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2 years ago

If a buyer makes a 20% down payment and obtains a $95,000 mortgage, what is the sales price of the property?

1 answer:

7 0

If a buyer makes a 20% down payment and obtains a $95,000 mortgage, the sales price of the property is <u>$118,750</u>.

<h3>What is a mortgage?</h3>

A mortgage is a financial arrangement that extends credit to a buyer of the property. It is simply a loan obtained for the purchase of a property like a home.

When a mortgage is granted, the buyer of the property is usually required to make a down payment, which is a part-payment or initial payment to reduce the sales price of the property.

Down payments are usually stated in percentages. Sometimes, they are stated in dollar amounts.

<h3>Data and Calculations:</h3>

Down payment = 20%

Sales price = 100%

Mortgage = $95,000 (100% - 20%, which is 80%)

Sales price = $118,750 ($95,000/80%)

Thus, if a buyer makes a 20% down payment and obtains a $95,000 mortgage, the sales price of the property is <u>$118,750</u>.

Learn more about down payments and mortgages at brainly.com/question/1318711

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klemol [59]

Answer:

Return on common stockholders' equity=0.0933=9.33 %

Explanation:

Net Income=$200,000

Preferred Stockholder Dividends=Number of shares* value per share*interest

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Preferred Stockholder Dividends=10000*$100*0.06

Preferred Stockholder Dividends=$60,000

Average Common stockholders' equity= (Equity at start of year+Equity at end of year)/2

Average Common stockholders' equity= $\frac{\$ 1,200,000+\$1,800,000 }{2}$

Average Common stockholders' equity=$1,500,000

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3 years ago

Miley has formal power in the Coffee Lovers, Ltd. organization while Bob has informal power. One of the primary differences betw

kolezko [41]

Answer:

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3 years ago

Edmonco Company produced and sold 45,000 units of a single product last year, with the following results: Sales Revenue $ 1,350,

tiny-mole [99]

Answer:

75%

Explanation:

The computation of the percentage increase in income before income taxes is shown below:

Particulars Current $ Increase at 15% Revised $

Sales revenue 1350000 202500 1552500

Less: Variable cost

Variable manufacturing 585000 87750 672750

Variable selling 40500 6075 46575

variable Admin 184500 27675 212175

Total variable cost 810000 121500 931500

Contribution 540000 81000 621000

Less: Fixed cost

Manufacturing 270000 0 270000

Selling 54000 0 54000

Admin 108000 0 108000

Net income 108000 81000 189000

Now percentage increase in income is

= (81000 ÷ 108000)

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3 years ago

Ottawa, Inc. provides the following data: 2019 2018 Cash $23,000 $22,000 Accounts Receivable, Net 37,000 37,000 Merchandise Inve

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Answer:

The days' sales in inventory for 2019 is 85.88 days

Explanation:

For computing the days' sales in inventory first we have to compute the inventory turnover ratio.

Inventory turnover ratio = Cost of goods sold ÷ average inventory

where,

Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2

= ($25,000+ $ 55,000 ) ÷ 2

= $40,000

And, the cost of good sold is $170,000

Now put these values to the above formula

So, the answer would be equal to

= $170,000 ÷ $40,000

= 4.25 times

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= 365 days ÷ 4.25 times

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3 years ago

Harbor Wheel Company manufactures two tractor wheels: the Ultimate which sells for $1,600 and the Standard, which sells for $1,3

algol [13]

Answer:

Harbor Wheel Company

Overhead applied to a single Ultimate wheel using traditional costing:

= $228

Overhead applied to a single Standard wheel using traditional costing:

= $190

Total manufacturing cost of the Standard wheel using traditional costing:

= $710,000 ($710 * 10,000)

Activity-based overhead rate for Quality Control:

= $25

Machining overhead applied to the Standard wheel using activity-based costing:

= $1,000,000

Total manufacturing overhead applied to each Ultimate wheel using activity-based costing:

= $161.40

Explanation:

a) Data and Calculations:

Total estimated overhead = $7,600,000

Estimated total direct labor hours = 200,000

Predetermined overhead rate = $38 per direct labor hour ($7,600,000/200,000)

Current Traditional Costing:

Ultimate Standard

Selling price per unit $1,600 $1,300

Direct materials per wheel $700 $420

Direct labor cost per wheel $120 $100

Overhead applied per wheel $228 $190

Total cost per wheel $1,048 $710

Direct labor hours per wheel 6 5

Total units produced 25,000 10,000

Overhead to a single wheel $228 (6* $38) $190 (5 * $38)

Activity-Based Costing:

Activity Cost Cost Estimated Expected Use of Cost Drivers

Pools Drivers Overhead Total Ultimate Standard

Purchasing purchase orders $1,200,000 40,000 17,000 23,000

Machine setups machine setups 900,000 18,000 5,000 13,000

Machining machine hours 4,800,000 120,000 75,000 45,000

Quality Control inspections 700,000 28,000 11,000 17,000

Total $7,600,000

Activity-based overhead rates

Purchasing = $30 ($1,200,000/40,000)

Machine setups = $50 ($900,000/18,000)

Machining = $40 ($4,800,000/120,000)

Quality control = $25 ($700,000/28,000)

Machining overhead applied to the Standard wheel using activity-based costing = $1,000,000 ($40 * 45,000)

Total manufacturing overhead applied to each Ultimate wheel using activity-based costing:

Purchasing = $510,000 ($30 * 17,000)

Machine setups = $250,000 ($50 * 5,000)

Machining = $3,000,000 ($40 * 75,000)

Quality control = $275,000 ($25 * 11,000)

Total overhead = $4,035,000

Total units = 25,000

Overhead cost per wheel = $161.40 ($4,035,000/25,000)

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3 years ago