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3 years ago

A mortgage requires you to pay $70,000 at the end of each of the next eight years. The interest rate is 8%.

Business

1 answer:

bazaltina [42]3 years ago

8 0

Answer:

PV $402,264.7261

balance of the mortage

1-y from now $364,445.9041

2-y from now $323,601.5765

3-y from now $279,489.7026

4-y from now $231,848.8788

5-y from now $180,396.7891

6-y from now $124,828.5322

7-y from now $64,814.8148

Explanation:

We sovle for the PV of the annuity of 70,00 during 8 years discounted at 8%

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

C 70,000.00

time 8

rate 0.08

$70000 \times \frac{1-(1+0.08)^{-8} }{0.08} = PV\\$

PV $402,264.7261

To know the value of the outstanding dbet we can repeat this formula changing the values for time

t = 7 $364,445.9041

t = 6 $323,601.5765

t = 5 $279,489.7026

t = 4 $231,848.8788

t = 3 $180,396.7891

t = 2 $124,828.5322

t = 1 $64,814.8148

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Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would

bulgar [2K]

Question Completion:

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.

Year 1 Year 2

Amounts billed to clients for services rendered $184,000 $234,000

Cash collected from clients 153,000 183,000

Cash disbursements:

Salaries paid to employees during the year 83,000 93,000

Utilities 26,500 33,000

Purchase of insurance policy 57,900 0

In addition, you learn that the company incurred Utility costs of $31,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the Insurance policy covers a three-year period.

Answer:

1. Net operating cash flow for

Year 1 Year 2

Cash collected from clients 153,000 183,000

Cash disbursements:

Salaries paid to employees during the year (83,000) (93,000)

Utilities (26,500) (33,000)

Purchase of insurance policy (57,900) 0

Net operating cash flow ($14,400) $57,000

1b. Amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets:

Year 1 = $31,000

Year 2 = $82,000

2. Income Statement for the years ended December 31, Year 1 and Year 2:

Year 1 Year 2

Service Revenue $184,000 $234,000

Expenses:

Salaries 83,000 93,000

Utilities 31,500 28,000

Insurance expense 19,300 19,300

Total expenses 133,800 140,300

Net income before tax $50,200 $93,700

Explanation:

Calculations:

Accounts Receivables:

Year 1

Bill to clients $184,000

Cash collected 153,000

Balance $31,000

Year 2

Balance $31,000

Bill to clients $234,000

Cash collected 183,000

Balance $82,000

Insurance Expenses for each year = $57,900/3 = $19,300

Utilities Incurred:

Year 1 = $31,500

Paid 26,500

Payable 5,000

Year 2

Paid 33,000

less Yr, 1 5,000

Incurred $28,000

6 0

3 years ago

whole number. a. Before the tax is imposed, the equilibrium price is $ 1.5 per bottle and the equilibrium quantity is 4 billion

Sonbull [250]

Answer: hello your question is poorly structured attached below is the missing graph and missing part of the question

Assume the government imposes a $1.00 excise tax on the sale of every 2 liter bottle of soda. The tax is to be paid by the producers of soda. The figure below shows the annual market for 2 liter bottles of soda before and after the tax is imposed.

answer :

a) $2 , 4 billion

b) $2.5

c) $1.5

d) 3 billion

e) $3 billion

Explanation:

a) equilibrium price = $2 per bottle

equilibrium quantity = 4 billion bottles

b) After imposition of excise tax

consumers will pay = $2.5

c) The amount producers keep after the imposition of taxes

= $2.5 - tax

= 2.5 - 1 = $1.5

d) New equilibrium quantity ( after tax is imposed )

= 3 billion bottles ( from graph attached ) i.e. intersection of S2 and D

e) Amount of tax revenue collected by the government from the imposition of tax

= quantity of bottles sold * $1

= 3 billion * $1 = $3 billion

6 0

3 years ago

If Project Repat were to acquire another firm that makes or sells similar products in similar markets, it would be an example of

SVEN [57.7K]

Answer:

b. Horizontal merger.

Explanation:

Project Repat is merging with a company that produces similar products to its own markets them in similar markets as well, this is an example of a horizontal merger that results in increased synergies between the similar firms and a greater market share opportunity.

Vertical mergers are usually not in the same industry. They would either be with the suppliers of Project Repat or customers who retail Project Repat's products.

Conglomerate is an example of diversification and usually the merging firms have different operations.

There are no information of clashes of any sort within the two merging companies so it is uncertain whether this is a hostile takeover.

Hope that helps.

3 0

3 years ago

The Osborne Company manufactures products in two departments:

8090 [49]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Estimated overhead costs for the year are $ 810,000, and estimated direct labor hours are 360,000.

The company incurred 20,000 direct labor hours.

First, we need to calculate the estimated overhead rate:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 810,000/360,000= $2.25 per direct labor hour

Now, we can allocate overhead based on actual direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 2.25*20,000= $45,000

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3 years ago

The adjusted trial balance should be prepared ______ the financial statements are prepared in order to prove the ______ of the d

Marta_Voda [28]

The adjusted trial balance should be prepared before the financial statements are prepared in order to prove the equality of the debits and credits.

An adjusted trial balance is a listing of all organization accounts that will show up on the budgetary explanations after year-end changing diary sections have been made.

Setting up an adjusted trial balance is the fifth step in the bookkeeping cycle and is the last advance before monetary proclamations can be created.

There are two fundamental approaches to set up an adjusted trial balance. Both ways are valuable relying upon the site of the organization and graph of records being utilized.

3 0

4 years ago