Your firm has taken out a loan with APR​ (compounded monthly) for some commercial property. As is common in commercial real​ estate, the loan is a ​-year loan based on a ​-year amortization. This means that your loan payments will be calculated as if you will take years to pay off the​ loan, but you actually must do so in years. To do​ this, you will make equal payments based on the ​-year amortization schedule and then make a final 60th payment to pay the remaining balance.
A. What will your monthly payments be?
B. What will your final payment be?

Answers

Answer 1

Answer:

Hello some parts of your question is missing below is the complete question

Your firm has taken out a $500000 loan with 9% APR​ (compounded monthly) for some commercial property. As is common in commercial real​ estate, the loan is a five​-year loan based on a 15​-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the​ loan, but you actually must do so in five years. To do​ this, you will make 59 equal payments based on the 15 ​-year amortization schedule and then make a final 60th payment to pay the remaining balance.

answer : A) $5071.33

              B ) $405410.94

Explanation:

A )calculate monthly payments

Loan amount = $500000

Rate = 9%

Monthly rate =  ( 9% / 12 )= 0.75%

Time / period = (15years* 12 ) = 180 months

calculate the monthly payments =PMT (monthly rate ,period - rate) ( using excel )

= $5071.33

B) Calculate the final payment

PV for 59 payments + PV for 60th payment = loan amount

first we calculate the PV for 59 payments

monthly payments = $5071.33

period = 59 months

monthly rate = 0.75%

PV for 59 payments = PMT( monthly rate, period, - monthly payments ) (using excel )  

= $241,064.16

Hence PV for The final payment = loan amount - PV for 59 payments

                                                     = 500000 - 241064.16 = $258,935.84

Finally Calculate the Final payment

PV = $258935.84

monthly rate = 0.75%

period = 60 months

Final payment ( future value ) =FV( monthly rate, period,, - PV ) ( using excel)

= $405410.94


Related Questions

Clean Tel, Inc. is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment

Answers

Answer:

8%

Explanation:

Use the Time Value of Money Techniques to find the discount rate as follows:

Pmt = $1,000,000

Pv = - $7,139,000

Fv = $0

P/yr = 1

N = 11

I = ?

Using a financial calculator to input the values as above, the discount rate (i) to be used is 8%

The ultimate goal of operations management is to provide high-quality goods and services instantaneously in response to customer demand. Over the years, low cost often came at the expense of quality and flexibility. Furthermore, suppliers didn't always deliver when they said they would, so manufacturers had to carry large inventories of raw materials and components to keep producing. Such inefficiencies made U.S. companies vulnerable to foreign competitors who were using more advanced production techniques As a result of new global competition, companies have had to make a wide variety of high-quality custom-designed products at a very low cost. Something had to change on the production floor to make that possible. Several major developments have made U.S.companies more competitive:
(1) computer-aided design and manufacturing
(2) flexible manufacturing,
(3) lean manufacturing, and
(4) mass customization,
(5) CAD
(6) CAM
Match the company or role with the most appropriate manufacturing technique.
Dress designer: In addition to helping in the design of products, the use of this system allows designers to work in three dimensions
Shoe designer: The manufacturer programs the computer to make a simple design change, and then that change is readily Incorporated into production
Purse designer: Software programs unite these two computer-aided support systems. While the software is expensive, it cuts as much as 80 percent of the time needed to program machines to make parts.
Motor starters: Orders come in daily and, within 24 hours, the company's machines and robots manufacture, test, and package the starters-which are untouched by human hands. This system is so efficient it can even accommodate a special order (even a single item) in the assembly without slowing down the process.
Toyota corporation: This company utilizes the strategy of using half the human effort, halving the defects in the finished product, using one-third of the normal engineering effort, using half the floor space, and carrying 90 percent less inventory
Dell computers: Dell has set up its manufacturing process so that all its computers can be quickly assembled to individual customer orders.

Answers

Answer:

1. Dress designer: In addition to helping in the design of products, the use of this system allows designers to work in three dimensions

(5) CAD

2. Shoe designer: The manufacturer programs the computer to make a simple design change, and then that change is readily Incorporated into production  (6) (CAM)

3. Purse designer: Software programs unite these two computer-aided support systems. While the software is expensive, it cuts as much as 80 percent of the time needed to program machines to make parts.   (1) computer-aided design and manufacturing also known as CIM(Computer integrated manufacturing)

4. Motor starters: Orders come in daily and, within 24 hours, the company's machines and robots manufacture, test, and package the starters-which are untouched by human hands. This system is so efficient it can even accommodate a special order (even a single item) in the assembly without slowing down the process.   (2) flexible manufacturing

5.Toyota corporation: This company utilizes the strategy of using half the human effort, halving the defects in the finished product, using one-third of the normal engineering effort, using half the floor space, and carrying 90 percent less inventory   (3) lean manufacturing

6. Dell computers: Dell has set up its manufacturing process so that all its computers can be quickly assembled to individual customer orders. (4) mass customization

Explanation:

1. Computer-aided design and manufacturing or CIM: This is the use of computer software that combines the benefits of CAM and CAD.

