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Liono4ka [1.6K]
3 years ago
5

This problem has been solved! See the answer In September of 1998, your father purchased a Michael Jordan basketball card for $0

.70. At present, the card is a collector’s item that would fetch $1,900 if sold. If your father were to sell this card now, in September of 2020, what would be the annualized percentage return on his investment?
Business
1 answer:
Elina [12.6K]3 years ago
5 0

Answer:

43.24%

Explanation:

The computation of annualized percentage return on his investment is shown below:-

Future value = Present value × (1 + rate of interest ÷ 100)^time period

$1,900 = $0.70 × (1 + r ÷ 100)^22

(1900 ÷ 0.7)^(1 ÷ 22) = (1 + r ÷ 100)

(1 + r ÷ 100) = 1.4324

r = 1.4324 - 1

= 43.24%

we simply applied the above formula.

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The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs a
Juli2301 [7.4K]

Answer:

The Soma Inn

a. Determination of the inn's break-even point:

1. number of rented rooms per month:

= Fixed Costs/Contribution per room

= $14,400/$18

= 800 rooms

2. dollars:

= Fixed Costs/Contribution margin ratio per room

= $14,400/0.3

= $48,000

2. Renting average of 50 rooms per day,

a) Monthly margin of safety in dollars

Current Sales = 50 rooms x $60 x 30 days = $90,000

Break-even Sales = $48,000

Margin of safety = Current Sales minus Break-even Sales

= $42,000 ($90,000 - $48,000)

b) Margin of safety ratio:

= Margin of safety/Current Sales x 100

= $42,000/$90,000 x 100

= 46.67%

Explanation:

a) Data and Calculations:

Fixed costs:

Salaries       $9,700 per month

Utilities          2,700 per month

Depreciation 1,300 per month

Maintenance   700 per month

Total         $14,400 per month

Variable costs:

Maid service  8 per room

Other costs 34 per room

Total          $42 per room ($3,150 = $41 x 75 rooms)

Rent          $60 per room ($4,500 = $60 x 75 rooms)

Contribution per room = $18 ($60 - $42)

Contribution per night = $1,350 (75 x $18)

Contribution margin ratio per room = Contribution per room margin/Rent per room x 100

= $18/$60 x 100

=  0.3 or 30%

The Soma Inn's contribution margin per room is equal to the rent per room minus the variable cost per room.  Similarly, the contribution margin ratio per room is the contribution margin per room divided by the rent per room, and then multiplied by 100.

The Soma Inn's margin of safety is the difference between the rent per month and the break-even sales.  The Margin of safety ratio for the Inn is the ratio of current sales minus the breakeven sales, and then divided by current sales, multiplied by 100.

c) Once the purchases of merchandise have been computed, to compute the cost of goods sold becomes easier.  The cost of goods sold for Ahmed Company is the difference between the cost of goods available for sale and the ending inventories of merchandise.

8 0
3 years ago
The journal entry to record employer payroll taxes owed affects ______.
weeeeeb [17]

Answer:

a) liabilities only

Explanation:

The journal entry to record the payroll tax expense is shown below:

Payroll tax expense A/c Dr

     To Social security tax payable A/c

     To Medicate tax payable A/c

     To State Unemployment tax payable A/c

     To Federal Unemployment tax payable A/c

(Being the payroll tax expense is recorded)

The payroll tax expense is shown on the debit side of the income statement whereas payroll tax payable is shown on the liabilities side of the balance sheet

5 0
3 years ago
Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc
Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

5 0
3 years ago
a firm decided to spent 2% of its profit onn free education to the children of nearby area. indicate the value involved in this
OlgaM077 [116]
Positive reputation in local community would attract new customer
8 0
3 years ago
To explain the analogous relationship between the trail and the hike to the plant and inventory Alex makes the following stateme
wariber [46]

Answer:

True

Explanation:

In industry, inventory buildups are cancelled with increased sales and marketing activities, which attract rewards and punishments.  This is why it is always a taboo to observe idle workers.  Idle workers cost the entity much in expenses.  Workers are employed based on productivity and profitability indexes.  There is no business entity that employs workers for the fun of employment.

5 0
3 years ago
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