Francisco wants to acquire a car on credit, worth $ 36000 to 3 years of term, which must be paid in fixed monthly installments, with an interest rate of 1% per month. Which of the following alternatives suits you to buy the car? (a) Method of accumulation of interest or lizard method (b) Debit balance method (c) Gradual depreciation method
Q: OptiLux is considering investing in an automated manufacturing system. The system requires an…
A: Internal rate of return method:-The internal rate of return is the discount rate at which the net…
Q: ABC Ltd was registered as a corporation on 1 July 2012. On 4 July 2012, ABC Ltd issued a prospectus…
A: Issuance of shares is one of useful source of finance being used in business. There can be common…
Q: Mystic produces soft drinks and sodas. Their process costing accounting system contains the…
A: The units completed and transferred include total units finished during the period. The units…
Q: 5. From the following Balance Sheets of Roop Ltd., prepare a cash flow statement. I. Equity and…
A: Statement of cash flows is one of important financial statement being prepared in business. It shows…
Q: Ving purchased a previously-owned vehicle which met all the qualifications for the Clean Vehicle…
A: To push the use and sale of vehicles not running on fossil fuels (and hence which are…
Q: of 40 separate parts totaling $250 in direct materials and requires 5.0 hours of machine time to…
A: Under Activity base costing manufacturing overhead cost to product is more appropriate than…
Q: Camila Company has set the following standard cost per unit for direct materials and direct labor.…
A: Direct material variance :— It is the difference between actual direct material cost and standard…
Q: Garcia Company is considering a $362,000 investment with the following net cash flows. Garcia…
A: Net present value :— It is the difference between the present value of all cash inflows and the…
Q: write a 120 words analysis comparing between the company's performance based on the terms of…
A: The interest coverage ratio is the used by the company with the aim and purpose of knowing about the…
Q: 4. Paying taxes on stocks What It Means to Invest in Stocks? Common stock is considered to be one of…
A: The tax bracket of Kevin is 28%The tax rate on the capital gains is based upon the taxable income…
Q: Multiple cash budgets-Scenario analysis Brownstein, Inc., expects sales of $101,000 during each of…
A: Cash budget : Estimate of an organization's cash flow for a future period. A cash budget forecasts…
Q: 3. Jane James owns an appliance store. She normally receives $50,000 worth of appliances per month.…
A: To calculate the additional interest Jane James would earn by delaying her payment by ten days, we…
Q: During 2020, Joan Matel is a resident of Ontario and has calculated her Taxable Income to be$56,700.…
A: Taxable income refers to the total income earned from different sources, which serves as the basis…
Q: The budget components for Marigold Company for the quarter ended June 30 appear below Marigold sells…
A: A direct materials budget is an accounting approach that forecasts how much raw material will be…
Q: Globaltronic Sdn Bhd has received a special marketing choice from one of the world's electronic…
A: According to the question given, we need to determine whether the company should buy or make the…
Q: Explain the concept of accrual accounting and its importance in financial reporting. Provide an…
A: Accrual accounting is a method of accounting that recognizes revenue and expenses when they are…
Q: The following summary transactions occurred during the year for Petunia. Cash received from:…
A: Cash flows from investing activities are one of the three categories of cash flows reported in a…
Q: Norwall Company's budgeted variable manufacturing overhead cost is $1.30 per machine-hour and its…
A: The primary purpose of variance analysis is to identify and understand the reasons for deviations…
Q: What are the closing entries to closed the cash dividends accounts
A: Dividend is the reward given to the shareholders in the form of shares, cash or other.Temporary…
Q: Exercise 9-18 (Algo) Selected accounts from Lue Company's adjusted trial balance for the year ended…
A: Statement of income means the statement which shows all the nominal account and balancing Figure Is…
Q: Martha Wheaton, Bess Chen, and Sam Smith were partners in an urban Calgary tea shop called Wake and…
A: A partnership is a kind of business structure in which two or more people agree to carry out…
Q: Shortening the credit period A firm is contemplating shortening its credit period from 40 to 30 days…
A: Credit period is the duration of time given to buyer by the seller to pay for the items they have…
Q: Delivery charge Installation charge Additional components to increase capacity Service and…
A: Hi studentSince there are multiple questions, we will answer only first question."MFRS" stands for…
Q: Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following…
A: The flexible budget enables the managers to isolate the various causes of the differences between…
