<span>$322,970
The expression for the cash balance at the end of the month is
B = I + R - P
where
B = Balance at the end of the month.
I = Initial balance at the beginning of the month.
R = Receipts received during the month.
P = Payments made during the month.
So let's substitute the known values we have and solve for P
B = I + R - P
95230 = 72600 + 345600 - P
95230 = 418200 - P
95230 + P = 418200
P = 322970
So the cash payments made were $322,970</span>
Answer:
a.
PV = $25000
b.
PV one year from today = $27000
Explanation:
a.
A perpetuity is a series of cash flows that are constant in nature, occur after equal interval of time and are for an infinite period of time. A growing perpetuity is a perpetuity that grows at a proportionate rate for an infinite period of time. The formula to calculate the present value of a growing perpetuity is,
PV = CF1 / r - g
Where,
- CF1 is the cash flow in the coming period or period 1
- r is the required rate of return or interest rate
- g is the growth rate of perpetuity
PV = 1000 / (0.12 - 0.08)
PV = $25000
b.
After the first payment is made, the value of the growing perpetuity can be calculated using CF2. The value that will come will be the value of perpetuity 1 year from today.
PV one year from today = CF2 / (r - g)
PV one year from today = 1000 * (1+0.08) / (0.12 - 0.08)
PV one year from today = $27000
Answer:
Ending inventory: $313.680
Explanation:
We must subtract returned for credit merchandise to purchases to get the net purchases; discounts on purchases would be 4% because the Company paid until 15 days after the invoices issues dates; and Northwest Fur Co. has to bear all costs and risks of the goods when these arrives to the named port of shipment, not before. Then, this is the way to calculate the ending inventory:
Initial inventory $103.000
Plus purchases +$600.000
Less returns on purchases -$4.500
Net purchases =$595.500
Less discounts on purchases -$23.820
Plus freight charges +$9.000
Less cost of good solds -$370.000
Ending inventory =$313.680
Some ways to regulate monopolies are:
- Average cost pricing
- Implement price ceiling
- Rate of return regulation
- Tax or subsidy
Though these are not the perfect solution but somehow limit the price to a much reasonable one. The antitrust law is critical in regulating natural monopoly. In worse cases, the government can break up monopolies through legal processes.
