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Lostsunrise [7]
3 years ago
7

Vextra Corporation is considering the purchase of new equipment costing $43,500. The projected annual cash inflow is $12,700, to

be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Vextra requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:
Business
1 answer:
Ksju [112]3 years ago
3 0

Answer:

Year Cashflow [email protected]%    PV

               $        $

1                  12,700            0.8929   11,339

2                 12,700            0.7972    10,124

3                 12,700            0.7118       9,040

4                 12,700            0.6355      <u>8,071</u>

                  Present value of annuity  <u>38,574</u>

Explanation:

In this case, there is need to discount the cashflow for each year at 12%. then, we will add the present values of cashflows in order to obtain the present value of annuity.

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Answer:

<em>Confidentiality duty to Kim has been violated by Greg</em>.

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Remember Greg is acting as agent or real estate agent to Kim.

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2021 2020 Income Statement Information Sales revenue $ 8,400,000 $ 7,900,000 Cost of goods sold 5,535,600 5,400,000 Net income 3
Vinil7 [7]

Answer:

2021 2020 Income Statement Information

Sales revenue $ 8,400,000 $ 7,900,000

Cost of goods sold 5,535,600 5,400,000

Net income 332,500 198,000

Balance Sheet Information

Current assets $ 1,550,000 $ 1,450,000

Long-term assets 2,150,000 1,850,000

Total assets $ 3,700,000 $ 3,300,000

Current liabilities $ 1,150,000 $ 850,000

Long-term liabilities 1,550,000 1,550,000

Common stock 750,000 750,000

Retained earnings 250,000 150,000

Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000

<h2>1. </h2>

Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.)

The four main profitability ratios are:

  1. gross profit margin = (revenue - COGS) / revenue = ($8,400,000 - $5,535,600) / $8,400,000 = 0.341 or 34.1%
  2. net profit margin = net profit / revenue = $332,500 / $8,400,000 = 0.03958 or 3.96%
  3. return on assets = net income / average total assets = $332,500 / [($3,700,000 + $3,300,000)/2] = $332,500 / $3,500,000 = 0.095 or 9.5%
  4. return on equity = net income / shareholders equity = $332,500 / $1,000,000 = 0.3325 or 33.25%

<h2>2. </h2>

Determine the amount of dividends paid to shareholders in 2021.

retained earnings 2021 - retained earnings 2020 = net income - dividends

$250,000 - $150,000 = $332,500 - dividends

$100,000 + dividends = $332,500

dividends = $332,500 - $100,000 = $232,500

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Banks Company sold merchandise on account for $35,000 with terms 2/10, n/30. The cost of goods sold was $27,600. If the invoice
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Answer:

The amount of cash received by Banks Company is $34,300

Explanation:

The computation of the cash received by the bank company is shown below:

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where,

Merchandise amount is $35,000

And, the discount equal to

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Now put these values to the above formula  

So, the value would equal to

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= $34,300

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