Q: Ross Company's record of transactions for the month of April was as follows. Purchases Sales April 1…
A: 1. First In First Out (FIFO): Under this method, inventory is valued assuming that the units…
Q: Annual Cash Market Dividend per Value per Share Share $ Company Etihad $10.00 United Lingus Allied…
A: Dividend is the amount of profit shared with the stockholders of the company. A dividend is the…
Q: The partnership agreement for Wilson, Pickett & Nelson, a general partnership, provided that profits…
A: In accounting for partnerships, profit or losses earned by partnership firm will be shared by…
Q: Explain any FOUR (4) methods in analyzing the mixed cost. There are few ways to determine or…
A: Analyzing financial statements is crucial for evaluating a company's performance and making informed…
Q: Subject: Business Income Vs. Capital Gain During 2020, Sandra Von Arb acquired a four-unit apartment…
A: Capital gain refers to the profit or gain obtained when disposing of a capital asset. It is…
Q: Explain the concept of double-entry bookkeeping in accounting and how it ensures accuracy and…
A: Double-entry bookkeeping is a fundamental accounting concept that records every financial…
Q: Your answer is partially correct. On January 1, 2025, Carla Vista Animation sold a truck to Sandhill…
A: Lease ia a contract in which the lessor gives the asset to the lesse for the agrred period of time…
Q: Refer to the following selected financial information from WorkFit Corporation. Compute the…
A: Lets understand the basics.Acid test ratio also known as quick ratio. It compares all the quick…
Q: You are the owner of a successful business that is beginning to grow. You are considering the…
A: Answer:- Accounting means:- Accounting is the practice of keeping track of a company's financial…
Q: Pag Adger Corporation is a service company that measures its output based on the number of customers…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Net Sales = $145,347 Employee Meals $1,923 Discounts $221 Coupons/Promotions $988 What is the Gross…
A: Gross sales are the sum total of a company's sales transactions that take place over the course of a…
Q: Windsor Company applies overhead based on direct labour hours. Two direct labour hours are required…
A:
Q: Kelley Company reports $1,500,000 of net income and declares $210,000 of cash dividends on its…
A: Earnings per share indicate the profits per share of common stockholders. It can be calculated by…
Q: partnership has the following capital balances: Dunberry (40% of profits and losses) 100,000 Fox…
A: A partnership is a contract between two or more persons to form a business and share profits and…
Q: Donner Company would like to estimate the variable and fixed components of its maintenance costs and…
A: Mixed cost problems are solved using the High -Low-cost method. Variable and fixed costs are…
Q: Q5) Do Horizontal and Vertical analysis of the following Balance Sheet of Ali and Co. 2020 49,000…
A: Horizontal analysis is used to examine a company's financial statements throughout a number of…
Q: An e-commerce site that sells beverages has enrolled 17,863 into a coffee club. The financial data…
A: Contribution margin is the profit earned for each unit sold. It is calculated by deducting variable…
Q: Kate's Kite Company (a corporation) sells and repairs kites from manufacturers around the world. Its…
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material.…
A: The contribution margin is calculated as difference between revenue and variable costs. The product…
Q: The production budget for Manner Company shows units to produce as follows: July, 580; August, 640;…
A: Budget is an estimation made for the future period in the current year. Direct labour budget shows…
Q: Solving i Ch 1.... M 13 P. M McG... Required information Use the following information for the…
A: STATEMENT OF SHAREHOLDERS EQUITYStatement of Shareholders Equity is also known as Changes in…
Q: Each morning, Joel McKnight stocks the drink case at Joel's Beach Hut in Myrtle Beach, South…
A: Contribution Margin = Contribution margin, or dollar contribution per unit, is the selling price per…
Q: Mack's Juices produces and bottles a line of fruit juices. The manufacturing process entails mixing…
A: •Operating profit for Packaging division:total Operating profit = 5,850,000 - 5,245,000 =…
Q: Use the following information to calculate the estimated closing inventory at cost by using the…
A: It is a method for calculating ending inventory based on the ratio of amount of goods for sale at…
Q: ABC Company is preparing its financial statements for the year ended December 31, 2023. During the…
A: In accounting, the treatment of costs as either capital expenditures (capitalization) or operating…
Q: Anderson Brown worked 39 hours during the first week of the calendar year and earns regular wages of…
A: Social Security tax(SST) is imposed on both the employer and employee of the firm in order to…
Francisco wants to acquire a car on credit, worth $ 36000 to 3 years of term, which must be paid in fixed monthly installments, with an interest rate of 1% per month. Which of the following alternatives suits you to buy the car?
