Someone offers to buy your old Ford F-150 truck for 4 equal annual payments, beginning 2 years from today. If you think that the present value of your Ford Truck is only $9,000 and you assume the interest rate is 10%, which one of the below would be the minimum annual payment that youâ d be willing to accept? $2,839.24 $3,435.48 $3,123.16 $2,250

Answers

Answer 1

Answer:

$3,123.16

Explanation:

The computation of the minimum annual payment is as follows:

Given that

RATE = 10%

NPER = 10%

PV = $9,000 × (1 + 0.1) = $9,900

FV = $0

The formula is shown below:

= PMT(RATE,NPER,-PV,FV,TYPE)

After applying the above formula, the monthly payment is $3,123.16


Related Questions

Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company by selling the company to the government.
True
False

Answers

Answer:

False.

Explanation:

Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.

Generally, patents are used on innovation for products that are manufactured through the application of various technologies.

Basically, the three (3) main ways to protect an intellectual property is to employ the use of trademarks, copyright and patents.

In this scenario, Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company.

Since Gidgit is patented it cannot be sold to the government because it is a registered intellectual property that cannot be used or sold without the approval or consent of the owner.

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $348,400 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $304,000, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a

Answers

Answer:

Journal Entry

Debit Work-in-Process $388,284

Credit Manufacturing Overhead $388,284

To record the application of factory overhead costs for the year.

Explanation:

a) Data and Calculations:

Estimated factory overhead costs = $348,400

Estimated direct labor hours = 47,000

Predetermined overhead rate = $7.41 ($348,400/47,000)

Actual overhead costs = $304,000

Actual direct labor hours = 52,400

Applied overhead costs = $388,284 (52,400 * $7.41)

b) The overhead applied to the production for the year will be the actual direct labor hours by the predetermined overhead rate.  This yields a cost that is greater than the actual overhead costs, which means that the manufacturing overhead was overapplied.  The cause of this situation is the number of actual direct labor hours worked vis-a-vis the actual overhead costs and the predetermined rate.

The table shows the PPF of an island community. Choose the best statement.

Possibility Fish (pounds) Berries (pounds)
A 0 and 40
B 1 and 36
C 2 and 30
D 3 and 22
E 4 and 12
F 5 and 0

a. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
b. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
c. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
d. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.

Answers

Answer:

d. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.

TRUE, IF THEY WANT TO PRODUCE MORE FISH, THEY WILL PRODUCE LESS BERRIES

Explanation:

a. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.

FALSE, THEY CAN GATHER 2 MORE POUNDS OF BERRIES  WITHOUT AFFECTING FISH

b. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.

FALSE, THIS COMBINATION LIES ON THE PPF CURVE

c. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.

FALSE, IT WILL HAVE TO LOSE SOME FISH

Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the two warehouses is available:
Denver Bristol
Cost $80,000 $31,500
Accumulated depreciation 60,000 25,000
Fair value 17,000 17,000
Required:
1. Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.
2. Assuming the exchange does not have commercial substance, prepare journal entries for Denver and Bristol to record the exchange.

Answers

Answer and Explanation:

The journal entries are shown below

1.

On Denver books

Equipment Dr $17,000

Accumulated depreciation $60,000

Loss on sale of equipment $3,000

                  To Equipment $80,000

(Being equipment recorded)

On Bristol books

Equipment Dr $17,000

Accumulated depreciation $25,000

          To Gain on sale of equipment $10,500

          To Equipment $31,500

(Being equipment recorded)

2.

On Denver books

Equipment Dr $20,000

Accumulated depreciation $60,000

                  To Equipment $80,000

(Being equipment recorded)

On Bristol books

Equipment Dr $6,500

Accumulated depreciation $25,000

          To Equipment $31,500

(Being equipment recorded)

When using the Copy to Purchase Order feature from within an Estimate , where do you need to turn on USE Purchase orders?

Answers

Answer: From expenses within the Accounts & settings.

Explanation:

When using the copy to purchase order feature within an estimate, to turn on USE purchase orders you navigate to expenses under accounts and settings. When you get to the accounts and settings you would see the feature that shows "Expenses" tab. In the Purchase orders section, select the edit icon. Turn on the Use purchase orders options.

