Answer:
1003
Explanation:
Given:
Period= 30 years, Loan amount= $200,000,
Payments- Monthly,
Teaser rate for first 2 years = 4%,
Annual payment cap=5%, Composite rate on reset date= 6%
Annual rate for 2 years =4%
Monthly rate will be 4/12 = 0.3333% = 0.003333
n=30years=360 months
Monthly payment for first 2 years = 
= 
= 954.83
or by Excel function = PMT(0.003333,360,200000,0) = 954.83
Loan balance after 2 years = PV(0.003333,336,-954.83,0) = 192,812.36 or
Balance=
=
= 192,812.36
Composite rate is 6% but payment is capped at 5%. So new payment from year 3 is 954.83×1.05=1002.57=1003
Answer:
Operating loss will decrease by $20,000
Explanation:
Operating loss from normal business activities and if the division is not shut down = $150,000.
Operating loss if division is shut down by the management = $130,000 ($480,000 - $350,000) because the management has determined that $350,000 of the $480,000 Fixed Costs shown would be eliminated if that happens.
So, if the Northern Division is shutdown, the Operating loss will decrease by $20,000 (From $150,000 to $130,000)
Answer:
The gross profit margin for the cat condo is 50%
Explanation:
Since the gross profit per unit is not given, so first we have to find it. The calculation is shown below:
= Selling price per unit - Direct materials cost per unit - direct labor costs per unit - Manufacturing overhead per unit
= $90 per unit - $15 per unit - $10 per unit - $20 per unit ( $10 per unit × 200%)
= $45 per unit
Now apply the Gross profit formula which is shown below:
= (Gross profit per unit ÷ selling price per unit) × 100
= ($45 per unit ÷ $90 per unit) × 100
= 50%
Answer:
The advertising department expense allocated to each department are as follows:
Books Dept = $11,748
Magazines Dept = $8,010
Newspapers Dept = $6,942
Totals advertising department expenses allocated = $26,700
The purchasing department expenses allocated to each department are as follows:
Books Dept = $20,081
Magazines Dept = $10,741
Newspapers Dept = $15,878
Total purchasing department expenses allocated = $46,700
Explanation:
Note: See the attached excel for the completed table used in allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
From the attached excel, the advertising department expense allocated to each department are as follows:
Books Dept = $11,748
Magazines Dept = $8,010
Newspapers Dept = $6,942
Totals advertising department expenses allocated = $26,700
From the attached excel, the purchasing department expenses allocated to each department are as follows:
Books Dept = $20,081
Magazines Dept = $10,741
Newspapers Dept = $15,878
Total purchasing department expenses allocated = $46,700
Answer:
$35,260
Explanation:
Calculation to Determine the proper amount of net income for 2021
Unadjusted net income $33,000
Adjustments:
a. Insurance expense overstated $2,800
[4,200-(4,200/3)]
b. Sales revenue overstated $(675)
c. Supplies expense overstated $645
d. Interest expense understated $(510)
(12%*17,000*3/12)
Adjusted net income $35,260
Therefore the proper amount of net income for 2021 will be $35,260
