Answer:
The liability reported is closest to $107,105.21.
Explanation:
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value or the the liability reported =?
P = Annuity payment = $22,000
r = Student's desired return rate = 10%, or 0.10
n = number of years = 7
Substitute the values into equation (1) to have:
PV = $22,000 * ((1 - (1 / (1 + 0.10))^7) / 0.10)
PV = $22,000 * 4.86841881769293
PV = $107,105.21
Therefore, the liability reported is closest to $107,105.21.
Answer:
Explanation:
The correct journal entry is shown below:
Vacation benefits payable Dr A/c $2,200
To Cash A/c $2,200
(Being vacation benefit is paid for cash)
Before passing this entry, another entry is passed which is shown below:
Vacation benefit expense A/c Dr
To Vacation benefits payable A/c
(Being expense is recorded)
Since we have to record the entry for vacation benefit paid. So, we credited the cash account and debited the Vacation benefits payable account
This is the answer but the same is not provided in the given options
Answer: $3.0 billion.
Explanation:
According to the Press Statement released by Coca-Cola on April 15, 2014 as found on the SEC website, the company plans to spend between $2.5 billion and $3.0 billion on share repurchases by the end of the 2014 fiscal year.
As at the end of the first quarter of 2014, the Company had already spent $713 million in share repurchases and so were optimistic about their repurchases plan.
Answer:
The franchise agreement is the contract that details the terms of the franchise
Explanation:
A franchise agreement is a legally binding document that outlines a franchisor's terms and conditions for a franchisee. Every franchise is governed by these terms, which are generally outlined in a written agreement between both parties.
In actuality, most franchise agreements are for an initial term of 10 to 20 years, and most franchisees leave before that term is completed.
The franchise agreement will designate the territory in which you will operate and outline any exclusivity rights you may have as well as spell out the royalty fees, franchise fee, trademark and mode of operations.
Answer:
the company will have an operating income of $24,200 at sales level of $95,000
Explanation:
<u>Target profit formula:</u>
Fixed cost 29,000
Sales revenue 95,000
Contribution Margin Ratio 56% = 0.56
from each dollar of sales 56 cents remains to afford fixed cost and make a gain:
95,000 x 0.56 = 53,200 contribution
less 29,000 fixed cost = 24,200
