Q: If a company already owns the land on which it plans to build a factory, the land should be treated…
A: If a company already owns the land on which it plans to build a factory, the land should be treated…
Q: You invested in the no-load Best Mutual Fund one year ago by purchasing 900 shares of the fund at…
A: Purchase price (NAV0) = $19.44 Dividend (D) = $1.88 Capital gain (C) = $2.12 NAV at the end of year…
Q: Find the future value of £2000 when it grows at an annually compounded rate of 5% for 10 years. An…
A: Future Value, FV=PV(1+i)n Here, PV (Present Value) = 2000 i (interest rate) = 5% = 0.05 n (number…
Q: An annuity loan of 120 000 € is taken for 15 years with monthly payments. The interest rate of the…
A: Time Period 15 Points in the beginning 0.90% Interest in the beginning 0.22% Interest after 1…
Q: If the firm’s tax rate is 30 percent, what discount rate should you use to evaluate the equipment…
A: WACC refers to the joint cost of company's capital from all the sources of the company. It includes…
Q: Jay Jenkins takes out a 10.5% simple interest loan today that will be repaid in six months from now…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: Shinn Co. sells custom markers for $3.00 apiece. The variable cost per marker is $0.83. Shinn has…
A: Solution: Degree of operating leverage (DOL) measures the ratio of a company's contribution margin…
Q: 5.1 Frasier needs £250,000 to set up his business. Bank A is willing to lend him the money under the…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: ABC Inc. currently sells P12,000,000 per annum. Its credit period and DSO are both 30 days, and 1.5%…
A: Given, Old sales is P12,000,000 New sales increase by P3,000,000.
Q: Jason Corporation has invested in a machine that cost $80,000, that has a useful life of eight…
A: Given: Particulars Amount Initial cost $80,000 Use life 8 Payback period 5
Q: The price of a condominium is $88,000. The bank requires a 5% down payment and one point at the time…
A: Price of Condominium is $88,000 Down payment is 5% Time period is 30 years or 30×12 = 360 months…
Q: Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It…
A: Profitability index is referred as the measure of the attractiveness of the investments or the…
Q: What is the market risk premium (rM - rRF)?
A: The market risk premium can be found using the CAPM Model As per CAPM Model, expected return = Risk…
Q: The unpaid balance at the start of a 30-day billing cycle was $660.63. No purchases were made during…
A: Initial Unpaid balance is $660.63 Annual interest rate is 19.67% Amount deposited on day 21 is…
Q: True or false? Using the cash flow statement, as a financial control, is not necessary when your…
A: Step 1 A cash flow assessment is a crucial indicator of a company's health, profitability, and…
Q: The payback rule is generally most useful when:
A: The payback period is the time taken to recover the money spent on the project. According to the…
Q: Logan Company is considering two projects, A and B. The following information has been gathered on…
A: Solution:- Profitability Index measures the ratio of Present value of future cash flows to the…
Q: I need some research gaps in the existing literature for the impact of covid-19 on the UK's supply…
A: From the initial step of acquiring raw materials through the ultimate delivery of the product or…
Q: Suppose you take out a 20-year mortgage for a house that costs $286,205. Assume the following: The…
A: Rule 28% says that any persons total housing expenses could not be greater than 28% of gross salary.…
Q: What will be Mr. Smith's monthly payment?
