Answer:
$803,010
Explanation:
Calculation for the value of long term debt
First step is to find the Stockholders' equity
Stockholders' equity = $1,500,000 + $1,468,347 Stockholders' equity= $2,968,347
Last step is to find the Long-term debt
Using this formula
Value of Long-term debt= Total assets – Current liabilities – Stockholders' equity
Let plug in the formula.
Value of Long-term debt= $4,812,369 – $1,041,012 – $2,968,347
Value of Long-term debt = $803,010
Therefore the Value of Long-term debt
will be $803,010
Simpleton, Inc. budgeted a material cost of $10 per lb. They ended up purchasing 2,300 lbs at $16 per lb. and using 1,800 lbs for production. The material price variance is:
Answer:
Direct material price variance= $13,800 unfavorable
Explanation:
Giving the following information:
Simpleton, Inc. budgeted a material cost of $10 per lb.
Actual:
2,300 lbs at $16 per lb.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (10 - 16)*2,300
Direct material price variance= $13,800 unfavorable
"The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $40,000 each year?"
Answer:
The question is missing the amount that Debbie's fund has, so I looked for similar questions and the number I found was $368,882.
we can use the present value of an annuity due formula to determine how long it will take Debbie to empty her account.
present value of annuity due = (payment / i) x {1 - [1 / (1 + i)ⁿ]} x (1 + i)
368,882 = (40,000 / 0.03) x {1 - [1 / (1 + 0.03)ⁿ]} x (1 + 0.03)
368,882 = 1,333,333.33 x 1.03 x {1 - [1 / (1 + 0.03)ⁿ]}
368,882 = 1,373,333.33 x {1 - [1 / (1 + 0.03)ⁿ]}
1 - [1 / (1.03)ⁿ] = 368,882 / 1,373,333.33 = 0.268603398
1 - 0.268603398 = [1 / (1.03)ⁿ]
0.731396601 = 1 / (1.03)ⁿ
1.03ⁿ = 1 / 0.731396601 = 1.367247261
n = log 1.367247261 / log 1.03 = 0.135847062 / 0.012837224 = 10.58 years
Debbie will exhaust the fund in 10.58 years. That means that Debbie will be able to withdraw $40,000 for 10 years, and then the last withdrawal will be lower.
Explanation:
Ivanhoe Construction Company had a contract starting April 2021, to construct a $23000000 building that is expected to be completed in September 2023, at an estimated cost of $21000000. At the end of 2021, the costs to date were $7560000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3800000 and the cash collected during 2021 was 3100000. Ivanhoe uses the percentage-of-completion method. At December 31, 2021 Ivanhoe would report Construction in Process in the amount of:
Answer:
$8280000
Explanation:
From the given information;
The percentage of the completion method used in construction is equal to the contract price multiplied by the percentage of estimated total cost incurred to date i.e.
Cumulative cost to date $7560000
Estimated total cost $21000000
Percentage of completion 36% ( $7560000/ $21000000 )
The contract price for this project is $23000000
Therefore,
At December 31, 2021 Ivanhole would report construction in process in the amount of: $23000000 × 36%
= $8280000
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.55 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require a return of 14 percent on the company's stock. a. What is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the stock price be in 3 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the stock price be in 7 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
(A) 20.54
(B) 24.46
(C) 30.88
Explanation:
(A) The current stock price can be calculated as follows
Po= 1.55(1+6/100)/(14/100-6/100)
= 1.55(1+0.06)/(0.14-0.06)
= 1.55(1.06)/0.08
=1.643/0.08
= 20.54
(B) The stock price after 3 years can be calculated as follows
Po = 1.55(1+6/100)^4/(14/100-6/100)
= 1.55(1+0.06)^4/(0.14-0.06)
= 1.55(1.06)^4/0.08
= 1.55(1.2624)/0.08
= 1.9567/0.08
= 24.46
(C) The stock price after 7 years can be calculated as follows
Po= 1.55(1+6/100)^8/(14/100-6/100)
= 1.55(1+0.06)^8/(0.14-0.06)
= 1.55(1.06)^8/(0.08)
= 1.55(1.5938)/0.08
= 2.470/0.08
= 30.88
On a flight from Boston to Seattle, American reduced its Internet price by $190.00. The sale price was $535.99. What was the original price?