(2) Flexible manufacturing: This refers to the use of machines that can be easily adapted to accommodate changes in the needs of customers or the manufacturer.  

(3) Lean manufacturing: is based on the principle of accomplishing a lot of tasks with little manpower and efforts.

(4) Mass customization: is the act of manufacturing products that are suited to the wants and needs of customers in large quantities.

(5) CAD: Computer-aided design is needed for the design of products.

(6) CAM: This refers to the use of computer software to control the manufacturing process.

The given role or the companies would most adequately be linked to the  technique of manufacturing would be as follows:

1) computer-aided design and manufacturing - 3. Purse designer

2) Flexible manufacturing - 4. Motor starters

3) lean manufacturing, -  5. Toyota corporation

4). mass customization, -  6. Dell computers

5). CAD - 1. Dress designer

6). CAM - 2. Shoe designer

Manufacturing Techniques

Manufacturing techniques are characterized as the variety of processes that have been employed to develop or generate the product.

In the given question, a number of techniques have been referred to like Mass Customization, CAM, Computer-aided manufacturing, etc.

The companies working on technically advanced domains like designing would require the aid or involvement of computers to make their manufacturing process convenient and precise.

While the Starters company or Corporations would require flexible or lean manufacturing to ensure the accomplishment of desired tasks efficiently.

Learn more about "Operations Management" here:

brainly.com/question/8055230

Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces 20,304 cubic yards of wood chips, 14,100 cubic yards of mulch, and 9,024 cubic yards of wood pulp. The joint production process costs a total of $32,000 per batch. After the split-off point, wood chips are immediately sold for $25 per cubic yard while wood pulp and mulch are processed further. The market value of the wood pulp and mulch at the split-off point is estimated to be $22 and $24 per cubic yard, respectively. The additional production process of the wood pulp costs $5 per cubic yard, after which it is sold for $30 per cubic yard. The additional production process of the mulch costs $4 per cubic yard, after which it is sold for $32 per cubic yard.
Allocate the joint costs of production to each product using the net realizable value method.
Joint Product Allocation
Wood chips $
Wood pulp
Mulch
Totals $

Answers

Answer:

Product Output Selling price per cubicyard net realizable value

Wood chips

20,304 cubic yards $25 507,600

Wood pulp

9,024 cubic yards $22 198,528

Mulch

14,100 cubic yards $24 338,400

Product Percentage of Net realizable value

Wood chips 48.60%

Wood pulp 19%

Mulch 32.40%

Product Allocation of Joint costs

Wood chips $15,552

Wood pulp $6,080

Mulch $10,368

Explanation:

Allocation of the joint costs of production to each product using the net realizable value method.

Joint Product Allocation

Product Output Selling price per cubic yard net realizable value

Wood chips

20,304 cubic yards $25 507,600

(20,304 x 25) = 507,600

Wood pulp

9,024 cubic yards $22 198,528

(9,024 x 22 )= 198,528

Mulch

14,100 cubic yards $24 338,400

(14,100 x 24 )= 338,400

Total $1,044,528

(507,600+198,528+338,400)

Product Percentage of Net realizable value

Wood chips 507,600/1,044,528= 48.60%

Wood pulp 198,528/1,044,528= 19%

Mulch 338,400/1,044,528= 32.40%

Total $1,044,528

Product Allocation of Joint costs

Wood chips 48.60% *32,000=$15,552

Wood pulp 19%*32,000=$6,080

Mulch 32.40% *32,000=$10,368

Total $32,000

A client heard through its hotline that John, the purchases journal clerk, periodically enters fictitious acquisitions. After John creates a fictitious purchase, he notifies Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When the payables are processed, the payment is mailed to the nonexistent supplier’s address, a post office box rented by John. John deposits the check in an account he opened in the nonexistent supplier’s name.
Required
a. Define fraud, fraud deterrence, fraud detection, and fraud investigation.
b. List four personal (as opposed to organizational) fraud symptoms, or red flags, that indicate the possibility of fraud. Do not confine your answer to this example.
c. List two procedures you could follow to uncover John’s fraudulent behavior. (CIA Examination, adapted)

Answers

Answer: See explanation

Explanation:

a. Fraud is a criminal deception by someone which is done for either personal or financial gain.

Fraud deterrence is when the likely causes of fraud are identified and removed so as to prevent fraud from occuring.

Fraud detection are the activities that are done so as to prevent money or any other thing from being gotten by false pretenses.

Fraud investigation has to do with using investigative skills and accountability in order to know if fraud has taken place.

b. Fraud symptoms that indicate the possibility of fraud include:

1. Accounting and analytical anomalies

2. Tips and complaint

3. Extravagant lifestyle

4. Unusual behavior

c. The procedures that could be done to uncover John’s fraudulent behavior are:

• Stock reconciliation: This will help show the fictitious acquisitions. Since no receipt are given for the goods, this will help in the detection of the fraud.

• Alice should verify the details such as the address, phone number and name attached to the purchase and find a way of tracking it.

