Answer:
c) 3.75 years
Explanation:
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 = Monthly Payment = $200
r = rate of interest = 6.25%
PV = Loan amount = $8,000
As we already have the present value of annuity we need to calculate the rate of return.
$8,000 = $200 x [ ( 1- ( 1+ 6.25%/12 )^-n ) / 0.0625/12 ]
$8,000 / $200 = [ ( 1- ( 1.0052 )^-n ) / 0.0052 ]
40 x 0.0052 = 1- ( 1.0052 )^-n
0.028 = 1 - 1.0052^-n
0.028 - 1 = - 1.0052^-n
-0.792 = - 1.0052^-n
0.792 = 1/1.0052^n
1.0052^n = 1/0.792
1.0052^n = 1.2626
n log 1.0052 = log 1.2626
n = log 1.2626 / log 1.0052
n = 44.96 months
n = 44.96 / 12 = 3.75
Answer:
The Journal entries are as follows:
(1) On July 1,
Retained earnings A/c [1,166 × $14] Dr. $16,324
To common stock distributable [1,166 × $2] $2,332
To paid-in-capital in excess of par- common stock $13,992
(To record declaration of stock dividend)
(2) On July 20,
common stock distributable A/c Dr. $2,332
To common stock $2,332
(To record distribution of the stock dividend)
Workings:
Common stock outstanding = 10,600 shares
Stock dividend declared = 11%
No. of common stock declared as dividend = 10,600 × 11%
= 1,166 shares
<span>An indirect measure would give Carol's biology class the most accurate measurement. If she finds the total thickness of 25 leaves and then divides the amount by 25, that should give her the thickness of an average birch leaf in the group.</span>
When the demand is greater than the supply of goods, the price of that good will go up because there is less of it. The people who made the product need to be paid, and the people who distributed it need to be paid, and everyone else who had a hand in it needs to be paid. So if there are tons of a product, then the price will be cheaper because the company can afford it. But, if there is not a lot of a product, then the price needs to be higher because there is only a limited stock. Did I explain everything clearly? Have a nice day!
Answer:
The days' inventory outstanding was 107.35 days
Explanation:
The days' inventory outstanding indicates how many days on average a company turns its inventory into sales. Days' inventory outstanding is calculated by using the following formula:
Days' inventory outstanding = (Average inventory / Cost of goods sold) x 365 days
In there,
Average inventory = (Beginning Inventory for the year + Ending Inventory for the year)
/2
In Carey's Department Store,
Average inventory = ($4,000,000 + $6,000,000)/2 = $5,000,000
Days' inventory outstanding = ($5,000,000/$17,000,000)x365 = 107.35 days
