Answer:
The annual percentage increase in the winner’s check over this period was 7.78%
It will be $23,266,067.23 in 2050
Explanation:
As per given data
Value of lottery in 1901 = $330
Winner's Check in 2015 = $1,690,000
Numbers of Years = 2015 - 1901 = 114 years
Use following formula to calculate annual percentage increase
Future value = Present value x ( 1 + annual percentage increase)^numbers of years
Where
Future value is Winner's Check value in 2015
Present value is Value of lottery in 1901
Place values in the formula
$1,690,000 = $330 x ( 1 + annual percentage increase)^114
$1,690,000 / $330 = ( 1 + annual percentage increase)^114
5,121.21 = ( 1 + annual percentage increase)^114
( 5,121.21 )^1/114 = 1 + annual percentage increase
1.0778 = 1 + annual percentage increase
Annual percentage increase = 1.0778 - 1
Annual percentage increase = 0.0778
Annual percentage increase = 7.78%
Use following formula to calculate the value in 2015
Future value = Present value x ( 1 + annual percentage increase)^numbers of years
Where
Present value = $1,690,000
Future value =?
Annual Percentage increase = 7.78%
Numbers of years = 2050 - 2015 = 35 Years
Place the value in the formula
Future value = $1,690,000 x ( 1 + 7.78% )^35
Future value = $23,266,067.23
Name and explain the four marketing strategies for company growth
You are offered a chance to buy an asset for $4,000 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset
Answer:
The answer would be 136.64 because you would Divied then you would Add the bigger number with the smallest number.
Explanation:
Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share. The weight on Abbott Labs in your portfolio is:
Answer:
Investment
The weight on Abbott Labs' investment in the portfolio is:
50%
Explanation:
Investments made by the investor are:
200 shares of Abbott Labs (ABT) at $50 per share = $10,000
200 shares of Lowes (LOW) at $30 per share = $6,000
100 shares of Ball Corporation (BLL) at $40 per share = $4,000
Total investments (Portfolio) = $20,000
Investments Weights of investments % Weight
Abbott Labs $10,000/$20,000 * 100 = 50%
Lowes (LOW) $6,000/$20,000 * 100 = 30%
Ball Corporation (BLL) $4,000/$20,000 * 100 = 20%
You take out student loans to help pay for your degree at a 5% annual interest rate. Assume the bank expected inflation to average 3% per year. What real interest rate did the bank expect to earn from your loan
Answer:
Real interest rate= 0.02 = 2%
Explanation:
Giving the following information:
Nominal interest rate= 5%
Inflation rate= 3%
To calculate the real interest rate, we need to use the following formula:
Real interest rate= nominal interest rate - inflation rate
Real interest rate= 0.05 - 0.03
Real interest rate= 0.02 = 2%
If we have information about workers' marginal products, then total and average product can be found by
Answer:
Summing the marginal values to find the total and dividing it by the number of workers to get the average.
Explanation:
As we know that the marginal product of labor would be the extra amount of the product that is received by adding one or more labor in the process of the production. Now if we add the marginal amounts so we can get the total product
Also the average product could be determined by dividing the total product by its number of workers
Therefore the above is the answer
what is the present value of an annuity that pays $1 at the end of each year for the next 15 years with an annual effective interest rate 6.5% g
Answer:
PV= $9.40
Explanation:
Giving the following information:
Annual payment= $1
Interest rate= 6.5%
Number of periods= 15 years
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {1*[(1.065^15) - 1]} / 0.065
FV= $24.18
Now, the present value:
PV= FV/(1+i)^n
PV= 24.18 / 1.065^15
PV= $9.40
Innovators and entrepreneurs flourish most in a _____ because _____. planned economy; any individual who has an innovative idea is free to try to make money out of that idea by starting a business. mixed economy; it provides more incentives for businesses and entrepreneurs to develop innovations than any other economic system. market economy; it grants existing businesses and entrepreneurs the freedom to improve their operations through innovation command economy; established businesses and individual entrepreneurs can reap rewards in the form of high profits owing to innovation.