Business standards should be based on which of the following?​

Answers

Answer: standards are based on the ultimate goals of a business

Explanation:

Standards set specialized goalsExamples

-Financial standards

    * Set goals for profit, cash flow and sale

-Quality control standards

     *Set up production line check for defects in machinery or workmanship

Bill works at Peterbuilt on the assembly line producing truck frames. Bill is exceptionally knowledgeable about the equipment needed to do his job and often makes recommendations to management on the specifications for and alternative suppliers of needed equipment. Given Bill’s position on the assembly line as an operator, he probably functions in the buying center at Peterbuilt as a(n):

Answers

Answer:

A User

An Initiator

An Influencer

Explanation:

Bill’s position on the assembly line as an operator, he probably functions as a user, influencer, initiator by putting machines parts together, ensure maintenance, helps in decision making and also influence the sales of machines parts, negotiate sales and other duties.

Hilary sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Hilary realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Edison and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Hilary knows that if they both work hard, Edison will earn $90 on the beach and Hilary will earn $240 at her stand, so they will each take home half of their total revenue: If Edison shirks, he'll generate only $60 in earnings. Hilary does not know that Edison estimates his personal cost (or disutility) of working hard as opposed to shirking at $30. Once out of Hilary's sight, Edison faces a dilemma: work hard (put in full effort) or shirk (put in low effort).In terms of Edison's total utility, it is worse for him to ____(work hard or shirk). Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together ___ (are or are not) better off if Edison shirks instead of working hard.Hilary knows Edison will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Edison. The most Hilary should be willing to pay Carrie to supervise Edison, assuming supervision is sufficient to encourage Edison to work hard, is ____ .
a. 55.
b. 30.
c. 25.
d. 20.It turns out that Hilary's friend Carrue is unavilable that day, so Hilary cannot find a reliable person to watch Edison. Which of the following arrangements will ensure that Edison works hard without making Hilary any worse off than she is when Edison shirks?A. Pay Edison $20, regardless of how many bottles of water he sells.B. Allow Edison to keep 75% of the revenue from the bottles of water he sells instead of 50%.C. Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50%.D. Make Edison promise to work hard.

Answers

Answer:

A)In terms of Edison's total utility, it is worse for him to  shirk. Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together  are  better off if Edison shirks instead of working hard.

B) $20

C) Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50% (c)

Explanation:

If Edison works hard he will earn = $90

If Harry work hard he will earn = $240

They will both take home : (90 + 240) / 2 = 330 /2 = $165 each

If Edison shirks he will earn = $60

therefore the total revenue = 60 + 240 = 300

They will both take home : 300 / 2 = $150 each

A)In terms of Edison's total utility, it is worse for him to  shirk. Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together  are not  better off if Edison shirks instead of working hard.

B) The most Hilary should be willing to pay Carrie

should be : Amount earned without shirking - Amount earned with shirking

                = $165 - $150 = $15 the closest answer in the option is $20

C) . Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50%

Your uncle Abdallah is celebrating his 33th birthday today and wants to start saving for his retirement at the age of 63. He wants to be able to withdraw AED 100,000 from his saving account on each birthday for 20 years following his retirement. The first withdraw will be on his 64th birthday. Your uncle intends to invest his money in a local bank in Abu Dhabi that offers 7% interest rate per year. He wants to make equal payments on each birthday into the account established in the local bank for his retirement fund.
1. If your uncle starts making these deposits on his 33th birthday and continues to make deposits until he is 63, what amount must he deposit annually to be able to make the desired withdrawals at retirement?
2. If your uncle has just inherited a large sum of money, so instead of making equal payments, he has decided to pay one lump sum payment on his 33th birthday to cover his retirement needs. What amount does he have to deposit?
3. If your uncle’s employer informs your uncle that he will contribute AED 1,000 to your uncle account every year. Also, if your uncle expects AED100,000 from another investment on his 53th birthday, which he will also put into the retirement account. What amount must he deposit annually now to be able to make the desired withdrawals at retirement.

Answers

Answer:

we can use the present value of an annuity formula to determine how much money your uncle will need when he retires at 63:

PV = annual distribution x annuity factor

annual distribution = $100,000PV annuity factor, 7%, 20 periods = 10.594

PV = $100,000 x 10.594 = $1,059,400

1) the present value of your uncle's retirement account at 63 will become the future value of his contributions, but this time we need to use the future value of an annuity due. He will make 31 deposits in total starting at age 33 and ending at age 63:

$1,059,400 = annual contribution x 102.07304 (FV annuity due factor, 7%, 31 periods)

annual contribution = $1,059,400 / 102.07304 = $10,359.25

2) we should now use the present value formula:

