Lang Warehouses borrowed $178,960 from a bank and signed a note requiring 8 annual payments of $28,819 beginning one year from the date of the agreement. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the interest rate implicit in this agreement. (
Answers
Answer: 6%
Explanation:
The annual payments can be considered to be annuity payments as they are constant. The amount borrowed can be considered the present value of the annuity.
Present value of annuity = Annuity * Present value interest factor of annuity, 8 years, %?
178,960 = 28,819 * Annuity factor
Annuity factor = 178,960 / 28,819
= 6.20979
To find out the interest rate, look at the Present Value of Annuity table and go to the 8 period column. Look for 6.20979. The interest rate that intersects with this factor is the interest rate implicit in this agreement.
That rate is 6%.
Related Questions
Your firm currently has net working capital of $ that it expects to grow at a rate of % per year forever. You are considering some suggestions that could slow that growth to % per year. If your discount rate is %, how would these changes impact the value of your firm?
Answers
Complete Question:
Your firm currently has net working capital of $132,000 that it expects to grow at a rate of 4% per year forever. You are considering some suggestions that could slow that growth to 2% per year. If your discount rate is 10%, how would these changes impact the value of your firm? The value of the firm would $ (Round to the nearest dollar.)
Answer:
The Firm
a. The changes will reduce the value of the firm from $2,200,000 to $1,650,000, a difference of $550,000.
b. The value of the firm would be $1,650,000 if the changes are retained.
Explanation:
a) Data and Calculations:
Current net working capital = $132,000
Expected growth rate = 4%
Desired growth rate = 2%
Firm's discount rate = 10%
Value of firm with expected growth rate of 4% = NWC/(k - g)
where NWC = Net Working Capital
k = discount rate
g = growth rate
Therefore value of the firm = $132,000/(0.1 - 0.04)
= $132,000/0.06
= $2,200,000
Value of the firm with reduced growth rate of 2%:
= $132,000/(0.1 - 0.02)
= $132,000/0.08
= $1,650,000
A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $10 per order. The revised EOQ is: three times as large. one-third as large. nine times as large. one-ninth as large. cannot be determined
Answers
Answer: three times as large
Explanation:
Economic order quantity will be calculated as follows:
EOQ = ✓(2DS/H)
D = Demand in units
Here S = Ordering cost = $10
H = Holding cost
Since S = $10
Therefore, EOQ will be:
= ✓(2DS/H)
= ✓(2 × 10 × D/ H)
= ✓(20D/H)
Since we're to increase the order cost from $10 per order to $90 per order, then EOQ will be:
Since S = $90
Therefore, EOQ will be:
= ✓(2DS/H)
= ✓(2 × 90 × D/ H)
= ✓(180D/H)
3✓20DH
The revised EOQ will then be 3 times as large.
The following are the Consumer Price Index (CPI) for the years 1991-1993. All of the values use a reference year of 1986.
Year CPI
1991 110
1992 120
1993 135
Which of the following is true about the CPI, based on the information?
a. $100 in 1986 would be equivalent to $135 in 1993.
b. $100 in 1992 would have been worth $100 in 1986.
c. $100 in 1991 would have been worth $110 in 1986.
d. $100 in 1993 would be equivalent to $120 in 1992.
Answers
Answer:
1986 is the base year. so, the CPI of the base year is always 100%.
Option A
The value of $100 in 1993 would be = ($100/CPI of 1986) * CPI of 1993
= ($100/100) * 135
= $135
So, Option A is true.
Option B
$100 in 1992 would have been worth in 1986: ($100/CPI of 1992) * CPI of 1986
= ($100/120) * 100
= $83.33
So, Option B is false.
Option C
$100 in 1991 would have been worth in 1986: ($100/CPI of 1991) * CPI of 1986
= ($100/110) * 100
= $90.91
So, Option C is false.
Option D
The value of $100 in 1992 would be: ($100/CPI of 1993) * CPI of 1992
= ($100/135 * 120
= $88.89
So, Option D is false.
Projects are also often embedded with different options that can help making decisions under uncertainty. There are techniques used to evaluate these embedded options which are called real options. The models used to value these options are based on the type of the real option available for the project. Real options the value of capital investment projects.
