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olchik [2.2K]
3 years ago
8

On January 1, Garcia Supply leased a truck for a three-year period, at which time possession of the truck will revert back to th

e lessor. Annual lease payments are $17,000 due on December 31 of each year, calculated by the lessor using a 5% discount rate. Negotiations led to Garcia guaranteeing a $47,700 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be
Business
1 answer:
Brut [27]3 years ago
3 0

Answer:

PV=?

N=3

FV= 47,700

PMT= 17,000

I= 5%

Put values in financial calculator

Pv=$87,500

Now use this value to calculate residual value at the end of year 4

PV= 87,500

N=4

Fv=?

PMT= -17,000

I=5

$33,084= residual value in 4 years.

Explanation:

You might be interested in
aner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm ha
NeX [460]

Answer:

1. $ 136,500

2. $70000

3. Medical market

Explanation:

1. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the MEDICAL MARKET

First is to calculate the sales

Sales = (400 000 + 70 000)

Sales = $470 000

Second step is to calculate the profit

Variable cost =$470 000 *65%

Variable cost=$305 500

Contribution =$470 000*35%

Contribution =$164,500

Fixed Expense= $28 000

Profit = $ 136,500

Now let calculate the Difference made by advertisement

Difference = 136500 - 120000

Difference=16500

2. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the

DENTAL MARKET

vcr Of The Dental market = 50%

Variable cost =50% $260 000

Variable cost = $130 000

Contribution = $130 000

Fixed expenses = $60 000

Profit = $70000

Now let determine difference made by the advertisement

Difference =(70000) - 48000

Difference= 22000

3. Based On the above calculation the markets I would recommend that the company focus its advertising campaign is medical market

8 0
2 years ago
How can formal business documents help managers solve problems?
REY [17]

the correct answer is b

7 0
3 years ago
Read 2 more answers
On August 1, 2009 a company issues bonds with a par value of $600,000. The bonds mature in 10 years, and pay 6% annual interest,
Leya [2.2K]

Answer:

discount on BP   8,000 debit

cash                592,000 debit

bond payable                       600,000 credit

-to record issuance of the bonds--

interest expense     15,416.67 debit

  interest payable                     15,000      credit

  discount on BP                           416.67 credit

--to record year-end adjustment entry--

interest payable   15,000      debit

interest expense   3,083.33 debit

  cash                                       18,000    credit

  Discount on BP                         416.67 credit

-to record first interest payment to bondholders--

Explanation:

proceeds from the bonds:  592,000

face value of the bonds.    (600,000)

discount on BP                        (8,000)

We amortize over the life of the bond in equal parts:

8,000 / 20 payment (10years x 2 payment per year) = 500

interest accrued from August 1st to December 31th:

face value x rate x time accrued

600,000 x 6% x 5/12 = 15,000

accrued proportional amortization

amortizationfor 6 months x accrued month

from Augsut 1st to December 31th

500 x 5/6 = 416.67

February 1st payment:

600,000 x 6% x 1/12 = 3,000 interest expense

cash outlay:

600,000 x 6% x 6/12 = 18,000

amortization 500 - 416.67 = 83.33

8 0
2 years ago
The Lin household’s annual income is $188000. Based on the U.S. federal tax rates below, what is the average tax rate for the Li
Sedaia [141]

Answer:

24%

Explanation:

For the taxes due on April 2020 (current year taxes):

The Lin household falls under the fourth tax bracket for married individuals filing jointly:

  • tax rate 24%
  • Income between $171,051 to $326,600

If no deductions were available, they would owe $188,000 x 24% = $45,120 in taxes.

6 0
3 years ago
A recent harris poll reported that ________ percent of customers say that they will never return to a business after a negative
faust18 [17]
A recent Harris poll reported that 82 to 91 percent of customers say that they will never return to a business after a negative customer service experience. The percentage of customers decision for never returning to a business due to a bad experience varies according to the industries. The range of the percentage is 82 to 91 percent.
3 0
3 years ago
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