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3 years ago

Perpetuities have:

Business

1 answer:

sveticcg [70]3 years ago

7 0

Answer:

b) Equal payments and an infinite life

Explanation:

A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.

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Ralph Lauren: Accounts receivable turnover and number of days' sales in receivables Ralph Lauren Corporation designs, markets, a

SVETLANKA909090 [29]

<em>MISSING INFORMATION:</em>

concept // Year 2 // Year 1

Sales 7,620 7,450

Account Receivables 655 588

Answer:

Yes, there is. The days to collect increase by 4.16 to 29.77 from 26.61

Which is a bad sing as the company delays more to collect form their customers

Explanation:

Account Receivable turnover:

Average receivable:

(458 + 588 ) / 2 = 523

7,450 / 523 = 14.25

Days to collect: 365 / 14.25 = 25,61

Second Year:

Average receivable: (655 + 588) / 2 = 621.5

Turnover: 7,620 / 621.5 = 12.26

Days to collect: 365 / 12.26 = 29,77

29.77 - 25.61 = 4.16

6 0

3 years ago

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. F

masha68 [24]

Answer:

Closing Units = (710 units - 490 units)= 220 units

a) FIFO : closing inventory = $14,040

Mar 18 purchase 20 *$62 =$1,240

Mar 25 purchase 200 *$64 = $12,800

b) LIFO : closing inventory = $12,780

Mar 1 opening = 90 * $52 =$4,680

Mar 18 purchase = 110 * $62 = $6,820

Mar 25 purchase = 20*$64 =1,280

c) Weighted Average Method (WAM) :

WAM= (Opening cost + purchases cost)/(opening units +units purchased)

= ($7,800+$14,250)/(150+250) = $55.125 cost before Mar 9 sale

WAM(after the first sale) = ($4,961.25 +$6,820 + $12,800)/(90+110+200)

= $61.45

Closing Inventory = $61.45*220 =$13,519

d) Specific Identification :Closing Inventory = $13,070

Mar 01 opening = 60 *$52 =$3,120

Mar 5 Purchase = 30*$57 =$1,710

Mar 18 Purchase = 40*$62 =$2,480

Mar 25 Purchase = 90*$64 =$5,760

Explanation:

The Question is incomplete. I have provided the missing part of the question below.

Date Activities Units Acquired at Cost Units Sold at Retail

Mar. 1 Beginning inventory 150 units $52.00/unit

Mar. 5 Purchase 250 units $57.00/unit

Mar. 9 Sales 310 units $87.00/unit

Mar. 18 Purchase 110 units $62.00/unit

Mar. 25 Purchase 200 units $64.00/unit

Mar. 29 Sales 180 units $97.00/unit

Totals 710 units 490 units

5 0

4 years ago

Caspian Sea Drinks needs to raise $41.00 million by issuing bonds. It plans to issue a 14.00 year semi-annual pay bond that has

Darya [45]

Answer:

Explanation:

Coupon rate = 5.07%

Yield to maturity = 4.84%

Rate = Yield/2 = 2.42%

N = 14 = 14*2 semiannually = 28 semiannually

Face value = $1000

PMT = (face value*coupon rate)/2 = $25.35

Need to find price which is PV

Using the financial calculator, PV = $1023

Number of bonds to be issued = 41,000,000/1023 = 40,078

5 0

3 years ago

The Fed buys $100 million of bonds from the public and also lowers the reserve requirement r. What will happen to the money su

Alenkasestr [34]

Answer:

The correct answer is option A.

Explanation:

When the government buys from the public it will pay them back. So the purchase of $100 million of bonds by the government means $100 million was paid to the public.

Also, if the reserve requirement is lowered, it means the commercial banks can increase lending.

Both these actions combined will lead to an increase in the money supply.

3 0

3 years ago

Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO repo

Andreyy89

Answer: $39,500

Explanation:

Service Cost for the year = Ending PBO - Opening PBO - Interest cost + Benefits paid

<u>Opening PBO</u>

Opening PBO is the amount that the interest was charged on.

Discount rate of 10% came out to be $7,500.

The opening balance = 7,500/10%

= $75,000

Service Cost = 112,000 - 75,000 - 7,500 + 10,000

Service Cost for the year = $39,500

4 0

4 years ago