Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.

Required:
Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.

Answers

Answer 1

Answer:

Sanford Co.

Bond Amortization Schedule  

Period     PV           PMT                Interest                FV

1          $468,951.03         $25,000.00         $28,137.06         $472,088.09

2        $472,088.09         $25,000.00        $28,325.29          $475,413.38

Year #1 end

3        $475,413.38         $25,000.00         $28,524.80          $478,938.18

4        $478,938.18         $25,000.00         $28,736.29         $482,674.47

Year #2 end

5      $482,674.47         $25,000.00         $28,960.47         $486,634.94

6     $486,634.94         $25,000.00          $29,198.10          $490,833.04

Year #3 end

7    $490,833.04          $25,000.00        $29,449.98         $495,283.02

8    $495,283.02         $25,000.00         $29,716.98         $500,000.00

Year #4 end

Explanation:

a) Data and Calculations:

Face value of bonds = $500,000

Proceeds from bonds = $468,951

Bonds Discounts = $31.049

Coupon interest rate = 10%

Effective interest rate = 12%

N (# of periods)  8

I/Y (Interest per year)  12

PMT (Periodic Payment)  25000

FV (Future Value)  500000

Results

PV = $-468,951.03

Sum of all periodic payments $200,000.00

Total Interest $231,048.97


Related Questions

The aggregate expenditure (AE) curve Group of answer choices includes expenditures on foreign as well as domestic goods. does not include expenditures on either imports or exports. includes expenditures by domestic residents only. includes all expenditures on domestic goods.

Answers

Answer:

includes all expenditures on domestic goods.

Explanation:

AE curve is a combined current value of all the finished goods ad services in the economy. AE curve assumes a fixed price level, here the level of condition, expenditure and net imports would change. The equation of curve is AE = C + I + G + NX.

Suppose that XYZ Company hires labor and capital in competitive input markets. Assume that labor costs $200 per day and that a unit of capital costs $150 per day. At the current level of production, labor's marginal product is 40 units of output produced per day and capital's marginal product is 30 units of output per day.
a) Given the information provided, is the firm minimizing the cost of current production? Explain why or why not.
b) If the daily wages were to increase, explain the long run adjustments that the firm would likely make in response to the wage increase.

Answers

Answer:

a) Yes, the firm is minimizing the cost of current production. This is because MRPL / w = MRPC / r = 0.20.

b) The long run adjustments that the firm would likely make in response to the wage increase is to use more labor and less capital until MRPL / w = MRPC / r, which is the condition for the cost minimization of a firm.

Explanation:

a) Given the information provided, is the firm minimizing the cost of current production? Explain why or why not.

The condition for the cost minimization of a firm is as follows:

MRPL / w = MRPC / r ……………………………. (1)

Where:

MRPL = Labor's marginal product = 40

w = Cost of labour = $200

MRPC = Capital's marginal product = 30

r = Cost of capital = 150

Therefore, we have:

MRPL / w = 40 / 200 = 0.20

MRPC / r = 30 / 150 = 0.20

Since MRPL / w = MRPC / r = 0.20, this implies that these conditions are consistent with equation (1). Therefore, the firm is minimizing the cost of current production.

b) If the daily wages were to increase, explain the long run adjustments that the firm would likely make in response to the wage increase.

If the daily wages were to increase, the MRPL / w in equation (1) in part a above will fall and we will have:

MRPL / w < MRPC / r …………………… (2)

Since equation (2) is no longer consistent with equation (1), the firm is NOT minimizing the cost of current production.

Therefore, the long run adjustments that the firm would likely make in response to the wage increase is to use more labor and less capital until MRPL / w = MRPC / r, which is the condition for the cost minimization of a firm.

