Hi!
I assume you want to know how much money he'll have by the end of the two years.
1 year = 12 months.
2 years = 24 months.
250 × 24 = 6,000
So, he will have $6,000 by the end of two years.
Answer:
$58,002.60
Explanation:
First, it is clear to include the $21,000 as part of the value of the equipment.
Now, the $9,000 annual payment after every year for six years need to be presented in its present value, meaning what is the value of those future amounts of $9,000 on June 30, 2018.
To calculate the present value of annuity (annuity means constant and equal payments) for those 6 payments of $9,000, we would need the Present Value Factor which is supplied from the Present Value Table.
Looking at 12% for 6 periods ("six annual installments") on the table, it gives the PV factor of 4.1114.
Just multiply $9,000 by 4.1114 and we get 37,002.60
Finally add the downpayment of $21,000 with the present value $37,002.60 and we would get the total value of the equipment of 58,002.60
Answer:
1. $3,130
2. $3,190
3. $4,970
4. $2,130
5. $690
Explanation:
The computation is shown below:
We know that,
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
So according to this formula, we solve each parts
1. Dividend = Net income - increase in retained earnings
= $4,410 - $1,280
= $3,130
2. The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
= $2,530 + $850 - $190
= $3,190
3. Net income = increase in retained earnings + dividend
= $3,480 + $1,490
= $4,970
4. The Beginning balance of retained earnings = ending balance of retained earning + dividend - net income
= $2,190 + 550 - $610
= $2,130
5. Dividend = Net income - increase in retained earnings
= $1,300 - $610
= $690
The correct answer would be the first option. A note receivable can be transferred to another party by endorsement. It is described as a current asset of an organization that claims a written promissory note from other organization. It is usually made up of the principal and the interest amount.
Answer:
Explanation:
Barney's revenue = $ 12000
explicit costs = $ 75 + $ 50 = $ 125
a) Barney's accounting profit = total revenue - total explicit cost = $ 12000 - $125 = $ 11875
b) Barney's economic cost = total revenue - ( explicit cost + implicit cost )
where ( explicit cost + implicit cost ) = $ 10000 + $ 300 + $ 75 + $ 50 = $12000 - ( $ 10000 + $ 300 + $ 75 + $ 50) = $ 1575