Answer:
$584,000
Explanation:
Calculation to determine what must their amount of sales be
Using this formula
Amount of Sales = (Fixed costs + Target profit) / Contribution margin percentage
Let plug in the formula
Amount of Sales = [42,400+(40,000+63,600) / (106000/424000)
Amount of Sales =(42,400+103,600) / (106,000/424,000)
Amount of Sales=146,000/0.25
Amount of Sales = $584,000
Therefore what The amount of sales will be Cover-to-Cover Company is $584,000
Answer:
The Journal entry is as follows:
On March 31st,
Salaries and Wages Expense A/c Dr. $79,000
To Wages Payable $59,377
To Federal Withholding Payable $9,258
To FICA Payable $6,044
To State Withholding Payable $3,827
To Union Dues Payable $494
(To record the salaries and wages expense and salaries and wages payable)
Answer:
67%
Explanation:
Money supply = Money multiplier * Deposit worth
3 = Money multiplier * 2
Money multiplier = 3/2
Money multiplier = 1.5
Now, Money multiplier = 1 / Reserve ratio
1.5 = 1 / Reserve ratio
Reserve ratio = 1/1.5
Reserve ratio = 0.6667
Reserve ratio = 67%
So, the percent of deposits the banks hold as reserves is 67%
Answer:
The firm's cash flow to creditors during 2018 was –$85,000
Explanation:
The firms cash flow to creditors would be calculating by substracting the interest expense of the firm to the long-term debt taken during the period.
Cash flow to creditors = Interest expense – Net new LTD borrowing
Cash flow to creditors = Interest expense – (LTDend – LTDbeg)
Cash flow to creditors = $255,000 – ($2,210,000 – 1,870,000)
Cash flow to creditors = –$85,000
The calculated present value of the annuity is $915,166.70.
Explanation and Solution:
Annuity is a collection of fixed payments made or earned either at the close or at the beginning of any term such that a significant initial payment or receipt may be turned into a set of comparatively minor payments or receipts. An annuity that lasts indefinitely is called perpetuity.
The formula for the present value of the annuity is given by:
Where;
R = annual payment = $75,000
i = interest rate = 5.25%
P = Present value of annuity
n = number of years = 20 years
P = 
P = $915,166.70