Front Company had net income of $73,500 based on variable costing. Beginning and ending inventories were 900 units and 1,400 units, respectively. Assume the fixed overhead per unit was $7.95 for both the beginning and ending inventory. What is net income under absorption costing

Answers

Answer:

$77,475

Explanation:

Calculation to determine net income under absorption costing

Using this formula

Net income=Net income+(Ending inventories×fixed overhead per unit)- (Beginning Inventories × Fixed overhead per unit)

Let plug in the formula

Net income=$73,500 + (1,400 units x $7.95) - (900 x $7.95)

Net income=$73,500+$11,130-$7,155

Net income=$77,475

Therefore net income under absorption costing is $77,475

Information technology has been used to improve both internaland external access and sharing of information. Three main kinds ofinformation technology allow access and sharing of informationinternally among employees: executive information systems,intranets, and portals.
For each description in the following table, identify thecorresponding information technology.
Description Executive Information System Intranet Corporate Portal
1. Helps managers monitor and analyze organizationalperformance
2. A hybrid system that uses a web address to give employeesaccess to customized information and specialized transactions
3. An internal company network that provides employees witheasy access to information

Answers

Answer:

1. Executive Information System (EIS).

2. Corporate Portal.

3. Intranet.

Explanation:

Information technology (IT) can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products.

An information technology (IT) interacts with its environment by receiving data in its raw forms and information in a usable format.

Information technology (IT) has significantly helped to improve both internal and external access and sharing of information between two or more business firms and individuals. Basically, there are three (3) main kinds of information technology (IT) which allow informations to be accessed and shared internally among employees; executive information systems (EIS), intranets, and portals.

1. Executive Information System (EIS): it assist managers working in an organization to monitor and analyze organizational performance. An Executive information system is also referred to as an Executive support system and it can be defined as a management support system that enhances and supports all of the senior executive information and decision-making process.

2. Corporate Portal: it's a hybrid system that uses a web address (uniform resource locator-URL) to give employees access to customized information and specialized transactions with respect to an organization.

3. Intranet: it's an internal company network which is private and provides employees with easy access to information.

On August 1, Batson Company issued a 60-day note with a face amount of $49,800 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 8%. fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 8%.

Answers

Answer: See explanation

Explanation:

a. Determine the proceeds of the note assuming the note carries an interest rate of 8%.

The proceeds of the note is the face value which is $49800.

b. Determine the proceeds of the note assuming the note is discounted at 8%.

Face amount: $49800

Less: Interest = $49800 × 8% × 60/360 = $664

Proceed of the note = $49136

Cash Short and Over Entries
Listed below are the weekly cash register tape amounts for service fees and the related cash counts during the month of July. A change fund of $100 is maintained.
Date Change Fund Cash Register Actual Cash
Receipt Amount Counted
July 2 $100 $281.80 $379.00
July 9 100 311.50 411.50
July 16 100 304.10 406.90
July 23 100 318.20 416.00
July 30 100 293.60 397.50
1. Determine the ending balance of the cash short and over account.
2. Does it represent an expense or revenue?

Answers

Answer:

1. Ending balance of cash short and over account:

Ending cash = 100 beginning balance + Cash register amount - Actual cash counted

July 2 = 100 + 281.80 - 379.00

= $2.80 shortage because actual cash is less than it should be

July 9 = 100 + 311.50 - 411.50

= $0

July 16 = 100 + 304.10 - 406.90

= $2.80 surplus because actual cash is more

July 23 = 100 + 318.20 - 416.00

= $2.20 shortage

July 30 = 100 + 293.60 - 397.50

= $3.90 surplus

Balance = Surplus - shortages

= (3.90 + 2.80) - (2.80 + 2.20)

= $1.70

2. This is revenue because it is a surplus.

Josh is an HR Manager at RoxCom LLC. He is responsible for conducting performance appraisals for all entry-level employees in his organization. He implements a guided self-appraisal system using management by objectives (MBO). As part of the process, he reviews the job description and the key activities that constitute each employee's job. What is most likely to be Josh's next step?

Answers

Answer:

Development of perfomance standards.

Explanation:

Based on the information in the question above, Josh's next step would likely be to develop the performance standards to be implemented in the guided self-assessment system using management by objectives.

The MBO is a management strategy used in organizations so that there is continuous improvement in processes and organizational performance in the internal and external environment, so in a self-assessment system guided by the MBO it is necessary to develop performance standards so that there is a parameter of the sought-after ideal of employee performance, so that self-assessment is guided by such standards. In this type of strategic management, it is necessary to share the objectives throughout the organization, so that they are clear, precise and shared as part of the organizational culture.

Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 9% sales tax. Record the entry for the $16,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.