PV = FV / (1 + i)ⁿ

PV = $1,059,400 / (1 + 0.7)³⁰ = $138,907.59

3) the future value of your uncle's employer contributions = $1,000 x 102.07304 = $102,073.04

his $100,000 investment will be worth = $100,000 x (1 + 0.07)¹⁰ = $196,715.14

that means that your uncle still needs to save $1,059,400 - $102,073.04 - $196,715.14 = $760,611.46

his annual contribution will be:

annual contribution = $760,611.46 / 102.07304 = $7,451.64

On September 1 of the current year,Scots Company experienced a flood that destroyed the company's entire inventory.Because the company had not completed its month end reporting for August,it must estimate the amount of inventory lost using the gross profit method.At the beginning of August,the company reported beginning inventory of $215,450.Inventory purchased during August was $192,530.Sales for the month of August were $542,500.Assuming the company's typical gross profit ratio is 40%,estimate the amount of inventory destroyed in the flood.A) $87,480B) $134,520C) $109,980D) $82,480E) $81,480

Answers

Answer:

D) $82,480

Explanation:

The computation of the amount of inventory destroyed is shown below:-

Cost of Goods available for sale

= Beginning Inventory + Inventory purchased

= $215,450 + $192,530

= $407,980

Cost of Goods Sold = Sales - Gross profit

= $542,500 - ($542,500 × 40%)

= $325,500

The Estimated amount of inventory destroyed

= Cost of Goods available for sale  - Cost of goods sold

= $407,980 - $325,500

= $82,480

Four Types of Organizational Culture Organizational culture is a system of shared beliefs and values that develops within an organization and guides its members' behavior. Culture can vary considerably across organizations, with each placing different emphases on risk-taking, treatment of employees, teamwork, rules and regulations, conflict and criticism, and rewards. This activity is important because different types of cultures are better suited to achieving different strategic goals, and managers can use this knowledge to their benefit.
The goal of this activity is to challenge your knowledge of the four types of organizational culture.
Read the description of an organization's culture and write each name to the type of organizational culture it best depicts.
Daveed Miranda Olivia
Caprice Joseph Aaron
Wallace Leslie
Clan Adhocracy Hierarchy Market
1. Daveed- Works for a real estate company with a culture that values employees'ability to focus on the customer, react quickly, an deliver quality work on time.
2. Miranda- works for a new entrepreneurial company that is characterized as being creative, making innovative products, and being adaptable in the marketplace.
3. Olivia works for an investment firm with a culture that focuses on productivity and profits over employee development and satisfaction.
4. Caprice- works for a regional airline whose corporate culture encourages employees to collaborate and become involved to increase their job satisfaction.
5. Joseph- works for a telecommunications company whose culture devotes considerable resources to hiring and developing employees.
6. Aaron- works for a computer company whose corporate culture is characterized by a formalized, structured work environment aimed at achieving effectiveness.
7. Wallace- works for an advertising agency whose corporate culture encourages employees to take risks and experiment with new ways of getting things done.
8. Leslie- works for a pharmaceutical company with a corporate culture that institutes a variety of control mechanisms to measure efficiency, timeliness, and reliability in the creation and delivery of products.

Answers

Answer:

1. Daveed = Market

2. Miranda = Adhocracy

3. Olivia  = Market

4. Caprice =  Clan

5. Joseph = Clan

6. Aaron  = Hierarchy

7. Wallace = Adhocracy

8. Leslie = Hierarchy

Explanation:

Adhocracy: The characteristics of this corporate culture include experimentation, innovation, creativity, entrepreneurship, individual ingenuity and freedom, with high energy and risk-taking.

Hierarchy:  This organizational culture is characterized by structure, control, formal workplace, institutional procedures, organized leadership, and consistency.

Market: The market culture is competitive, results-oriented, and tough and demanding leaders, who care only for profits.

Clan: A clan culture prevails where individuals are treated like parts of a big family with high collaboration, teamwork, communication, and consensus.

ABC Inc. made a $25,000 sale on account with the following terms: 2/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale

Answers

Answer: Debit Accounts Receivable for $24,500.

Explanation:

Based on the information that have been provided in the question, we should first know that under the net method, sales discount is not used.

Therefore, to record the sales that are made on credit will be:

Debit: Accounts receivables by:

= $25000 – (2% × $25,000)

= $25,000 - (0.02 × $25000)

= $25000 - $500

= $24,5000

Credit: Sales Revenue.

Therefore, the answer is Debit Accounts receivables for $ 24500

Journalize the following transactions by Bramble Printing Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select ""No Entry"" for the account titles and enter 0 for the amounts.)
1. Stockholders invest $87,000 cash to start the business.
2. Purchased three digital copy machines for $445,000, paying $108,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $4,000 paper supplies on credit.
4. Cash received for photocopy services amounted to $7,300.
5. Paid $400 cash for radio advertising.
6. Paid $950 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,400 were paid to stockholders.
8. Paid $2,100 cash for rent for the current month.
9. Received $2,200 cash advance from a customer for future copying.
10. Billed a customer for $350 for photocopy services completed.
(The Titles that are used on this chart are No. Account Titles and Explanation, Debit, Credit)
*LIST OF ACCOUNTS*
Accounts Payable, Accounts Receivable, Advertising Expense, Bonds Payable, Buildings, Cash, Common Stock, Dividends, Equipment, Gasoline Expense, Income Tax Expense, Income Taxes Payable, Insurance Expense, Land, Maintenance and Repairs expense, Mortgage Payable, No Entry, Notes Payable, Notes Receivable, Prepaid Insurance, Prepaid Rent, Rent expense, Rent revenue, repair services, retained earning, sales and wages expense, salaries and wages payable, sales revenue, service revenue, supplies, supplies expense, unearned service revenue, utilities expense, website

Answers

Answer: See attachment.