A real option embedded in a capital project gives the investing firm the right but not the obligation to buy, sell, or transform an asset at a set price during a specified period of time.
a. True
b. False
Answers
Answer:
a. True
Explanation:
The real option should be used in the decision that made for the capital investment in order to rise the worth of the project. So it rise the capital investment value for the project. Also a real option in a capital asset provides the right to the investing firm but not the liability to purchase or sell or transform the asset at a fixed price
Therefore the given statement is true
a. Fiscal Policy involves changing ___________.
b. In the United States, Fiscal Policy is implemented by the _________ .
b. _____________ can be used to address a Recessionary Gap by ______________ taxes and ________________ government purchases.
c. Meanwhile, ______________ can be used to address an Inflationary Gap by ______________ taxes and ___________ government purchases.
Answers
Answer:
This answer is found in . I've seen it. The whole thing
Once account numbers have been enabled, where can the numbers be assigned and edited?
Answers
Answer: Chart of Accounts
Explanation:
Once account numbers have been enabled, the numbers be assigned and edited in the chart of accounts.
To assign the account numbers, one needs to go to the accounting menu and then the chart of accounts will be selected. After that, one will select batch edit which can be seen in the action menu and add the account numbers after which one will then save. In order to see the account numbers,one can then go to chart of accounts
This information relates to Blossom Co..
1. On April 5, purchased merchandise from Sunland Company for $28,800, terms 4/10, n/30.
2. On April 6, paid freight costs of $620 on merchandise purchased from Sunland Company.
3. On April 7, purchased equipment on account for $34,200.
4. On April 8, returned $3,500 of April 5 merchandise to Sunland Company.
5. On April 15, paid the amount due to Sunland Company in full.
1. Prepare the journal entries to record the transactions listed above on Blossom Co.’s books. Blossom Co. uses a perpetual inventory system.
2. Assume that Blossom Co. paid the balance due to Sunland Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Answers
Answer:
1. Apr 5
Dr Merchandise inventory $28,800
Cr Account payable $28,800
Apr 6
Dr Merchandise inventory $620
Cr Cash $620
Apr 7
Dr Equipment $34,200
Cr Account payable $34,200
Apr 8
Dr Account payable $3,500
Cr Merchandise inventory $3,500
Apr 15
Dr Account payable $25,300
Cr Cash $24,288
Cr Merchandise inventory $1,012
b) May 4
Dr Account payable $25,300
Cr Cash $25,300
Explanation:
1. Preparation of the journal entries to record the transactions listed above on Blossom Co.’s books. using a perpetual inventory system.
Apr 5
Dr Merchandise inventory $28,800
Cr Account payable $28,800
Apr 6
Dr Merchandise inventory $620
Cr Cash $620
Apr 7
Dr Equipment $34,200
Cr Account payable $34,200
Apr 8
Dr Account payable $3,500
Cr Merchandise inventory $3,500
Apr 15
Dr Account payable $25,300
($28,800-$3500)
Cr Cash (25,300*96%) $24,288
Cr Merchandise inventory $1,012
($25,300-$24,288)
b) Preparation of the journal entry to record this payment.
May 4
Dr Account payable $25,300
($28,800-$3500)
Cr Cash $25,300
examine the value of interactive leadership in the public sector and demonstrate its capacity to empower the followers
Answers
The correct answer to this open question is the following.
The value of interactive leadership in the public sector can be seen in the efficiency and effectiveness of the work done by the cabinet of the executive branch. Many different departments and public offices are managed using interactive leadership, informing employers of what needs to be done and the reason why.
Interactive leadership has the capacity to empower employers because it maintains open lines of communication, informing about key activities that need to be done, clarifying goals, establishing strategies, and facilitating the tools to perform and be effective.
The public sector is comprised of what is known as the bureaucracy, and in order to coordinate and lead this public sector, leaders have to properly interact with employers. These employers can openly and honestly express their concerns and opinions to the leader, who takes into consideration this input. The great advantage of using interacting leadership is that people know what is expected of them.
Read the following coping options and categorize them as either problem or emotion focused and as either behavioral or cognitive in nature.
