Answer:
Future value is $14,944.22
Interest earned is $7444.22
Explanation:
The amount to earn from Second City Bank is the interest that would have been received at the end of the eight years,
In order to determine the amount of interest,it would be nice to first of all compute the future value-the worth of the savings at the end of eight year using the below formula:
FV=PV*(1+r)^N
PV is the $7,500 invested
r is the compound rate of return is 9%
N is the number of years the amount was invested which is eight years
FV=$7,500*(1+9%)^8
FV=$ 14,944.22
Hence Interest =FV-PV
=$ 14,944.22 -$7,500
=$7444.22
Answer:
b. The lower the WACC used to calculate it, the lower the calculated NPV will be
Explanation:
When calculating NPV the cash inflows and cash outflows arising at the duration of the life are discounted at WACC. Generally, present value of outflow is same as actual as no discounting is done, as that occurs at the initial time of the project.
Cash inflows arising at year end are discounted.
When, WACC is lower The present value of inflows is lower in comparison to higher WACC.
Therefore, there is lower NPV with lower WACC.
Thus, Statement b. is correct.
b. The lower the WACC used to calculate it, the lower the calculated NPV will be
Answer:
FIFO.
Explanation:
Note: This question is not complete. The complete question is therefore given before answering the question as follows:
The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be:
FIFO.
LIFO.
Weighted average.
None of these answer choices is correct.
The explanation to the answer is now given as follows:
First-in, first-out (FIFO) is an inventory method under which the oldest inventory items are recorded in the account as being issued or sold first.
A periodic inventory system refers to an inventory valuation method under which there is an update to the inventory account at the end of an accounting period instead of after every sale and purchase of inventory items.
A perpetual inventory system to an inventory valuation method under which there is an update to the inventory account after every sale and purchase of inventory items. This is done by using computer softwares such as computerized point-of-sale systems and enterprise asset management software.
When FIFO inventory method is being used, both the periodic inventory system and perpetual inventory system will always produce the same amount for cost of goods sold.
Based this explanation, the correct option for this question is FIFO.
Answer:
a.operating, investing, and financing.
Explanation:
- There are three categories of cash flows as the operation, investing and the financial activities and includes the cash activities related to the net income and financing activities include the activates related to the non current liabilities and the owner's equity.
Answer:
$2,100
Explanation:
Cash Available = Opening Balance + Receipts - Disbursements - Desired Balance
= $15,000 +$89,600 - $72,500 - $30,000
= $2,100
Therefore,
The excess of cash available over disbursements for the month would be $2,100