Answers

Answer:

See journal entries under the explanation below:

Explanation:

The journal entries will look as follows:

                                           Dextra Computing

                                             Journal Entries

Date          Particulars                                             Debit ($)      Credit ($)  

Sep 30     Cash                                                         17.440

                  Sales                                                                            16,000

                  Sales Taxes Payable ($16,000 * 9%)                           1,440

                 (To record the cash sale and 9% sales tax)                              

                 Cost of Goods Sold                                 11,200

                   Merchandise Inventory                                              11,200

                 (To record the cost of sales.)                                                    

Oct 15       Sales Taxes Payable ($16,000 * 9%)        1,440

                   Cash                                                                             1,440

                 (To record sending sales tax to the government.)                  

When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred, then the lowest acceptable transfer price as far as the selling division is concerned is:

Answers

Answer: c. the market price charged to outside customers

Explanation:

When a division is able to sell its products to customers outside the company for a certain price but instead has to transfer these to another division in the company, the minimum transfer price will have to be the selling price to the customers outside so that the division would not make losses.

The division that this good is transferred to will then reflect the cost of acquiring the goods as that selling price. This cost will be accounted for when the new division wants to sell their own goods that way this cost will be recuperated on a company level.

Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,400,000 $ 24,000,000 Net operating income $ 752,000 $ 2,400,000 Average operating assets $ 2,350,000 $ 8,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 18%. Compute the residual income for each division.

Answers

Answer:

1. Osaka ROI 32 %

Yokohoma ROI 30%

2.Osaka Residual income $329,000

Yokohoma Residual income $960,000

Explanation:

1. Computation for return on investment (ROI) in terms of margin and turnover.

Using this formula

ROI = Net operating income/Average operating assets

Let plug in the morning

Osaka ROI = 752,000/2,350,000

Osaka ROI =32 %

Yokohoma ROI = 2,400,000/$ 8,000,000

Yokohoma ROI =30%

Therefore for return on investment (ROI) in terms of margin and turnover is :

Osaka ROI 32 %

Yokohoma ROI 30%

2. Computation for the residual income for each division.

Using this formula

Residual income = Net operating income - Required return

Let plug in the formula

Osaka Residual income= 752,000 - (2,350,000*18%)

Osaka Residual income= 752,000-423,000

Osaka Residual income = $329,000

Yokohoma Residual income = 2,400,000 - ($8,000,000*18%)

Yokohoma Residual income = 2,400,000-1,440,000

Yokohoma Residual income= $960,000

Therefore the residual income for each division is:

Osaka Residual income $329,000

Yokohoma Residual income $960,000

MC Qu. 122 Walter Enterprises expects... Walter Enterprises expects its September sales to be 20% higher than its August sales of $225,000. Purchases were $175,000 in August and are expected to be $195,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 20% in the month of purchase and 80% in the following month. The beginning cash balance on September 1 is $8,400. The ending cash balance on September 30 would be:

Answers

Answer:

Ending cash balance $67,900

Explanation:

The computation of the ending cash balance is given below:

Schedule of expected cash collection for September

From august sales (70% of 225,000) 157,500

From sept. sales (30% of 270,000) 81,000

Total cash collection$238,500

Now  

Schedule of expected cash payment

For august purchase (80% of 175,000) 140,000

Foor september purchase (20% of 195,000) 39,000

Total cash payment $179,000

Now  

Beginning cash balance 8,400

Budgeted cash collection 238,500

Total available cash 246,900

Budgeted cash payment -179,000

Ending cash balance $67,900

Unearned Revenue: The company collected $24,000 rent in advance on September 1,
debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12
months' rent in advance and occupancy began September 1. Answer the four questions
below as of 12/31. Whenever you see the word "unearned," it always indicates a liability
account. Most liability accounts include the word "payable," as those liabilities will be
paid back. An unearned account is a liability that will be worked off, rather than paid
off.
1. The beginning balance of Unearned Revenue: (5 pts)

Answers

Answer:

Time period from September 1 - December 31 is 4 months and this means that the tenant has occupied the place for 4 months. Hence, 4 months rent would be accrued.