1. Ignore
2. Perspective
3. Plan
4. Other activities '
5. Vent
6. Pep talk
7. Longer hours
8. Ask supervisors
A. Problem-Focused B. Emotion-Focused
C. Cognitive Methods
D. Behavioral Methods
Answers
Answer:
1. Ignore - A
2. Perspective - C
3. Plan - A
4. Other activities - D
5. Vent - B
6. Pep talk - D
7. Longer hours - D
8. Ask supervisors - A
Cheers
Select the correct answer.
Which option will help you add visual effects to your presentation when you move from one slide to another?
OA.
slide background
OB.
slide master
Ос.
slide theme
OD.
slide transition
Answers
Answer:D. Slide transition
Explanation:
A high-tech computer company reported the following information in a recent annual report (all dollar amounts are expressed in millions): Net revenue $49,205 Cost of Goods Sold $40,190 Production materials on-hand $228 Work-in-process and finished goods on-hand $231 What is the current value of weeks of supply
Answers
Answer:
See below
Explanation:
With regards to the above information, current value of the week of supply is calculated as shown below;
The week of supply Informs the manager how long the current on hand varies
= $228 ÷ $231
= 0.99 weeks
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is planning its raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 14,250 units. The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 75,375 cc of solvent H300. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgeted Unit Sales July 49,000 August 54,000 September 64,000 October 44,000 November 34,000 December 24,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
Answers
How can the cost allocation methods in activity-based costing be utilized to target process improvements
Answers
Answer:
In simple words, Activity-based costing can be understood as more precise approach of estimating the cost of a commodity or service, resulting in more precise pricing decisions.
ABC allows for a more effective examination of operational expenses in order to identify better methods to allocate and eliminate overheads. It also allows for more accurate measurement of brand and client profitability.
Which of the following does NOT describe the front-end business practices of firms that respect the strategic roles of purchasing?
a. Product development is regarded as a front-end business practice.
b. Creativity does not require discipline.
c. Marketing in general is regarded as a front-end business practice.
d. High level of uncertainty is about the fact that people have to make important decisions and although they do not have all the relevant information they need.
e. Front-end business practices are discovery-driven in that they explore and create from what they do not know about.
Answers
Answer:
b. Creativity does not require discipline.
Explanation:
Front end business practice is the strategy to develop and progress business activities from customer perspective. It focusses on customer demand and then products are customized according to customer needs. Marketing efforts are placed to inform customers about the different features of the product.
Newton Company is considering the purchase of an asset that will provide a depreciation tax shield of $19,200 per year for 10 years. Assuming the company is subject to a 40% tax rate during the period, and a zero salvage value, what is the depreciable cost of the new asset
Answers
Answer:
$480,000
Explanation:
The computation of the depreciable cost of the new asset is shown below:
Given that
Depreciation tax shield = $19,200
Tax rate= 40%
Now
Actual Depreciation for the year is
= $19,200 ÷ 40%
= $48,000
Now
Total Depreciation cost for 10 years is
= $48,000 × 10
= $480,000
For 2019, Skresso Co. reported $1.82 of earnings per share of common stock. During 2020, the firm had a 4% common stock dividend. The 2019 earnings per share to be reported in the annual report for 2020 are:
Answers
Answer:
$1.75
Explanation:
Earnings per share to be reported = Earnings per share of commo stock * (1 - 4%)
Earnings per share to be reported = $1.82 * 96%
Earnings per share to be reported = $1.7472
Earnings per share to be reported = $1.75
So, the 2019 earnings per share to be reported in the annual report for 2020 are $1.75.
mention careers that don't require Maths and physics
Answers
Explanation:
Library-science teacher, postsecondary.
Dental hygienist.
Technical writer.
Philosophy and religion teacher, postsecondary.
Transportation vehicle, equipment, and systems inspector.
Power-plant operator.
Assume that you finance a new car when you graduate. It will cost $120,000 and you will finance it with a 84 month contract having a nominal rate of 9.20% Compute the monthly payment to the second decimal place.
Answers
Answer: $1942.89
Explanation:
Since the car will cost $120,000 and it will be financed with a 84 month contract having a nominal rate of 9.20%, then the monthly payment will be:
= PMT(9.2%/12, 84, -120000)
This will be slotted into the Excel calculator and the answer gotten will be $1942.89
Therefore, the monthly payment will be $1942.89.
Calvin works in the accounting department for a textbook publishing firm preparing budgets and reporting production costs. What job does Calvin hold
Answers
Answer:
The answer is "managerial accountant".