Answer:
market economy; it grants existing businesses and entrepreneurs the freedom to improve their operations through innovation
Explanation:
Innovators can be defined as group of people or individuals who have the intellectual capability to create, develop and manage new ideas, products etc.
An entrepreneur refers to an individual who is involved in the buying and selling of goods and services usually from scratch or small capacity.
Innovators and entrepreneurs flourish most in a market economy because it grants existing businesses and entrepreneurs the freedom to improve their operations through innovation.
This ultimately implies that, an open market such as a market driven economy creates the enabling environment for business to grow.
During the first year of Sheffield Corp.'s operations, all purchases were recorded as assets. Supplies in the amount of $28000 were purchased. Actual year-end supplies amounted to $7100. The adjusting entry for store supplies will
Answer:
$20,900
Explanation:
This $20,900 will be recorded as Supplies Expense, which will decrease Net Income because expenses will increase by $20,900. and Inventory will be decreased by $20,900
Supplies used = $28,000 – $7,100 = $20,900
Entry
Dr Supplies Expense $20,900
Cr Inventory $20,900
QUESTION 6 ___________ create and maintain consistent data processing methods and an integrated database across multiple business functions. Logistics information systems (LIS) Enterprise systems Decision support systems Transaction processing systems
Answer:
Enterprise Systems
Explanation:
This question has the characteristics of an enterprise system. It helps in planning the resources of an organization. It also provides solution to an integrated business. They are large software systems which are able to track and control every of the complex operations of a business. It makes jobs easier for both managers and also employees.
evine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $4,500 (that had cost $3,326) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $4,600 (that had cost $2,981) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
Answer:
Levine Company
Journal Entries:
April 8:
Debit Cash Account (Suntrust Credit Card) $4,320
Debit Credit Card Expense $180
Credit Sales Revenue $4,500
To record the sale of goods via Suntrust Credit Card and the 4% fee.
Debit Cost of Goods Sold $3,326
Credit Inventory $3,326
To record the cost of goods sold.
April 12:
Debit Continental Credit Card $4,485
Debit Credit Card Expense $115
Credit Sales Revenue $4,600
To record the sale of goods via credit card and the 2.5% fee.
Debit Cost of Goods Sold $2,981
Credit Inventory $2,981
To record the cost of goods sold.
Explanation:
The journal entries record the sales transactions as they occur. Cash is debited with the net amount received after deducting the credit card expenses, while the sales revenue account is credited with the full value of the sales transaction. Since Levine Company uses the perpetual inventory system, the transactions are debited to the cost of goods sold and credited to the inventory account for the costs.
M11-2 (Algo) Computing the Number of Unissued Shares LO11-1 The balance sheet for Ronlad Corporation reported 172,000 shares outstanding, 270,000 shares authorized, and 22,000 shares in treasury stock. How many shares have been issued
Answer: 194,000 shares
Explanation:
Shares are issued from the number of shares authorized. The company can then decided to repurchase some of these issued shares and make them treasury stock.
Issued shares will therefore be the sum of shares outstanding and treasury shares
= 172,000 + 22,000
= 194,000 shares
Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm maintains a constant debt-equity ratio of .55, a total asset turnover ratio of 1.30, and a profit margin of 9 percent. What must the dividend payout ratio be?
Answer:
73.74 %
Explanation:
Calculation for dividend payout ratio
First step is to calculate Return on equity
Return on equity = 0.09 ×1.30 ×(1 + 0.55)
Return on equity= 0.18135
Second step is to calculate Sustainable growth
Sustainable growth = [0.18135 ×b]/[1 - (0.18135 ×b)]
0.05 = (0.18135 x b)/ ( 1- (0.18135 x b))
b = 0.2626
Last step is to calculate the Dividend Payout ratio
Dividend Payout ratio = 1 - 0.2626
Dividend Payout ratio=0.7374*100
Dividend Payout ratio = 73.74 %
Therefore Dividend Payout ratio will be 73.74 %
A 3.125 percent TIPS has an original reference CPI of 185.1. If the current CPI is 210.4, what is the par value and current interest payment of the TIPS? (Do not round intermediate calculations and round your final answers to 2 decimal places.) Interest rate Reference CPI Current CPI 3.125% 185.1 210.4 Complete the following analysis. Do not hard code values in your calculations. Par value Interest payment.
