is greater than 0.
To find the consumer's optimal bundle of (c₁, c₂) when there is no financial market, we need to maximize the utility function [tex]U(c₁, c₂) = c₁^α * c₂^(1-α),[/tex] where α is the parameter that varies.
1. For α = 1/2:
To maximize [tex]U(c₁, c₂) = c₁^(1/2) * c₂^(1/2),[/tex] subject to the budget constraint c₁ + c₂ = y = 10, we can use the Lagrange multiplier method. Setting up the Lagrangian function
[tex]L = c₁^(1/2) * c₂^(1/2) + λ(y - c₁ - c₂),[/tex] where λ is the Lagrange multiplier. Taking the partial derivatives and equating them to zero,
we get:
[tex]dL/dc₁ = (1/2) * c₁^(-1/2) * c₂^(1/2) - λ = 0[/tex][tex]dL/dc₁ = (1/2) * c₁^(-1/2) * c₂^(1/2) - λ = 0[/tex]
[tex]dL/dc₂ = (1/2) * c₁^(1/2) * c₂^(-1/2) - λ = 0[/tex]
[tex]dL/dλ = y - c₁ - c₂ = 0[/tex]
In this case, the return on saving is given by (1+r). Since the utility function U(c₁, c₂) is increasing in both c₁ and c₂, the consumer will always prefer more consumption.
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(Evaluating profitability) Last year, Stevens Inc. had sales of $400,000, with a cost of goods sold of $114,000. The firm's operating expenses were $127,000, and its increase in retained earnings was $57,000. There are currently 22,200 common stock shares outstanding and the firm pays a $1.58 dividend per share.
a. Assuming the firm's earnings are taxed at 34 percent, construct the firm's income statement.
b. Compute the firm's operating profit margin.
c. What was the times interest earned?
a. Assuming the firm's earnings are taxed at 34 percent, construct the firm's income statement. (Round to the nearest dollar. NOTE: You may input expense accounts as negativevalues.)
To construct the firm's income statement, we need to subtract the cost of goods sold and operating expenses from sales. The income tax expense can be calculated by multiplying the earnings before tax by the tax rate. The net income can be found by subtracting the tax expense from the earnings before tax.
The income statement would look like this:
Sales: $400,000
Cost of Goods Sold: $114,000
Gross Profit: $400,000 - $114,000 = $286,000
Operating Expenses: $127,000
Operating Profit: $286,000 - $127,000 = $159,000
Earnings Before Tax: $159,000
Income Tax Expense: $159,000 * 34% = $54,060
Net Income: $159,000 - $54,060 = $104,940
The operating profit margin can be calculated by dividing the operating profit by the sales and multiplying by 100. The calculation would be:
Operating Profit Margin: ($159,000 / $400,000) * 100 = 39.75%
The times interest earned can be calculated by dividing the operating profit by the interest expense.
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Give one advantage and one disadvantage of the binomial tree model compared with the Black Scholes model for valuing Options. [4 marks] [Total 20 marks] END OF QUESTION THREE
Flexibility: The binomial tree model allows for more flexibility in modeling various factors, such as volatility, dividends, and early exercise. It can handle complex option features and variations more effectively.
Disadvantage of the binomial tree model compared to the Black-Scholes model:
Computational complexity: The binomial tree model can be computationally more intensive and time-consuming compared to the Black-Scholes model, especially for complex options or when using a large number of time steps. The calculations involve building and traversing the tree, which can be resource-intensive for large-scale applications.
Note: The marks mentioned in the question refer to a specific grading system and may not apply directly to the content provided. The response provided addresses the advantage and disadvantage as requested.
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Calculate total shareholder's equity: - Common stock =$483 - Additional paid-in capital =$47,524 - Retained earnings =$42,212 - Treasury stock, at cost =$20,781 - Accumulated other comprehensive income =$975 A. $86,463 B. $68,463 C. $90,219 D. $111,95
The total shareholder's equity is $73,013. The answer is not one of the given options (A, B, C, or D).
To calculate the total shareholder's equity, we need to sum up the various components of equity, including common stock, additional paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income.
Given the following information:
- Common stock: $483
- Additional paid-in capital: $47,524
- Retained earnings: $42,212
- Treasury stock, at cost: $20,781
- Accumulated other comprehensive income: $975
Total shareholder's equity is calculated as:
Total Shareholder's Equity = Common Stock + Additional Paid-in Capital + Retained Earnings + Treasury Stock + Accumulated Other Comprehensive Income
Plugging in the values, we have:
Total Shareholder's Equity = $483 + $47,524 + $42,212 + (-$20,781) + $975
Note that treasury stock has a negative sign as it represents the amount of stock repurchased by the company.
Calculating the sum:
Total Shareholder's Equity = $70,413 + $42,212 + (-$20,781) + $975
Total Shareholder's Equity = $92,819 + (-$20,781) + $975
Total Shareholder's Equity = $72,038 + $975
Total Shareholder's Equity = $72,038 + $975
Total Shareholder's Equity = $73,013
Therefore, please double-check the provided options or verify if any values were misstated.
