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3 years ago

How much must be deposited today into the following account in order to have 35000

Business

1 answer:

almond37 [142]3 years ago

8 0

Answer:

$21,691.43

Explanation:

We are to determine the present value of 35,000

the formula for determining present value is :

PV = FV (1 + r)^-nm

FV = Future value

P = Present value

R = interest rate = 8%/ 12

N = number of years

m = number of compounding = 12

35,000( 1 + 0.00667)^-72 = $21,691.43

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Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepa

skad [1K]

Answer and Explanation:

The Preparation of income statement, retained earnings statement, and balance sheet is prepared below:-

Elliptical Consulting

Income statement

For the Year Ended June 30, 2016

Particulars Amount

Revenue

Fees earned $60,000

Less:

Expenses

Salary expense $32,375

Supplies expense $2,100

Depreciation expense $1,500

Miscellaneous expense $2,000

Total expense $37,975

Net income $22,025

Elliptical Consulting

Retained earning

For the Year Ended June 30, 2016

Particulars Amount

Opening balance $52,200

Add:Net income for the year $22,025

Total $74,225

Less: Dividends $2,000

Closing balance of retained

earnings $72,225

Elliptical Consulting

Balance Sheet

For the Year Ended June 30, 2016

Particulars Amount

Assets

Cash $27,000

Accounts receivable $53,500

Supplies $900

Total current assets $81,400

Property plant and equipment

Office Equipment $30,500

Less:Accumulated

Depreciation $6,000 $24,500

Total Assets $105,900

Liabilities & Stockholder's Equity

Accounts payable $3,300

Salaries payable $375

Total liabilities $3,675

Stockholder's Equity

Common Stock $30,000

Retained earnings $72,225

total stockholders Equity $102,225

Total liabilities and Stockholder's

Equity $105,900

8 0

3 years ago

Solemon Company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solemon wants to earn a tar

mojhsa [17]

Answer:

If Solemon wants to earn a targeted profit of $3,600, the number of units must be sold are 9,300 units.

Explanation:

In Solemon Company:

Contribution margin per unit = Sales price – Variable cost per unit = $8-$6=$2

The number of units must be sold to meet the target profit figure are calculated by using following formula:

The number of units must be sold = (Total fixed cost + Targeted profit) / Contribution margin per unit.

In there: Total fixed cost are $15,000

Targeted profit are $3,600

The number of units must be sold = ($15,000 + $3,600)/$2 = $18,600/$2 = 9,300 units.

8 0

3 years ago

Which one of the following best exemplifies unsystematic risk?

Vanyuwa [196]

Answer:

C. Unexpected increase in the variable costs for a firm.

Explanation:

Unsystematic risk is the risk that is inherent in a specific company or industry leading to loss of revenue for the firm. Example could be a labour strike action by the workers of the any given firm.

6 0

3 years ago

One disadvantage of the corporate form of business ownership is the: Multiple Choice1. limited liability of its shareholders for

djyliett [7]

Answer:

2. double taxation of distributed profits

Explanation:

Corporation is a business entity that is formed by the issuance, sale and purchase of shares or stock. It is owned by people known as shareholders and their liability is limited to the shares or stock held.

Considering all the options given, the only disadvantage in a corporation is double taxation of distributed profits. as the company incurs company income tax (CIT) and the dividend paid to shareholders attracts other forms of tax such as withholding tax.

4 0

3 years ago

What are the costs of inflation? Which of these costs do you think are most important for the U5. economy?

vesna_86 [32]

Explanation:

Menu cost, shoe leather cost, losing money and wealth redistribution from creditors to debtors through inflation.

Most people cut down their spending when they are not making enough money or when there is continuous increase in price, during this period people are mindful of what they spend money on, this will lead to lowered economic growth over a long period of time.

The most important will be the effect of money losing it's value, the fact that money loses its purchasing power which will lead to decrease in demand for goods and services as well as lack of savings will increase the bottleneck on welfare services as people will rely more on them, this will hurt US the most.

5 0

3 years ago