Answer:account and settings, expenses, purchase order

Explanation:

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 81,000 Direct labor $ 41,000 Variable manufacturing overhead $ 19,800 Fixed manufacturing overhead 31,600 Total manufacturing overhead $ 51,400 Variable selling expense $ 14,400 Fixed selling expense 22,800 Total selling expense $ 37,200 Variable administrative expense $ 5,200 Fixed administrative expense 27,400 Total administrative expense $ 32,600 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost

Answers

Answer:

the total product cost is $153,600

Explanation:

The computation of the total product cost is as follows;

= Direct material cost + direct labor cost + total manufacturing overhead cost

= $81,000 + $41,000 + $31,600

= $153,600

Hence, the total product cost is $153,600

The other values would be ignored for determining the product cost

Sunland Company, has 14700 shares of 4%, $100 par value, cumulative preferred stock and 60200 shares of $1 par value common stock outstanding at December 31, 2021. There were no dividends declared in 2019. The board of directors declares and pays a $113000 dividend in 2020 and in 2021. What is the amount of dividends received by the common stockholders in 2021

Answers

Answer:

2021 Common Stockholders dividends = $49,600

Explanation:

Preference Shareholders are always paid their dividends first before Common Stockholders. If dividend is not declared, Preference dividends are cumulated to the next period and are due !

2019

Preferred Stockholders Dividends = 14700 x $100 x 4% = $58,800

Common Stockholders dividends = $ 0

2020

Preferred Stockholders Dividends =  $58,800 (2019) + $54,200 (2020)

Common Stockholders dividends = $0

2021

Preferred Stockholders Dividends = $4,600 (2020 arrears) + $58,800 (2021) = $63,400

Common Stockholders dividends = $113,000 - $63,400 = $49,600

Suppose two projects have the same expected business value. Project A has a very high estimated business value along with a high probability of failure. Project B has a much lower estimated business value along with a low probability of failure. If you could do only one of the projects, which one would you choose and under what conditions

Answers

Answer:

Project B has a much lower estimated business value along with a low probability of failure.

Explanation:

In order to do only one type of project that has the same business values. I would choose a project that has a low probability of failure. Though it has a low value but in the long run will lead to economic profit and shareholders value. For selection, we need to find out the benefits gained by the project.

If a person could choose only one project he must select Project B as it has a much lower estimated business value along with a low probability of failure.

What are the selection criteria for the project?

Project B would be a better option to choose as it is giving less risk to business as compared to Project B in terms of failure. However, the value of Project B is less but it has the potential to generate economic profits in the long run.

Therefore, by evaluating the cost and benefit from two projects shareholder's interest would be intact more through Project B.

Learn more about project managemnet here:

https://brainly.com/question/26266895

The total cost accumulated in the sales department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): $150,050. $142,471. $102,222. $122,402. $127,778.

Answers

Answer:

$127,778

Explanation:

Calculation for total cost accumulated in the sales department using the reciprocal method

Direct operating cost$70,000

Acturial Cost allocated 24,000

Premium Ratings allocated cost 24,000

Acturial Cost allocated 6400

Premium Ratings allocated cost 2400

Acturial Cost allocated 640

Premium Ratings allocated cost 240

Acturial Cost allocated 64

Premium Ratings allocated cost 24

Acturial Cost allocated 6

Premium Ratings allocated cost 2

Acturial Cost allocated 1

Premium Ratings allocated cost 0

Total cost accumulated $127,778

Therefore total cost accumulated in the sales department using the reciprocal method is $127,778

Adriana and Belen are partners who share income in the ratio of 3:2 and have capital balances of $50,000 and $90,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $90,000. How much cash should be distributed to Adriana

Answers

Answer:

$54,000

Explanation:

First, we add the ratios together to determine the total parts:

3+2= 5

Next, we divide the cash balance of $90,000 by the total parts:

$90,000/5 = $18,000

To find the amount of cash distributed to Adriana we multiply by her ratio:

5*18,000 = $54,000.

Xercise Cycles Company has provided its year ended accounts receivables that were uncollected. The Controller has asked you to help prepare the Aging of Accounts Receivable Schedule and the corresponding journal entries. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
1) Calculate the number of days unpaid, USING THE EXCEL DAYS FUNCTION (fx).
2) Use the information above to complete the Aging of Accounts Recievable Schedule Below.
Create a formula for each age category, using the Excel IF and AND FUNCTION (fx) to determine where each customer amount belongs.
3) Prepare the adjusting journal entry for recording bad debt expense if the allowance for doubtful accounts had the following unadjusted balance:
4) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:

Answers

Answer:

In the number of days unpaid column (E8), input the formula; "=DAYS(D8, C8)" then copy it down to the last item on the table.

