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Vikki [24]
4 years ago
8

Your aunt is about to retire, and she wants to buy an annuity that will supplement her income by $65,000 per year for 25 years,

beginning a year from today. The going rate on such annuities is 6.25%. How much would it cost her to buy such an annuity today
Business
1 answer:
Varvara68 [4.7K]4 years ago
5 0

$811,540.16 would it cost her to buy such an annuity today

Solution:

Given

Annuity that would increase the profits by $65,000 a year over 25 years

The existing premium on these annuities is 6.25 a cent.

N                                                     25

I/YR                                           6.25%

PMT                                         $65,000

FV                                              $0.00

PV                                          $811,540.16

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Ralph’s Mini-Mart store in Alpine experienced the following events during the current year:1. Incurred $270,000 in selling costs
Neko [114]

Answer:

a. $225, 000

b. $900, 000

c. $140, 000

Explanation:

Ralph Mini-Mart Store in Alpine:

(a) Beginning inventory: this is the value of inventory on hand at the beginning of the financial year. This is the value is the same as the value of ending inventory at the end of the previous financial year. This value includes the value of the inventory and any costs that were incurred to bring the inventory to the organization’s store house.  

For Ralph Mini- Mart, beginning inventory = $225, 000 (refer to item 5)

(b) Transfers- In: this is the inventory that was purchased during the financial year. This value will include the cost of the inventory and any other costs that were incurred to bring the inventory to the store house of Ralph’s Mini – Mart. In this instance, the additional cost is the transportation cost of $30, 000 that was incurred to transport the inventory from the supplier to the warehouse.  

For Ralph’s Mini – Mart, the Transfers – In = $870, 000 + $30, 000 = $900, 000 (refer to item 3 and 4)

(c) Ending balance: the ending balance is the value of inventory at the end of the financial year. This is the value of inventory that Ralph’s remains with after purchasing inventory from suppliers and selling inventory to customers. This value will take into account any inventory write- downs and obsolescence. In this instance, there has been no inventory write- downs and no inventory obsolescence or thefts.  

For Ralph’s Mini – Mart, the value of ending inventory = $140, 000 (refer to item 5)

5 0
3 years ago
The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $380,000
Sedbober [7]

Answer:

company can value of $190909.1

Explanation:

Given data:

current assets = $1,312,500

current liabilities =  $525,000

initial inventory level is $380,000

current ratio = 2.2

current liabilities is calculated as = \frac{Current/ Assets}{current/ ratio}

plugging all value  in above relation

current liabilities= \frac{1312500}{2.2}

current liabilities = $ 596590.90

and we know  current liabilities is  $525,000. Thus company can value of $190909.1

8 0
3 years ago
The classical economists felt that saving would be equal to investment because
lozanna [386]
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6 0
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Leno4ka [110]

Answer: bundle Pricing

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Bundle Pricing is a strategy that is used by companies whereby several products are all packages together for a lower price.

Here, we are informed that the special package for their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of bundle Pricing as the company can sell different products together at once.

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Answer:

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Explanation:

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