D) Developmental courses
These are courses that are given to students upon placement test scores that show that the student may not be prepared for the class.
Answer:
$77,217
$11,289
Explanation:
Fist we will calculate the present value of $10,000 payment
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. The value of the annuity is also determined by the present value of annuity payment.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $10,000
r = rate of return = 10% / 2 = 5%
n = number of period = 5 years x 2 semiannual payments per year = 10 payments
PV of annuity = $10,000 x [ ( 1- ( 1+ 0.05 )^-10 ) / 0.05 ]
PV of Annuity = $77,217
Now we will use the discounting method to calculate the present value of lump sum payment of $20,000
Present value = Future value x Present value factor
PV = FV x ( 1 + r )^-n
PV = $20,000 x ( 1 + 0.1 )^-6
PV = $11,289
Develop the product / Release the new product.
Answer:
$42 Million
Explanation:
The computation of the total cash dividend is shown below:-
Year Net Income Profitable capital Expenditure Dividends
1 $14 Million $8 Million $6 Million
2 $18 Million $11 Million $7 Million
3 $9 Million $6 Million $3 Million
4 $20 Million $8 Million $12 Million
5 $23 Million $9 Million $14 Million
Total cash dividends $42 Million
Answer:
Adjusting Entries
Date Description Debit Credit
1. December 31 Fees Revenue $6,300
Account Receivable $6300
2. December 31 Supplies Expense $3,790
Supplies Inventory $3,790
3. December 31 Wages Expense $2,700
Wages Payable $2,700
4. December 31 Depreciation Expense $1,650
Accumulated Depreciation $1,650
December 31 Rent Expense $10,800
Prepaid Rent $10,800
Explanation:
Supplies Expense = $4,750 - $960 = $3,790
Rent expired term is considered as there is a prepaid rent balance of $10,800
