You plan to borrow $35,000 at an 8% semiannual interest rate. It is a 3 year loan that requires 6 payments to fully amortize.
a) Calculate the amount of semiannual payment you would be making every period?
b) Set-up an amortization schedule.
In: Finance
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $96 per unit, and variable expenses are $66 per unit. Fixed expenses are $839,700 per year. The present annual sales volume (at the $96 selling price) is 25,800 units.
Required:
1. What is the present yearly net operating income or loss?
2. What is the present break-even point in unit sales and in dollar sales?
3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?
4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?
In: Accounting
The Distance Plus partnership has the following capital balances at the beginning of the current year:
| Tiger (40% of profits and losses) | $ | 80,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Phil (40%) | 50,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Ernie (20%) | 65,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
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Each of the following questions should be viewed independently. A. If Sergio invests $100,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the admission of new partner under bonus method.
B. If Sergio invests $75,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the admission of new partner under bonus method.
C. If Sergio invests $90,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the entry for goodwill allocation, during the admission of a new partner.
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In: Accounting
Following are the auditor’s calculation of two key ratios for Audisys Corporation for the current year, previous year, and the percentage change. The primary purpose of this information is to direct the auditor’s attention to areas requiring greater audit effort.
|
Ratio |
Current |
Previous |
% |
|
Quick Ratio |
1.32 |
1.50 |
12.00- |
|
No. of Days Sales in Accounts Receivable |
53.24 |
47.53 |
12.01 |
Required:
State whether there is a need to investigate the results further and, if so, the reason for further investigation.
State the areas/accounts that would require special emphasis in the audit investigation.
What additional tests would be done as part of the investigation?
In: Accounting
You have an opportunity to invest
$50,700
now in return for
$59,300
in one year. If your cost of capital is
8.3%,
what is the NPV of this investment?
The NPV will be
(Round to the nearest cent.)
In: Finance
A certain stock market had a mean return of 2.6% in a recent year. Assume that the returns for stocks on the market were distributed normally, with a mean of 2.6 and a standard deviation of 10. Complete parts (a) through (g) below.
a. If you select an individual stock from this population, what is the probability that it would have a return less than 0 (that is, a loss)?
The probability is (Round to four decimal places)
b. If you select an individual stock from this population, what is the probability that it would have a return between -11 and -19?
The probability is (Round to four decimal places)
c. If you select an individual stock from this population, what is the probability that it would have a return greater than -7?
The probability is (Round to four decimal places)
d. If you select a random sample of four stocks from this population, what is the probability that the sample would have a mean return less than 0 (a loss)?
e. If you select a random sample of four stocks from this population, what is the probability that the sample would have a mean return between -11 and -19?
The probability is (Round to four decimal places)
In: Statistics and Probability
Compute the allowable BOOK depreciation amounts for each year of a machine that costs $55,000 to purchase, and $4,000 to install with a 5 year life. Use the DDB method (factor=2) switching to straight line and salvage=0. What is the allowable depreciation for year 4?
The answer is not 5098!!!
In: Accounting
Derek will deposit $5,939.00 per year for 18.00 years into an account that earns 14.00%, The first deposit is made next year. He has $10,013.00 in his account today. How much will be in the account 36.00 years from today?
Derek will deposit $4,592.00 per year for 13.00 years into an account that earns 7.00%. Assuming the first deposit is made 6.00 years from today, how much will be in the account 35.00 years from today?
Suppose you deposit $2,798.00 into an account today that earns 10.00%. In 5.00 years the account will be worth $________.
In: Finance
A 10.25%, 14-year convertible bond has a conversion rate of 19 and is selling at a quote of 98.40. The common stock is selling at $35 and comparable non-convertible bonds are yielding 13%. The common stock pays an annual dividend of $1.50 per share.
A. Calculate the conversion value of the bond
B. Calculate the conversion premium (if any)
C. Calculate the investment value of the bond
D. Calculate the investment premium (if any)
E. Calculate the payback period
In: Finance
| The following information is from the finanial records of Company ExCost for the year: | |||||
| Total Manufacturing Costs | $ 2,150,000 | ||||
| Cost of Goods Manufactured | $ 2,075,000 | ||||
| Applied Factory Overhead was | 25% of total manufacturing costs | ||||
| Factory Overhead was applied at a rate of | 80% of direct labor costs | ||||
| Work-in-Process Inventory on January 1 was | 75% of Work-in-Process Inventory on Dec 31 | ||||
| What is the carrying value of Work-in-Process Inventories on December 31: | |||||
| What is the total Direct Material Costs for the Year: | |||||
In: Accounting