Answer:
the original price is $725.99
Explanation:
Calculation of Original Price
Current Sales Price $535.99
Add Reduction Amount $190.00
Original Price $725.99
So I’m 13. I have a small business, and 2 months ago my mom canceled my credit card. I get paid through credit card.Since she canceled my card, I don’t have where to get paid. How can i get a credit card without my mom knowing?
Answer:
so if you are a minor you have to have a parent or guardian sign off to get you a card, I had the same issue my mom refused to get me a card even tho i worked. I just got my dad to sign on it because then my mom couldnt do anything about it because her name wasnt in it. I hope this helps, and what type of business do you have.
Rode Company estimates bad debt expense at 1% of credit sales. The company reported accounts receivable of $100,000 and a pre-adjustment credit balance in its allowance for uncollectible accounts account of $2,000 at the end of the current year. During the current year, Rode’s credit sales were $2,000,000. What is the amount of the company’s bad debt expense for the current year?
Answer:
$20,000
Explanation:
Calculation for the amount of the company’s bad debt expense for the current year
Using this formula
Bad debt expense = Credit Sales Amount × Estimated percentage uncollectible
Let plug in the formula
Bad debt expense = $2,000,000 × 1%
Bad debt expense =$20,000
Therefore the amount of the company’s bad debt expense for the current year will be $20,000
Granfield Company has a piece of manufacturing equipment with a book value of $36,500 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,300. Granfield can purchase a new machine for $113,000 and receive $21,300 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,300 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
Answer:
($18,500)
Explanation:
Book value of manufacturing equipment = $36,500
Current market value of equipment = $21,300
Cost of new machine = $113,000
Cash received from trading old machine = $21,300
Variable manufacturing costs of new machine reduced by $18,300 per year, over the four year
Total increase/decrease in net income = Cost of new machine + Cash received from trading old machine + Reduction in variable manufacturing costs
= ($113,000) + $21,300 + $18,300 × 4
= ($113,000) + $21,300 + $73,200
= ($18,500)
It therefore means that the total decrease in net income by replacing the current machine with the new machine is $18,500
Bryant Company has a factory machine with a book value of $88,100 and a remaining useful life of 7 years. It can be sold for $30,900. A new machine is available at a cost of $413,300. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $579,100 to $505,700. Prepare an analysis showing whether the old machine should be retained or replaced.
Answer: The old factory machine should be replaced as from computation below will lead to a lower cost for Bryant Company
Explanation:
Particulars Retain Equipment Replace Equipment Net Income
Increase/Decrease
Variable manufacturing costs
$4,053,700 $3,539,900 $513,800
$579,100 x 7 $505,700 x 7
New machine cost $413,300 -$410,300.
Sale of old machine -$30,900 $30,900.
Total $4,053,700 $3,922,300 $134,400
The old factory machine should be replaced as from computation will lead to a lower cost of $3,922,300 instead of $4,053,700 for Bryant Company
What is the beta for a 2 stock portfolio with a 0.54 weight in Walmart stock and the remainder in Amazon
Answer: 0.73
Explanation:
Walmart Beta = 0.3616
Amazon's beta = 1.1634
The beta of the portfolio will be a weighted average of the portfolio beta;
= (Walmart beta * Walmart weight) + ( Amazon beta * Amazon weight)
= (0.3616 * 0.54) + ( 1.1634 * (1 - 0.54))
= 0.730428
= 0.73
g Larry recorded the following donations this year: $540 cash to a family in need $2,440 to a church $540 cash to a political campaign To the Salvation Army household items that originally cost $1,240 but are worth $340. What is Larry's maximum allowable charitable contribution if his AGI is $60,400
Answer:
$2780
Explanation:
Given the following donations by Larry:
Cash to family in need $540
Cash to political campaign = $540
Church donation = $2440
Donation to salvation Army household = $340 (worth)
The allowable charitable contribution when applied to the an individual's adjustable Gross income. These contribution must be made to qualified charitable organizations in other to become eligible for deduction. In the scenario above, the qualified charitable organization include the donation to church and the salvation Army household :
Hemce, maximum allowable charitable contribution is :
$(2,440 + 340) = $2780
Dorchester Company had the following balances at the end of 2018 and 2019 respectively: Net Credit Sales - $875,000 for 2018 and $1,032,000 for 2019. Accounts Receivable - $84,000 for 2018 and $107,000 for 2019. Allowance for Doubtful Accounts - $4,000 for 2018 and 7,500 for 2019 Calculate the accounts receivable turnover ratio to one decimal place.
