Answer:
The below statements in quote are missing from the question.
“The advertised CD renewal rate is 6.13 percent. Antonio knows the in-store financing costs would not affect his taxes but he knows he’ll pay taxes (25% federal and 5.75% state) on the CD interest earnings. Should he cash the CD or use in-store financing? Why?”
Antonio should cash in the CD to pay for the golf clubs rather than opt for in-store financing arrangement,because after tax rate of CD is 4.25% which less than the cost of in-store financing at 5.23%
Explanation:
The interest on CD before tax deductions is 6.13%
Total tax percentage due Federal and State governments = 25% + 5.75% = 30.75%
After tax rate of CD = 6.13%(1 - .3075) = 4.25%
Answer:
Christopher is an Employee
Explanation:
1) Christopher is an Employee because he is been paid a flat rate regardless of the amount of work he puts in, also he is directly supervised, has an office in AAA and also he must put in 10 hours of work per week
2) Factors that makes a worker an independent contractor or an Employee includes
- level of instruction; If the company or its representative directs the worker on how, when and where a job can be done this indicates that the worker is an employee
- work schedule: An independent contractor is totally in control of his time and determines the amount of hours to put in but if the work schedule is determined by the company then it will be an employee arrangement
- form of payment ; Hourly, weekly and monthly payments are mostly used for employees ,most independent contractors collect their pay once a task is completed by them
- profit or loss : Employees do not share in the profit or loss of the organization since they are paid a flat rate.
Answer:
The amount of $4.8 million will be reported as current liabilities on 31 December 2018 and the amount of $14.4 will be reported as long term liabilities.
Explanation:
The current liabilities are the short term liabilities or obligations that a business is expected to pay or settle within a year's time period. The long term liabilities, on the other hand, are the liabilities or obligations which are due to be paid any time more than a year.
The outstanding amount on Note Payable on 31 December 2018 after the first repayment will be, 24 - 4.8 = $19.2 million
Out of the $19.2 million that is outstanding, $4.8 million are to be paid on 31 December 2019 that is within a year. Thus, this amount will be reported as a current liability as it is payable within a one year period.
The remaining amount of 19.2 - 4.8 = $14.4 million will be reported as a non current liability as it is payable after more than a year from today.
Answer:
Total cash collections in February are $133600
Explanation:
The collections in the month of February will include 20% of sales made in February in account for cash sales.
Cash sales = 140000 * 0.2 = $28000
Thus, Credit sales for February are = 140000 - 28000 = $112000
Out of these credit sales made in February, 60% will be collected in February. Thus, credit sales made in February that will be collected in February are,
February collections from February credit sales = 112000 * 0.6 = $67200
Total cash collections in February from February sales = 67200 + 28000
Total cash collections in February from February sales = $95200
In addition, out of the credit sales made in January, 40% will be collected in February.
Collection from January sales in February = 120000 * 0.8 * 0.4 = $38400
Total collections in February = 38400 + 95200 = $133600
Answer:
Initial deposit= $62,378.07
Explanation:
<u>First, we need to calculate the nominal value of $500,000 in 40 years:</u>
Future Value= PV*(1+r)^n
r= inflation rate
FV= 500,000*(1.011^40)
FV= $774,490.74
<u>Now, the initial deposit (PV) to be made in the present:</u>
PV= FV/(1+i)^n
i= interest rate
PV= 774,490.74 / (1.065^40)
PV= $62,378.07