Answer: $13,464.23
Explanation:
Kate is saving a constant amount of $1,410 per year so indeed it is an annuity.
The amount she will have in the account after 8 years is the future value of the annuity after 8 years.
The formula is;
Future Value of Annuity = Annuity * (future value factor of annuity, 8 years, 5%)
= 1,410 * 9.5491
= 13,464.231
= $13,464.23
The question is incomplete:
Beau works for a small pest-control company that has a total of five employees. From his point of view, the primary disadvantage of a small business is the:
-complicated management structure.
-risk of failure.
-limited ability to raise capital.
-personal relationship with his employer.
-limited potential for him to advance
Answer:
Limited ability to raise capital.
Explanation:
The answer is that from his point of view, the primary disadvantage of a small business is the limited ability to raise capital because small businesses tend to have few resources and a small participation in the market and these affect their ability to get capital and their growth potential.
The other options are not right because as small businesses have few employees, they have simple structures, the risk of failure can be high or low as in a bigger company and a personal relationship with his employer is not a disadvantage. Also, a small business can offer opportunities to advance.
Answer:
- Debit Retained Earnings $500.
- Credit Dividends for $500.
Explanation:
Dividends are payments to shareholders as a means of sharing company profits to them.
As they are a means of sharing profits, they will be paid from the Retained Earnings account. As this is an Equity account, it should be debited when it is to be reduced so Retained Earnings will be debited by $500 which is the dividend amount.
The dividend account will be credited to indicate that this is a debt that needs to be paid to shareholders so the Dividends account will be credited by $500.
Explanation:
LIFO stands for “Last-In, First-Out”. It is a method used for cost flow assumption purposes in the cost of goods sold calculation. The LIFO method assumes that the most recent products added to a company's inventory have been sold first. The costs paid for those recent products are the ones used in the calculation.
Answer:
The days' sales in inventory for 2019 is 85.88 days
Explanation:
For computing the days' sales in inventory first we have to compute the inventory turnover ratio.
Inventory turnover ratio = Cost of goods sold ÷ average inventory
where,
Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2
= ($25,000+ $ 55,000 ) ÷ 2
= $40,000
And, the cost of good sold is $170,000
Now put these values to the above formula
So, the answer would be equal to
= $170,000 ÷ $40,000
= 4.25 times
Now days sales inventory = Total number of days in a year ÷ inventory turnover ratio
= 365 days ÷ 4.25 times
= 85.88 days
