Answer: $688.17
Explanation:
He has to pay $60 every month on the first day or a lump sum.
The lump sum will be the present value of monthly payments.
This is a stable Cashflow and so is an Annuity and because it is done on the first day of the month it is an Annuity due.
Calculating present value of annuity due is;
= Annuity + Annuity (( 1 - ( 1 + r) ^ -(n - 1)) / r)
= 60 + 60 (( 1 - ( 1 + 0.833%)-¹¹) / 0.833%) )
=60 + 60* 10.4695
= $688.17
Note: interest rate must be divided into 12 to make it monthly rate.
=10%/12
= 0.833%
False because the
objective of <span>Trade Promotions can offer several benefits to
businesses. Moreover, companies use Trade Promotions to improve distribution of
their product at retailers and strengthen relationships with retailers. Most
importantly trade Promotions can be advantage to introduce new product dispatch
into retail stores </span>
Answer:
Margin of safety = $300000
Explanation:
The margin of safety is the amount or units in excess of the break even level of sales or units. It is the region beyond the break even point and represents the profit for the business. Any units in excess of the break even point represents the margin of safety.
The margin of safety for the given question with expected sales of $500000 and break even sales of $200000 can be calculated as follows,
Margin of safety = 500000 - 200000 = $300000
B. Work/life balance so he can spend time with his children
Answer:
$3,604
Explanation:
Calculation for what Smith's deferred income tax expense or benefit would be:
Using this formula
Deferred income tax expense =(favorable temporary difference-unfavorable temporary difference)*Tax rate
Let plug in the formula
Deferred income tax expense =($51,200-$40,600)*21%
Deferred income tax expense =$10,600*34%
Deferred income tax expense =$3,604
Therefore Smith's deferred income tax expense or benefit would be:$3,604
