Answer:
Total PV= $2,298.24
Explanation:
<u>First, we need to determine the effective annual rate:</u>
EAR= [1 + (i/n)]^n - 1
EAR= [1 + (0.08/4)]^4 - 1
EAR= 0.082
<u>Now, we can determine the present value of the cash flow, using the following formula:</u>
PV= ∑[Cf/(1+i)^n]
Cf1= 800 / 1.082= 739.37
Cf2= 800 / 1.082^2= 683.34
Cf3= 0
Cf4= 1,200 / 1.082^4= 875.53
Total PV= $2,298.24
Answer:
The Journal entries are as follows:
(1) For Opening Balance Journal entry Not Required
(2) Net sales (all on account) for the year were $101,600. Metlock does not offer cash discounts,
Accounts Receivable A/c Dr. $101,600
To Sales A/c $101,600
(To record sales on account)
(3) Collections on accounts receivable during the year were $82,300,
Cash A/c Dr. $82,300
To Accounts Receivable $82,300
(To record the receipt of accounts receivable)
Answer:
<u>Cost per equivalent unit</u>
Material = $83.75
Labour = $33.85
Overhead WIP = $171.45
Explanation:
<u>Materials</u> <u>Labor</u> <u>Overhead Work in process</u>
May 1 $32,000 $52,806 $257,175
Additions during May <u>$194,125</u> <u>$35,204</u> <u>$171,450</u>
Total Balance of WIP $226,125 $88010 $428,625
Equivalent units 2,700 2,600 2,500
cost per equivalent unit $83.75 $33.85 $171.45
Answer: Creating liquidity
Explanation:
Depository institutions includes commercial banks, credit unions, savings and loans. Depository institutions receive money from the depositors and lend out to their borrowers.
The primary function of the depository institutions is to create liquidity by making credit available to borrowers in the form of loans. Depository institutions also receive deposits from their customers in exchange for interest and then use them to create loans for people.
