Answer and Explanation:
The computation is shown below:
a. As a premium expense
= ($0.460 - $0.44) × 695,000
= $13,900
b. As a difference of 3 months spot rate and spot rate
= ($0.455 - $0.44) × 695,000
= $10,425
The first one represents the premium expense for $13,900 and the second part represents the adjustment to the net income in a positive way
Answer:
The Question is Incomplete; Full Question is as follows;
Using variable costing, what is the contribution margin for last year?
<em>Contribution Margin = $362,900</em>
Explanation:
Computation of expenditure margin by differential costing;
<em>Sales </em><em>Minus </em><em>variable cost </em>
= $1,558,000
- Variable cost of Manufacturing(190,000 units *$1.84)
= $349,600
— variable sales and administrative costs(190,000 units *$4.45)
= $845,500
= contribution margin = $362,900
<em>Keep in mind that; </em><em>Set or Fixed expenses and overhead costs are not taken into account when trying to calculate the contribution margin.</em>
Answer:
∑( Cash flow × PVF) = 79,347
Explanation:
Given:
Opportunity cost = 9%
Cash flow for 1-5 years = 10,000
Cash flow for 6-10 years = 16,000
Now,
Present value factor (PVF) = 
here, n is the year
For year 1 to 5
Year Cash flow PVF Cash flow × PVF
1 10000 0.9174 9174
2 10000 0.8417 8417
3 10000 0.7722 7722
4 10000 0.7084 7084
5 10000 0.6499 6499
for years 6 to 10
Year Cash flow PVF Cash flow × PVF
6 16000 0.5963 9540.8
7 16000 0.547 8752
8 16000 0.5019 8030.4
9 16000 0.4604 7366.4
10 16000 0.4224 6758.4
========================================================
∑( Cash flow × PVF) = 79,347
========================================================
taking the PVF to 5 decimal places will make 79,347 ≈ 79,348
Answer:
Credit card
1.Borrow money to make purchases and repay it later
2.Can help build your credit history
3.Likely charged interest if you don't pay your bill in full every month by the due date
Debit card
1.Money deducted from your bank account to pay for purchases
2.Won't help build your credit history
3.No interest charges
Answer:
$213,400 and zero
Explanation:
The computation is shown below:
Cost of the land would be
= Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building
= $189,000 + $16,400 + $2,200 + $3,400 + $2,400
= $213,400
Since the property is purchase for building site construction so no cost would be recorded in the cost of the new building
