C. Some sources say the flu vaccine could lessen negative affects on the economy.
- Apex
Answer:
Cash inflows = $3,260
Cash outflows = $3,260
Total assets = $22,300
Total liabilities = $2,724
Net worth = $19,576
Explanation:
Cash inflows = Monthly take-home salary $3,260
Cash outflows = Rent for the month $1,360 + Spending for food $560 + Telephone bill paid for month $94 + Loan payment $147 + Auto insurance $326 + Payment for electricity $166 + Lunches/parking at work $181 + Donations $122 + Clothing purchase $137 + Restaurant spending $167 = $3,260
Total assets = Cash in checking account $1,270 + Savings account balance $1,990 + Current value of automobile $8,530 + Household possessions $3,970 + Stereo equipment $2,590 + Home computer $2,140 + Value of stock investment $1,810 = $22,300
Total liabilities = Balance of educational loan $2,390 + Credit card balance $334 = $2,724
Net worth = $22,300 - $2,724 = $19,576
Answer:
a. $3,725
b. $3,945
Explanation:
a. The computation of the adjusted cash balance is shown below:
= Bank statement balance + Deposits in transit - outstanding checks
= $3,400 + $1,000 - $675
= $3,725
b. The computation of the book balance of cash before the reconciliation is shown below:
= Adjusted cash balance + service charge + NSF checks - interest earned - recording error
= $3,725 + $12 + $240 - $7 - $25
= $3,945
Answer:
NPV = $-1,225.37
No. The return is less than 14%, because the net present value is negative
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-13,000
Cash flow in year 1 and 2 = 420
Cash flow in year 3 = $420 + $16,000 = $16,420.
I = 14%
NPV = $-1,225.37
The return is less than 14%, because the net present value is negative
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Annual depreciation for the first two years is $4,910.00
Book value at the end of year 2 $44,180.00
depreciation expense for each of the remaining years after revision is $21,110.00
Explanation:
The initial depreciation =cost-salvage value/useful life
cost was $54,000
salvage value is $4,900
useful life was 10 years
initial depreciation charge=($54,000-$4,900)/10=$4,910.00
Book value at the end of year 2=cost-depreciation for first 2 years
book value at the end of year 2=$54,000-($ 4,910*2)=$44,180.00
Depreciation expense for remaining years=($44,180-$1,960)/2=$21,110.00