Explanation:

Answering just the first question, the DAYS function is used to calculate the difference between day timelines. The function accepts two parameters, the first date which is the current date we are subtracting from, and the second date which is the previous date.

Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records.
Cost of Goods Sold $ 65,000
Work-in-Process Inventory, Beginning 10,500
Work-in-Process Inventory, Ending 9,000
Selling and Administrative Expense 15,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning?
Direct Materials Used ?
Factory Overhead Applied 12,000
Operating Income 14,000
Direct Materials Inventory, Beginning 11,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 60,000
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials used?

Answers

Answer:

See below

Explanation:

Direct materials used = Cost of goods manufactured - work in process inventory, beginning - factory overhead applied - direct labor + work in process inventory, ending

= $60,000 - $10,500 - $12,000 - (1.5 × $12,000) + $9,000

=

Katherine Stein told her boss, "Dan, a number of our senior staff will be retiring within five years. We can't afford to have the combined expertise, skills, wisdom, and relationships of these retirees walk out the door without first discovering and sharing these intellectual resources. I recommend that we implement a(n) ______________ system to harness this intellect."

Answers

Answer: knowledge management

Explanation:

Based on the information given, knowledge management would be used to harness this intellect.

Knowledge management simply has to do with the creation, and management of information and knowledge for an organization so that the organization's objectives can be achieved.

The Blueberry Designs ads show a lifestyle that is sophisticated and timeless. They recently launched a sportswear line with their trademark DB pattern and patented Blueberry soles on both hiking boots and casual footwear. Those who follow the Blueberry lifestyle are part of

Answers

Answer:

A reference group

Explanation:

Reference groups are are set of people who are used as a standard for how to comply with social norms thereby influencing our ideas, values, behaviour, and appearance.

For example a reference group can be a set of people that have achieved a certain level of importance in a field by following a standard.

In the given scenario Blueberry Designs ads show a lifestyle that is sophisticated and timeless.

Those that follow the standards set by Blueberry designs can be said to be a reference group

Atlantic Corporation reported the following amounts at the end of the first year of operations: Common stock $ 270,000 Sales revenue $ 940,000 Total assets $ 740,000 Dividends declared $ 65,000 Total liabilities $ 410,000 What are the retained earnings of Atlantic at the end of the year, and what amount of expenses were incurred during the year

Answers

Answer:

See below

Explanation:

According to the above information, Retained earning is

Sales revenue $940,000 - dividend declared $65,000 = $875,000

Retained earning is $857,000

Healthy competition among businesses is good for consumers.

True or False

Answers

I say true because it seems like most likely answer.

In the text, we supposed a college education raised a person's wage by $30,000 per year, from $40,000 to $70,000. Assume the relevant interest rate is 3%, there is no growth in wages, and you are expected to retire at 65 years old after you graduate high-school. (a): Suppose you are a 18 year old graduating high school senior deciding whether or not to go to college. What is the present discounted value of your labor earnings if you chose not to attend college

Answers

Answer:

$1,010,668

Explanation:

if you choose not to attend college, you should be working for 65 - 18 = 47 years

your expected annual salary is $40,000

the present value of your future earnings = $40,000 x PV annuity factor

PV annuity factor = = [1 - 1/(1 + i)ⁿ] / i = [1 - 1/(1 + 0.03)⁴⁸] / 0.03 = 25.2667

present value of future earnings = $40,000 x 25.2667 = $1,010,668

B) Suppose that regular raises at your job allow you to increase your annual payment by 5% each year. For simplicity, assume this is a nominal rate, and your payment amount increases continuously. How long will it take to pay off the mortgage

Answers

Answer:

Time period required to pay off the mortgage = 18 years            

Explanation:

Note: This question is incomplete and lacks necessary data to solve. But I have found that necessary data on the internet, which I have written down and solved the question accordingly.

Data Missing:

Buying Cost of House = $320000

Interest rate = 7%

Annual Mortgage Payment = $25525.8

Now, we are required to calculate the time period required to pay off the mortgage.