12 Month rent amount = $24,000

Per month rent amount = $240,00/12 month = $2,000

So, Rent for 4 months = 4 month * $2,000 = $8,000

                         Adjusting Entry

Date      Account titles                     Debit     Credit

Dec 31  Unearned Rent Revenue   $8,000

                   Rent Revenue                              $8,000

Because of ________ if a city government decides to spend money on beautifying its downtown and attracting tourism to its city when no money has been devoted to those efforts before, then gains in tourism may be significant. Group of answer choices

Answers

Answer:

The answer is the production possibility frontier.

Standard Quantities Allowed of Labor and Materials Miel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 18 ounces of rolled oats per carton (the unit quantity standard) and 0.05 labor hour (the unit labor standard). During the year, 750,000 cartons of oatmeal were produced. Required: 1. Calculate the total amount of oats allowed for the actual output. fill in the blank 1 ounces 2. Calculate the total amount of labor hours allowed for the actual output. fill in the blank 2 hours

Answers

Answer:

13,500,000 ounces of oatmeal37,500 labor hours

Explanation:

1. Total amount of oats allowed for the actual output:

= Cartons of oatmeal produced * Oatmeal per carton

= 750,000 * 18

= 13,500,000 ounces of oatmeal

2. Labor hours allowed for actual output:

= Cartons of oatmeal produced * Labor hours required

= 750,000 * 0.05

= 37,500 labor hours

Below is a list of account balances for Currie Hospital as of December 31, 2013. Prepare a balance sheet as of December 31, 2013, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted.) You may use either a Word document or an Excel spreadsheet to construct the balance sheet.
Account Balance
Gross plant & equipment $6,000,000
Accounts payable 130,000
Inventories 100,000
Other current liabilities 70,000
Net accounts receivable 650,000
Accrued expenses 100,000
Accumulated depreciation 200,000
Long-term debt 5,000,000
Cash 210,000

Answers

Answer: See explanation

Explanation:

The balance sheet is illustrated below:

Currie Hospital Balance Sheet

ASSETS

Current Assets

Cash $210,000

Inventories $100,000

Accounts receivable, net $650,000

Total Current Assets $960,000

Gross plant & equipment $6,000,000

Less: Accumulated depreciation $200,000 5,800,000

Total Assets 6,760,000

Liabilities and net assets

Current liabilities

Accounts Payable $130,000

Accrued expenses and other liabilities $170,000

Total current liabilities $300,000

Long-term debt $5,000,000

Total Liabilities $5,300,000

Net assets

Unrestricted $1,460,000

Total net assets $1,460,000

Total liabilities and net assets $6,760,000

Read the following details and determine why international trade is possible between these two countries.
Koopmansville has many natural lakes and streams. As a result, its residents grow up on the water and have a natural sense of how boats should work and be made. Because of that knowledge, even though there is demand for canoes in both countries, all of the canoe factories have located themselves in Koopmansville to take advantage of local knowledge. Despite their similarities, Cassvania and Koopmansville are able to trade because of:________.
a. external economies of scale.
b. increasing returns to scale

Answers

Answer:

Despite their similarities, Cassvania and Koopmansville are able to trade because of:________.

a. external economies of scale.

Explanation:

Koopmansville enjoys external economies of scale over Cassavania in the production of canoes.  These benefits come in the form of lower production and operating costs and reduced variable costs per unit as a result of operational efficiencies and synergies.  In addition, the residents of Koopmansville, given their environment, have natural sense of boat-making.

Nate borrowed $38,672 from bank and his friends to expand his casino business. Nate set up an aim to pay $2,450 at the end of each week for 16 weeks. Assume each year has 52 weeks. What are the nominal rate per year and the effective interest rate per year?

Answers

Answer:

Hence, the Nominal annual rate is 20.28%.  

Effective annual rate is 22.43%.

Explanation:  

Amount borrowed = $38,672.  

Weekly repayment for 16 weeks = $2,500.  

Loan repayment = (Loan amount x r) / {1-(1+r)-n}  

$2,450 = ($38,672 x r)/{1-(1+r)-16}  

r= 0.39%  

Weekly interest rate = 0.39%  

Nominal annual rate = 0.39 % x  52 weeks = 20.28%  

Effective annual rate = [tex](1 + 0.0039^{52} ) - 1[/tex] = 0.2243 = 22.43%

As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,250 1,750 2,750 2,950 Hours per machine 318 194 393 315 Number of machines 5 7 6 5 Find the average of the monthly productivity figures (units per machine hour).