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Suppose you have some money to invest—for simplicity, $1—and you are planning to put a fraction w into a stock market mutual fund and the rest,1 − w, into a bond mutual fund. Suppose that $1 invested in a stock fund yields Rs after 1 year and that $1 invested in a bond fund yields Rb, suppose that Rs is random with mean 0.07 (7%) and standard deviation 0.07, and suppose that Rb is random with mean 0.05 (5%) and standard deviation 0.04. The correlation between Rs and Rb is 0.23. If you place a fraction w of your money in the stock fund and the rest, 1 − w, in the bond fund, then the return on your investment is R=wRs+(1−w)Rb.
To find the expected return on your investment, you can use the formula R = wRs + (1 - w)Rb, where R is the return, w is the fraction invested in the stock fund, Rs is the return on the stock fund, and Rb is the return on the bond fund.
Given that Rs has a mean of 0.07 and a standard deviation of 0.07, and Rb has a mean of 0.05 and a standard deviation of 0.04, we can substitute these values into the formula.
The correlation between Rs and Rb is given as 0.23. The correlation measures the linear relationship between two variables, in this case, the returns on the stock and bond funds.
To calculate the expected return, you need to know the value of w, the fraction invested in the stock fund. Without this information, it is not possible to determine the exact expected return.
Once you have the value of w, you can substitute it into the formula and calculate the expected return on your investment.
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bill's pets has $14,400 in equipment, $12,730 in supplies, $7,500 in accounts payable and owes $6,300 in taxes. what is bill's owners equity?
Bill's owner's equity is calculated by subtracting the total liabilities ($13,800) from the total assets ($27,130), resulting in an owner's equity of $13,330. Owner's equity represents Bill's share of the business's assets after deducting its liabilities.
To calculate Bill's owner's equity, we need to consider the assets and liabilities of his business. Owner's equity represents the owner's share of the business's assets after deducting liabilities.
Given information:
Equipment: $14,400
Supplies: $12,730
Accounts Payable: $7,500
Taxes Owed: $6,300
First, let's calculate the total assets. In this case, assets are the sum of equipment and supplies:
Total Assets = Equipment + Supplies
Total Assets = $14,400 + $12,730
Total Assets = $27,130
Next, let's calculate the total liabilities. Liabilities are the sum of accounts payable and taxes owed:
Total Liabilities = Accounts Payable + Taxes Owed
Total Liabilities = $7,500 + $6,300
Total Liabilities = $13,800
Finally, owner's equity can be determined by subtracting the total liabilities from the total assets:
Owner's Equity = Total Assets - Total Liabilities
Owner's Equity = $27,130 - $13,800
Owner's Equity = $13,330
Therefore, Bill's owner's equity is $13,330.
Owner's equity represents the residual interest in the business's assets after deducting its liabilities. It is the portion of the business's value that belongs to the owner. In this case, Bill's owner's equity represents the value that he has invested in the business and the accumulated profits or losses over time.
If Bill were to liquidate the business and settle all liabilities, the remaining $13,330 would be his personal share of the remaining assets. Owner's equity is an important financial measure that reflects the owner's stake and the overall financial health of the business.
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a broker placed one of her signs on property without permission from the owner. the broker is guilty of:
The broker is guilty of trespassing by placing the sign on the property without the owner's permission.
If a broker places one of their signs on the property without permission from the owner, the broker is guilty of trespassing. Trespassing occurs when someone enters or remains on someone else's property without their permission. The act of placing a sign on someone's property without their consent is considered trespassing since the broker does not have the legal right to use the property in such a manner. Trespassing is a violation of property rights and can result in civil or criminal liability. In this case, the owner of the property may have the right to sue the broker for trespassing and seek damages for any harm caused. The broker should obtain the necessary permission before placing their sign on someone else's property to avoid any legal issues. It is important to respect the property rights of others and seek permission before using their property.https://brainly.com/question/31913021
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Using a discount rate of 5%, find the value today of the following stream of cash flows: $100 in one year, $200 in two years, $300 in three years, $400 in four years.
a $864.88 b $822.70 c $907.03 d $1000
To find the value today of a stream of cash flows, we need to discount each cash flow to its present value and then sum them up. In this case, the cash flows are $100, $200, $300, and $400, occurring in years 1, 2, 3, and 4, respectively. Using a discount rate of 5%, the value today of these cash flows can be calculated as approximately $864.88.
To find the present value of each cash flow, we need to discount it using the discount rate. The formula to calculate the present value is:
Present Value = Cash Flow / (1 + Discount Rate)^n
where n represents the number of years.