Solution:

Data Given:

Increase in annual payment percentage = 5%

So,

Formula:

P = C[tex]e^{A-i}[/tex] +  C[tex]e^{2(A-i)}[/tex] +   C[tex]e^{3(A-i)}[/tex]  + ........ + C[tex]e^{n(A-i)}[/tex]

Where,

P = Buying Cost of House = $320000

i = interest rate = 7% = 0.07

A = Increase in annual payment percentage = 5% = 0.05

C = Annual Mortgage Payment = $25525.8

P = C[tex]e^{A-i}[/tex] +  C[tex]e^{2(A-i)}[/tex] +   C[tex]e^{3(A-i)}[/tex]  + ........ + C[tex]e^{n(A-i)}[/tex]

In this formula, we have all the required things expect the value of n, which we have to calculate.

n = Time period required to pay the mortgage.

So,

$320000 = 25525.8 [tex]e^{0.05 - 0.07}[/tex] + 25525.8 [tex]e^{2(0.05 - 0.07)}[/tex] + 25525.8 [tex]e^{3(0.05 - 0.07)}[/tex] + ..... + 25525.8 [tex]e^{n(0.05 - 0.07)}[/tex]

Taking 25525.8 common,

320000 = 25525.8  ( [tex]e^{-0.02}[/tex] +  [tex]e^{-0.04}[/tex]  + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )

320000/25525.8  = ( [tex]e^{-0.02}[/tex] +  [tex]e^{-0.04}[/tex]  + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )

12.536 = ( [tex]e^{-0.02}[/tex] +  [tex]e^{-0.04}[/tex]  + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )

Taking e common:

12.536 = [tex]e^{-0.02 -0.04 - 0.06 + .... -0.02n}[/tex]

Taking Ln to solve for n, we get:

n = 17.89

n ≈ 18

n = 18 years

Hence, Time period required to pay off the mortgage = 18 years

Consider a town in which only two residents, Bob and Cho, own wells that produce water safe for drinking. Bob and Cho can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water.

Price Quantity Demanded Total Revenue
(Dollars per gallon) (Gallons of water) (Dollars)
4.20 0 0
3.85 40 $154.00
3.50 80 $280.00
3.15 120 $378.00
2.80 160 $448.00
2.45 200 $490.00
2.10 240 $504.00
1.75 280 $490.00
1.40 320 $448.00
1.05 360 $378.00
0.70 400 $280.00
0.35 440 $154.00
0 480 0

Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing __________price isper gallon, and the total output is__________gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is__________, and Cho's profit is____________.

Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."

After Bob implements his new plan, the price of water ________ to__________per gallon. Given Cho and Bob's production levels, Bob's profit becomes________ and Cho's profit becomes___________. Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes__________, Cho's profit becomes_________, and total profit (the sum of the profits of Bob and Cho) is now____________.

Answers

Answer:

Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing price is 2.10  per gallon, and the total output is 240 gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is $252 and Cho's profit is $252.

Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."  

After Bob implements his new plan, the price of water  decreases to 1.75     per gallon. Given Cho and Bob's production levels, Bob's profit becomes  280 and Cho's profit becomes  210 . Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes 224 , Cho's profit becomes 224 , and total profit (the sum of the profits of Bob and Cho) is now 448.

Explanation:

Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing price is 2.10  per gallon, and the total output is 240 gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is $252 and Cho's profit is $252.

Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."  

After Bob implements his new plan, the price of water  decreases to 1.75     per gallon. Given Cho and Bob's production levels, Bob's profit becomes  280 and Cho's profit becomes  210 . Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes 224 , Cho's profit becomes 224 , and total profit (the sum of the profits of Bob and Cho) is now 448.

Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $47,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined: cash on hand and in the bank, $42,500; amounts due from customers from sales of books, $27,700; equipment, $46,000; amounts owed to publishers for books purchased, $8,200; one-year notes payable to a local bank for $4,050. No dividends were declared or paid to the stockholders during the year. Assuming that Reader Direct generates net income of $7,000 and pays dividends of $2,800 in 2018, what would be the ending Retained Earnings balance at December 31, 2018?

