Suppose that you are 22 today and that your salary for the year ending today is $61,250. Suppose that you are paid on an annual basis at the end of each year; so you are receiving $61,250 today. You plan to retire at age 68and will need 75% of your last year’s salary for your annual living expenses starting at age 69. You have saved $50,000 to date. All living expenses between now and retirement will be covered by your annual salary in each year. All living expenses after retirement will be covered by your retirement income. Assume that your first withdrawal from your retirement account for post-retirement income occurs on your 69thbirthdayand that you next deposit into your retirement account will be one year from now. You have some older relatives that have always had an interest in you and have indicated that you are in their wills. Assume that you will inherit $100,000 when you turn 36. Assume also that, given the state of health care costs and a family history of healthcare issues, that you will need to have an amount of $1.25 million available by age 57 to cover healthcare costs above and beyond what your health insurance plan is likely to cover. Assume that you will save 10% of your annual income while you work, and that you will not save any additional amount after you retire. You project that your salary will grow at a rate of 5% and that your retirement income needs will grow at 3%to reflect long-term inflation forecasts. The higher growth rate in your salary reflects your expectation that you will receive promotions and that absent promotions your salary will keep pace with inflation. The appropriate interest rate for your working life is 9% and declines to 6% after you retire. How much will you have to leave to your heirs if you live to age 90?
In: Finance
I just heard on the news that GDP is higher this year than it was last year. This means that we're better off this year than last year." Comment.
In: Economics
In the beginning of the current year, Barry and Irving formed the BI Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest. Specifically, Barry transferred property having a $40,000FMV, a $26,000adjusted basis, and subject to a $7,000liability, which the partnership assumed. Irving contributed $45,000cash to the partnership. The partnership also borrowed $29,000from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $26,000of net ordinary income and reinvested this amount in new property.
Requirements:
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What is the partnership's and each partner's gain or loss recognized on the formation of the partnership? |
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What is each partner's basis in his or her partnership interest at the end of the current year? |
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For the partnership, prepare a tax and book balance sheet at the end of the current year. |
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Assume instead that Barry and Irving formed a corporation rather than a partnership. What is the corporation's and each shareholder's gain or loss recognized on the formation of the corporation? What is each shareholder's basis in his or her stock at the end of the current year? |
In: Accounting
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows.
| Assets | Liabilities & Stockholders' Equity | ||||||||
| Cash | $ | 104,000 | Notes payable (due in 6 months) | $ | 50,000 | ||||
| Accounts receivable | 110,000 | Accounts payable | 81,000 | ||||||
| Inventory | 280,000 | Long-term liabilities | 361,000 | ||||||
| Prepaid expenses | 60,000 | Capital stock, $5 par | 300,000 | ||||||
| Plant & equipment (net) | 570,000 | Retained earnings | 422,000 | ||||||
| Other assets | 90,000 | ||||||||
| Total | $ | 1,214,000 | Total | $ | 1,214,000 | ||||
During the year, the company earned a gross profit of $1,116,000 on sales of $2,950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year-end figures may be used rather than averages.
a. Compute the current ratio. (Round your answer to 2 decimal place.)
b. Compute the quick ratio. (Round your answer to 2 decimal place.)
c. Compute the working capital.
d. Compute the debt ratio. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.)
e. Compute the accounts receivable turnover (all sales were on credit). (Round your answer to 2 decimal places.)
f. Compute the inventory turnover. (Round your answer to 2 decimal places.)
g. Compute the book value per share of capital stock. (Round your answer to 2 decimal places.)
In: Accounting
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows.
| Assets | Liabilities & Stockholders' Equity | ||||||||
| Cash | $ | 104,000 | Notes payable (due in 6 months) | $ | 46,000 | ||||
| Accounts receivable | 130,000 | Accounts payable | 80,000 | ||||||
| Inventory | 270,000 | Long-term liabilities | 308,000 | ||||||
| Prepaid expenses | 60,000 | Capital stock, $5 par | 300,000 | ||||||
| Plant & equipment (net) | 570,000 | Retained earnings | 490,000 | ||||||
| Other assets | 90,000 | ||||||||
| Total | $ | 1,224,000 | Total | $ | 1,224,000 | ||||
During the year, the company earned a gross profit of $1,116,000 on sales of $2,950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year-end figures may be used rather than averages.
a. Compute the current ratio. (Round your answer to 2 decimal place.)
b. Compute the quick ratio. (Round your answer to 2 decimal place.)
c. Compute the working capital.
d. Compute the debt ratio. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.)
e. Compute the accounts receivable turnover (all sales were on credit). (Round your answer to 2 decimal places.)
f. Compute the inventory turnover. (Round your answer to 2 decimal places.)
g. Compute the book value per share of capital stock. (Round your answer to 2 decimal places.)
In: Accounting
1a. In the year 2030, it is conceivable that 20 gigawatts of electricity could be continuously generated in a single western state by coal burning power plants. At 37 percent efficiency for generating the electric power, how many tons of coal would be burned in a year? Give the answer in tons, but do not include the units.
b. In the previous problem, if the sulfur content of the coal averages 1 percent, how many tons of SO2 would be released per year?
c. Continuing with the same 20 GW of coal burning power plants, if a standard of 0.1 pounds of particulates per million Btu is adhered to, how many tons of particulates would be released in a year?
d. And as a final question about the power plants, how many tons of CO2 would be released per year, assuming that the coal is 100 percent carbon?
In: Physics
There are 36 students in the classroom. Assuming each date of the year are equally
likely to be the birthday of a student. Calculate the probability that there are at least
two students having the same birthday.
use probability and stats to solve
In: Statistics and Probability
(a) By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years (I hope more) after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. A conservative bond fund has been returning 7% annually and you decide to invest your retirement money in this fund. Assuming that the fund continues to return at least 7% during your planning horizon before and after retirement, how much should you invest in the fund starting from now, annually, in order to be able to withdraw $50,000 per year during your retirement?
Now let’s extend the problem so that you protect yourself against inflation.
(b) Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement your social security and maintain your desired life style.
But because there is on average 3% annual inflation, when you retire in 30 years from now you need more than $50,000 per year to maintain the life style you like. (Hint: first calculate what future amount in 30 years is equivalent to $50,000 of now and then solve the rest of the problem).
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary. Provide your work in detail
In: Finance
In: Accounting
Following is a list of information for Michael and Diana Lapin for the tax year 2019. Michael and Diana are married. Michael is a lawyer working for a Native American law firm, Native American Justice, Inc. Diana works part-time for Creation, a genetic research lab. Paul Harris, he is 50 years old and a homeless family-friend that lived all year in the lapin’s basement. The Lapin’s provide all of Paul’s support. Assume that all other requirements are met by each potential dependent. Can the Lapin claim him as a dependent for tax purposes?
In: Accounting