Answer:Accounts Receivable Turnover Ratio = 11.50 times
Explanation:
Accounts Receivable Turnover Ratio is calculated using
Net Credit Sales / Average Accounts Receivable
Net Credit Sales for 2019 = $1,032,000
Net Accounts Receivable in 2018 = Accounts Receivable in 2018 - Allowance for Doubtful Accounts in 2018
= $84,000 - $4,000
= $80,000
Net Accounts Receivable in 2019 = Accounts Receivable in 2019 - Allowance for Doubtful Accounts in 2019
= $107,000 - $7,500
= $99,500
Average Accounts Receivable = (Net Accounts Receivable in 2018 + Net Accounts Receivable in 2019) / 2
= ($80,000 + $99,500) / 2
= $179,500 / 2
= $89,750
Accounts Receivable Turnover Ratio = Net Credit Sales in 2019 / Average Accounts Receivable
= $1,032,000/ $89,750
= 11.498
= 11.50 times
Answer:
PoyPoy
Explanation:
he Presley Corporation is about to go public. It currently has aftertax earnings of $7,000,000, and 2,000,000 shares are owned by the present stockholders (the Presley family). The new public issue will represent 500,000 new shares. The new shares will be priced to the public at $25 per share, with a 4 percent spread on the offering price. There will also be $250,000 in out-of-pocket costs to the corporation. a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.)
Answer:
Missing question is "a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Net proceeds
b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share
c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share "
a. Net proceeds = Shares issued * Share price*(1-0.04) - Direct cost
Net proceeds = 500,000 * $25*(1-0.04) - $250,000
Net proceeds = 500,000*$24 - $250,000
Net proceeds = $12,000,000 - $250,000
Net proceeds = $11,750,000
b. EPS = Earnings / Shares
EPS = $7,000,000 / 2,000,000 shares
EPS = $3.50 per share
c. EPS = After tax earnings / Total shares
EPS = $7,000,000 / (2,000,000 + 500,000)
EPS = $7,000,000 / 2,500,000 shares
EPS = $2.80 per shares
A capital investment project is expected to generate an incremental increase in revenues of $15 million and an incremental increase in operating costs of $10 million during its first year. Year 1 incremental depreciation expense is $5 million. The firm’s interest expense will increase by $2 million during year 1. If the firm’s marginal tax rate is 35% what is the year 1 incremental after-tax cash flow for capital budgeting purposes?
Answer:
$5,000,000
Explanation:
Particulars Amount
incremental increase in revenues $15,000,000
- Incremental increase in operating costs $10,000,000
- Incremental depreciation expense $5,000,000
Earnings before interest and taxes $0
Tax ($0 *35%) $0
Operating Income $0
+ Incremental depreciation expense $5,000,000
After Tax Cash flow for capital budgeting $5,000,000
For a country A, the GDP growth rate is 8 percent and inflation is 4 percent. If the velocity of money remains constant, what is the change in real money balances
Answer:
The change in the real money balance is 12%
Explanation:
As per gievn data
GDP growth rate = 8%
Inflation = 4%
The real money change is as follow
Equation
Delta M + Delta V = Delta P + Delta Y
Where
Delta M = Real money change = ?
Delta V = Change in velocity = 0
Delta P = Inflation rate = 4%
Delta Y = GDP growth rate = 8%
Placing values in the above equation
Delta M + 0 = 4% + 8%
Delta M = 12%
Hence the money balance will increase by 12%.
Which of the following best describes why German firms were nationalized after World War II?
