Questions
you plan to invest $10,000 on the last day of every year for the next five...
you plan to invest $10,000 on the last day of every year for the next five years, if the interest rate on the investment is 6 percent, the present value of your investment is...
In: Finance
Todd is saving $3,000 annually into an account (payments at theend of each year). He...
Todd is saving $3,000 annually into an account (payments at the end of each year). He plans to increase the annual level of savings by 5 percent each year. He can earn 9 percent annually. How much will he have in the account at the end of twenty years?
In: Finance
prepare a complete statement of cash flows using the indirect method for the current year
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.
| FORTEN COMPANY Comparative Balance Sheets December 31 |
|||||||||||
| Current Year | Prior Year | ||||||||||
| Assets | |||||||||||
| Cash | $ | 67,900 | $ | 85,500 | |||||||
| Accounts receivable | 83,890 | 62,625 | |||||||||
| Inventory | 293,656 | 263,800 | |||||||||
| Prepaid expenses | 1,330 | 2,135 | |||||||||
| Total current assets | 446,776 | 414,060 | |||||||||
| Equipment | 145,500 | 120,000 | |||||||||
| Accum. depreciation—Equipment | (42,625 | ) | (52,000 | ) | |||||||
| Total assets | $ | 549,651 | $ | 482,060 | |||||||
| Liabilities and Equity | |||||||||||
| Accounts payable | $ | 65,141 | $ | 132,675 | |||||||
| Short-term notes payable | 13,600 | 8,400 | |||||||||
| Total current liabilities | 78,741 | 141,075 | |||||||||
| Long-term notes payable | 59,000 | 60,750 | |||||||||
| Total liabilities | 137,741 | 201,825 | |||||||||
| Equity | |||||||||||
| Common stock, $5 par value | 180,750 | 162,250 | |||||||||
| Paid-in capital in excess of par, common stock | 55,500 | 0 | |||||||||
| Retained earnings | 175,660 | 117,985 | |||||||||
| Total liabilities and equity | $ | 549,651 | $ | 482,060 | |||||||
| FORTEN COMPANY Income Statement For Current Year Ended December 31 |
|||||||
| Sales | $ | 642,500 | |||||
| Cost of goods sold | 297,000 | ||||||
| Gross profit | 345,500 | ||||||
| Operating expenses | |||||||
| Depreciation expense | $ | 32,750 | |||||
| Other expenses | 144,400 | 177,150 | |||||
| Other gains (losses) | |||||||
| Loss on sale of equipment | (17,125 | ) | |||||
| Income before taxes | 151,225 | ||||||
| Income taxes expense | 41,050 | ||||||
| Net income | $ | 110,175 | |||||
Additional Information on Current Year Transactions
- The loss on the cash sale of equipment was $17,125 (details in b).
- Sold equipment costing $82,875, with accumulated depreciation of $42,125, for $23,625 cash.
- Purchased equipment costing $108,375 by paying $54,000 cash and signing a long-term note payable for the balance.
- Borrowed $5,200 cash by signing a short-term note payable.
- Paid $56,125 cash to reduce the long-term notes payable.
- Issued 3,700 shares of common stock for $20 cash per share.
- Declared and paid cash dividends of $52,500.
Required:
1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)
In: Accounting
Find the EAR in each of the following cases (Use 365 days a year. Do not...
|
Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): |
| Stated Rate (APR) | Number of Times Compounded | Effective Rate (EAR) | |||||||
| 9.4 | % | Quarterly | % | ||||||
| 18.4 | Monthly | ||||||||
| 14.4 | Daily | ||||||||
| 11.4 | Infinite | ||||||||
In: Finance
The Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The...
The Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021:
Additional information:
1. The company borrowed $684,000 on March 31, 2021. Principal and interest are due on March 31, 2022. This note is the company's only interest-bearing debt.
2. Rent for the year on the company's office space is $48,000. The rent is paid in advance.
3. On October 31, 2021, Eldorado lent money to a customer. The customer signed a note with principal and interest at 9.0% due in one year.
Required:
1. What is the interest rate on the company's note payable?
2. The 2021 rent payment was made at the beginning of which month? (Do not round your intermediate calculation.)
3. How much did Eldorado lend its customer on October 31?
In: Accounting
Bicycling, the world's leading cycling magazine, reviews hundreds of bicycles throughout the year.
Bicycling, the world's leading cycling magazine, reviews hundreds of bicycles throughout the year. Their "Road-Race" category contains reviews of bikes used by riders primarily interested in racing. One of the most important factors in selecting a bike for racing is the weight of the bike. The following data show the weight (pounds) and price ($) for 10 racing bikes reviewed by the magazine.
(a) Use the data to develop an estimated regression equation that could be used to estimate the price for a bike given the weight. (Round your numerical values to the nearest integer).
(b) Computer r2. (Round your answer to three decimal places.)
(c) Predict the price (in dollars) for a bike that weighs 16 pounds. (Round your answer to the nearest dollar.)
In: Math
Your company plans to issue bonds later in the upcoming year. But with the economic uncertainty...
Your company plans to issue bonds later in the upcoming year. But with the economic uncertainty and varied interest rates, it is not clear how much money the company will receive when the bonds are issued. The company is committed to issuing 2,500 bonds, each of which will have a face value of $1,000, a stated interest rate of 7 percent paid annually, and a period to maturity of 10 years. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1)
Required:
1. Compute the bond issue proceeds assuming a market interest rate of 7 percent. (When computing proceeds, round the present value of the face amount and of the annual interest payment to the nearest thousand dollars.) Also, express the bond issue price as a percentage by comparing the total proceeds to the total face value.
2. Compute the bond issue proceeds assuming a market interest rate of 6 percent. (When computing proceeds, round the present value of the face amount and of the annual interest payment to the nearest thousand dollars.) Also, express the bond issue price as a percentage by comparing the total proceeds to the total face value.
3. Compute the bond issue proceeds assuming a market interest rate of 8 percent. (When computing proceeds, round the present value of the face amount and of the annual interest payment to the nearest thousand dollars.) Also, express the bond issue price as a percentage by comparing the total proceeds to the total face value.
In: Accounting
The president of State University wants to forecast student enrollment for this academic year based on...
The president of State University wants to forecast student enrollment for this academic year based on the following historical data:
|
Year |
Enrollments |
|
5 years ago |
15,000 |
|
4 years ago |
16,000 |
|
3 years ago |
18,000 |
|
2 years ago |
20,000 |
|
Last year |
21,000 |
What is the forecast for this year using exponential smoothing with alpha = 0.5, if the forecast for two years ago was 16,000?
In: Other
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management...
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
The company’s beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.
Required:
Prepare the company’s cash budget for the upcoming fiscal year
In: Accounting
Future Motors is expected to pay an annual dividend next year of $3.10 a share.
Future Motors is expected to pay an annual dividend next year of $3.10 a share. Dividends are expected to increase by 1.85 percent annually. What is one share of this stock worth at a required rate of return of 15 percent?
A) $24.01 B) $26.30 C)$24.56 ) $23.57 ) $24.59
In: Finance