Answers

Answer:

Reader Direct Corporation

The ending Retained Earnings balance at December 31, 2018 is:

$14,150

Explanation:

a) Data and Calculations:

Cash on hand and in the bank, $42,500;

Amounts due from customers from sales of books, $27,700;

Equipment, $46,000;

Amounts owed to publishers for books purchased, $8,200;

One-year notes payable to a local bank for $4,050

Common Stock ($47,000 * 2) = $94,000

Assets:

Cash                           $42,500

Accounts Receivable   27,700

Equipment                   46,000

Total assets              $116,200

Liabilities + Equity:

Accounts Payable      $8,200

Notes Payable             4,050

Total liabilities          $12,250

Equity:

Common Stock      $94,000

Retained Earnings     9,950

Total equity          $103,950

Liabilities + equity $116,200

Retained Earnings:

Dec. 31, 2017          $9,950

Net income               7,000

less Dividends        (2,800)

Dec. 31, 2017        $14,150

Primare Corporation has provided the following data concerning last month's manufacturing operations
Purchases of raw materials $30,000
Indirect materials included in manufacturing overhead $4,900
Direct labor $58,500
Manufacturing overhead applied to work in process $88,500
Underapplied overhead $4,170
Inventories Beginning Ending
Raw materials $11,100 $18,200
Work in process $55,100 $68,400
Finished goods $34,100 $42,200
1. Prepare a schedule of cost of goods manufactured for the month.
2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.

Answers

Answer:

Primare Corporation

1. A Schedule of Cost of Goods Manufactured for the month:

Beginning WIP           $55,100

Raw materials used     18,000

Direct labor                 58,500

Manufacturing o/h      88,500

Ending Balance         (68,400)

                                $151,700

2. A Schedule of Cost of Goods Sold for the month:

Finished goods inventory   $34,100

Cost of manufacturing         151,700

Ending Finished goods       (42,200)

Underapplied overhead          4,170

Cost of goods sold            $147,770

Explanation:

a) Data and Calculations:

Purchases of raw materials $30,000

Indirect materials included in manufacturing overhead $4,900

Direct labor $58,500

Manufacturing overhead applied to work in process $88,500

Underapplied overhead $4,170

Inventories           Beginning       Ending

Raw materials          $11,100       $18,200

Work in process    $55,100      $68,400

Finished goods     $34,100      $42,200

Raw materials

Beginning Balance   $11,100

Purchase                  30,000

Manufacturing overhead         $4,900

Work in process                        18,000

Ending Balance                       $18,200

Work in process

Beginning Balance   $55,100

Raw materials             18,000

Direct labor                58,500

Manufacturing o/h    88,500

Finished goods                      $151,700

Ending Balance                      $68,400

Finished goods

Beginning Balance   $34,100

WIP                            151,700

Cost of goods sold              $143,600

Ending Balance                     $42,200

Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $1,350 per month interest, if they can get 7 % interest compounded monthly.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9 % and the term is twenty years.

Answers

Answer:

(a) The amount needed is $192,000.

(b) The monthly payment is $150.98.

Explanation:

Note: There are errors in this question. The correct question is therefore provided before answering the question as follows:

Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. (Round your answers to the nearest cent.)

(a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly.

(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is twenty years.

The explanation of the answer is now given as follows:

(a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly.

This can be calculated using the following future value formula:

FV = P / i ........................... (1)

Where;

FV = Amount needed at maturity = ?

P = Monthly payment or amount to generate monthly = $1,200

i = monthly interest rate = Annual interest rate / 12 = 7.25% / 12 = 0.075 / 12 = 0.00625

Substituting the values into equation (1), we have:

FV = $1,200 / 0.00625 = $192,000

Therefore, the amount needed is $192,000.

(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is twenty years.

This can be calculated using the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (2)

Where,

FV = Future value = $192,000

M = Monthly payment = ?

r = Monthly interest rate = 9.75% / 12 = 0.0975 / 12 = 0.008125

n = number of months = 25 years * Number of months in a year = 25 * 12 = 300

Substituting the values into equation (2) and solve for M, we have:

$192,000 = M * (((1 + 0.008125)^300 - 1) / 0.008125)

$192,000 = M * 1271.65920375075

M = $192,000 / 1271.65920375075

M = $150.98

Therefore, the monthly payment is $150.98.