A. Extract money.
B. Job preservation.
C. Ideology.
D. Happenstance.
Answer:
D. Happenstance.
Explanation:
The fact that German firms were nationalized has often been regarded as mere happenstance; meaning it just occurred based on the circumstances they were in immediately after World War II.
It thus encompasses several factors such as the cost of operations, changes in government, etc, not just one factor.
German firms were nationalized after World War II because of Happenstance.
World War II:The fact that German companies were nationalized has frequently been dismissed as a coincidence, implying that it happened simply because of the circumstances in which they found themselves following World War II.
It thus incorporates multiple aspects, not just one, such as operational costs, government changes, and so on.
So, option "D" is the correct answer to the following question.
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Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company office. The company-provided home is equipped with high-speed Internet access and several telephone lines. Tim receives telephone calls and e-mails that require immediate attention any time of day or night because the company's business is spread all over the world. A full-time administrative assistant resides in the house to assist Tim with the urgent business matters. Tim often uses the home for entertaining customers, suppliers, and employees. The fair market value of comparable housing is $9,000 per month. Tim is also provided with free parking at his company's office. The value of the parking is $350 per month.
The amount associated with the free parking that Tim must include in his gross income per month is?
Answer:
$80 (in 2020)
Explanation:
I will assume that this question takes place during the current year (2020). An employee is required to include as income all transportation benefits that exceed $270 per month. In this case, free parking is considered a transportation benefit and Tim must report $350 - $270 = $80 as taxable benefits. The exclusion amount varies depending on the year, e.g. it was $265 in 2019.
The amount that should be included in the gross income per month should be $80.
Calculation of the amount:The employee should needed to involved the income in terms of transportation benefits that should be more than $270 per month. Since the free parking should be considered as the transportation benefit
So here the amount associated should be
= $350 - $270
= $80
hence, The amount that should be included in the gross income per month should be $80.
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At the end of the current year, Leer Company reported total liabilities of $319,000 and total equity of $119,000. The company's debt ratio on the last year-end was:___________.
a. 72.8%.
b. 268%.
c. 3-68%.
d. 37.3%.
e. $438,000
Answer:
72.8%
Explanation:
The first step is to calculate the total assets
Total assets= Total liabilities + total equity
= $319,000 + $119,000
= $438,000
Therefore the debt ratio can be calculated as follows
= Total liabilities/total assets
= $319,000/$438,000
= 0.728×100
= 72.8%
Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $107,000 in sales during the second quarter of this year. If it began the quarter with $18,700 of inventory at cost and purchased $72,700 of inventory during the quarter, its estimated ending inventory by the gross profit method is:
Answer:
$16,500
Explanation:
The computation of the estimated ending inventory is given below:
As We know that
Cost of goods sold = Beginning inventory + purchase made - ending inventory
And, the
Sales - gross profit = Cost of goods sold
So,
$107,000 - $107,000 × 30% = Cost of goods sold
Therefore, the cost of goods sold is
= $107,000 - $32,100
= $74,900
And, finally the ending inventory is
$74,900 = $18,700 + $72,700 - ending inventory
$74,900 = $91,400 - ending inventory
So, the ending inventory is
= $91,400 - $74,900
= $16,500
On December 31, 2019, The Bates Company's revenue is $440,000 and expenses total $340,000 before consideration of the following: Accrued wages total $21,000; Accrued revenues total $56,000; Depreciation expense is $27,000; Rental revenue of $7,000 was earned; the rent from a tenant was initially recorded by Bates as unearned rent revenue; The income tax rate is 40% of income before income taxes. What is Bates' net income after consideration of the above information
Answer:
Explanation:
Revenue = $440,000
Expenses = $340000
Accrued wages = $21000
Accrued revenues = $56000
Depreciation exp = $27000
Rental value earned but not recorded = $7000
Income tax rate = 40%
Total revenue = 440000 +56000 + 7000 = $503000
Total expenses = 340000 + 21000 + 27000 = $388000
Income before tax = 503000 - 388000 = $115000
income tax = 115000 x .4 = $46000
Net income = 115000 - 46000 = $69000 .