Answers

Answer: 2.81 per hour

Explanation:

Average monthly productivity = (January productivity + February productivity + March productivity + April productivity) / 4

January productivity:

= Units produced / ( Hours per machine * Number of machines )

=  2,250 / ( 318 * 2 )

= 3.537

February productivity:

= 1,750/ ( 194 * 4 )

= 2.255

March productivity:

= 2,750 / ( 393 * 3 )

= 2.332

April productivity:

= 2,950/ ( 315 * 3)

= 3.121

Average monthly productivity = (3.537 + 2.255 + 2.332 + 3.121)/ 4

 = 2.81 per hour

Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Assets of $210.761 million Total Common Stock of $6.350 million Cash of $10.050 million Retained Earnings of $47.491 million. What were the Digby Corporation's total liabilities

Answers

Answer:

the  Digby Corporation's total liabilities is $156.92 million

Explanation:

The computation of the total liabilities is given below:

Total Liabilities is

= Total Asset - (Total Common Stock + Retained Earnings)

= $210.761 - ($6.350 + $47.491)

= $210.761 - $6.350 - $47.491

= $156.92 million

Hence, the  Digby Corporation's total liabilities is $156.92 million

The same should be relevant

If Walmart (WMT) recently earned a profit of $5.10 per share and has a P/E ratio of 16.25. The dividend has been growing at a 6 percent rate over the past few years. If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged?
What would the price be if the P/E ratio declined to 12 in five years?
A) $41.44, $30.60 respectively
B) $82.88, $61.20 respectively
C) $110.91, $81.90 respectively
D) $414.38, $306.00 respectively

Answers

Answer:

C) $110.91, $81.90 respectively

Explanation:

Earning per share after year 5 = $5.10*(1+6%)^5

Earning per share after year 5 = $5.10*(1.06)^5

Earning per share after year 5 = $5.10*1.33823

Earning per share after year 5 = $6.825    

If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged?

Price per share = P/E ratio * Earning per share

Price per share = 16.25*$6.825

Price per share = $110.91

What would the price be if the P/E ratio declined to 12 in five years?

Price per share = P/E ratio * Earning per share

Price per share = 12*$6.825

Price per share = $81.90

Define the advantages that the law affords affords to business corporations. In view of the many advantages that the law affords affords to business corporations, what additional responsibilities or obligations if any should a business corporation have to the public. If you were advising a client on picking a business form explain why a corporation would be a good choice. Also explain why a corporation would be a bad choice.

Answers

The following are the benefits that the law provides to business corporations:

Personal property protection- because the proprietors will have limited accountability for the debts of the company and commitments, lenders will not go for their property funds if the firm cannot give them the money.It is simple to obtain funds by selling stock, allowing the firm to develop by acquiring additional investors.

The following are extra responsibilities that a business entity has to the public:

The business company is required to practise Corporate Responsibility, often referred as CSR, which is defined as the public's legal, moral, or political demand of a corporate enterprise. This indicates that the organisation will engage in certain ethical, moral, and charitable actions to assist better the lives of the people in the communities where they operate.

This can take the shape of building roads, clinics, schools, bridges, planting trees, or any other operation that benefits society but does not generate a return for the business.

Learn more:

https://brainly.com/question/19793205?referrer=searchResults

Magazine sells subscriptions for for issues. The company collects cash in advance and then mails out the magazines to subscribers each month. Apply the revenue recognition principle to determine a. when Magazine should record revenue for this situation. b. the amount of revenue Magazine should record for issues. a. Seacoast Magazine should record revenue whe

Answers

Answer:

a. It should record revenue on a monthly basis

The Revenue Recognition principle in accounting posits that revenue should only be recognized after the goods and services that the revenue was paid for, have been delivered.

Seacoast Magazine has not delivered the magazine and will do so monthly for 18 months. It should therefore apportion profits to those months and only recognize the profit after the magazines are delivered.

b. Amount of revenue for 8 issues:

= 36/ 18 issues * 8 issues

= 2 * 8

= $16

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés lead to a longer life expectancy? Group of answer choices The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous. Both the equilibrium price and quantity would increase. Both the equilibrium price and quantity would decrease. The equilibrium price would increase, and the effect on equilibrium quantity would be ambiguous.