(a) Method of accumulation of interest or lizard method
(b) Debit balance method
(c) Gradual
Step by step
Solved in 3 steps
- Assume that you are about to sell property (a vacant parcel of real estate) you own but otherwise have no use for. The net-of-sales- commission selling price for the property is $450,000. You are willing to finance this transaction over a 14-year period and have told the buyer that you expect a 11% pretax return on the transaction. The buyer has asked you for a payment schedule under several alternatives. Required: 1. What will be your periodic cash receipt, to earn a 11% return, if payments are received from the purchaser: NOTE: to answer the above questions, use the PMT function in Excel, as follows: PMT(rate,nper, pv,fv,type) where: rate is the interest rate for the loan, nper is the total number of payments, pv is the present value (i.e., the total amount that a series of future payments is worth now; also known as the principal), fv is the future value (or a cash balance you want to attain after the last payment is made; if fv is omitted, it is assumed to be 0 (zero)), and type is…You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $50,000 today and another $50,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 5%, (b) 7 %, or (c) 9%. Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C. Payment Amount $ 50,000 50,000 50,000 Interest Rate 7 5% 7% 9% Answer is complete but not entirely correct. Compounding Annually Annually Annually Period Due 3 years 3 years 3 years $ Total Cost of Land Today 93,121.25 X 90,816.30✔ 88,617.30Assume that you are about to sell property (a vacant parcel of real estate) you own but otherwise have no use for. The net-of-sales-commission selling price for the property is $500,000. You are willing to finance this transaction over a 20-year period and have told the buyer that you expect a 12% pretax return on the transaction. The buyer has asked you for a payment schedule under several alternatives. Required: 1. What will be your periodic cash receipt, to earn a 12% return, if payments are received from the purchaser: NOTE: to answer the above questions, use the PMT function in Excel, as follows: PMT(rate,nper,pv,fv,type) where: rate is the interest rate for the loan, nper is the total number of payments, pv is the present value (i.e., the total amount that a series of future payments is worth now; also known as the principal), fv is the future value (or a cash balance you want to attain after the last payment is made; if fv is omitted, it is assumed to be 0 (zero)), and…
- Liam needs to calculate the monthly payment for a loan to purchase the Charles Street property. Calculate the payment as follows: a) For the nper argument, use the Term_in_Months (cell D5) to specify the number of periods. b)For the pv argument, use the Loan_Amount (cell B8) to include the present value. c)Insert a negative sign (-) after the equal sign in the formula to display the result as a positive amount.Using a financial calculator, solve for the unknowns in each of the following situations. (a) On June 1, 2021, Kimberly Lawrence purchases lakefront property from her neighbor, Josh Hutcherson, and agrees to pay the purchase price in 12 payments of $21,500 each, the first payment to be payable June 1, 2022. (Assume that interest compounded at an annual rate of 8.30% is implicit in the payments.) What is the purchase price of the property? (Round answer to 2 decimal places, e.g. 25.25.) Purchase price of the property (b) On January 1, 2021, Crane Corporation purchased 200 of the $1,000 face value, 7% coupon, 10-year bonds of Sterling Inc. The bonds mature on January 1, 2031, and pay interest annually beginning January 1, 2022. Crane purchased the bonds to yield 9.90%. How much did Crane pay for the bonds? (Round answer to 2 decimal places, e.g. 25.25.) Crane paid for the bonds1)Liam has three other options for purchasing the Charles Street property. In the first scenario, he could borrow additional money to fund a renovation of the building. He wants to determine the monthly payment for the first scenario.a)In cell G10, insert a formula using the PMT function using the monthly interest rate (cell G6), the loan period in months (cell G8), and the loan amount (cell G4) to calculate the monthly payment for the renovation scenario.
- Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in order to purchase a vehicle. He negotiated for the stated rate of the loan at 6% wherein the current market rate is 10%. What is the present value of the principal?All the remaining questions are based on the following scenario: You take out an $19,000.00 car loan that calls for 48 monthly payments at an APR of 6.7%. Complete an amortization table and answer the following questions. You must complete the amortization table to answer the questions (otherwise your answers could be off due to rounding error... all totals are based on intermediate numbers that have not been rounded). The answer you enter must be rounded (correctly) to two decimal places. You do not need to include commas or dollar signs in your answer. For example, the end balance after 41 months would be entered as 3096.82 What is your loan payment?USE THE AMORTIZATION TABLE TO ANSWER THIS QUESTION: Bob Jones bought a new log cabin for $ 325,000, at 8% interest for 30 years. He had to pay 20% down to obtain the loan. Required: From the amortization table: What is the outstanding balance after the third payment?
- John wants to buy a property for $121,250 and wants an 80 percent loan for $97,000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 9 percent interest; however, a loan fee of $4,800 will also be necessary for John to obtain the loan. Required: a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If John pays off the loan after five years, what is the effective interest rate? d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rateYou take out an $19,000.00 car loan that calls for 48 monthly payments at an APR of 6.7%. Complete an amortization table and answer the following questions. You must complete the amortization table to answer the questions (otherwise your answers could be off due to rounding error... all totals are based on intermediate numbers that have not been rounded). The answer you enter must be rounded (correctly) to two decimal places. You do not need to include commas or dollar signs in your answer. For example, the end balance after 41 months would be entered as 3096.82. What is the total amount you paid on the loan?You take out an $19,000.00 car loan that calls for 48 monthly payments at an APR of 6.7%. Complete an amortization table and answer the following questions. You must complete the amortization table to answer the questions (otherwise your answers could be off due to rounding error... all totals are based on intermediate numbers that have not been rounded). The answer you enter must be rounded (correctly) to two decimal places. You do not need to include commas or dollar signs in your answer. For example, the end balance after 41 months would be entered as 3096.82. What is the total interest paid on the loan?