You plan to make 15 deposits at the end of each year in an account that pays 6% compound interest annually. If the first deposit is $ 1,000 and subsequently 500 are added each year to the amount deposited the previous year (1000, 1500, ...), the amount of the account at the end of the 15 years will be close to:
a. $71,550
b. $97,777
c. $92,242
d. $87,021
e.No correct answer is provided.
In: Accounting
you are analyzing a project and have this data :
year : cash flow
0. : -40,000
1 : 18,675
2 : 23,900
3. : 21,750
required rate of return = 13 % target payback = 2.0 years
point:1+ 1.5 +1.5 + 2
compute following :
a) pay back period
b) discounted pay back period
c) NPV
D) IRR OF THIS PROJECT
E) ACCEPT OR REJECT PROJECT
In: Accounting
A company’s financial records report the following accounts and balances at the end of the year:
| Accounts payable | $ 4,000 |
| Accounts receivable | 4,700 |
| Cash | 14,100 |
| Common stock | 5,600 |
| Dividends | 2,200 |
| Interest expense | 18,500 |
| Notes payable | 5,200 |
| Prepaid insurance | 2,700 |
| Retained insurance | 2,400 |
| Service revenue | 25,000 |
What would the company show as its total credits on its trial balance?
a) $39,800
b) $43,400
c) $36,600
d) $42,200
e) $44,400
In: Accounting
COMMENT ON POST
Management of a company want to take a bath in the first year, because this poor performance could be passed in the previous management. The results of the first year of a new management are still linked to the decisions of the previous management and this is a great opportunity for new management to blamed their mistakes in the previous one. Also taking a bath in the first year will allow the new management to most likely show improvements in the second year that it will be for their benefit.
In: Accounting
Cindy, who will graduate from college in a year is deciding whether to go on for her master’s degree which will last two years. She figures that if she takes a job immediately, she can earn $40,000 per year in real terms for the remainder of her working years. If she goes on for two more years of graduate study, however, she can increase her earnings to $50,000 per year. The cost of tuition is $40,000 per year in real terms. Is this a worthwhile investment if the real interest rate is 5% per year?—(Assume she will retire after working for 40 years. AND SHOW YOUR WORK)
In: Finance
A company has net operating assets at the start of the year of $422 million. If EBIT for the year is $87 million, free cash flow is $42 million and the corporate tax rate is 30%, what are net operating assets at the end of the year?
In: Finance
In: Accounting
Marc and Michelle are married and earned salaries this year of $64,800 and $12,300, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $600 from corporate bonds. Marc contributed $2,600 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,600. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,200 of expenditures that qualify as itemized deductions and they had a total of $5,600 in federal income taxes withheld from their paychecks during the course of the year.
a. What is Marc and Michelle’s gross income?
b. What is Marc and Michelle’s adjusted gross income?
c. What is the total amount of Marc and Michelle’s deductions from AGI?
d. What is Marc and Michelle’s taxable income?
e. What is Marc and Michelle’s taxes payable or refund due for the year?
In: Accounting
At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
| Cash balance, September 1 (from a summer job) | $7,200 |
| Purchase season football tickets in September | 100 |
| Additional entertainment for each month | 250 |
| Pay fall semester tuition in September | 3,900 |
| Pay rent at the beginning of each month | 350 |
| Pay for food each month | 200 |
| Pay apartment deposit on September 2 (to be returned December 15) | 500 |
| Part-time job earnings each month (net of taxes) | 890 |
a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.
| Priscilla Wescott | ||||
| Cash Budget | ||||
| For the Four Months Ending December 31 | ||||
| September | October | November | December | |
| Estimated cash receipts from: | ||||
| $ | $ | $ | $ | |
| Total cash receipts | $ | $ | $ | $ |
| Less estimated cash payments for: | ||||
| $ | ||||
| $ | $ | $ | ||
| Total cash payments | $ | $ | $ | $ |
| Cash increase (decrease) | $ | $ | $ | $ |
| Cash balance at end of month | $ | $ | $ | $ |
b. Are the four monthly budgets that are
presented prepared as static budgets or flexible budgets?
c. What are the budget implications for Priscilla Wescott?
Priscilla can see that her present plan sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $ at the end of December, with no time left to adjust.
In: Accounting
In: Nursing