1a. A business had accounts receivable of $124,800 at the end of 2008 and $145,700 at...

1a.

A business had accounts receivable of $124,800 at the end of 2008 and $145,700 at the end of 2009. Calculate the percent change (rounded to the nearest tenth of a percent).

		a 14.3%
b		16.7%
c		negative 14.3%
d		negative 16.7%

1b.

Which type of statement is for a period of time: Income statement, or balance sheet?

	a	Balance Sheet
	b	Income Statement
	c	Both
	d	Neither

1c.

You are thinking about getting a 40-year $165,000 mortgage loan at 7.75% interest. How much interest would you pay over the 40 years?

	a	$370,881.60
	b	$13,397.04
	c	$535,881.60
		$1,116.42

Solutions

Expert Solution

1a. b. 16.7%

Change Percentage = (Account receivable at 2009 – Account Receivable at 2008) / Account Receivable at 2008

Change Percentage = ($145,700– $124,800) / $124,800

Change Percentage = 16.75%

Hence, Correct option is b. 16.7%

1b. c. Both

Income statement and Balance Sheet both are for period of time

Hence, Correct option is c. Both

1c. Correct option is a. $370,881.60

Finding payment per period:
Asset Value = A	$165,000.00
Down Payment = DP =	$0.00
P = Principal Loan = (A - DP) =	$165,000.00
R = (Given Rate / No. of Payment in a Year) = 7.75%/12 =	0.645833%
N = Numbers of payment = 40 x 12	480
PMT = Payment = P x R x (1+R)^N / ((1+R)^N - 1) =	1,116.42

Formula for calculating payment (working)
PMT = P x R x (1+R)^N / ((1+R)^N - 1)
PMT = 165000(7.75%/12)(1+(7.75%/12))^480/((1+(7.75%/12))^480-1)
PMT = $ 1,116.42 (Rounding to nearest cent or two decimal places)

Total amount paid over life of the loan = PMT x N =	$535,881.60

Total Interest paid = Total amount paid over life of the loan - Principal loan =	$370,881.60

Hence, Correct option is a. $370,881.60

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a...

A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $30,000. An aging of accounts receivable at the end of the year indicates a required allowance of $38,000. If bad debt expense for the year was $40,000 and if credit sales for the year were $8,200,000 and $7,950,000 was collected from credit customers, what was the beginning-of-year balance in accounts receivable?

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year....

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. Accounts Receivable Age Amount Proportion Expected to Default Allowance Required Current $310,500 0.005 $1,553 1–30 days past due 47,500 0.01 475 31–45 days past due 25,000 0.13 3,250 46–90 days past due 12,800 0.20 2,560 91–135 days past due 6,100 0.25 1,525 Over 135 days past due 4,200 0.60 2,520 $11,883 The balance in Glencoe's allowance for doubtful accounts at the beginning of the...

Natcher Corporation’s accounts receivable at the end of Year 2 was $148,000 and its accounts receivable...

Natcher Corporation’s accounts receivable at the end of Year 2 was $148,000 and its accounts receivable at the end of Year 1 was $156,000. The company’s inventory at the end of Year 2 was $151,000 and its inventory at the end of Year 1 was $143,000. Sales, all on account, amounted to $1,404,000 in Year 2. Cost of goods sold amounted to $822,000 in Year 2. The company’s operating cycle for Year 2 is closest to: (Round your intermediate calculations...

At the end of 2015, Apple had cash and short-term investments of $41.86 billion, accounts receivable...

At the end of 2015, Apple had cash and short-term investments of $41.86 billion, accounts receivable of $35.74 billion, current assets of $89.83 billion, and current liabilities of $80.38 billion. a. What was Apple's current ratio? b. What was Apple's quick ratio? c. What was Apple's cash ratio? d. At the end of 2015, HPQ had a cash ratio of 0.29, a quick ratio of 0.66 and a current ratio of 1.06. What can you say about the asset liquidity...

At the end of 2015, Apple had cash and short-term investments of $41.86 billion, accounts receivable...

At the end of 2015, Apple had cash and short-term investments of $41.86 billion, accounts receivable of $36.25 billion, current assets of $88.89 billion, and current liabilities of $80.39 billion. a. What was Apple's current ratio? b. What was Apple's quick ratio? c. What was Apple's cash ratio? d. At the end of 2015, HPQ had a cash ratio of 0.36, a quick ratio of 0.75 and a current ratio of 1.23. What can you say about the asset liquidity...

At the end of 2015, Apple had cash and short-term investments of $41.60 billion, accounts receivable...

At the end of 2015, Apple had cash and short-term investments of $41.60 billion, accounts receivable of $35.89 billion, current assets of $89.38 billion, and current liabilities of $80.61 billion a. What was Apple's current ratio? b. What was Apple's quick ratio? c. What was Apple's cash ratio? d. At the end of 2015, HPQ had a cash ratio of 0.35, a quick ratio of 0.73 and a current ratio of 1.15. What can you say about the asset liquidity...

Accounts payable, end of year $ 9,803 $ 13,748 Accounts receivable, net, end of year 31,885...

Accounts payable, end of year $ 9,803 $ 13,748 Accounts receivable, net, end of year 31,885 19,286 Inventory, end of year 12,104 11,655 Net sales 157,000 104,000 Cost of goods sold 76,000 115,000 (1) Use the information above to compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Use the information above to compute the number of days in the cash conversion cycle for...

roviding for Doubtful Accounts At the end of the current year, the accounts receivable account has...

roviding for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $703,000 and sales for the year total $7,970,000. The allowance account before adjustment has a credit balance of $9,500. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a credit balance of $9,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $30,400. The allowance account before...

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has...

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $821,000 and sales for the year total $9,310,000. The allowance account before adjustment has a debit balance of $11,100. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $11,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $35,500. The allowance account before...

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has...

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,147,000 and sales for the year total $13,000,000. The allowance account before adjustment has a credit balance of $15,500. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a credit balance of $15,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $49,600. The allowance account before...

Subjects