Explanation:

The journal is used to show the transactions that a particular company or business undertakes. The journal shows both the debit side and the credit side for the company.

The journal of the above transactions has been attached.

Two-Stage ABC for Manufacturing
Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:
Activity Cost Pool Activity Cost Activity Cost Driver
Machine setup $720,000 12,000 setup hours
Material handling 120,000 3,000 material moves
Machine operation 680,000 10,000 machine hours
The following data are for the production of single batches of two products, C23 Cams and U2 Shafts during the month of August:
C23 Cams U2 Shafts
Units produced 500 300
Machine hours 4 5
Direct labor hours 200 400
Direct labor cost $5,000 $10,000
Direct materials cost $20,000 $15,000
Tons of materials 13 8
Setup hours 3 7
Determine the unit costs of C23 Cams and U2 Shafts using ABC.
Product Costs
C23 Cams U2 Shafts
Direct materials 30,000 $20,000
Direct labor 5,000 10,000
Manufacturing overhead
Machine setups 150 300
Material handling 780 480
Machine operation 100,000 X 75,000 X
Total job costs $135,930 X $105,830 X
Units produced 500 300
Cost per unit produced 271.86 352.77

Answers

Please find question  attached

Answer and Explanation:

Find answer and explanation attached

HELP ME ASAP!!
_______ is the design of buildings and creation of building plans, or
blueprints.
O Construction
O Marketing
O Architecture
O Drafting

Answers

Answer:

Architecture

:):)

Explanation:

hope I help!!:)

Im learning same thing and just completed that, I know its Architecture!!!!

For each item below, indicate whether a debit or credit applies.

a. Decrease in Notes Payable select an option
b. Increase in Dividends select an option
c. Increase in Common Stock select an option
d. Increase in Unearned Rent Revenue select an option
e. Decrease in Interest Payable select an option
f. Increase in Prepaid Insurance select an option
g. Decrease in Salaries and Wages Expense select an option
h. Decrease in Supplies select an option
i. Increase in Revenues select an option
j. Decrease in Accounts Receivable

Answers

Answer and Explanation:

The indication of each transaction is as follows

a. Note payable contains credit balance so if there is decrease so it would be shown on the debit side

b. Dividend contains debit balance so if there is an increase so it would be shown on the debit side

c.  Common stock contains credit balance so if there is an increase so it would be shown on the credit side

d. Unearned rent revenue contains credit balance so if there is an increase so it would be shown on the credit side

e. Interest payable contains credit balance so if there is decrease so it would be shown on the debit side

f.  Prepaid insurance contains debit balance so if there is an increase so it would be shown on the debit side

g. Expense contains debit balance so if there is an decrease so it would be shown on the credit side

h.  Supplies contains debit balance so if there is an decrease so it would be shown on the credit side

i. Revenue contains credit balance so if there is an increase so it would be shown on the credit side

j. Account receivable contains debit balance so if there is an decrease so it would be shown on the credit side

The Sheridan Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Sheridan has decided to locate a new factory in the Panama City area. Sheridan will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs.
Building A: Purchase for a cash price of $612,100, useful life 26 years.
Building B: Lease for 26 years with annual lease payments of $71,490 being made at the beginning of the year.
Building C: Purchase for $655,200 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $6,850. Rental payments will be received at the end of each year. The Sheridan Inc. has no aversion to being a landlord.
In which building would you recommend that The Sheridan Inc. locate, assuming a 11% cost of funds?

Answers

Answer:

Present value of Building A = $612,000

Present value of Building B = $71,490 + $71,490*Present value of Annuity for n=25,i=11% = $71,490 + $602,070.53 = $673,560.53

Present value of Building C = $655,200 - $6,850*Present value of Annuity for n=26,i=11% = $655,200 - $58,143.20 = $597,056.80

                       Net Present Value

Building A       $612,000

Building B       $673,560.53

Building C       $597,056.80

Conclusion: The Sherdian Inc. should locate itself in Building C as it has least Net Present Value

For 2014, Taxpayer (TP) wants to recognize a deduction. The deduction involves a statute that has not changed since enacted in 1920. TP is relying on a case called JONES, which is a case decided by the United States Tax Court in 1965 which held in favor of the taxpayer. The JONES case was decided by a United States Tax Court that lies in the 5th Circuit Court of Appeals. At the time the JONES case was decided, its holding was contrary to precedent set by the 5th Circuit Court of Appeals. Which of the following is correct:a. None of the other choices are correct.b. The Golsen rule is inapplicable here and is of no concern for TP.c. The Golsen rule applies here and weakens the legal justification for the deduction.d. The Golsen rule applies here and strengthens the legal justification for the deduction.

