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3 years ago

The portion of bonds or notes payable that is due within one year is reported as a(n)

Business

1 answer:

Murrr4er [49]3 years ago

3 0

Answer:

c.current liability on the balance sheet

Explanation:

Current liabilities are the debts that a business owes to outsiders and are due for payments within the current financial year. They are obligations that need to be settled using current assets. A business must keep a close watch of current liabilities and current assets to ensure it can pay its obligations as they become due.

Examples of current liabilities include accounts payable, declared dividends payable, loan interest payble, salaries, and portions of long term debts that are due for payment in the current financial year. Current liabilities are recorded top on the liabilities side of a balance sheet.

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Coffee Klatch is a chain of small coffee shops that are located in college towns and mostly employ students. The company offers

NNADVOKAT [17]

Answer:

High Morale.

Explanation:

Morale is internal feeling and it is inspired by the environment. It depends upon the relations between expectations and reality.

A motivated person tends to experience high morale A person in High morale group need not be Motivated.

Make sure that employees are interested in and appreciated for their work. High morale yields higher productivity in an organization Employees’ spirits can easily fall if their day-to-day responsibilities are monotonous or if they don’t feel valued by their supervisors. Over time, this can translate into an unmotivated and unproductive staff.

Employees evaluate their treatment relative to the treatment of others, they need to fell contributions to their jobs. What employees receive in return is the perceived ratio of contribution to return determines, and equity.

How to Boost Morale?

-Motivate employee with your examples

-Establish clear and good communication with employees

-Enrich employees’ jobs

-Challenge employees to perform better Involve employees as equal members of your team

-Consult your employees

-Empower your employees

-Acknowledge and appreciate employees

-Show care to your employees

-Create healthy work environment

-Do some personal things

5 0

4 years ago

Consider a firm with a contract to sell an asset for $151,000 four years from now. The asset costs $96,000 to produce today. a.

abruzzese [7]

Answer:

a) loss of 3,388.87

b) it will break even at 11.99%

Explanation:

we will discount the 151,000 at 13% to know the current sales revenue at the sale

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 151,000

time 4 years

rate 0.13

$\frac{151000}{(1 + 0.13)^{4} } = PV$

PV 92,611.13

the present value is 92,611.13 while the cost is 96,000

there is a loss of 3.388,87‬

To know at which rate the firm break even:

PV = 96,000

$\frac{151000}{(1 + r)^{-4} } = 96,000$

$\sqrt[-4]{96,000/151,000} - 1 = r$

r = 0.11989

6 0

3 years ago

A company is considering buying a new piece of machinery. A 10% interest rate will be used in the computations. Two models of th

JulsSmile [24]

Answer:

Machine I

capitalized cost: 230,271.28

EAC: $ 27,047.58

Machine II

EAC: $ 27,377.930

As Machine I cost per year is lower it is better to purchase that one.

Annual deposits to purchase Machine I in 20 years: $ 1,396.770

return of machine I with savings of 28,000 per year: 10.51%

Explanation:

WE calculate the present worth of each machine and then calculate the equivalent annual cost:

MACHINE 1

Operating cost:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 18,000

time 20

rate 0.1

$18000 \times \frac{1-(1+0.1)^{-20} }{0.1} = PV\\$

PV $153,244.1470

Salvage value:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $20,000.0000

time 20.00

rate 0.1

$\frac{20000}{(1 + 0.1)^{20} } = PV$

PV 2,972.87

Total: -80,000 cost - 153,244.15 annual cost + 2,972.87 salvage value:

Total: 230,271.28

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

Present worth $(230,271.28)

time 20

rate 0.1

$-230271.28 \div \frac{1-(1+0.1)^{-20} }{0.1} = C\\$

C -$ 27,047.578

Fund to purchase in 20 years:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

FV $80,000.00

time 20

rate 0.1

$80000 \div \frac{(1+0.1)^{20} -1}{0.1} = C\\$

C $ 1,396.770

IF produce a 28,000 savings:

we must solve using a financial calcualtor for the rate at which the capitalized cost equals 28,000