The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $194,560. The conversion cost for the period in the Filling Department is $98,340. The total equivalent units for direct materials and conversion are 25,600 ounces and 29,800 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.
Direct materials cost per equivalent unit: $ per ounce
Conversion costs per equivalent unit: $ per ounce
The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $2.20 and $0.65, respectively. The equivalent units to be assigned costs are as follows:
Equivalent Units
Direct Materials Conversion
Inventory in process, beginning of period 0 3,600
Started and completed during the period 45,000 45,000
Transferred out of Filling (completed) 45,000 48,600
Inventory in process, end of period 3,000 1,500
Total units to be assigned costs 48,000 50,100
The beginning work in process inventory had a cost of $2,380. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production $
Inventory in process, ending $

Answers

Answer:

Part 1

Direct material cost per equivalent units = $194,560 / 25,600 ounces

Direct material cost per equivalent units = $ 7.60 per ounce

Conversion Cost per equivalent units = $98,340 / 29,800 ounce

Conversion Cost per equivalent units = $3.30 per ounce

Part 2

Completed and Transferred out of production = $2380 + (45,000* $2.20) + (3,600 * $0.65) + (45,000 * $0.65)

= $2,380 + $99,000 + $2,340 + $29,250

= $132,970

Inventory in process, ending = (3000 * $2.20) + (1500 * $0.65)

= $6,600 + $975

= $7,575

Lois tells Stew he can buy her pool house for $100,000. Stew is so excited to own a home of his own that he leaves a $10,000 check in her mailbox as a starting payment on the pool house. Then, he begins remodeling the pool house, spending $3,000 in repairs and improvements. Lois decides she made a big mistake and attempts to cancel this agreement. The most likely outcome will be:

Answers

Answer:

The most likely outcome would be that Lois will still have to sell Stew the house

Explanation:

The most likely outcome would be that Lois will still have to sell Stew the house. This is mainly because Lois accepted Stew's offer of $100,000 and Stew already fulfilled part of the agreement. By simply paying the $10,000 that he left Stew he has already fulfilled part of his side of the agreement which solidifies the agreement and makes it legally binding. Therefore, he would most likely win a court case if Lois decides to back out of the agreement.

Elliot, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:

Answers

Answer:

$90,000

Explanation:

At the activity level of 20,000 machine hours:

total maintenance costs=20,000* $10.50=$210,000

At the activity level of 24,000 machine hours:

total maintenance costs=24,000*$9.75=$234,000

variable maintenance cost per hour=(total maintenance costs at higher activity level-total maintenance costs at lower activity level)/(higher activity level-lower activity level)

variable maintenance cost per hour=($234,000-$210,000)/(24000-20000)

variable maintenance cost per unit=$6

Using the higher activity level data:

total cost=fixed cost+(variable maintenance cost per unit*number of hours)

$234,000=fixed cost+($6*24000)

234,000=fixed cost+$144,000

fixed cost=$234,000-$144,000

fixed cost=$90,000

This type of insurance pays to fix damages that you cause, but does not cover your own car

Answers

I think your referring to a property damage liability coverage which helps you pay for property or vehicle if it is a case that you caused it to be damaged.

Your family is expanding in number, and so you decide to sell your current home and upgrade to a larger home. You estimate that you can sell your current home for $100,000 and can buy a larger home for $475,000. You plan to use the entire $100,000 sale proceeds as a down payment on the new home and will finance the remainder for 15 years at 4% nominal annual interest compounded monthly. What is your estimated monthly mortgage payment

Answers

Answer:

The Estimated Monthly Mortgage Payment

=    $2,810.81

Explanation:

Data and Calculations:

House price = $475,000

Down payment = $100,000

Percentage of down payment = 21.05% ($100,000/$475,000 * 100)

Finance period = 15 years = 180 months (15 * 12)

Nominal annual interest compounded monthly = 4%

The estimated monthly mortgage payment using an online finance calculator:

Monthly Pay:   $2,810.81

House Price $475,000.00

Loan Amount $380,000.00

Down Payment $95,000.00

Total of 180 Mortgage Payments $505,946.54

Total Interest $125,946.54

Mortgage Payoff Date Jan. 2036

Swifty Corporation issued 100000 shares of $10 par common stock for $1250000. A year later Swifty acquired 15900 shares of its own common stock at $15 per share. Three months later Swifty sold 8500 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 8500 treasury shares, Swifty should credit

Answers

Answer:

the journal entries should be:

Dr Cash 1,250,000

    Cr Common stock 1,000,000

    Cr Additional paid in capital 250,000

Dr Treasury stock 238,500

    Cr Cash 238,500

Dr Cash 161,500

    Cr Common stock 85,000

    Cr Additional paid in capital 76,500

When you are able to feel and touch product, it is called

Answers

Answer:

In a Proctor & Gamble study published in 2009, spanning 21 years total, found that customers who were able to feel merchandise were willing to pay more than those who hadn't. This phenomenon is called “The Endowment Effect." Basically, we make an emotional connection with what we touch.