Explanation:
The economic circumstances collect and earned value collection of data, evaluating and presenting financial information for the organization or the management team of the company. These statistics will then be used to make sensible financial decisions that really can benefit the overall growth of the organization.
Managers were employing company and organizational accounts to monitor internal financial processes, revenue, spending, and budget, submit reports, determine past trends and forecast future needs, and aid economic decisions.
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Pay $620 per month for 20 months and an additional $12,000 at the end of 20 months. The dealer is charging an annual interest rate of 24%. Make a one-time payment of $16,864, due when you purchase the car. 1-a. Determine how much cash the dealer would charge in option (a). (Round your answer to 2 decimal places.) 1-b. In present value terms, which offer is clearly a better deal
Answers
Answer:
1. In option (a), the dealer would charge $18,213.54.
b. In present value terms, the one-time payment (option (b) is a better deal for the purchaser.
Explanation:
a) Data and Calculations:
Monthly payment for a used car = $620
Payment period = 20 months
Additional payment at the end of 20 months = $12,000
Annual interest rate = 24%
One-time payment for the car purchase = $16,864
From an online financial calculator, the present value of the payments is:
N (# of periods) 20
I/Y (Interest per year) 24
PMT (Periodic Payment) 620
FV (Future Value) 12000
Results
PV = $18,213.54
Sum of all periodic payments = $12,400.00
Total Interest = $6,186.46
Use the following tax rates and income brackets to answer the following question(s).
Tax Rate Individual Returns Joint Returns
10% $0 to $8,350 $0 to $16,700
15% $8,351 to $33,950 $16,701 to $67,900
25% $33,951 to $82,250 $67,901 to $137,050
28% $82,251 to $171,550 $137,051 to $208,850
33% $171,551 to $372,950 $208,851 to $372,950
35% Over $372,951 Over $372,951
Josh earned $89,700 in taxable income and files an individual tax return. What is the amount of Josh's taxes for the year?
Answers
Answer: $18,836
Explanation:
Josh is in the $82,251 to $171,550 bracket so in calculating the taxes owed, we need to calculate the maximum taxes from the previous brackets to find Josh's taxes.
This is done as follows:
= (8,350 * 10%) + ( (33,950 - 8,350) * 15%) + ( (82,250 - 33,950) * 25%) + ( (89,700 - 82,250) * 28%)
= 835 + 3,840 + 12,075 + 2,086
= $18,836
Why do cell phone service providing firms often charge higher price to pre-paid clients than those on contract?
Answers
Answer:
Contract customer ensures a regular income as compared to the pre paid users and hence cell phone service provider prefer to hold these customers by lowering their services rates
Explanation:
Prepaid phone call rates are higher than the call rates of contract phone services because the contract services ensures a minimum of certain amount per month. Along with that the service provider charges an activation charge prior to providing contract services hence they make the call rates and rates of other services like internet low for contract customers.
KJ Pharma issues new bonds to fund an acquisition. The face value of the bond is $100 and annual coupon is 6.5%. Further, this bond matures in 20 years and is issued at a price of $105. Assuming KJ Pharma's tax rate is 30%, what is its After-Tax Cost of Debt
Answers
Answer:
4.24%
Explanation:
The computation of the after tax cost of debt is given below:
But before that we have to determine the before tax of debt by using RATE formula
Given that
Future value be $100
Present value be $105
PMT is $100 × 6.5% = $6.5
NPER is 20
The formula is
=RATE(NPER,PMT,-PV,FV,TYPE)
After applying the above formula, the before tax cost of debt is 6.06%
Now the after tax cost of debt is
= 6.06% × (1 - 0.30)
= 4.24%
Choose all the scenarios below that would cause a decrease in the supply of labor in the agricultural industry.
a. More women are entering the workforce in all industries in the United States.
b. As the population in the United States ages, fewer workers have the physical ability to work in the industry.
c. As the economy expands, so does the need for janitors and cleaning staff employees, causing the wage for nonskilled workers in the cleaning industry to rise.
d. Due to global warming, working conditions on farms have become undesirable for more and more people.
e. The adoption of strict immigration laws reduces the number of legal and illegal immigrants in the United States.
f. There is an increase in the use of biofuels in the United States, which drives up the demand for corn and soybean crops.
g. The government passed a new plan to provide government-funded health care for all workers in the agricultural industry.
h. New machinery is replacing workers in the harvesting of crops.
