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hram777 [196]
3 years ago
6

The manager of a manufacturing company knows that they will need a new machine in one of their factories. The new machine will c

ost them $12,500. The manager has determined that they can afford to pay 20% of the cost of the machine in cash. They can then finance the rest through a credit union. The credit union will charge 1% per year compounded monthly.
Required:
1. How much are their monthly payments for 4 years?
Business
1 answer:
Colt1911 [192]3 years ago
6 0

Answer:

 = $212.61  per month

Explanation:

When a loan is to be paid over a period of time using a series of periodic equal installments, it is called loan amortization. Each equal installment is meant to liquidate the principal and the accrued interest.

<em>The amount to be financed by way of loan=</em>

= cost of machine - (20%× cost of machine)

= $12,500 - (20%  × $12,500 )

= $10,000

The monthly equal installment is calculated as follows:

<em>Monthly equal installment-= Loan amount/Monthly annuity factor</em>

<em>Monthly annuity factor </em>

<em>=( 1-(1+r)^(-n))/r</em>

Monthly interest rate (r)

= 1%/12= 0.0833%

Number of months ( n)  in 4 years

= 12* 12 = 144

Annuity factor

= ( 1- (1.000833)^(-12×4)/0.000833

= 47.033

Monthly installment =  $10,000/47.03

= $212.61  per month

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Where in the CAFR would one find the long-term liability for revenue bonds (paid from the revenues of an enterprise fund)?
Fed [463]

Answer:

C. The government-wide Statement of Net Position and the proprietary funds Statement of Net Position

Explanation:

CAFR ( Comprehensive Annual Financial reporting ) is provides accurate, summarised, and meaningful information. There are three sections of this reporting as below.

  1. Introduction
  2. Financial
  3. Statistical

In government-wide statement, The capital is reported on the net basis on financial statements.

6 0
3 years ago
When a business establishes a web-site and begins to allow customers to place orders online without ever coming into their store
Gwar [14]

Answer: technological environment

Explanation:

With the scenario explained in the question, the business is responding to changes in the technological environment.

Technological environment has to do with the environment that relates to how science and technology has brought Improvement into businesses. This can be seen in the scenario explained in the question.

4 0
2 years ago
Gracie showed up at a new hair salon with her special color treatment coupon. A hairdresser named Bunny applied the color to Gra
Eduardwww [97]
False imprisonment seems like the most likely answer in this scenario if she had to sue for one of the three. She definitely can't sue for assault or battery because no threats were made nor was physical harm dealt.
4 0
3 years ago
3
iris [78.8K]

None of the options shows an alternative Tina has, a real alternative would be a credit card and cash ($190)

In economics, an alternative is an element that replaces or substitutes another. For an element to be considered an alternative it needs:

  • To belong to the same category or have the same function.
  • To be possible for the user to replace the first element using the alternative.

Based on this, let's analyze each of the options:

  • Jacket and $100: These are not alternatives because Tina wants a jacket and this product cannot be replaced with money as money will not protect Tina from cold weather.

  • Shoes and a jacket: These are not alternatives because Tina wants the two products not only one.

  • Credit card and $100: These would be alternatives if the total cost was $100. However, using a credit card Tina can pay for both products but using $100 she can only pay for one of the products.

Therefore, the options do not present alternatives; but one valid alternative is a credit card and $190.

Learn more in

7 0
3 years ago
Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common. As of January 1, 2021,
devlian [24]

Answer:

Common stock = $210,000

Preferred stock = $15,000

Additional paid in capital = $2,801,000

Treasury stock  =    $120,000

Retained earnings = $31,600

Explanation:

Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common.

As of January 1, 2021, the following accounts had the following balances: Common Stock $10,000, preferred stock $5,000, retained earnings was $9,600.

The following transactions affect stockholders' equity during 2021, its first year of operations: January 1-Dec. 31 Net Income $25,000

January 1 Issue 200,000 shares of common stock for $15 per share.

JOURNAL ENTRIES

Dr. Bank.......................3,000,000

Cr. Common stock.......................200,000

Cr. Additional Paid-in capital..2,800,000

February 6 Issue 1,000 shares of preferred stock for $11 per share.

JOURNAL ENTRIES

Dr. Bank.......................11,000

Cr. Preferred stock.......................10,000

Cr. Additional Paid-in capital.......1,000

October 10 Purchase 10,000 shares of its own common stock for $18 per share.

JOURNAL ENTRIES

Dr. Treasury Stock.......................180,000

Cr. Bank........................................................180,000

November 12 Resell 5,000 shares of treasury stock at $20 per share.

JOURNAL ENTRIES

Dr. Bank..............60,000

Cr. Treasury Stock.......................60,000

December 31 Paid dividends of $3,000

The closing balances can be computed as beginning balances + changes in the year = closing balances:

Common stock = 10,000 + 200,000 = $210,000

Preferred stock =  5,000 + 10,000 =    $15,000

Additional paid in capital = 2,800,000 + 1,000 = $2,801,000

Treasury stock  = 180,000 - 60,000 = $120,000

Retained earnings 9,600 + 25,000 - 3,000 = $31,600

8 0
2 years ago
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