A 401(k) is a good long-term investment strategy hope it helps
Answer:
Total cash collections in February are $133600
Explanation:
The collections in the month of February will include 20% of sales made in February in account for cash sales.
Cash sales = 140000 * 0.2 = $28000
Thus, Credit sales for February are = 140000 - 28000 = $112000
Out of these credit sales made in February, 60% will be collected in February. Thus, credit sales made in February that will be collected in February are,
February collections from February credit sales = 112000 * 0.6 = $67200
Total cash collections in February from February sales = 67200 + 28000
Total cash collections in February from February sales = $95200
In addition, out of the credit sales made in January, 40% will be collected in February.
Collection from January sales in February = 120000 * 0.8 * 0.4 = $38400
Total collections in February = 38400 + 95200 = $133600
Answer:
a-The present value of revenue in the first year is $61,085.92.
b-The total time it would take to pay for its price is 2.44 years of 29.33 months.
Explanation:
a-
Let the function of the revenue earned is given as
Here
- a and b are the limits of integral which are 0 and 1 respectively
- r is the rate of interest which is 5% or 0.05
- S(t) is the function of value which is
So the present value of revenue in the first year is $61,085.92.
b-
The time in which the machine pays for itself is given as
The present value is set equal to the value of machine which is given as
$160,000 so the equation becomes:
So the total time it would take to pay for its price is 2.44 years of 29.33 months.
Answer:
Yes
The order should be accepted as it will generate $3,300 as contribution
Explanation:
The relevant cost of the decision are the the contribution expected to be generated from the special order and any other avoidable fixed cost.
As it stands, there are no directly attributable fixed cost to product A. The allocated fixed cost of $90 is irrelevant to this decision. The cost will be incurred whether or not the special order is accept
Contribution from the order
=(50- 10-2-5) × 100 = $3300
The order should be accepted as it will generate $3,300 as contribution
Answer:
1. $3,130
2. $3,190
3. $4,970
4. $2,130
5. $690
Explanation:
The computation is shown below:
We know that,
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
So according to this formula, we solve each parts
1. Dividend = Net income - increase in retained earnings
= $4,410 - $1,280
= $3,130
2. The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
= $2,530 + $850 - $190
= $3,190
3. Net income = increase in retained earnings + dividend
= $3,480 + $1,490
= $4,970
4. The Beginning balance of retained earnings = ending balance of retained earning + dividend - net income
= $2,190 + 550 - $610
= $2,130
5. Dividend = Net income - increase in retained earnings
= $1,300 - $610
= $690