Answer:
a. $80,318.70
b. $97,568.57
Explanation:
Here is the full question :
You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 15 comma 555 at the end of this year, $ 31 comma 110 at the end of next year, and $ 46 comma 665 at the end of the year after that (three years from today). The interest rate is 6.7 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = $ 15,555
Cash flow in year 2 = $31,110
Cash flow in year 3 = $ 46,665
I = 6.7%
Present value = $80,318.70
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$80,318.70(1.067)^3 = $97,568.57
Answer: Cash $1,960
Sales returns and allowances $800
Sales discount $40
Accounts receivable $2,800
Explanation:
Sales = $2,800
Sales returns = $800
Discount rate = 2%
The final amount due will be:
= Sales- Sales returns
= $2,800 - $800
= $2,000
Sales discount = 2% × $2,000 = $40
Cash received will be:
Final amount due - Sales discount
= $2,000 - $40
= $1,960
The journal entry will be:
Debit Cash $1,960
Debit Sales returns and allowances $800
Debit Sales discount $40
Credit Accounts receivable $2,800
The main mistake made by North American when trading with a middle Eastern companies are being Impatient.
Explanation:
- Middle east countries include countries such as United Arab Emirate, Iran, Iraq, Turkey, Egypt etc.
- North Americans are known to have a good trading relationship with many nations through out the world.
- But the failed to maintain a healthy and good trading relationship with Middle eastern companies such as UAE etc.
- On of the main reason why they failed is due to their impatience as arab people usually hesitate to take decisions regarding business right away and will demand some three or more business meetings before agreeing for trading, where on the other hand North americans didn't have such patience.
Hence their trading with North americans failed.
Answer:
16.1 days
Explanation:
Note: The full question is attached as picture below
Daily demand d = 520
Annual demand D = 520*250 = 130000
Setup cost S = $680
Production rate p = 875
Holding cost H = 0.25*25 = 6.25
Optimal order quantity Q
Q = 8350
Length of production run = Q/d
Length of production run = 8350/520
Length of production run = 16.05769230769231
Length of production run = 16.1 days