Answer:
Par value $1,136.68
Interest payment $17.76
Explanation:
Par value or Face value is the values written on the face of security. The par value of the TIPS is directly proportional to the CPI, as CPI increases the face value of the TIPS is also increasead and vice versa.
First we need to list the available data
Original reference CPI = 185.1
Current CPI = 210.4
Standard Par value = $1,000
Use following Formula to calculate the related par value
Par Value = Standard Par value x Current CPI / Original reference CPI
Placing values in the formula
Par Value = $1,000 x 210.4 / 185.1
Par Value = $1,136.68
Now calculate the semiannual interest payment
Interest payment = Par value x Interest rate x Semiannual fraction
Placing values in the formula
Interest payment = $1,136.68 x 3.125% x 6/12
Interest payment = $17.76
The nation of Singapore has no natural resources to speak of, must import its water, and is very small in land mass. However, it has a very high real per capita gross domestic product (GDP) and a literacy rate of over 95%. How can such a small country with no resources be so prosperous
Answer:
Singapore is rich in other resources, like human capital.
Explanation:
Since in the question it is mentioned that Singapore who has no natural resource but import its water and small portion of the land mass at the same time it has very high GDP and the literacy rate over and above 95%
So in this case, it is rich in the other resources example human capital as it is possible for a small country to make an optimum use of it also it has the nice geographical location.
Therefore the second option is correct
What is your company's Inventory Carrying Cost rate? (Ask your Director of Logistics or the CFO. If that's not possible, provide an estimation using all 4 categories presented in class.) Do you think it's an accurate computation, a good estimate or a not-even-close estimate? Recommend one action that should be taken to improve the accuracy of this number.
Answer:
The inventory carrying cost rate is 20% to 30%
Explanation:
The Inventory carrying cost is the expense that a company has to incur in order to hold the inventory in its warehouse till the orders are received. This cost is different for every business as it depends on the properties of inventory. The perishable goods are more expensive to hold and the carrying cost will be high for such inventory.
Assume there is a bond with the yield to maturity (YTM) of 11%, coupon rate of 10%. Further assume that the current inflation rate is 3%. What is the bond’s real interest rate?
Answer:
7.77%
Explanation:
The Real Interest Rate is the interest rate that has been adjusted with the effects of Inflation. Effect of inflation is to reduce the value of money over time.
Real Interest Rate = (1 + Nominal Return) / (1 + Inflation Rate) - 1
Therefore,
Real Interest Rate = (1 + 0.11) / (1 + 0.03) - 1
= 0.0777
= 7.77%
Conclusion
The bond’s real interest rate is 7.77%
A manager has determined that a potential new product can be sold at a price of $33.50 each. The cost to produce the product is $26.00, but the equipment necessary for production must be leased for $160,000 per year. What is the break-even point
Answer:
the break-even point in units is 21,333 units
Explanation:
The computation of the break even point in units is shown below:
Break even point in units is
= Fixed cost ÷ contribution margin per unit)
= $160,000 ÷ ($33.50 - $26)
= $160,000 ÷ $7.5
= 21,333 units
Hence, the break-even point in units is 21,333 units
And, the same is to be considered
We simply applied the above formula so that the correct units could come
If demand is perfectly inelastic and supply is upward sloping, then a $1 tax per unit placed on producers will:
Answer:
If demand is perfectly inelastic, this means that no matter how much the price of a good rises, demand will stay the same.
If supply is upward sloping, this means that the higher the price, the higher the supply, because the more revenue producers obtain.
However, in this case, the producers would raise the price of the good, by the amount of the tax: $1, and consumers would buy the same amount. However, the extra revenue from the higher price would go to the governmet in the form of tax revenue, and not to the producers.
How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000
Answer:
I could not find the exact missing details for your question so I will use a similar one that you can reference. See attached.
