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3 years ago

Sporting goods charges .85 percent interest per month. what rate of interest are its credit customers actually paying?

1 answer:

8 0

To answer this item, we assume that the interest rate is simple, such that the yearly rate was only divided by 12 months in order to determine the rate per month. Hence, to answer this item, we simply have to multiply the given percent by 12.

rate of interest/year = (12)(0.85%) = 10.2%

Therefore, the answer is 10.2%.

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The resort project would require a $20,500,000 investment. At the end of ten years, some of the equipment would have a salvage v

Gemiola [76]

Answer:

Net present value

Explanation:

<u>Missing Information </u>

Weighted average cost of capital: 8% and Solve for net present value:

investment: project outlay 20,500,000 + increase in working capital 450,000

F10 salvage value: 300,000 + 450,000 liberate working capital

cahsflow per year income 1,111,000

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 1,111,000.00

time 10

rate 0.08

$1111000 \times \frac{1-(1+0.08)^{-10} }{0.08} = PV\\$

PV $7,454,900.4342

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

Maturity $750,000.00

time 10.00

rate 0.08000

$\frac{750000}{(1 + 0.08)^{10} } = PV$

PV 347,395.1161

Net present value

7,454,900 + 347,395 - 20,500,000 - 450,000 = -13.147.705

6 0

2 years ago

The Cash account in the ledger of Clear Windows shows a balance of $12,596 at September 30. The bank statement, however, shows a

Norma-Jean [14]

Answer:

1. $3,067

2. B) $129,127.

Explanation:

a. The computation of amount deposit in transit is shown below:

The amount of deposit in Transit = Balance as per Cash Book as on 30th Sept - Cheque outstanding realized - Bank charges - Balance as per Bank Book

= $12,596 + $6740 - $16 - $16,253

= $3,067

Deposit in Transit inflates the general ledger initially till it is credited in the bank book.

b. The computation of balance should Cardinal's Cash account show

Cash Account should show a balance = Bank Statement Balance as on May 31 - Outstanding Cheque on May 31

= $180,974 - $51,847

= $129,127

As we can see that the cash account balance is less because there is an outstanding

5 0

3 years ago

The following data relate to direct labor costs for the current period:

mr Goodwill [35]

Answer:$2,125 unfavorable

Explanation:

Given

Standard costs 9,000 hours at $5.50

Actual costs 8,500 hours at $5.75

we have two formulas to calculate for direct labor rate variance is:

1ST ----Direct Labor rate variance = (Actual Rate- Standard Rate ) x Actual hour

=( $5.75 -$5.50) x 8,500 = $2,125 unfavorable

2ND----Direct Labor Rate Variance=Actual Direct Labor Cost Incurred - Standard Direct Labor Cost Based on Actual Hours

=Actual Hours x Actual Rate -Actual Hours x Standard Rate

= ($5.75 x 8,500 hours)-($5.50 x 8,500 hours)

$48,875 - $46,750 = $2,125 unfavorable

when the actual rate is higher than the standard rate, the Direct Labor Rate Variance is unfavorable and if the actual rate is lower than standard rate, the variance is favorable.

3 0

3 years ago

The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound of butter they sup

Tamiku [17]

Answer:

a) he equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.

b) 0 or no surplus.

Explanation:

The question is in three parts

a) a. In the butter market, the monthly equilibrium quantity is million pounds and the equilibrium price is $ per pound

The equilibrum price and quantity refers to that point in sales where the quantity demanded = the quantity supplied.

Looking at the schedule, the equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.

b) What is the monthly surplus created in the wholesale butter market due to the price support (price floor) program?

First, what is the price floor fixed by the government = $1.00 per pound and at this rate, the demanded quantity is 101 million and the quantity supplied is 79 million pounds.

Hence, the monthly surplus = 79 million pounds - 101 million pounds = -22 million pounds

At this price, there is no surplus

7 0

3 years ago

The following transactions occur for the Wolfpack Shoe Company during the month of June:

inessss [21]

Answer:

Please see the attached snapshots for the answers.

Explanation:

Debit: Cash $30,000

Credit: Service Revenue $30,000

To record Service Revenue.

Debit: Supplies $20,000

Credit: Accounts Payable $20,000

To record purchase of supplies on account.

Debit: Salaries Expense $7,000

Credit: Cash $7,000

To record salaries Expense.

4 0

3 years ago