Answers

Answer:

The equilibrium price would increase, and the effect on equilibrium quantity would be ambiguous.

Explanation:

The equilibrium price would increase, and the effect on equilibrium quantity would be ambiguous.

The increase in the cost of production will decrease the supply so the supply curve will shift leftward and simultaneously the research by scientists says the consumption of lattes will increase the life expectancy so many people will start consuming t os demand curve will shift rightwards. That means equilibrium price will increase but change in quantity can not be determined.

a. Sunland Cosmetics acquired 12% of the 287,500 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2019. On June 30, Elite declared and paid a $80,200 dividend. On December 31, Elite reported net income of $228,100 for the year. At December 31, the market price of Elite Fashion was $16 per share.
b. Culver Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 29,100 outstanding shares of common stock at a total cost of $11 per share on January 1, 2020. On June 15, Kasey declared and paid a cash dividend of $38.500. On December 31, Kasey reported a net income of $122.900 for the year.

Required:
Prepare all the necessary journal entries for 2020 for Culver Inc.

Answers

Answer:

Mar 18

Dr Available for sales Securities $4,025,000

Cr Cash $4,025,000

June 30

Dr Cash $9624

Cr Dividend Revenue $9624

Dec-31

Dr Securities Fair value Adjustment $575,000

Cr Unrealised gain or Losss- income$575,000

B. Jan 1

Dr Investment in Culver stock $80,025

Cr Cash $80,025

Jan 15

Dr Cash $9,625

Cr Investment in Culver stock $9,625

Dec, 31

Dr Investment in Culver stock $30,725

Cr Revenue $30,725

Explanation:

Preparation of all the necessary journal entries for 2020 for Culver Inc.

Mar 18

Dr Available for sales Securities $4,025,000

(287,500*$14)

Cr Cash $4,025,000

June 30

Dr Cash $9624

Cr Dividend Revenue $9624

($80,200*12%)

Dec-31

Dr Securities Fair value Adjustment $575,000

Cr Unrealised gain or Losss- income$575,000

[(287,500*($16-$14)]

B. Jan 1

Dr Investment in Culver stock $80,025

(29,100*25%*$11)

Cr Cash $80,025

Jan 15

Dr Cash $9,625

($38,500*25%)

Cr Investment in Culver stock $9,625

Dec, 31

Dr Investment in Culver stock $30,725

($122,900*25%)

Cr Revenue $30,725

Colorado Cleaning has a 5-year maximum acceptable payback period. The firm is considering the purchase of a new washing machine and must choose between two alternative ones. The first machine requires an initial investment of $25,000 and generates annual after-tax cash inflows of $6,500 for each of the next 8 years. The second machine requires an initial investment of $75,000 and provides an annual cash inflow after taxes of $9,500 for 15 years.

Required:
a. Determine the payback period for each machine.
b. Comment on the acceptability of the machines, assuming that they are independent projects.
c. Which machine should the firm accept? Why?
d. Do the machines in this problem illustrate any of the weaknesses of using payback? Discuss.

Answers

Answer:

a) Payback period = period up to which cumulative cash flow is negative +

                                    (negative cumulative cash flow /cash flow succeeding    

                                       the above period)

Project A - Up to year 4 ,cash flow recovered = 3000 * 4 = 12,000

Payback period =14,000/3,000 = 4.67 years

Project B= Cash flow recovered up to year 5 = 4000 * 5 = 20000

Payback period = 21,000/4,000 =5.25 years

b) On the basis of the Payback period, Project A should be selected, as it has a lower payback period and is also within the maximum acceptable payback period. back period.(4.67 < 5)

Project B should not be selected as its payback recovery is not within the maximum acceptable payback period (5.25 >5 )

c) Machine A should be selected as it has a lower payback period. than machine B.

d)The payback period ignores the life present value of cash flow and also the life of the machine each project has.

so the decision on the basis of the payback period may not be accurate.