Let's calculate the present value for each cash flow:
Present Value of $100 in one year = $100 / (1 + 0.05)^1 = $95.24
Present Value of $200 in two years = $200 / (1 + 0.05)^2 = $180.97
Present Value of $300 in three years = $300 / (1 + 0.05)^3 = $259.26
Present Value of $400 in four years = $400 / (1 + 0.05)^4 = $329.31
Now, we sum up these present values to find the total value today:
Value Today = $95.24 + $180.97 + $259.26 + $329.31 = $864.88
Therefore, the value today of the given stream of cash flows, using a discount rate of 5%, is approximately $864.88. The correct option from the given choices is a) $864.88.
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Consider a monthly annuity and an interest rate of 2.4%. What is the periodic (monthly) interest rate? Answer in percent.
Consider a weekly annuity for 6 years. How many cash flows will there be in total?
The periodic interest rate for a monthly annuity can be calculated using the formula: Periodic Interest Rate = (1 + Annual Interest Rate)^(1/12) - 1. For an interest rate of 2.4%, the calculation would be as follows:
Periodic Interest Rate = (1 + 0.024)^(1/12) - 1 = 0.0019802 or 0.198%
Therefore, the periodic (monthly) interest rate for a monthly annuity with an annual interest rate of 2.4% is 0.198%.
Regarding the second question, to determine the number of cash flows in a weekly annuity for 6 years, we need to multiply the number of weeks in a year by the number of years. Since a year has 52 weeks, we can calculate the total number of cash flows as follows:
Total Cash Flows = Number of Weeks in a Year × Number of Years = 52 weeks/year × 6 years = 312 cash flows
Therefore, in a weekly annuity spanning 6 years, there would be a total of 312 cash flows.
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Planning involves ________. multiple choicehiring employeessetting goals and objectivesanalyzing financial statementscoordinating company activities
Planning involves setting goals and objectives. It provides direction and purpose, while other activities like hiring, financial analysis, and coordination are associated with different management functions. Option B.
Setting goals and objectives is a fundamental aspect of the planning process. It involves defining the desired outcomes and targets that an organization aims to achieve.
Goals provide a sense of direction and purpose, while objectives break down goals into specific, measurable, achievable, relevant, and time-bound (SMART) targets. By setting clear goals and objectives, organizations can align their efforts and resources towards a common vision.
While planning may involve other activities such as hiring employees, analyzing financial statements, and coordinating company activities, these activities are not exclusive to planning. They may be part of other management functions, such as organizing, controlling, or leading.
Hiring employees, for instance, is primarily associated with the staffing or human resource management function. Analyzing financial statements falls within the domain of financial management and decision-making. Coordinating company activities is often associated with the organizing and controlling functions, which involve structuring and overseeing the implementation of plans.
In summary, while hiring employees, analyzing financial statements, and coordinating company activities can be essential elements in organizational management, the primary aspect of planning is setting goals and objectives.
Planning establishes the foundation for other management functions and provides a roadmap for achieving desired outcomes. SO Option B is correct.
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Strategic Management
1.2 Critically evaluate the overall strategic intent of Ouma Rusks as an organisation and make specific reference to the role of the sustainability of the organisation. and also define strategic intent and what was the strategic of ouma rusks ? was is bad or good
Ouma Rusks' strategic intent involves sustainable growth and responsible business practices. This approach is generally seen as positive and in line with current market trends.
Strategic intent refers to the long-term direction and aspirations of an organization. It involves setting goals and developing plans to achieve them. Ouma Rusks is a South African food company that specializes in producing rusks.
To evaluate Ouma Rusks' overall strategic intent, we need to consider its goals and plans, particularly in relation to sustainability. Sustainability refers to the organization's ability to meet its present needs without compromising the ability of future generations to meet their own needs.
Ouma Rusks' strategic intent appears to focus on sustainable growth and responsible business practices. The company emphasizes the use of natural ingredients and environmentally-friendly production methods. They aim to minimize their impact on the environment while meeting the demand for their products.
The strategic intent of Ouma Rusks is generally regarded as good because it aligns with current market trends and consumer preferences for sustainable and ethically produced products. By incorporating sustainability into their strategy, Ouma Rusks can attract environmentally-conscious customers and build a positive brand image.
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A company has net working capital of $1,780. if all its current assets were liquidated, the company would receive $5,715. what are the company's current liabilities?
A business has $1,780 in net working capital. Current liabilities for the business are $3,935.
We know that,
Net working capital = Current assets − Current liabilities
$1,780 = $5,715 − Current liabilities
Current liabilities = $3,935
Current liabilities are a business's short- term debts that are due in a time or during a typical functional cycle. The time it takes for a business to buy force and turn that stock into cash from deals is known as an operating cycle, also known as the cash conversion cycle. checks outstanding to suppliers are an illustration of a current liability.
Current means, or effects used up within a time, are generally used to settle current arrears. Cash and accounts receivable, or money owing by clients for sales, are examples of current assets. When determining a company's ability to continue paying its debts when they become due, the ratio of current assets to current liabilities is crucial.
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