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2 years ago

The great thing about IRAs is that you can withdraw money anytime you want, with no financial penalty. True False

1 answer:

7 0

The great thing about IRAs is that you can withdraw money anytime you want with no financial penalty is a false statement.

An individual retirement account refers to a savings account with tax advantages that individuals can open to save and invest in the long term.

The great thing about IRAs is that you can withdraw money anytime you want, with no financial penalty is a false statement.

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Northern Air has dozens of flights daily into and out of Belleville Airport, which is highly congested. Northern Air depends for

gladu [14]

Answer:

The answer is E.

Explanation:

Given the information about the airline company Northern Air and their problem with Belleville airport, when we evaluate the options for any disadvantages for Northern Air we can say that;

Option A, being able to schedule flights without stopping for refueling is completely an advantage for Nothern Air.

Option B, the decline of the cost of aviation fuel over the next several years can only cause a problem if the amount they will save from their fuel costs and other costs are going to exceed the amount that will be spent on the Skybuses.

Option C, several mechanics losing their jobs is certainly not the most serious disadvantage Northern Air is going to have from this action.

Option D, the fact that none of Northern Air's competitors in the Belleville Airport are buying Skybuses is not a disadvantage for Northern Air.

Option E, the aerodynamic of the Skybus causing turbulence and therefore leading the delay for the take-off could be a serious disadvantage because of its affects to the company's strict flight schedules.

I hope this answer helps.

4 0

3 years ago

Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2021: Operating income

stepan [7]

Answer:

$63,750 and $80,500, respectively.

Explanation:

Operating income : 255,000 x 0.25 = 63,750

Discontinued: 67,000 x 0.25 = 16,750

The Operation Income will be disclosure the pre-tax incoem tax expense adn after-tax result

While, the discontinued operation will be disclosure after-tax therefore it will not be stated in the income statement their amount of income tax

However, the company will have to pay those taxes the total income tax will be the sum of both.

7 0

4 years ago

McDonald's major distribution partner, The Martin-Brower Company, needs at least $1 million to build a new warehouse in Medicine

aleksley [76]

Answer:

No it wont have enough money to build a warehouse in two years.

Explanation:

Firstly we are given that the warehouse is $1 million so the company needs to save this amount of money in two years time.

We know that the company has invested $500000 to date therefore we need to calculate if this $50000 per quarter investment will cover the the other portion for $500000 to meet the warehouse cost of $1 million so we will use the future value annuity formula to calculate this which is :

Fv = C[((1+i)^n -1)/i]

where Fv will be the future value after two years of the $50000 investment

C is the periodic payment of $50000

i is the interest rate per period which is 6% per quarter

n is the number of periods the payment is done here it is 4 x 2years= 8 periods / investments of $50000 that will be done.

thereafter we substitute on the above formula:

Fv = 50000[((1+6%)^8 - 1)/6%]

Fv = $494873.40

then we combine this amount to $500000 to see if it reaches $1 million

$494873.40+ $500000 = $994873.40 which is close to the warehouse cost of $1 million but it does not reach it so the company wont have enough money to purchase the warehouse.

5 0

3 years ago

The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. The fixed costs a

SVEN [57.7K]

Answer:

Operating Income = $100,000

Explanation:

1 a. What is the current annual operating income?

Revenue - 5,000,000* $0.5 = 2,500,000

Less: Variable Costs - 5,000,000*$0.3 = 1,500,000

Contribution = 1,000,000 (margin = 1m/2.5m = 40%)

Less: Fixed Costs ....$900.000

Operating Income = $100,000

b. What is the present break even point in revenues?

BEP = FC/Contribution Margin = 900,000/0.4 = $2,250,000

2. A $0.04 per unit increase in variable costs

Revenue - 5,000,000* $0.5 = 2,500,000

Less: Variable Costs - 5,000,000*$0.34 = 1,700,000

Contribution = 800,000

Less: Fixed Costs ....$900.000

Operating Income = ($100,000)

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

Revenue - 5,500,000* $0.5 = 2,750,000

Less: Variable Costs - 5,500,000*$0.3 = 1,650,000

Contribution = 1,100,000

Less: Fixed Costs ....$990.000

Operating Income = $110,000

4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit and a 40% increase inunits sold.

Revenue - 7,000,000* $0.4 = 2,800,000

Less: Variable Costs - 7,000,000*$0.27 = 1,890,000

Contribution = 910,000

Less: Fixed Costs ....$720.000

Operating Income = $190,000

5.Compute the new breakeven point in units for each of the following changes: A 10% increase in fixed costs

BEP = FC/Contribution Margin = 810,000/0.4 = $2,025,000

6. A 10% increase in selling price and a $20,000 increase in fixed costs

Revised Contribution Margin = 0.55 - 0.3 = 0.25; 0.25/0.55 = 0.4545

BEP = FC/Contribution Margin = 1080,000/0.4545 = $2,376,238

8 0

3 years ago

Read 2 more answers

(Prob. 5.32) The industrial engineering department for Invade Air Fresheners has found that a new packing machine should save $4

cluponka [151]

Answer:

It will be willing to pay up to $297,853.46

Explanation:

First, we calculate present value of the cash saving

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 45000

time 8

rate 0.05

$45000 \times \frac{1-(1+0.05)^{-8} }{0.05} = PV\\$

PV $290,844.57

Then, the present Value of the salvage value

$\frac{Salvage}{(1 + rate)^{time} } = PV$

Maturity 7.50 %

time 8.00

rate 0.05

$\frac{7.5}{(1 + 0.05)^{8} } = PV$

PV 5.08 %

This is calculate as a percent, because we are not given with a cash value.

Last, the 12,000 major overhaul

$\frac{Overhaul}{(1 + rate)^{time} } = PV$

Maturity -12,000.00

time 8.00

rate 0.05

$\frac{12000}{(1 + 0.05)^{8} } = PV$

PV -8,122.07

This PV is negative as it is a cash out-flow

Lastly, we add them all:

290,844.57 + 0.0508PV - 8,122.07 = PV

<u>And solve for PV</u>

290,844.57 - 8,122.07 = PV - 0.0508PV

282,722.5‬ = 0.9492PV

282,722.5/0.9492 = PV

PV = 297,853.455541 = 297,853.46

3 0

3 years ago