Answers

Answer:

Option c. is correct

Explanation:

Under the Golsen rule, the Tax Court must follows the Court of Appeals such that the court of appeals has direct jurisdiction over the taxpayer. The Court is said to reach a decision without calculating the tax when a Tax Court decision is said to be entered under Rule 155.

In this question, The Golsen rule applies here and weakens the legal justification for the deduction

Cost-Volume-Profit Analysis CVP exercises The Deli-Sub Shop owns and operates six stores in and around Minneapolis. You are given the following corporate budget data for next year:
Revenues $11,000,000
Fixed costs $3,000,000
Variable costs $7,500,000
Variable costs change based on the number of subs sold.
Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. ​Cell references and formulas should be based on the original data. ​If you copy/paste from the Instructions tab you will be marked wrong.
Requirements Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently.)
a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.
b. Refer to the budgeted operating income based on the original budget data in all calculations.
1 Determine the budgeted operating income based on the original budget data.
2 A 10% increase in contribution margin, holding revenues constant
3 A 10% decrease in contribution margin, holding revenues constant
4 A 5% increase in fixed costs
5 A 5% decrease in fixed costs
6 A 5% increase in units sold
7 A 5% decrease in units sold
8 A 10% increase in fixed costs and a 10% increase in units sold
9 A 5% increase in fixed costs and a 5% decrease in variable costs
10 Which of these alternatives yields the highest budgeted operating income?

Answers

Answer:

The Deli-Sub Shop

1. Budgeted operating income based on the original budget data:

Revenues             $11,000,000

Variable costs       $7,500,000

Contribution         $3,500,000

Fixed costs           $3,000,000

Operating Income $500,000

2. 10% increase in contribution, holding revenues constant:

Revenues             $11,000,000

Variable costs       $7,150,000

Contribution         $3,850,000

Fixed costs           $3,000,000

Operating Income $850,000

3. A 10% decrease in contribution margin, holding revenues constant:

Revenues             $11,000,000

Variable costs       $7,850,000

Contribution          $3,150,000

Fixed costs           $3,000,000

Operating Income  $150,000

4. A 5% increase in fixed costs:

Revenues             $11,000,000

Variable costs       $7,500,000

Contribution         $3,500,000

Fixed costs            $3,150,000

Operating Income $350,000

5. A 5% decrease in fixed costs:

Revenues             $11,000,000

Variable costs       $7,500,000

Contribution         $3,500,000

Fixed costs           $2,700,000

Operating Income $800,000

6. A 5% increase in units sold:

Revenues             $11,550,000

Variable costs       $7,875,000

Contribution         $3,675,000

Fixed costs           $3,000,000

Operating Income $675,000

7. A 5% decrease in units sold:

Revenues             $10,450,000

Variable costs       $7,125,000

Contribution         $3,325,000

Fixed costs           $3,000,000

Operating Income $325,000

8. A 10% increase in fixed costs and a 10% increase in units sold:

Revenues             $12,100,000

Variable costs       $8,250,000

Contribution         $3,850,000

Fixed costs           $3,000,000

Operating Income $850,000

9. A 5% increase in fixed costs and a 5% decrease in variable costs:

Revenues             $11,000,000

Variable costs        $7,125,000

Contribution          $3,875,000

Fixed costs            $3,150,000

Operating Income $725,000

10. 2 A 10% increase in contribution margin, holding revenues constant

   

and

   

    8 A 10% increase in fixed costs and a 10% increase in units sold

Explanation:

a) Data and Calculations:

Corporate Budget:

Revenues            $11,000,000

Variable costs      $7,500,000

Contribution        $3,500,000

Fixed costs          $3,000,000

Operating Income $500,000

b) A 10% or 5% increase is multiplied by a factor of 1.1 or 1.05 while a 10% or 5% decrease is multiplied by a factor of 0.9 or 0.95 respectively.

Antwaun wants to purchase new photography equipment. He sees an advertisement on a store's website for a 35% sale on 85mm lenses this weekend . If the original price of the lens he wanted is $599, what is the new price of the lens once it goes on sale ?​

Answers

Answer:

$389.35

Explanation:

The original price is $599,

The advertised discount is 35%.

Price after discount will be

=$599- (35% of $599)

=$599 - (35/100 x $599)

=$599 - $209.65

=$389.35

Which costs are variable costs?
A. Rent
B. Machinery
C. Raw material
D. Marketing
E. Monthly salary

Answers

Answer:

its b

Explanation:

 

Answer:

B. Machinery

Explanation:

Fechter Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par—Common Stock $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury stock transactions.

Mar. 1 Purchased 5,000 shares at $8 per share.
June 1 Sold 1,000 shares at $12 per share.
Sept. 1 Sold 2,000 shares at $10 per share.
Dec. 1 Sold 1,000 shares at $7 per share.

Fechter Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $30,000.

Required:
Journalize the treasury 2020, for net income.

