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3 years ago

You have just purchased a four-month, $630,000 negotiable CD, which will pay a 4.5 percent annual interest rate.

Business

1 answer:

erma4kov [3.2K]3 years ago

7 0

Answer:

A. cv = $628998.51

B. cv = $638180.86

Explanation:

Fv = iv * (1 + r)^n

Where fv = final value

Iv = initial value. = 630,000

r = rate = 4.5%

n = time of maturity = 4/12 = 0.3333

So therefore:

Fv = 630000(1 +.045)^0.3333

Fv = $639310.75

a. If rate is reduced to 5%

Current market value = c.f.

Since rise or drop in rate would affect the new value of product if you are to sell

So:

639310.75 = cv( 1 + r )^0.3333

cv = 639310.75 / (1.05)^0.3333

cv = 628998.51

b. If rate reduces to 4.25%

Solving it the same way as (a)

639310.75 = cv* ( 1 + 0.0425 ) ^0.3333

cv = $638180.86

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During 2017 the DLD Company had a net income of $85,000. In addition, selectedaccounts showed the following changes: Accounts Re

miv72 [106K]

Answer:

A) $84,500

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

Hence, amount of cash provided by operating activities

= -$3,000 + $1,000 + $1,500 + $85,000

= $84,500

The increase in asset other than cash is an outflow, increase in liability is an inflow of cash. Depreciation is a non-cash item added back while increase in building and bond payable are investing and financing activities respectively.

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3 years ago

Asset sales, Usage fees, Brokerage frees, and advertising are all ___?

lapo4ka [179]

Answer:

sources of business revenue

Explanation:

Revenue is the money a business gets from its normal trading activities. It is the income a business obtains through the sales of goods and services to customers. Revenue includes discounts received and purchase returns.

The sale of an asset is revenue to a business because it will receive money from the transaction. Usage fees, Brokerage fees, and advertising are money that businesses receive for offering services.

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3 years ago

You are planning to make monthly deposits of $500 into a retirement account that pays 6 percent interest compounded monthly. If

liberstina [14]

Answer:

$995,745

Explanation:

PV = $0

PMT = $500

I/YR = 6

P/YR = 12

N = 40 x 12 = 480

your retirement account be in 40 years will be $995,745

7 0

3 years ago

Daniel, age 38, is single and has the following income and expenses in 2020:

Sliva [168]

Answer:

See below

Explanation:

a. Classify the following expenses as either " Deductible for AGI " , " Deductible from AGI " , or " not deductible".

Particulars

•Payment of Alimony ----- Not deductible

•Mortgage interest on residence---Deductible from AGI

•Property tax on residence------Deductible from AGI

•Contribution to traditional IRA (assume the amount is fully Deductible)----Deductible for AGI

Contribution to United Church-------Deductible from AGI

Loss on the sale of real estate(held for investment)-------Deductible for AGI

Medical expenses------deductible from AGI

State income tax-----------deductible from AGI

Federal income tax-------Not deductible

What is Daniel's Gross income and his AGI

I. Gross income

Salary income + net rent income + dividend income

$165,000 + $12,500 + $2,900

$180,400

ii AGI

Gross income - (Contribution to traditional IRA + loss on sale of real estate)

$180,400 - ($4,800 + $575)

$175,025

b. Because Daniel's total itemized deductions (after any limitations) are $14,900 (Please see workings below), he would benefit from itemizing his deductions from AGI

•Workings

Mortgage interest on residence $8,300

Property tax on residence

$3,400

Contribution to United Church

$1,700

State income tax

$1,500

Medical expenses[Medical expenses that are allowed for tax deductions should not be more than 10% Adjusted gross income

Total itemized deductions

$14,900

3 0

3 years ago

Gulshan Parvana operates a machine shop in Istanbul, Turkey. She places bids on small projects in the metropolitan area. Which o

vitfil [10]

Answer:

A) number of projects completed

Explanation:

As Gulshan Parvana is operating a machine shop which generate revenue based on the bids on small projects. So, the most suitable basis for the allocation of utility cost is number of projects completed in the month. This basis drives the utility cost. As revenue and cost are based on the number of bids on projects won and completed in the period is the most suitable basis for cost assignment.

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3 years ago