Answer:
$52,435.00
Explanation:
After 3 years the future value of 100,000 at 6 percent will be
FV = PV × (1+r)n
=FV = 100,000 x (1 +0.06)3
FV = 100,000 x 1.191016
FV = 119, 101.60
The interest will be 119, 101.60 - 100,000
=19,101.60
The depreciation over 9 year period, per year will be
=1/9 x 100,000
=11, 111.11 per year
3 year depreciation = 33,333.33( 11,111.11 x 3)
The investment must generate at least
19,101.60 + 33,333.33
=$52,434.93
=$52,435.00
Answer:
The correct option is d.
Explanation:
It is given that $15,000 is considered to be material to the income statement, but $25,000 is material to the balance sheet.
Material to the income statement = $15,000
Material to the balance sheet = $25000
The auditor should set overall materiality according to the income statement.
The auditor should set overall materiality at $15,000.
Therefore the correct option is d.
Answer:
Part (a) The net income of carter is $115 million.
Part (b) The closing cash balance at the end of year is $360.
Explanation:
Part (a) Net Income Computation:
Sales $825
Cost of goods sold <u>(</u><u>$290</u><u>)</u>
Gross Profit $535
Other Expenses <u>(</u><u>$425</u><u>)</u>
Net income $115 Million
Part (b) The cash balance of Carter is not dependent on non cash flows. So the cash transactions would be considered here for cash balance computation.
Opening Cash position $290
Collection from Sales $710
Inventory Invoices paid ($350)
For Everything <u>($290)</u>
Closing Cash balance $360
