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2 years ago

How to solve the time value of money problems

Business

1 answer:

erastova [34]2 years ago

8 0

Answer:

The Time Value of Money formula is FV = PV x [ 1 + (i / n) ] (n x t)] where V is the Future value of money, PV is the Present value of money, i is the interest rate, n is the number of impounding periods per year, and t is the number of years.

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Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and

Lena [83]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $11

Variable selling and administrative expenses per unit $1.10

Fixed selling and administrative expenses $423,000

Tax rate 18 %

Income Statement:

Sales= 160,000¨11= 1,760,000

COGS= 6.30*160,000= (1,008,000)

Gross profit= 752,000

Selling and administrative expense= (160,000*1.10) + 423,000= (599,000)

Earning before taxes= 153,000

Tax= 153,000*0.18= (27,540)

Net operating profit= 125,460

6 0

3 years ago

Wendy claims that the right mix of hamburgers and other goods is being produced, but that they are not being produced in the lea

BARSIC [14]

Wendy claims that the right mix of hamburgers and other goods is being produced, but that they are not being produced in the least costly way. Economist assess it in the way of allocative efficiency as well as the productive efficiency.

According to Wendy, allocative efficiency is achieved because the right mix of hamburger is produced, but at the same time productive efficiency is not achieved because the production is not utilizing cheapest possible means of producing the goods.

Allocative efficiency occurs when the consumer demand is completely met by the supply. In the other words, businesses are providing the exact supply which the consumers want.

Allocative efficiency occurs from the producers side as well as the consumers side. This happens when the demand is fully met, and production is optimized until marginal costs = marginal revenue . It means that no more profits are made.

Productive efficiency occurs when the businesses focuses on producing a good at the lowest possible cost.

To know more about allocative efficiency here:

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1 year ago

Economists study international trade or trade between countries. List which countries you think are the top four trading partner

lianna [129]

U.S. trade with other nations is worth $4.9 trillion per year. China, Canada and Mexico are the country’s largest trading partners, accounting for nearly $1.9 trillion worth of imports and exports. But this landscape could be reshaped as President Trump pursues “America First” policies and reworks free trade deals.

<h3>What is international trade?</h3>

International trade is the term for cross-border economic activity. Consumer products like televisions and apparel, capital goods like machinery, raw materials, and food are some of the things that are often traded. Other transactions involve services, like payments for foreign patents and travel services (see service industry). International financial payments, in which the private banking sector and the central banks of the trading nations play key roles, promote international trade transactions.

International trade and the associated financial transactions are typically carried out to give a nation the commodities it lacks in exchange for the abundant commodities it produces; these transactions, when combined with other economic policies, tend to raise the standard of living in a given country.

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2 years ago

Which of the following is not a component included in a standard business plan?

Nimfa-mama [501]

A standard business plan will not include an employee summary.

All of the other options are always included in a business plan to assess the feasibility of the venture.

5 0

3 years ago

Read 2 more answers