If the interest rate this year is 8.8% and the interest rate next year will be 10.8%, what is the future value of $1 after 2 years? What is the present value of a payment of $1 to be received in 2 years?
Answer:
Results are below.
Explanation:
Giving the following information:
The interest rate this year is 8.8% and the interest rate next year will be 10.8%.
a) To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
FV1= 1*1.088= 1.088
FV2= 1.088*1.108=$1.206
b) To calculate the present value, we need to use the following formula:
PV=FV/(1+i)^n
PV2= 1/1.108= 0.903
PV1= 0.903/1.088= $0.83
The original cost of the truck was $32,000. What would be the journal entry for Combs Co. to record the disposal of the delivery truck
Answer:
Journal Entry for disposal (or) sale of Truck
Explanation:
Truck (asset) sold for cash, bank, or on credit {On loss}Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr
P & L ac ... dr
to Truck ac ... 32000
Truck (asset) sold for cash, bank, or on credit {On gain}Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr
to Truck ac ... 32000
To P & L ac
How do you think Alden, from Situation 2, found out about Revinate? Given all the online companies that might help your business connect you with customers, how would you choose one?
The correct answer to this open question is the following.
Although you forgot to include the proper context of the question or further references, we can comment on the following.
Alden found out about Revinate by searching on the web trying to find the best software options that could help the company to identify the customer's reviews so Gregory E. Alden could make the best decisions for his company.
Gregory E. Alden is the manager of the company Woodside Hotels, located in Northern California. He was trying to monitor the comments of his high-class clients because Woodside Hotels is in the luxurious hotel business. So knowing that constantly monitoring client's comments on social media pages such as TripAdvisor or Yelp can be an arduous and difficult task, Gregory searched for the best software company to monitor client's comments on social media. That is how he found Revinate, a company that helps managers to track reviews so they can make the best business decisions once they have learned what their customers desire. And that is exactly what I would do to choose the kind of company to know about the preferences of my customers.
Revenues and gains included in arriving at net income that do not provide cash.
Answer:
Non-cash revenues.
Explanation:
Non-cash revenues can be defined as revenues and gains included in arriving at net income that do not provide cash.
Basically, on the statement of cash-flow, non-cash revenues are considered not to be a real cash-flow because they don't add to the total inflow of cash.
Some examples of noncash revenues are amortization of premium relating to bonds payable, cash flow from investments that are carried under the equity method, accrued revenues, and gains from disposals of non-current assets.
Princetown Inc. has a $4.82 million basis in 68% of the outstanding stock of Merryvale Corporation. Merryvale manufactures Christmas decorations, cards, and wrapping paper. Princetown's board of directors recently learned that Merryvale is bankrupt. The board voted unanimously to dissolve the corporation and distribute all assets to Merryvale's creditors. What is the tax consequence to Princetown of the board's actions?
Answer:
$4.82 million ordinary loss
Explanation:
Note: The option to the question is attached
Merryvale is an affiliated corporation, so Princetown is allowed an ordinary loss in the worthlessness of the stock
You and a partner are considering the purchase of a convenience store.? The store has annual sales of $500,000 and is paying annual payroll of $100,000. The cost of goods sold every year is $150,000. The firm has miscellaneous expenses (taxes, insurance, garbage, electricity, natural gas, security, maintenance, property taxes, training, advertising, accounting fees, bank charges, etc.) of roughly $68,000 per year. If depreciation is equal to $15,000 per year and the tax rate is equal to 38% then what is the net income?
Answer:
the net income is $103,540
Explanation:
The computation of the net income is shown below:
= (Annual sales - annual payroll - cost of goods sold - miscellaneous expenses - depreciation expense) × (1 - tax rate)
= ($500,000 - $100,000 - $150,000 - $68,000 - $15,000) × (1 - 38%)
= $103,540
Hence, the net income is $103,540
We simply applied the above formula
Decision on Transfer Pricing Materials used by the Instrument Division of XPort Industries are currently purchased from outside suppliers at a cost of $185 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $154 per unit. a. If a transfer price of $168 per unit is established and 33,200 units of materials are transferred, with no reduction in the Components Division's current sales, how much would XPort Industries’ total income from operations increase?