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $230,271.28

time 20

rate 0.105126197

$230271.28 \div \frac{1-(1+0.105126197287798)^{-20} }{0.105126197287798} = C\\$

C $ 28,000.000

rate of 0.105126197 = 10.51%

<u>Machine II</u>

100,000 cost

25,000 useful life

15,000 operating cost during 10 years

20,000 for the next 15 years

Present value of the operating cost:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 15,000

time 10

rate 0.1

$15000 \times \frac{1-(1+0.1)^{-10} }{0.1} = PV\\$

PV $92,168.5066

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 20,000

time 15

rate 0.1

$20000 \times \frac{1-(1+0.1)^{-15} }{0.1} = PV\\$

PV $152,121.5901

in the timeline this is at the end of the 10th year we must discount as lump sum for the other ten years:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $152,121.5901

time 10.00

rate 0.1

$\frac{152121.590126167}{(1 + 0.1)^{10} } = PV$

PV 58,649.46

salvage value

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $25,000.0000

time 25.00

rate 0.1

$\frac{25000}{(1 + 0.1)^{25} } = PV$

PV 2,307.40

Total cost: 100,000 + 92,168.51 + 58,649.46 - 2,307.40 = $248,510.57

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $248,510.57

time 25

rate 0.1

$248510.57 \div \frac{1-(1+0.1)^{-25} }{0.1} = C\\$

C $ 27,377.930

4 0

4 years ago

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000,

Tanya [424]

Answer:

a. Year 0 Net Cash Flows = $984,000

b. We have:

Year 1 net operating cash flows = $306,159

Year 2 net operating cash flows = $332,986

Year 3 net operating cash flows = $261,479

c. Additional Year 3- cash flow = $504,877

d. The machine should be purchased.

Explanation:

We start by first calculating the following:

Initial Investment = Base Price + Modification Cost = $940,000 + $25,000 = $965,000

Useful Life = 3 years

Depreciation in Year 1 = 0.3333 * $965,000 = $321,634.50

Depreciation in Year 2 = 0.4445 * $965,000 = $428,942.50

Depreciation in Year 3 = 0.1481 * $965,000 = $142,916.50

Book Value at the end of Year 3 = $965,000 - $321,634.50 - $428,942.50 - $142,916.50 = $71,506.50

After-tax Salvage Value = Salvage Value - (Salvage Value - Book Value) * Marginal tax rate = $624,000 – ($624,000 - $71,506.50) * 25% = $485,877

Initial Investment in NWC = $19,000

We can now proceed as follows:

a. What is the Year 0 net cash flow?

Year 0 Net Cash Flows = Initial Investment + Initial Investment in NWC = $965,000 + $19,000 = $984,000

b. What are the net operating cash flows in Years 1, 2, 3?

Year 1 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 1) = ($301,000 * (1 – 0.25)) + (0.25 * $321,634.50) = $306,159

Year 2 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 2) = ($301,000 * (1 – 0.25)) + (0.25 * $428,942.50) = $332,986

Year 3 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 3) = ($301,000 * (1 – 0.25)) + (0.25 * $142,916.50) = $261,479

c. What is the additional Year 3- cash flow (i.e. after tax salvage and the return of working capital)?

Additional Year 3- cash flow = NWC recovered + After-tax Salvage Value = $19,000 + $485,877 = $504,877

d. If the project's cost of capital is 12%, should the machine be purchased?

This can be determined from the net present value (NPV) calculated as follows:

NPV = -$984,000 + ($306,159/1.12^1) + ($332,986/1.12^2) + ($261,479/1.12^3) + ($504,877/1.12^3) = $100,287.71

Since the NPV of the machine of $100,287.71 is positive, the machine should be purchased.

7 0

3 years ago

True or False a lateral electrical is run from a pole to a dwelling.

Elodia [21]

The correct answer would be False

5 0

3 years ago