The net present value of this lockbox arrangement is $1,205,378.06.
Since you are considering implementing a lockbox system for your firm, and on an average day, your firm receives 1,370 checks with an average value of $ 880 each, and the daily interest rate on Treasury bills is 0.01 percent, and the bank charge per check would be $ 0.25, to determine what is the net present value of this lockbox arrangement, the following calculation must be performed:
- ((1370 x 880) x 1.0001) - (1370 x 0.25) = X
- 1,205,720.56 - 342.5 = X
- 1,205,378.06 = X
Therefore, the net present value of this lockbox arrangement is $1,205,378.06.
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Answer:
$48.34%
Explanation:
Data provided in the question
Growth rate = 5%
Required return = 12%
Dividend = $8.65
Based on the above information,
The computation of the current price is shown below:-
Current Price = Dividend × (1 + Growth Rate) ÷ (Required Return - Growth Rate)
= $8.65 × (1 + (-5%)) ÷ (12% - (-5%))
= $48.34%
Therefore for computing the current price we simply applied the above formula.
Answer:
1. Adjusted net income = Ending inventory higher by amount * (1-Tax rate) = $70,000*(1-34%) = $70,000 * 66% = $46,200
Details Amount
Beginning retained earnings for the year 2017 $880,000
Add: Adjusted net income <u>$46,200</u>
Beginning adjusted retained earnings for year 2017 <u>$926,200</u>
2. Tax payable = Inventory * Tax rate = $70,000*34% = $23,800
Date Account Titles and Explanation Debit Credit
Inventory $70,000
Retained earnings $46,200
Tax payable $23,800
(To record adjustment of ending inventory)
A depository institution is a financial institution in the United States.
Answer:
$135000
Explanation:
Cole should record the patent at $135000. The intangible asset is recorded at the price at which it was purchased. Net carrying value of $160000 in the books of seller is not useful.
At the time of purchase of intangible asset, the fair value of stone stock exchanged was $45.
So the patent cost is =
3000 shares × $45 per share = $135000.
Cole should record the patent at this value.