Answers

Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

March 1 (Purchased 5,000 shares at $8 per share)

Dr treasury stock       $40,000

(5000 x $8)

Cr Cash                                        $40,000

June 1 (Sold 1,000 shares at $12 per share)

Dr Cash                                                    $12,000

(1000 x $12)

Cr Treasury stock                                     $8,000

(1000 x $8)

Cr paid-in capital from treasury stock                $4,000

Sept. 1 (Sold 2,000 shares at $10 per share)

Dr Cash                                                    $20,000

(2000 x $10)

Cr Treasury stock                                     $16,000

(2000 x $8)

Cr paid-in capital from treasury stock               $4,000

Dec. 1 Sold 1,000 shares at $7 per share.

Dr Cash                                                     $7,000

(1000 x $7)

Dr paid-in capital from treasury stock      $1,000

Cr Treasury stock                                                 $8,000

(1000 x $8)

A $2 million jumbo CD is paying a quoted 3.55 percent interest rate on 180-day maturity CDs. How much money will you have at maturity if you invest in the CD

Answers

Answer:

Maturity Value = $2,035,500

Explanation:

$2,000,000 are invested

Interest rate = 3.55 %

Time = 180 days

Maturity value = ?

Maturity Value = Amount invested * [1 +( interest * no of days to maturity/360)

Maturity Value = $2,000,000* [1 + (0.0355*180) /360)

Maturity Value = $2,000,000* [1 + (6.39/360)

Maturity Value = $2,000,000* [1 +  0.01775]

Maturity Value = $2,000,000 * 1.01775

Maturity Value = $2,035,500

Note: A Certificate of deposit is an interest bearing time deposit.

The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows:

Blink Division Blur Division Total
Sales $280,000 $168,000 $448,000
Variable costs 98,000 77,000 175,000
Contribution margin $182,000 $91,000 $273,000
Direct fixed costs 84,000 70,000 154,000
Segment margin $98,000 $21,000 $119,000
Allocated common costs 42,000 31,500 73,500
Operating income (loss) $56,000 ($10,500) $45,500

Operating income for Winston Corporation as a whole if the Blur Division were dropped would be:

a. $66,500.
b. $56,000.
c. $45,500.
d, $24,500.

Answers

Answer:

d, $24,500

Explanation:

Computation for the Operating income for Winston Corporation as a whole if the Blur Division were dropped

Operating income (loss) for Blink Division $56,000

Less Allocated common costs Blur Division (31,500)

Operating income for Winston Corporation $24,500

Therefore the Operating income for Winston Corporation as a whole if the Blur Division were dropped would be $24,500

XYZ Company is union free. Because of increased costs and operational efficiency, it is in XYZ Company’s best interest to avoid unionization. While still in this non-unionized state, it is important for YYZ to do all EXCEPT which of the following?

Answers

Answer:

Make sure employees understand that anyone who attempts unionization will be discharged

Explanation:

Companies are not allowed to threaten employees who are interested in forming a union with discharge.  

Following is information about consulting jobs for a company that is increasing in sales, but has not yet become profitable. The owner keeps financial records on yellow sticky notes stuck to the wall behind his desk. He has asked you to help him set up a costing system so that he can better understand his costs. The owner said that job 140 was completed, job 141 was started and completed, and job 142 was started this month. Professional labour hours for contracts in process consist of job 140 with 129 hours, job 141 with 258 hours, and job 142 with 137 hours. Professional labour was paid $23,580 for the month, and the professional employees are all paid the same rate per hour. Overhead is allocated using an estimated rate based on professional labour hours. The total cost for job 141 is $32,766. Actual overhead cost for the month was $53,448. What is labour paid per hour? Labour per hour. What is the estimated rate per labour hour used to allocate overhead? per hour. Overhead rate What are the total costs (before adjusting for overapplied or underapplied overhead) for Jobs 141, 142, and 143? Total cost Job 140 Job 141 Job 142 What are the amounts in cost of goods sold and work-in-process at the end of the month? Cost of goods sold Work-in-process What amount of overhead was overapplied or underapplied this month? Overhead If this month is typical, what is a reasonable overhead rate? Reasonable overhead rate per hour

Answers

Answer:

Part 1

$82 per professional labor hour

Part 2

Job 141 = $16,383  ,Job 142 = $32,766 , and Job 143 = $17,399

Part 3

Cost of Goods Sold = $49,149

Ending Work In Process Inventory = $17,399

Part 4

Overheads Under- applied = $10,480

Part 5

$102.00 per professional labor hour

Explanation:

Labor Cost per hour = Total Cost ÷ Total hours

                                  = $23,580 ÷ ( 129 + 258 + 137)

                                  = $45.00 per hour

We know that,

Overhead allocation rate = Estimated Overhead Costs ÷ Estimated Professional labor hours

But using Job 141 we can solve as,

Total for Job  141                                         = $32,766

Less Labor Cost (258 hours × $45.00)       =  $11,610

Overheads allocated to Job 141                 = $21,156

Then,

Overhead allocation rate =  $21,156 ÷ 258

                                          = $82 per professional labor hour

Total Costs

                                          Job 140         Job 141            Job 142

Direct Labor                        $5,805         $11,610              $6,165

Overheads                         $10,578         $21,156            $11,234

Total Cost                           $16,383       $32,766           $17,399

Cost of Goods Sold

Note : Only Finished Jobs are accounted in this figure

Total Cost of Job 140      $16,383

Total Cost of Job 141       $32,766

Cost of Goods Sold         $49,149

Work In Process Inventory

Note : Only Incomplete Jobs are accounted in this figure

Total Cost of Job 142       $17,399

Application of Overheads

Actual Overheads (given)                                  = $53,448

Applied Overheads ($82 ×  ( 129 + 258 + 137)) = $42,968

Actual Overheads > Applied Overheads therefore we have an Under-applied situation.