Fixed expenses will remain the same and only advertising and sales increased so;
Increase (decrease) in Net Operating income = Increase in sales * Contribution margin ratio - increase in expenses (advertising)
= 16,000 * 40% - 8,200
= 6,400 - 8,200
= -$1,800
Decrease of $1,800
Because of the housing bubble, many houses are now selling for much less than their selling price just two to three years ago. There is evidence that homeowners with virtually identical houses tend to ask for more if they paid more for the house. What fallacy are they making and why?
Answer:
Sunk cost fallacy
Explanation:
Sunk cost is mostly related to the sunk cost fallacy. This happens when a person or company refuses to change a decision simply due to the fact that they have already put the money down for it even though continuing with such is not the best decision. Such a fallacy has the ability of affecting even the smallest financial decision.
Here people believe they can recover money which they have spent and this is not actually true as sunk costs are not recoverable.
On November 1, Alan Company signed a 120-day, 9% note payable, with a face value of $24,000. Alan made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made
Answer: P;ease see answers in explanation column
Explanation:
Interest payable = Principal x rate x time(period)
= $24,000 x 9% x 60/360 ( Number of days from Nov to Dec 31 )
=$360
Interest expense= Principal x rate x time(period)
$24,000 x 9% x 60/360 ( Number of days from Jan to Feb 31 )
$360
Date accounts & explanation Debit credit
Mar 1 Notes payable $24,000
Interest payable $360
Interest expense $360
Cash $24,720
The journal entry as of March 1 to record the payment of the note assuming no reversing entry was made is:
Alan Company Journal entry
March 1
Debit Notes Payable $24,000
Debit Interest Payable $360
($27,000×9%×60/360)
Debit Interest Expense $360
($27,000×9%×60/360)
Credit Cash $24,720
($24,000+$360+$360)
(To record payment of note)
Learn more here:https://brainly.com/question/15870177
The balances of certain accounts of Brittany Corporation on April 30, 2019, were as follows: Sales $ 220,000 Sales Returns and Allowances $ 2,000 The firm’s net sales are subject to a 6 percent sales tax. Prepare the general journal entry to record payment of the sales tax payable on April 30, 2019.
Answer:
Sales tax = (Sales - Returns and Allowances ) * Sales tax rate
= (220,000 - 2,000) * 6%
= $13,080
April 30 DR Sales Tax Payable $13,080
CR Cash $13,080
(To record payment of Sales tax payable)
A person has a $350 monthly car payment, which is based on 12% annual interest, compounded monthly. Determine the amount of car bought if it was financed for 60 months and no down payment was paid.
Answer: $15,734
Explanation:
The monthly interest is;
= 12%/12
= 1% per month
The Present value of the monthly payments is the cost of the car and since this is a specified periodic payment, the present value of an annuity can calculate it;
= 350 * [tex]\frac{1 - (1 + 0.01)^{-60} }{0.01}[/tex]
= 350 * 44.9550384
= $15,734
Identify and discuss the core factors of communication that must be considered in the presentation of an annual report.
Answer:
Presentation of an Annual Report
Core Factors of Communication:
1. Clarity: Information presented to diverse users must attempt to be clear to the users. This is a key factor to avoid the communication of wrong information to users with different levels of understanding and technical skills.
2. Informative: For the annual report to achieve its purposes, it must be informative to the users. The annual report is a snapshot of an organization activities and performance. It must achieve this purpose of delivering information to the intended users.
3. Logical sequence: The annual report of a company must follow some recognized logical order to ensure full coverage of all required topics. For example, in presenting the financial statements, there is a recognized order for their presentation. This order must be strictly followed to reduce confusion.
4. Conciseness: Information being presented to a wide audience must be concise to achieve its intended purpose. The length of the presentation should not be such as to discourage the average reader of the annual report. This means that irrelevant information should be eliminated.
Explanation:
Annual reports are required from companies by the stockholders and the potential investors. There are other stakeholders who also require the annual reports. Since annual reports are met to meet the information needs of many different stakeholders, its presentation should be such that accommodation is made for the various users.