Answers
Answer:
b. As the population in the United States ages, fewer workers have the physical ability to work in the industry.d. Due to global warming, working conditions on farms have become undesirable for more and more people.e. The adoption of strict immigration laws reduces the number of legal and illegal immigrants in the United States.h. New machinery is replacing workers in the harvesting of crops.Explanation:
With workers getting older and being unable to be as productive as they used to be, they will have to drop out of industries that require physical strength including farming. This will therefore reduce people working in agriculture.
With global warming having made working in the fields much more harsh, people are avoiding careers that would keep them outdoors including farming which has led to a drop in the labor supply for agriculture.
A significant portion of workers in agriculture are immigrants so when immigration laws limit the number of immigrants coming in, labor supply in agriculture will reduce.
New machinery reduces the need for workers in agriculture so the more they are bought, the less workers are needed. This will therefore directly reduce the number of people working in agriculture.
Money demand refers to Group of answer choices the total quantity of financial assets that people want to hold. how much income people want to earn per year. how much wealth people want to hold in liquid form. how much currency the Federal Reserve decides to print.
Answers
Answer:
total quantity of financial assets that people want to hold
Explanation:
On January 1, 2020 (the date of grant), Ayayai Corporation issues 1,900 shares of restricted stock to its executives. The fair value of these shares is $45,000, and their par value is $9,500. The stock is forfeited if the executives do not complete 3 years of employment with the company.
Prepare journal entries for January 1, 2014, and on December 31, 2014, assuming the service period is 3 years.
Answers
Answer and Explanation:
The journal entries are shown below:
On Jan 1, 2014
Unearned compensation Dr. $45,000
To paid in capital in excess of par $35,500
To common stock $9,500
(Being the unearned compensation is recorded)
On Dec 31,2014
Compensation expense Dr. $15,000 ($45,000 ÷ 3 years)
To unearned compensation $15,000
(Being one year compensation became due is recorded)
In which basic market would stoves be traded?
the labor market
the money market
the goods and services market
the capital market
Answers
Answer:
the labor marketExplanation:
#carry on learningData concerning three of the activity cost pools of Pembrooke LLC, a legal firm, have been provided below: Activity cost pools Total activity Total cost Research legal issues 680 research hours $29,920 Meet with clients 5,324 meeting hours $665,500 Preparing documents 6,490 documents $116,820 What is the activity rate for the "research legal issues" activity cost pool?
Answers
Answer and Explanation:
The calculation of the activity rate for the "research legal issues" activity cost pool is given below:
= Total research legal issued cost ÷ total activity
= $29,920 ÷ 680
= $44
hence, the activity rate for the "research legal issues" activity cost pool is $44
The same should be considered and relevant
Design a spreadsheet to compute the dollar amount in each of the next 10 years of an initial investment returning a constant annual interest rate. Interest is reinvested each year so that the amount returning interest grows. What is the dollar amount 6 years from now of $400 invested at 8% annual interest
Answers
Answer:
The dollar amount 6 years from now of $400 invested at 8% annual interest is $634.75.
Explanation:
Note: See the attached excel file for the designed spreadsheet showing the computation of the ending balance or the dollar amount in each of the next 10 years.
In the attached excel file, we have:
Amount invested = Beginning balance in Year 1 = $400
Interest amount in each Year = Beginning balance in each Year * Constant annual interest rate of 8%
Beginning balance in each Year = Last Year's ending balance
Ending balance in each Year = Beginning balance in each Year + Interest amount in each Year
From the attached excel, the Ending balance in Year 6 of $634.75 (in bold red color) is the the dollar amount 6 years from now of $400 invested at 8% annual interest.
Therefore, the dollar amount 6 years from now of $400 invested at 8% annual interest is $634.75.
In the previous year, a company had revenues of $500,000, project overhead of $40,000 and company overhead of $75,000. The company expects the percentage for project and company overhead to remain the same for the current year. The company desires to make a 10% profit on a project it is bidding. The project would have $80,000 in direct costs. What should the bid price be
Answers
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