Overheads Under- applied = $10,480 ($53,448 - $42,968)

Reasonable Overhead Rate.

Rate that does not produce variances is reasonable !

Reasonable Overhead Rate. = Actual Overheads ÷ Total Professional Hours

                                                = $53,448 ÷ 524 hours

                                                = $102.00 per professional labor hour

5.85 percent coupon bond with 10 years left to maturity is priced to offer a yield to maturity of 6.7 percent. You believe that in one year, the yield to maturity will be 6.0 percent. What is the change in price the bond will experience in dollars

Answers

Answer:

$50.92

Explanation:

                 10 years                    9 years

Nper =   10*2 = 20                      9*2 = 18

Rate = 6.7%/2 = 0.0335             6%/2 = 0.03

PMT = 1000*5.85%/2 = 29.25   1000*5.85%/2 = 29.25

FV =        1000                               1000

PV (Price) = -PV(RATE, NPER, PMT, FV)

Price (10 years) = $938.77

Price (9 years) = $989.68

If interest rate decrease%. Change in price of bond = $989.68 - $938.77 = $50.92

Does anybody know if CPA is profitable. I have heard that it is an easy way to make a side income whilst at college. Even a full time income for some ?

Answers

Explanation:

not the best option in my opinion

The first budget customarily prepared as part of an entity's master budget is the _____ budget. a.cash b.production c.sales d.direct materials purchases

Answers

Answer:

c. sales

Explanation:

The master budget is a document that contains the aggregation of all lower-level, interrelated financial budgets and operating budgets produced by an organization and it comprises of a cash forecast, budgeted financial statements, profit and loss account and balance sheet and a financing plan.

The starting point in preparing a master budget is the preparation of the sales budget.

Hence, the first budget customarily prepared as part of an entity's master budget is the sales budget.

A steel rolling mill can produce I-beams at the rate of 20 tons per week. Customer demand for the beams is 5 tons per week. To produce the I-beams, the mill must go through a setup that requires changing to the required rolling patterns. Each setup costs the mill $10,000 in labor and lost production. The I-beam cost the mill $2,000 per ton and has an inventory holding rate of 25 percent. Assume the plant operates for 50 weeks in a year. Using Microsoft Excel, calculate the following:
a) the optimal production batch size of the mill.
b) The maximum (highest) inventory level at the plant
c) The annual inventory holding cost
d) The annual setup cost of the plant
e) The annual product cost f) Total Annual Inventory Cost (TAIC)

Answers

Answer:

A)  114 tons

C)  $22800

D)  $22807.02

Explanation:

Given Data:

annual holding cost (H) = 25% * $2000

setup cost (s) = $10000

production rate = 20

weekly demand = 5 tons

first we have to calculate the Annual demand , holding cost and the usage rate:

Annual demand = 5 tons * 52 weeks

                           = 260 tons

Holding cost (H) =  25% * $2000

                           = $500

Usage rate = (production rate) / (customer demand)

                  = 20 / 5 =  4 tons

A) Optimal production batch size of the mill

 Qp = [tex]\sqrt{\frac{2DS}{H} } * \sqrt{\frac{P}{P-u} }[/tex]

        = [tex]\sqrt{\frac{2*260*10000}{500} } * \sqrt{\frac{20}{20-4} }[/tex]

      =  114 tons

C) The annual inventory holding cost

   Annual holding cost

                 = [tex]\frac{Imax}{2} * H[/tex]

Imax = ( Qp / P ) (p-u)

         = (114 / 20 ) ( 20 - 4 )

         = 91.2 tons

therefore Annual holding cost : =  ( 91.2 / 2) * 500   =  $22800

D) Annual setup cost of the plant

   = [tex]\frac{D}{Qp} * S[/tex]

  D = 260

Qp = 114

S = $10000

hence Annual setup cost of the plant

=  (260/114) * 10000

=  $22807.02

         

On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $5,000 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 30% of the base fee if the project finished 2 weeks early and 10% if the project finished a week early. The probability of finishing 2 weeks early is 30% and the probability of finishing a week early is 60%.What is the expected transaction price with variable consideration estimated as the expected value?a. $4,750b. $5,000c. $5,750d. $5,50

Answers

Answer: c. $5,750

Explanation:

Expected value will be the weighted average of the payoffs of the different scenarios.

= Base fee + Addition if finished 1 week early + Addition if finished 2 weeks early + No addition

= 5,000 + ( 5,000 * 10% * 60%) + ( 5,000 * 30% * 30%) + (5,000 * 0% * 10%)

= $5,750

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