Use the formula of the present value of an annuity ordinary which is
Pv=pmt [(1-(1+r)^(-n))÷r]
Pv present value 4500
PMTthe actual end-of-year payment?
R interest rate 0.12
N 4 equal annual installments
Solve the formula for PMT
PMT=pv÷[(1-(1+r)^(-n))÷r]
PMT=4,500÷((1−(1+0.12)^(−4))÷(0.12))
PMT=1,481.55
Answer and Explanation:
The computation is shown below;
For Year 1
Average inventory = (Beginning inventory + Ending inventory)÷ 2
= ($64,000 + $80,000) ÷ 2
= $72,000
Inventory turnover = Cost of goods sold ÷ Average inventory
= $606,000 ÷ 72,000
= 8.4 times
Days in inventory = 365 ÷ Inventory turnover ratio
= 365 ÷ 8.4
= 43.5 days
For Year 2
Average inventory = (Beginning inventory + Ending inventory) ÷ 2
= ($80,000 + $72,000) ÷ 2
= $76,000
Inventory turnover = Cost of goods sold ÷ Average inventory
= $500,800 ÷ 76,000
= 6.6 times
Days in inventory = 365 ÷ Inventory turnover ratio
= 365 ÷ 6.6
= 55.3 days
In this case the Atlantic bank will respond by increasing its bank reserves.
Bank reserves is the minimal amount of cash that financial institutions must keep on hand in order to comply with central bank standards . The purpose of the cash reserve regulations is to make sure that every bank has enough cash on hand to handle any significant and unforeseen demand for withdrawals.
The federal discount rate is the interest rate that the Federal Reserve bank charges banks to borrow money from it.
A higher discount rate makes it more expensive for banks to borrow, which reduces the amount of money available and reduces investment activity. In contrast, a decline in the discount rate lowers the cost of borrowing for commercial banks, which increases the amount of credit that is accessible and lending activity across the economy.
To learn more about bank reserves here
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Answer:
None of the loss amount in year 2 will be deductible
Explanation:
Based on the information given How the loss will be treated for tax purposes in year 2 is that the LOSS amount will NOT be deductible in Year 2 reason been that tax payer can only collect the deduction in bad debt in the year the bad debt has no real value and become un-useful.
Secondly the tax payer should not wait till the debt is due before knowing whether the bad debt has no real value reason been that bad debt will has no real value when there is no hope that the debt amount that is owed will be paid which is why to a limited extent a non business bad debt that has no real value will not be deductible.
Therefore How the loss will be treated for tax purposes in year 2 is that None of the loss amount in year 2 will be deductible
Answer:
organizational inefficiency
Explanation:
The finance department of Global Couriers decides to invest half of the previous year's profits into the business. However, the marketing department needs investment to extend the company's services to more cities.
The department heads want to arrange a meeting to discuss the company's strategies. But they adjourned the meeting as they realize that their opinions clash.
This has lead to organizational inefficiency.
