Answer:
58.81% annual
or 3.93% monthly
Explanation:
Using a financial calculator, we can determine the internal rate of return of this investment. The initial outlay is -$110,000, and the 60 $4,800 cash flows follow. The IRR is 3.93 per month. In order to determine the effective annual rate, we can use the following formula:
effective annual rate = (1 + 3.93%)¹² - 1 = 58.81%
Answer:
The estimated bad debt expense for the year amounts to $9,400
Explanation:
The estimated bad debt expense for the year is computed as:
As the percentage of credit sales method is used for estimating the bad debt expense. Therefore, it is computed as:
Bad debt expense = Net Credit Sales × Estimate Percent
where
Net credit sales amounts to $188,000
Estimate percent is 5%
So, putting the values above:
Bad debt expense = $188,000 × 5%
Bad debt expense = $9,400
Therefore, the bad debt expense amounts to $9,400
Units to be produced in February is calculated as -
Units to be produced in February = February sales + Ending inventory of February - Beginning inventory
February sales = 4,600 units
Ending inventory = 25 % * Sales of March = 25 % * 5,300 units = 1,325 units
Beginning inventory - 25 % * Sales of February = 25 % * 4,600 unit = 1,150 units
Units to be produced in February = 4,600 units + 1,325 units - 1,150 units
Units to be produced in February = 4,775 units
Answer: $2,025
Explanation:
Your monthly payment based on the rate of 6.3% per annum is:
= (6.3% * 1,620,000 ) / 12 months
= 102,060 / 12
= $8,505
Now that the rate has gone up to 7.8% per annum, the payment is:
= (7.8% * 1,620,000 ) / 12 months
= 126,360 / 12
= $10,530
Payment went up by:
= 10,530 - 8,505
= $2,025