A: Loan Payments: These are payments made to amortize the loan amount by the borrower. Hence, these…
Q: From the following facts, for Sum-of-Years-Digits, what is: Given: COST - $ 15,000 RESIDUAL…
A: Solution: Depreciation means the cost of wear and tear of the property, plant and equipment of firm.…
Q: Scooter wishes to sell a bond that has a face value of $1,075. The bond bears an interest rate of…
A: Face value of the bond = $1075 Coupon rate = 9.85% Quarterly coupon rate = 9.85%/4 = 2.4625% Yield…
Q: A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells…
A: Data given: Current market price of gold per ounce = $2100 Upper Price of gold per ounce = $2200…
Q: project has cash flows of –$148,000, $43,000, $87,000, and $51,500 for Years 0 to 3, respectively.…
A: IRR is the rate at which Present value of cash Inflows is equal to Present Value of cash Inflows.…
Q: Check True if the statement is correct, otherwise False on the line before each number and state…
A: Answer 1:- True. If a company has adequate working capital, it means it has sufficient funds to meet…
Q: Robert has borrowed $339,000 to purchase a house in the current year at 5.5% interest rate, with a…
A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…
Q: We can get a sense of how model output responds to changes in inputs from sensitivity analyses. Some…
A: Sensitivity analysis is used to find out the change in input of one value lead to change in the…
Q: The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost…
A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…
Q: If the cost of capital is 18 percent and an investment costs $51,000, should you make this…
A: Cost of capital is 18% Initial cost is $51,000 Cash flow years 1-3 is $8,000 Cash flow Year 4-6 is…
Q: A loan of 40,000 Php is to be paid by equal payment at the end of each quarter for 1 year and a…
A: Loan is an amount of money borrowed from a lender. It is expected that the loan will be repaid at…
Q: A 5-year, 1000 par value bond with a 3% annual coupon is trading to yield 4%. What is the current…
A: The current yield is calculated as annual coupon divided by the market price of the bond
Q: 7d. A large profitable corporation is considering à capital InVe two-year project period. The annual…
A: The after-tax cash flow is the residual income of the company. To calculate the after-tax cash flow…
Q: You are interested buying a business and the current owner is asking $180,000 for it. You require a…
A: As per Bartleby guidelines, If multiple questions are posted , only first 1 question will be…
Q: cash flow on
A: Cash flows refer to the exchange of money in and out of the company. It shows the company’s…
Q: Compute the monthly payments on a 3-year lease for a $28,427 car if the annual rate of depreciation…
A: Lease can be defined as the agreement between lessor and lessee where lessor gives lessee the right…
Q: What would you pay for a stock, which just paid a $4.17 dividend (d0), if the expected dividend…
A: Current dividend (d0) = $4.17 Growth rate (g) = 4% Required rate of return (r) = 9.5%
Q: Below presented table shows purchases of new capital assets by a small busine formation of its…
A: UCC is undepreciated capital cost , It is the balance left of capital cost for further depreciation…
Q: What is the expected return for asset X if it has a beta of 1.5, the expected market return is 15…
A: The expected return for the asset can be calculated with the help of CAPM equation
Q: The shares of Google are expected to generate the following possible returns over one year.…
A: The stock price in one year is calculated as current price plus the capital gain yield on the stock
Q: You are going to invest P20,000 in a portfolio consistin g of assets X, Y, and Z, as follows:…
A: The beta of the portfolio is calculated as sum of weight of each stock and the respective betas
Q: E Loan Amount Is $430,000 Loan is a 7/30 Balloon Loan Annual Interest Is 3.75%, with monthly…
A: Given, Loan amount is $430,000 Interest rate is 3.75% Loan is 7/30 balloon loan, which means, after…
Q: IRQ has common stock outstanding, which is trading at $25 per share. IRQ paid a dividend yesterday…
A: Last Dividend = $2.22 Growth rate = 0.03 Current stock price = $25 Cost of common equity = ?