Calculate the total cost per hour to own the track dozer:
Purchase price: $550,000
Estimated salvage value $50,000
Useful life: 5 years
Annual usage: 2000 hours per year
Assume interest, insurance, and risk as 10%
Answer:
$68.45
Explanation:
initial outlay = $550,000
cash flow year 5 = $50,000
NPV = -$550,000 + $50,000/1.1⁵ = -$518,954
equivalent annual cost = NPV / PV annuity factor
PV annuity factor, 10%, 5 periods = 3.7908
equivalent annual cost = $518,954 / 3.7908 = $136,898.26
cost per hour = $136,898.26/2,000 hours = $68.45
Wayne Co. had a decrease in deferred tax liability of $20 million, a decrease in deferred tax assets of $10 million, and an increase in tax payable of $100 million. The company is subject to a tax rate of 40%. The total income tax expense for the year was: Group of answer choices
Answer: $90 million
Explanation:
From the question, we are informed that Wayne Co. had a decrease in deferred tax liability of $20 million, a decrease in deferred tax assets of $10 million, and an increase in tax payable of $100 million and that thee company is subject to a tax rate of 40%.
Based on the information above, the total income tax expense for the year will be:
= Increase in tax payable + Decrease in defered asset - Decrease in defered tax liability
= $100 + $10 - $20
= $90 million
Assume that Martinez completed the office and warehouse building on December 31, 2020, as planned at a total cost of $14,560,000, and the weighted-average amount of accumulated expenditures was $10,080,000. Compute the avoidable
Answer:
Note: The complete question is attached as picture
1. Avoidable interest on construction loan = $6,000,000 * 12% = $672,000
Calculation of weighted average interest rate on general loan
Loan Amount Interest rate Interest (Amount*rate)
Short term loan 3,920,000 10% 392,000
Long term loan 2,800,000 11% 308,000
Total 6,720,000 700,000
Weighted average interest rate = 700,000 / 6,720,000
Weighted average interest rate =0.10416667
Weighted average interest rate = 10.42%
Avoidable interest on remaining expenditure = ($10,080,000 - $5,600,000) * 10.42%
Avoidable interest on remaining expenditure = $4480000 * 10.42%
Avoidable interest on remaining expenditure = $466,816
Total avoidable interest = $672,000 + $466,816
Total avoidable interest = $1,138,816
2. Total cost of building capitalized = $14,560,000 + $$1,138,816
Total cost of building capitalized = $15,698,816
Depreciation expenses = Cost - Salvage value / Useful life
Depreciation expenses = $15,698,816 - $840,000 / 30 years
Depreciation expenses = $14,858,816 / 30 years
Depreciation expenses = $495293.86667
Depreciation expenses = $495,293.87
Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 5 billion, and the marginal propensity to consume on Troll Island is equal to 0.73 . What is the change in Troll Island's real GDP after the increase in AE
Answer:
18.52
Explanation:
The computation of the change in Troll island real GDO after rise in AE is shown below:
Given that
Rise in accumulated depreciation by 5 billion
Marginal propensity to consume is 0.73
Based on the above information,
We know that
MPS = 1 - MPC
= 1 - 0.73
And, the multiplier is
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.73)
= 1 ÷ 0.27
= 3.70
Now the change is
= 5 billion × 3.70
= 18.52
Darrin Brown bought a pub. The purchase price was $695,000. An appraiser provided the following appraisal values: land, $320,000; building, $370,000; and equipment, $60,000. What cost should be allocated to the building
Answer:
$342,867
Explanation:
Use the appraisal values to apportion the purchase price to the cost of the Building.
Calculation of the Cost of Building :
Total Appraisal Value = $320,000 + $370,000 + $60,000
= $750,000
Cost of Building = $370,000 / $750,000 × $695,000
= $342,867
A potential buyer should avoid starting negotiations with automobile sales staff by establishing ______.
Answer: their affordable monthly payment
Explanation:
A potential buyer should avoid starting negotiations with automobile sales staff by establishing their affordable monthly payment.
When someone is talking with a car salesman, the person should avoid discussing the payment that he or she can afford. When one discloses their affordable monthly payment at first, this could end up having a negative effect on them as the salesperson could take advantage of the monthly payment offered if it's higher than what the sales person wanted to offer.