Answer:
Explanation:
1) Schedule of cash receipts:
Since 100% of account receivable is collected in the month following the month of sale, which means $290,000 will be collected in July.
2) If there are no sales in September, amount of accounts receivable the company will report on its 3rd quarter balance sheet will be 0. Otherwise, the ending accounts receivable at the end of 3rd quarter will be = sales amount in September.
Answer:
4.96%
Explanation:
In order to determine the component after-tax cost of debt first we need to compute the before tax cost of debt by applying the RATE formula which is to be shown in the attachment below:
Given that,
Present value = $1,155
Future value or Face value = $1,000
PMT = 1,000 × 8.25% ÷ 2 = $41.25
NPER = 40 years × 2 = 80 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula
1. The pretax cost of debt is 3.54% × 2 = 7.08%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.08% × ( 1 - 0.30)
= 4.96%
Answer:
Proposal A
3.75 years
Proposal B
3.375 years
Explanation:
<u>Proposal A</u>
Payback = 3.75 years
Year Cash Inflow Initial Investment Balance Year Count
0 0 1,050,000
1 $280,000 770,000 1
2 $280,000 490,000 2
3 $280,000 210,000 3
4 $280,000 0 *3.75
* 1050,0000 / 280,000 = 3.75 years
<u>Proposal B</u>
Payback = 3.375 years
Year Cash Inflow Initial Investment Balance Year Count
0 0 1,050,000
1 $350,000 700,000 1
2 $3150,000 385,000 2
3 $280,000 105,000 3
4 $280,000 0 *3.375
* ( 3 + ( 105,000 / 280,000 ) ) = 3.75 years
The process of helping a group to assess its accomplishments and plan alternatives: Termination
Answer:
$270,000
Explanation:
Data provided
Quantity of products = $280,000
Total fixed costs = $800,000
Unit sales price = $16
Variable cost = $12
The computation of units must be sold is shown below:-
Contribution per unit = $16 - $12
= $4 per unit
Units must be sold = (Quantity of products + Total fixed costs) ÷ Contribution per unit
= ($280,000 + $800,000) ÷ $4
= $1,080,000 ÷ $4
= $270,000
