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1 year ago

Manuel is retired and receives a fixed payment from his pension each month. when there is inflation?

1 answer:

8 0

Manuel is retired and receives a fixed payment from his pension each there is inflation when the buying power of his pension will fall

This is further explained below.

<h3>What is inflation?</h3>

Generally, Inflation refers to the rate at which prices continue to grow during a certain period of time, and the term may also refer to inflation itself. In most cases, inflation is assessed on a broad scale, such as the overall increase in prices or the growth in the cost of living in a particular nation.

To put inflation in its most basic form, it may be thought of as the general upward trend in the prices of goods and services over time. What this implies is that a dollar spent now won't purchase as much in the future. In other words, it will lower your ability to purchase things in the future.

In conclusion, Manuel is now retired and receives a certain amount from his pension on an annual basis. In the event that there is inflation, Manuel will be able to buy a lesser total amount with his pension money.

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your firm is contemplating the purchase of a new $545,000 computer-based order entry system. the system will be depreciated stra

liberstina [14]

The IRR of the new computer-based order entry system is 22.87%.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The cash flow at the beginning of the period = purchase price of the system - reduction in working capital

$545,000 - $96,000 = $449,000

Depreciation expense = (cost of the asset - salvage value) / useful life

($545,000 - 0) / 5 = $109,000

Cash flow each year from year 1 to 5 = (amount saved - depreciation)(1 - taxes) + depreciation

($165,000 - $109,00)(1 - 0.22) + $109,000 = $152,680

Terminal cash flow = Salvage value - (tax x salvage value)

$71,000 - (0.22 x 71,000) = $55,380

IRR can be determined using a financial calculator:

Cash flow in year 0 = $-449,000

Cash flow in year 1 - 4= $152,680

Cash flow in year 5 = $152,680 + $55,380 = 208,060

IRR = 22.87%

To learn more about IRR, please check: brainly.com/question/26484024

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3 0

1 year ago

The transactions of Spade Company appear below.

s2008m [1.1K]

Answer:

Entries are given

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

DEBIT CREDIT

A. Kacy Spade, owner, invested cash in the company

Common stock 14250

Cash 14250

B. The company purchased office supplies

Office supplies 413

Cash 413

C.The company purchased office equipment on credit

Office equipment 7880

Payables 7880

D.The company received $1,681 in cash

Cash 1681

Fees earned 1681

E. The company paid $7,880 cash to settle the payable

Payables 7880

Cash 7880

F. The company billed a customer $3,021 as fees

Receivable 3021

fees earned 3021

G. The company paid $520 cash for the monthly rent.

Rental expense 520

Cash 520

H. The company collected $1,269 cash as partial payment

Cash 1269

Receivables 1269

I. The company paid a $1,000 cash dividend to the owner

Retained earnings 1000

Cash 1000

5 0

3 years ago

2-3 personal experience of exploitation as a consumer

Scilla [17]

Answer:

<u>Explanation</u>:

Exploitation often involves a denial of an individual's right (in this case a consumer's right).

Consumers are often exploited in this three areas:

Poor quality standard: For example, one may purchase an electronic device, which in most cases the quality level is determined only after using the product and then discover that the product has failed to meet expectations like performance failure.

High Prices: This is often happens when a consumer isn't aware of the average price of a particular product and may be the taken advantage of by the seller.

False or Incomplete product description: Online shopping often presents this type of exploitation. For example, an individual may buy a wrist watch he thinks is made of silver, but receives the item an discover it is actually made of rubber material.

3 0

3 years ago

The hierarchy of qualitative characteristics of financial information require that, in order to be useful for decision making, i

Effectus [21]

Answer:

Relevance and faithful representation

Explanation:

The is a general consensus that accounting information must possess certain basic characteristics for it to be useful to the users of financial statement. The International Accounting Standards Board (1ASB) gave voice to this assertion when it prescribes some basic characteristics of accounting information which are 1. Understandability 2. Relevance 3. Reliability 4. Comparability. 5. Materiality. 6. <em>Faithful representation.</em> 7. Substance over Form. 8. Neutrality. 9. Prudence. 8. Timeliness. 9. Completeness.

Faithful representation is the requirement that financial statement must be accurate and must show a true and fair view of the position of the business.

8 0

2 years ago

The records of Gemini Company show a contribution margin ratio of 40%. The company desires to earn a profit of $40,000 and has f

seraphim [82]

Answer:

$300,000

Explanation:

Given that,

Contribution margin ratio = 40%

Company desires to earn a profit = $40,000

Fixed costs = $80,000

Required sales revenue:

= (Fixed cost + Desired profit) ÷ Contribution margin ratio

= ($80,000 + $40,000) ÷ 0.40

= $120,000 ÷ 0.40

= $300,000

Therefore, the sales revenue of $300,000 would have to be generated in order to earn the desired profit.

7 0

3 years ago