Ben sells books and other supplies to students in a state where the sales tax rate is 8 percent. Ben engaged in the following transactions for Year 1. Sales tax of 8 percent is collected on all sales.

1. Book sales, not including sales tax, for Year 1 amounted to $250,000 cash.
2. Cash sales of miscellaneous items in Year 1 were $85,000, not including tax.
3. Cost of goods sold was $190,000 for the year.
4. Paid $117,000 in operating expenses for the year.
5. Paid the sales tax collected to the state agency.

Required
a. What is the total amount of sales tax Ben collected and paid for the year?

b. Prepare the journal entries for numbers 1-5 listed above

c. What is Ben's net income for the year?

Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 8 percent is collected on all sales.

1. Book sales, not including sales tax, for Year 1 amounted to $274,000 cash.
2. Cash sales of miscellaneous items in Year 1 were $147,000, not including tax.
3. Cost of goods sold was $209,000 for the year.
4. Paid $131,000 in operating expenses for the year.
5. Paid the sales tax collected to the state agency.

Required
a. What is the total amount of sales tax Vail Book Mart collected and paid for the year?
b. What is Vail Book Mart’s net income for the year?

Consideration is being given to the investment of $420,000 at time zero for machinery and equipment to be depreciated using 7 year straight line depreciation starting in year 1 with the half-year convention. Annual sales are projected to be $400,000 less annual operating costs of $200,000. Escalation of operating costs and sales revenue is expected to be a washout from year to year. $100,000 for working capital investment is also needed at time zero and working capital return is expected to equal the initial working capital investment at the end of the project. Salvage value of the machinery and equipment is expected to be zero. The minimum DCFROR is 15% and the effective income tax rate is 35%. Calculate DCFROR and NPV for a 9-year evaluation life and an 18 year evaluation life.

Your dad would like to finance you to complete college. He agrees to lend you $12,000 on your 21st birthday when you join college and agrees to increase the amount lent each year by $2,000 for the next 3 years. If you have to pay him back $18,000 per year on your 28th birthday to your 32nd birthday, what internal rate of return per year compounded yearly did you end up paying for the amount borrowed from your dad?

3.5% per year compounded yearly 4.9% per year compounded yearly 5.7% per year compounded yearly 6.9% per year compounded yearly

please show work in excel

GJK Corporation issued bonds on Dec 1, 2010 with a 2% coupon from year 1 through year

7, 3% coupon from year 8 through 10, 3.5% from year 11 through year 13 , and a 4%

coupon from year 14 through year 15, that will mature on Dec 1, 2025 (15 years).

The interest on these bonds is paid and compounded semi-annually

on December 1,2010 You bought the bond on Dec 1, 2013 (three years after it was issued) at $847.50 You sold the bond eight (8) years after you had purchased the bond at $950.00 What was YOUR return

please help me ASAP I will give thump up

Thank you

George would like to borrow $114,000 using an adjustable-rate mortgage instrument. He has the following two options available:

a. 1-year ARM, 15-year amortization schedule, 4.50% initial interest rate, 2% margin, 2% annual interest rate cap, 4% lifetime cap.

b. 1-year ARM, 20-year amortization schedule, 4.25% initial interest rate, 1.75% margin, no cap.

Assume that each of these loans is indexed to the 1-year Treasury rate, and that this index is expected to have a value of 5% at the end of the first year and 7.5% at the end of the second year.

If George’s expected holding period is 3 years, which of these two alternatives has the lowest effective borrowing cost?

A friend proposes to him to invest in a business for which he has projected the following costs and income: 1. Initial cost of $ 100 0002. Expenditure in year 1 of $ 50 0003. Annual expenses from year 2 to 10 of $ 10 000. Additionally he projects that from In year 4, these expenses will increase by $ 2,000 each year. 4. Annual income of $ 40,000 from year 1 to 10. Additionally, it projects that from year 4, income will grow by 15% each year. a) (10 points) calculate the PV using a 5% rate b) (5 points) calculate the annual value using a 5% rate c) (5 points) would you invest in this business? Why? ~ 5 ~

Beth Miller does not believe that the International Fisher Effect holds. Current 1-year interest rates in Europe are 5%, while 1-year interest rates in the U.S. are 3%. Beth converts $100,000 to euros and invests them in Germany. One year later, she converts the euros back to dollars. The current spot rate of the euro is $1.10.

According to the IFE, what should the spot rate of the euro be in 1 year?

If the spot rate of the euro in 1 year is $1.00, what is Beth's percentage return from her strategy?

If the spot rate of the euro in 1 year is $1.08, what is Beth's percentage return from her strategy?

What must the spot rate of the euro be in 1 year for Beth's strategy to be successful?

Use the following information for the next two questions. You are creating a cash flow project for your new venture, CBD IPA, a cannabis-infused beer and have made the following assumptions for the business:

• First year sales of 10,000 cans, rising by 10% each year
• Price per unit of $4.00 each, rising by 2% per year
• Operating expense equals first year sales revenue and rises 10% per year

1. What is the projected sales revenue of CBD IPA in year 3 (6 points)?

1. What is the operating income of CBD IPA in Year 4 (6 points)?

1. Define the profitability index and explain how it may be used a criterion for determining whether to pursue an investment or project (8 points).

"Consider two mutually exclusive projects that will be conducted for a total of 6 years. Project A lasts 3 years (so it will need to be repeated 1 time) and has the following cash flow:
Year 0 -$15,000;
Year 1 $16,000;
Year 2 $17,000;
Year 3 $15,000.
Project B lasts 2 years (so it will need to be repeated 2 times) and has the following cash flow:
Year 0 -$23,000;
Year 1 $19,000;
Year 2 $17,000.
Assume both projects can be repeated with the identical cash flows. The interest rate is 18.9%. Provide the net present worth for 6 YEARS of the project that you should select. If neither project should be selected, enter 0."