Q: he bond matures in 10 years, at which time it will pay 1000. If the coupon rate is 7% and discount…
A: The bond price is calculated as present value of cash flows from bond
Q: A family has a $134,345, 25-year mortgage at 5.1% compounded monthly. (A) Find the monthly payment…
A: Mortgage is a loan to buy a property or asset. The mortgage repayment in equal amount is an annuity…
Q: The difference between a merchant wholesaler and an agent/broker is based on O the type of goods…
A: Merchant wholesalers buy from manufacturers and sell to other businesses. Agents and brokers are…
Q: (Table: Car Costs) The table shows the initial cost outlays of two versions of the Ford Escape and…
A: NPV is the difference between Present Value of cash Inflows and Initial Investment. Project with…
Q: Given the following information, what is the financial break-even point? Initial investment =…
A: Given that: Fixed cost=$58000 price=$130 variable cost per unit=$95 Thus formula of financial break…
Q: • Gantt chart or net present value (NPV). Year Annual benefits Annual operating costs 6% discount…
A: Net present value is the difference between Present Value of cash Inflows and present value of cash…
Q: Relate the 5 Set participants a. Cardholder b. Issuer c. Merchant d. Acquirer e. Certificate…
A: Secure Electronic Transaction (SET) is an open-source encryption and security standard for online…
Q: 15% n=7 Initial Cost (A)100 (B)60 (C)80 Uniform Annual Benefit (A)26 (B)15 (C)17 a)…
A: Budget is the process by which a firm assesses truly massive projects or investments.A new plant's…
You buy goods for $3,000 and receive a voucher for $500 off your next purchase within 30 days. Based on historical experience, the vendor estimates that 90% of its customers use these vouchers. How much revenue should the vendor recognize immediately at the time of your original purchase?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A retailer purchases merchandise with a catalog list price of $34,900. The retailer receives a 24% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period (Round your answer to the nearest dollar)?An invoice for a laptop computer that costs $625.68 is dated September 15, with sales terms of 3/10 EOM. When must the invoice be paid to take advantage of the discount?Maximum Inc. (retailer) has a loyalty program that rewards its customers one point per $1 spent. Points are redeemable for $0.20 off future purchases. A customer purchases products (cost of $280) for cash at the usual selling price of $400 and earns 400 points redeemable for $80 off future purchases of goods or services. The retailer expects redemption of 360 points or 90% of points earned. a.) How should the transaction price be allocated among the performance obligation(s)?Note: Round each allocated transaction price in the table below to the nearest dollar. b. Prepare Maximum’s journal entry to record the $400 sale to the customer where the customer earned 400 loyalty points.
- You receive an invoice for $17,400 with terms of 3/15, n/60. The supplier has a policy of allowing a cash discount for partial payments and you pay $8,000 within the discount period. Calculate the amount of credit you will receive for this payment.Belts are shipped to the buyer on June 4 at a cost of $5500.00. The terms on invoice are 3/10, n/60. When is the last day the buyer can get the cash discount? If the buyer decides to pay for the shipment on June 30. What is the net amount to be paid?The credit terms offered to a customer by a Merchandise Business are 2/10, n/30, which means that a. The customer can deduct a 2% discount if the bill is paid within 30 days of the invoice date. The customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. c. The customer must pay the bill within 10 days. d. The customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.
- Sell4U is an online site that allows its clients to post items for sale. Sell4U charges a 5% brokerage fee for use of the site, payable within 10 days of the sale. As an agent, Sell4U may recognize revenue for the brokerage fee as soon as an item is sold. True or FalseIf the merchandiser pays within 10 days of the invoice date how much will they actually pay? Explain your answer. Use the invoice below.A home gods retailer offers a sales incentive program where customers receive credit towards future purchases based on the dollar amount of their purchases today. For every $10 spent, a customer receives a $1 credit to use in the next 30 days. Based upon historical trends, the firm estimates that 35% of the credits will be redeemed. In the next month, consistent with the firm’s estimate, 35% of the credits were redeemed. The entry recorded to account for the redemption of these credits (excluding the effect of the costs of sales entry): A.) Increases Liabilities, Increases Stockholders’ Equity B.) Increases Liabilities, Reduces Stockholders’ Equity C.) Reduces Liabilities, Reduces Stockholders’ Equity D.) Reduces Liabilities, Increases Stockholders’ Equity C.) No entry needed
- Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. Additional information: • Lamplight purchases 25 light fixtures for $30 each on August 1, invoice date August 1, with no discount terms. Lamplight returns 15 light fixtures (receiving a credit amount for the total purchase price per fixture of $30 each) on August 3. • Lamplight purchases an additional 15 light fixtures for $10 each on August 19, invoice date August 19, with no discount terms. • Lamplight pays $110 toward its account on August 22. What amount does Lamplight Plus still owe to the supplier on August 30? What account is used to recognize this outstanding amount?A plumbing supply company has a discount policy which states that, if a customer pays within 15 days of the invoice, the customer can take a 3% discount; otherwise, the full amount is due in 60 days from the date of the invoice. Which of the following notations are used in business to reflect this discount? A. 3/15,n/60 B. 3/60,15/n C. 15/3,60/n D. 3/n,15/60The credit terms offered to a customer by a business firm are 2/10, n/30, which means that the customer must pay the bill within 10 days. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. two sales returns can be made within 10 days of the invoice date and no returns thereafter.