Explanation:

Hope this helps

From,

1kvibing

The feel and touch of the products are called the endowment effect.

What is an endowment effect?

An endowment effect is an effect that is associated with behavioral economics and the effect is that people find more likely to retain an object they own rather than acquire the object that they don't own.

The company named P and G published that clients were able to feel merchandised were willing to pay more than those who had not.

Find out more information about the product.

brainly.com/question/10873737

As CEO of ​, knows it is important to control costs and to respond quickly to changes in the highly competitive​ boat-building industry. When Consulting proposes that invest in an ERP​ system, she forms a team to evaluate the​ proposal: the plant​ engineer, the plant​ foreman, the systems​ specialist, the human resources​ director, the marketing​ director, and the management accountant. A month​ later, management accountant reports that the team and estimate that if implements the ERP​ system, it will incur the following​ costs:

a. $435,000 in software costs
b. $95,000 to customize the ERP software and load Aqua Marine's data into the new ERP system
c. $105,000 for employee training

The team estimates that the ERP system should provide several benefits:
a. More efficient order processing should lead to savings of $105,000.
b. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $125,000.
c. Integrating purchasing, production, marketing, and distribution into a single system will allow Aqua Marine to reduce inventories, saving $225,000.
d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $155,000.

Requirements
a. If the ERP installation succeeds, what is the dollar amount of the benefits?
b. Should Aqua Marine install the ERP system? Why or why not? Show your calculations.
c. Why did Easton create a team to evaluate Rose's proposal? Consider each piece of cost-benefit information that management accountant Cole reported. Which person on the team is most likely to have contributed each item? (Hint: Which team member is likely to have the most information about each cost or benefit?)

Answers

Answer:

a.) Total benefit if the ERP installation succeeds = $610,000

b.) They should not install the ERP system.

c.) For Estimating software costs  - Systems specialist

For Estimating cost of loading data into the new ERP system  - Management          accountant  , Systems specialist

For Customize the ERP software  - Management accountant  , Systems specialist

For Estimating customization costs  - All team members

For Estimating  training costs - Human resource director

For Savings from more efficient order processing  - Systems specialist  , Management accountant

For Savings from streamlining the manufacturing process  - Plant engineer  , Plant foreman

For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system  - Plant foreman

For Estimating increase in sales from higher customer satisfaction  - Marketing director

For Estimating benefits and costs  - All team members

For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system  - Plant foreman

For Estimating increase in sales from higher customer satisfaction  - Marketing director

For Estimate benefits and costs  - All team members

Explanation:

a.)

If the ERP installation succeeds , the dollar amount of the benefit is as follows :

From more efficient order processing savings = $105,000

From streamlining the manufacturing process savings = $125,000

From reduce inventories savings = $225,000

From increased sales profit = $155,000

⇒Total benefit = $ 105,000 + 125,000 + 225,000 + 155,000

                          = $610,000

⇒Total benefit if the ERP installation succeeds = $610,000

b.)

Firstly check the Costs for installation of ERP:

Software cost =  $435,000

Customizing ERP and loading data cost = $95,000

Employee training cost = $105,000

⇒Total cost = $ 435,000 + 95,000 + 105,000

                     = $635,000

⇒Total cost  = $635,000

Now,

As we have

Total Benefit in installation of ERP = $610,000

Total cost in installation of ERP = $635,000

⇒Net benefit = $610,000 - $635,000  = -$ (25,000)

∴ we get

If Aqua Marine install the ERP system , them they face loss.

So, They should not install the ERP system.

c.)

For Estimating software costs  - Systems specialist

For Estimating cost of loading data into the new ERP system  - Management          accountant  , Systems specialist

For Customize the ERP software  - Management accountant  , Systems specialist

For Estimating customization costs  - All team members

For Estimating  training costs - Human resource director

For Savings from more efficient order processing  - Systems specialist  , Management accountant

For Savings from streamlining the manufacturing process  - Plant engineer  , Plant foreman

For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system  - Plant foreman

For Estimating increase in sales from higher customer satisfaction  - Marketing director

For Estimating benefits and costs  - All team members

For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system  - Plant foreman

For Estimating increase in sales from higher customer satisfaction  - Marketing director

For Estimate benefits and costs  - All team members

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