Answer:
$5,026
Explanation:
Year 1 Year 2 Year 3
Cash flows 1,000 2,000 3,000
Discount factor 1/1.08 1/(1.08)^2 1/(1.08)^3
Discount Factor= .93 .86 .79
Cash flows*discount factor
1000*.93 2000*.86 3000*.79
Net present value of cash flows
930 1,715 2,381
930+1715+2381=5,026 is the maximum amount one can pay for this investment
Answer:
$4,720 for cash and accrual method respectively
Explanation:
Under the cash method, the deduction would be
= Interest expense paid to creditor × (*number of months ÷ total number of months in a year)
= $14,160 × (4 months ÷ 12 months)
= $4,720
The 4 months is calculated from September 1 to December 31
Under the accrual method, the deduction would be
= Interest expense paid to creditor × (*number of months ÷ total number of months in a year)
= $14,160 × (4 months ÷ 12 months)
= $4,720
The 4 months is calculated from September 1 to December 31
Thus, the same deduction is allowed for both methods
Answer:
$55,931.49
Explanation:
The formula for compound interest is to be used for this question
FV = P(1+r)^n
Where:
FV = Future Value of investment
P = Principal
r = Interest rate
n = Number of years
P = $12,000
r = 8%
n = 20 years
FV = 12,000(1+8%)^20
FV = 12,000(1+.08)^20
FV = 12,000(1.08)^20
FV = 12,000(4.660957144)
FV = 55,931.48573
FV = $55,931.49 (To 2 Decimal Places)
That is, the investment $12,000 will become the sum of $55,931.49 in 20 years at 8% annual rate of return compounded annually
It will decrease since you’ll have better access.
Answer:
A. An asset account increases.
G. Retained Earnings increase.
Explanation:
The starting point for this analysis would be using the double entries for the transaction,hence the invoicing of customers would give rise to the below entries:
Dr Receivables (asset increases) $4,150
Cr Sales revenue(increase in retained earnings) $4,150
Ultimately, the correct options are A,an asset account increases and G retained earnings increase,since the sales revenue brings about net income that would be recorded as part of retained earnings at the close of the period under consideration