Answer:
$1, 727.68
Explanation:
Cheryl wants to have $2000 three years from now in an account that pays 5%
The $2000 is equivalent to the Future value when applying the compound interest formula. The present value is the amount she needs to invest now.
Fv= PV (1+5/100)^3
$2000 = PV(1+0.05)^3
$2000 =Pv 1.157625
Pv = $2000/1.157625
Pv= 1,727.68
Cheryl has to invest $1, 727.68
Answer:
Closing Inventory would be standing at $10000
Explanation:
The cost that forms part of the cost of inventory are all those production costs that are necessary to convert it into finished goods which in this case is:
Production cost = All direct costs are production costs
And
All Direct Cost = $7000 Direct Mat + $9500 Production Workers Wages + $8500 Direct Utilities bills = $25000
And the production cost incurred was for 5000 units which means the unit production cost was $5 ($25000 / 5000 units).
So closing inventory value would be = 2000 closing inventory units * $5
= $10000
Answer:
The discount rate that makes the net present value equal to zero.
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
It is the discount rate that makes the net present value equal to zero.
I hope my answer helps you
Answer:
The correct statement related to the pro forma statements is:
The addition to retained earnings is equal to net income less cash dividends.
Explanation:
When the beginning retained earnings are increased by the addition to retained earnings, it means that the cash dividends have been subtracted from the net income. This addition is the leftover net income after offsetting the dividends. It increases the retained earnings by the end of the financial period.