Your uncle offers you a choice of $112,000 in 10 years or $51,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 8 percent, what is the present value of the $112,000

Answers

Answer:

the present value of the $112,000 is $51,856

Explanation:

The computation of the present value is given below:

Present Value = Amount × Present value factor at 8% for 10 years

= $112,000 × 0.463

= $51,856

hence, the present value of the $112,000 is $51,856

We simply applied the above formula so that the correct amount could come

a face value of $450 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $388,844,955, what interest expense would it recognize in its 2021 income statement

Answers

Answer:

$7,776,899

Explanation:

Calculation to determine what interest expense would it recognize in its 2021 income statement

Interest expense= $388,844,955 * 8% * (3 months/12 months)

Interest expense= $31,107,596.4 * 3/12

Interest expense= $7,776,899

Therefore the interest expense that would be recognize in its 2021 income statement is $7,776,899

Franklin is a research scientist at Insight Research Corporation (IRC). IRC has five research scientists, four assistants, one secretary, and one CEO. Franklin has developed ALS, a disease which binds him to a wheelchair. He is one of the greatest scientists in the world, and can still do his job. Franklin has requested that IRC accommodate his disability, making changes to the company restroom and widening the doors to the building. The changes would be relatively inexpensive, costing only $2,000. If Franklin sues under the Americans with Disabilities Act (ADA), what result

Answers

If Franklin sues under the Americans with Disabilities Act (ADA), Franklin will win and this will force IRC to accommodate his disability under this civil rights legislation.

The ADA law was passed to protect persons experiencing physical or mental impairment or disability against workplace discriminations.

While ALS is recognized as a progressive nervous system disease that surely affects Franklin's nerve cells in his brain and spinal cord, which has caused him to lose muscle control, he can still perform his duties as a research scientist at IRC.

Thus, Insight Research Corporation should accommodate Franklin and make the necessary changes, which have been determined to be relatively inexpensive to the company.

Thus, if IRC fails to accommodate Franklin and he sues the company in the court under ADA, he will prevail.

Learn more about Americans with Disabilities Act here: https://brainly.com/question/15650848

34.Mr. Hoffman has always been cautious with his money, but over the past two weeks he has developed grandiose plans to bet his entire life savings on a single horse race. With unrestrained exuberance he has also been giving everybody he sees unsolicited advice on how to make millions in the stock market. Mr. Hoffman's behavior is most indicative of

Answers

Answer:

mania

Explanation:

From the question we are informed about Mr. Hoffman who has always been cautious with his money, but over the past two weeks he has developed grandiose plans to bet his entire life savings on a single horse race. With unrestrained exuberance he has also been giving everybody he sees unsolicited advice on how to make millions in the stock market. Mr. Hoffman's behavior is most indicative of mania. Mania can be regarded as psychological condition which is responsible for a person to be experiencing intense moods,delusions as well as unreasonable euphoria and hyperactivity. Mania can also be regarded as manic episodes, and this is a symptom of bipolar disorder, one that is experiencing this may not be able to sleep very well or eat well, they have experience of hallucinations as well as some perceptual disturbances.

Supervisor: In general, half of all customers you speak to will ask about any upcoming pricing discounts or promotions. Of those who do ask, only 20% qualify for the discount. Employee: So that means if I speak to 300 customers, __________ will qualify for the discount.

Answers

Answer: 30 people

Explanation:

In general, only half of those spoken to will ask about upcoming discounts so out of 300, the number that will ask for discounts is:

= 300 / 2

= 150 people

Out of these 150 people who ask about upcoming discounts, only 20% will qualify. The number that will qualify is:

= 150 * 20%

= 30 people

Other Questions
Mr. Jerome has an outstanding balance of $12000 on his credit card. The interest rate on the card is 12% he intends to pay offthe card in 2 years. Find the APR on the card. I'LL GIVE BRAINLIEST !!!!!EXPLAIN is it bad for land to be grazed until the soil is bare ? 5 page story on Contemporary Literature The average number of shirts that a shop sold each month is given in the graph. In the graph, 1 represents January, 2 represents February, and so on. Based on the graph, how many shirts can the shop expect to sell in June of that year? A. 60 shirts B. 160 shirts C. 220 shirts D. 320 shirts Convert 88 to radians and round to 2 decimal places. plz help me with this one question I will give u like,rate you 5 star and also follow u back.ppz help me . (c) 12 (d) tersomptionExercice trois:Fill the blank space with the correct month.breLe premier mols de l'anne est2est la deuxime mois de l'annesLe mois aprs avril estLe mois qui vont avant avrii est5est le sademe mois de l'anneoctobre6est le septieme mois de l'anne7Le ultieme mois de l'anne est8Le neuvime mois de l'anne estLa mois aprs novembre estest le mois avant mai10 3.10. 1 IT IS + A PERIOD OF TIME + SINCE + S + LAST + past tense..Eg: It is 2 months since she last saw himShe last saw him 2 months ago.The last time she saw him was 2 months ago.She hasnt seen him for 2 months.It has been 2 months since she last saw him.*It is a month since he visited his parents.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________* It is 5 days since we last eat fish.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________* It is many years since we wrote a book.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________* It is over a month since he talked to her._____________________________________________ A stock lost 8 3/8 points on Monday and then another 1 5/8 points on Tuesday. On Wednesday, it gained 13 points. What was thenet gain or loss of the stock for these three days? Consider an economy described by the combined Solow and Romer model. If this economy is on its balanced growth path when an exogenous permanent increase in the depreciation rate occurs: Group of answer choices the level of output per capita on the new balanced growth path will remain unchanged the growth rate of output per capita will remain unchanged there will be an immediate growth effect the economy will not exhibit transition dynamics Carrington Company uses the allowance method for recording bad debts. On February 1, Carrington wrote off a $3,500 customer account balance when it became clear that the particular customer would never pay. On May 29, Carrington unexpectedly received a check for $3,500 from the customer. On May 29, Carrington will: A. Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $3,500; debit Cash and credit Bad Debt Expense for $3,500. B. Debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $3,500; debit Cash and credit Accounts Receivable for $3,500. C. Debit Accounts Receivable and credit Allowance for Doubtful Accounts for $3,500; debit Cash and credit Accounts Receivable for $3,500. D. Debit Cash and credit Bad Debt Expense for $3,500; debit Accounts Receivable and credit Allowance for Doubtful Accounts for $3,500. Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:Number of Workers Number of Chairs1 102 183 244 285 306 287 25a. Calculate the marginal and average product of labor for this production function.b. Does this production function exhibit diminishing returns to labor What determines the composition of the soil? 1 . original rock2. underlying rock breaks down 3. minerals that are present in the rock4.transported from a different location The figure shows a line graph and two shaded triangles that are similar:Which statement about the slope of the line is true?A. It is fraction 1 over 2 throughout the line.B. It is 2 throughout the line.C.The slope from point O to point A is fraction 1 over 2 time the slope of the line from point A to point B. D. The slope from point O to point A is two times the slope of the line from point A to point B. Read the two excerpts from act 3, scene 2, of Julius Caesar.[BRUTUS.] If then that friend demandwhy Brutus rose against Caesar, this is my answer:not that I loved Caesar less, but that I lovedRome more. Had you rather Caesar were living, anddie all slaves, than that Caesar were dead, to liveall free men? As Caesar loved me, I weep for him.As he was fortunate, I rejoice at it. As he wasvaliant, I honour him. But as he was ambitious, Islew him. There is tears for his love, joy for hisfortune, honour for his valour, and death for hisambition. Who is here so base that would be abondman?[ANTONY.] Did this in Caesar seem ambitious?When that the poor have cried, Caesar hath wept.Ambition should be made of sterner stuff.Yet Brutus says he was ambitious,And Brutus is an honourable man.You all did see that on the LupercalI thrice presented him a kingly crown,Which he did thrice refuse. Was this ambition?Yet Brutus says he was ambitious,And sure he is an honourable man.Which statement best compares the two monologues?Both Brutus and Antony ask rhetorical questions to make points.Brutus describes Caesars generosity and compassion, while Antony describes his heartless nature.Both Brutus and Antony describe Caesars weakness in battle.Neither Brutus or Antony addresses the crowd directly. What is the easiest way to deploy a C++ program to a users computer? a. Copy the source code to the users computer and then compile it b. Create a batch file that copies the program to the users computer and then run it c. Copy the executable file to the users computer d. Create an installer program and then run it on the users computer Sam is five years old his brother Tom is three times as old as Sam when sam is 20 how old will Tom be? A stranger said to astha,"what kind of music do you like"?(into indirect speech) Abby cuts a sheet of paper in half, making two triangles. If the piece of paper is 16cm long by 12cm wide, how long is the diagonal? Please help me, by completing this proof!