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vodka [1.7K]
3 years ago
9

Assume your employer offers a bonus of $7200. The only catch is that you must wait 6 years to take possession of the money. If y

ou can earn 6% on your savings, what is the minimum you would take today in order to match the bonus
Business
1 answer:
a_sh-v [17]3 years ago
5 0

Answer:

The minimum would be the present value of the bonus, which is 5,075.72 dollars

Explanation:

we have to discount the 7,200 dollar bonus at 6% discount rate for 6 years to get the present value of the bonus:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  7,200

time  6 years

rate  6% = 6/100 = 0.06

\frac{7200}{(1 + 0.06)^{6} } = PV  

PV   $ 5,075.7159

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Admire County Bank agrees to lend Sheffield Brick Company $614000 on January 1. Sheffield Brick Company signs a $614000, 8%, 9-m
AleksAgata [21]

Answer:

January 1

Cash                                    614000 Dr

   Notes Payable                      614000 Cr

Explanation:

The Sheffield Brick Company has borrowed from the Admire county bank which means the note payable is a liability in the books of the Sheffield Brick company. As liability is increased or recorded, it is credited. The amount of liability is $614000 on the day of the issuance of note. Thus, Sheffield will credit Note payable by $614000.

The Sheffield company has received cash by signing note. As cash is an asset and it is increasing, the Sheffield company will debit cash by 614000 against the notes payable.

4 0
3 years ago
A company wants to hire a model to appear in a television ad to promote its products. Prospective candidates have been asked to
Lyrx [107]

Answer:

Performance.

Explanation:

A company wants to hire a model to appear in a television ad to promote its products. Prospective candidates have been asked to audition so that the company can choose the most suitable person. The candidates are being subjected to performance test. Prospective candidate's acting abilities, personality will be judged and analysed accordingly. They will given a written script which they have to read and acted as well. Their acting, voice quality, body movements and personalty will be looked upon and analysed whether he or she is the best fit for their television ad or not.

8 0
3 years ago
Using the attached sheet (or a spreadsheet if you prefer), prepare a classified balance sheet for the ABC, LLC for the year ende
charle [14.2K]

Answer:

ABC, LLC

Classified balance sheet as at December 31, 2020

                                                                                              $

ASSETS

Non - Current Assets

Land                                                                                 25,000

Total Non - Current Assets                                             25,000

Current Assets

Accounts Receivable                                                        3,000

Cash                                                                                 20,000

Total Current Assets                                                       23,000

TOTAL ASSETS                                                               48,000

EQUITY AND LIABILITIES

LIABILITIES

Non - Current Liabilities

Notes Payable (due in 5 years)                                      10,000

Total Non - Current Liabilities                                        10,000

Current Liabilities

Accounts Payable                                                            4,000

Salaries Payable                                                              5,000

Total Current Liabilities                                                   9,000

TOTAL LIABILITIES                                                         19000

EQUITY

Common Stock                                                                1,000

Preferred Stock                                                               8,000

Treasury Stock                                                                6,000

Retained Earnings                                                          7,000

Paid in Capital in Excess of Par - Common Stock       17,000

Paid in Capital in Excess of Par - Preferred Stock       2,000

TOTAL EQUITY                                                              41,000

TOTAL EQUITY AND LIABILITIES                                60,000  

Explanation:

A classified balance sheet shows the Assets, Liability and Equity Balances in their respective categories as shown above.

8 0
3 years ago
A pre-determined overhead rate includes:_____.
KiRa [710]

Answer:

a. estimated total manufacturing overhead cost in the numerator.

Explanation:

The formula to compute the pre-determined overhead rate is shown below;

As we know that

Pre-determined overhead rate is

= Estimated total manufacturing overhead cost ÷ estimated activity level

Here estimated activity level can be estimated direct labor hours, estimated machine hours etc

Therefore the option a is correct

8 0
3 years ago
A customer deciding to rent a movie from home instead of going to the movie theater illustrates which of Porters Five Forces?
Mice21 [21]

Answer:

Threat of substitutes.

Explanation:

In this case, the buyer tries to obtain the same benefit at a lower cost and does so through a substitute product. This is a classic example of: Threat of substitutes.

5 0
3 years ago
Read 2 more answers
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