Answer:
$1,029,200
Explanation:
The computation of net income increases is shown below:-
Market purchase cost = 33,200 × $185
= $6,142,000
Component division variable cost = 33,200 × $154
= $5,112,800
Net income increases = $6,142,000 - $5,112,800
= $1,029,200
hence, the net income would be increased by $1,029,000 and the same is to be considered
Explain the risks associated with leveling resources, compressing or crashing projects, and imposed durations or "catch-up" as the project is being implemented. Why is it critical to develop a time-phased baseline? Subscribe to unlock
Answer:
Explain the risks associated with leveling resources, compressing or crashing projects, and imposed durations or "catch-up" as the project is being implemented.
a project manager will try to level resources in order to even out the use of resources throughout the whole project, but that can result in a deficit of resources during critical times. E.g. trying to use 25% of resources during each year for a project that lasts 4 years. But some activities require a lot o resources but last a short time, while other activities might last longer and consume fewer resources. a project manager will try to compress a project's schedule because he/she wants to finish early, ideally without affecting the project's scope. The problem with compressing a project is that you might have to skip or eliminate certain activities in order to so so. E.g. a lot of pharmaceutical companies are trying to develop a vaccine that ends the current health crisis, and their rush are not following the appropriate steps. crashing activities refers to trying to finish some critical activity early by assigning more resources to it. The risks of crashing critical activities is that they might not be well done, or it might be too expensive.Why is it critical to develop a time-phased baseline?
Without a well done time-phased baseline, it is very difficult to prepare a project schedule, or at least one that actually works. It is also important because it is very useful for cost control, and projects can easily go out of control and cost more than their budget.
Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $ million and inventory was $ million. This year, costs of goods sold is $ million and inventory investment is $ million. a) What was its weeks of supply last year? nothing weeks (round your response to two decimal places). b) What is its weeks of supply this year? nothing weeks (round your response to two decimal places). c) Is Mattress Wholesalers making progress in its inventory reduction effort? Since the number of weeks that cover the supply has ▼ decreased not changed increased , Mattress Wholesalers is making ▼ negative progress no progress progress in its inventory-reduction effort.
Answer:
A. Weeks supply= 10.7
B. Weeks supply= 9.53
C. Yes
DECREASED, PROGRESS
Explanation:
A. Calculation for last year’s weeks of supply
First step is to find the Average cost of sold good on week basis
Using this formula
Average cost of sold good on week basis =Cost of goods sold /Numbers of weeks in a year
Let plug in the formula
Average cost of sold good on week basis= $7.54 million/ 52
Average cost of sold good on week basis= $ 0.145 million
Last step is to find last year Weeks supply using this formula
Last year Weeks supply=Investment in inventory/ Average cost of sold good on week basis
Let plug in the formula
Last year Weeks supply=$1.46/0.145
Last year Weeks supply= 10.7
B. Calculation for weeks supply this year?
Using this formula
Average cost of sold good on week basis =Cost of goods sold /Numbers of weeks in a year
Let plug in the formula
Average cost of sold good on week basis= $8.62 million/ 52
Average cost of sold good on week basis= $ 0.165769 million
Last step is to find this year Weeks supply using this formula
This year Weeks supply=Investment in inventory/ Average cost of sold good on week basis
Let plug in the formula
This year Weeks supply=$1.58/0.165769
This year Weeks supply= 9.53
C. Yes, Mattress Wholesalers is making progress in its inventory reduction effort .
Since the numbers of weeks that cover the supply had DECREASED, Wholesalers is making PROGRESS in its inventory reduction effort
How much must you deposit in a bank account today to have $1,000 at the end of 5 years if the bank quotes a rate of 5%, compounded daily? Assume a 365-day year and round your answer to the nearest dollar.
Answer:
PV= $774.54
Explanation:
Giving the following information:
Future value= $1,000
Number of periods= 5*365= 1,825 days
Interest rate= 0.05/365= 0.00014
To calculate the initial investment, we need to use the following formula:
PV= FV / (1+i)^n
PV= 1,000 / (1.00014^1,825)
PV= $774.54