Answer:
Explanation:
Interest Factors
<u>Periods 6% 7% 8% 9% 10% 11
%</u>
1 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100
2 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321
3 1.1910 1.2250 1.2597 1.2950 1.3310 1.3676
4 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181
1)
Future value paying simple interest = Principal + [( principal * interest) * investment period]
Future value paying simple interest = $2,000 + [ ( $2,000 * 9%) * 3]
Future value paying simple interest = $2,000 + 540
Future value paying simple interest = $2,540
2)
Future value paying compound interest = Present value * ( 1 + interest)n
Future value paying compound interest = $2,000 * ( 1 + 0.09)3
Future value paying compound interest = $2,000 * 1.295029
Future value paying compound interest = $2,590.058
3)
Difference = $2,590.058 - 2,540
Difference = $50.058
Answer:
$14,800
Explanation:
Rosie's has 1,300 shares outstanding at a market price of $10
Sandy's had 2,000 shares outstanding at a market price of $23
The incremental value of the acquisition is $1,800
Therefore, the value of Rosie's to Sandy's can be calculated as follows
=( 1,300×$10)+$1,800
= $13,000+$1,800
=$14,800
Hence the value of Rosie's to Sandy's is $14,800
Answer:
company's acid-test ratio is 1.63. Option e
Explanation:
Acid test ratio is similar to current ratio. However, current assets difficult to liquidate such as inventory are usually not included in the total current asset computation
Given,
Cash = $ 42,250
Short-term investments = 60,000
Accounts receivable, net = 79,500
Merchandise inventory = 115,000
Prepaid expenses = 9,700
Accounts payable = 111,400
Acid test = (42250 + 60000 + 79500 + 9700)/111400
= 181750/111400
= 1.63
Option e.
Answer:
C) legal component
Explanation:
When Jane got the job at Incogyn Inc she signed a contract that states she would receive $7,500 after all taxes are paid. Instead she was paid $7,230.
This is a misinterpretation of information, breach of the contract between Jane and Incogyn so the loss incurred was as a result of legal component of Incogyn Inc's environment.
When companies make deductions not previously agreed upon, the information should be passed along to the employees to avoid legal action.
