Which are costs of a college education? Check all that apply.

When you retire 45 years from now, you want to have $1.25 million saved. You think you can earn an average of 7.6 percent on you

Leno4ka [110]

Answer:

$20,468.86 more if you wait

Explanation:

This is a time value of money question. You need to calculate the one time cashflow deposit (PV) as of today and as of 5 years and find the difference between the two.

As of today

Using a financial calculator, input the following;

Future value (FV) = 1,250,000

Interest rate (I/Y) = 7.6%

Duration of investment (N) = 45

Recurring payment (PMT) = 0

then compute PV = $46,276.21

As of year 5,

Future value (FV) = 1,250,000

Interest rate (I/Y) = 7.6%

Duration of investment (N) = 45 - 5 = 40

Recurring payment (PMT) = 0

then compute PV = $66,745.07

Therefore, you will pay (66,745.07 - 46,276.21) = $20,468.86 more if you wait

7 0

3 years ago

Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchase

Savatey [412]

Answer:

The correct option is B.

Explanation:

It is given that Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August.

Purchase in July = $180,000

Purchase in August = $210,000

Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.

In August, the cash disbursements for materials purchases be 3/4th of $210,000 (Purchase in August) and 1/4 of $180,000 (Purchase in July).

August's cash disbursements for materials purchases be

$Amount=\frac{3}{4}\times 210000+\frac{1}{4}\times 180000$

$Amount=157500+45000$

$Amount=202500$

The August's cash disbursements for materials purchases be $202500. Therefore the correct option is B.

4 0

3 years ago

The decision by shoe store owners to fix their prices will result in consumers paying _____ prices. lower higher the same

Anon25 [30]

Answer:

Higher prices

Explanation:

Fixed prices are associated with higher prices for consumers

7 0

3 years ago

Read 2 more answers

A firm’s liquidity level decreases when:_______.

katovenus [111]

Answer:

b) inventory is sold on credit.

Explanation:

Liquidity is defined as the a business to use its current assets to settle it's current liabilities.

This is calculated by using the working capital ratio.

Working capital ratio = Current assets ÷ Current liabilities.

Cash and inventory contribute to a business' liquidity.

When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.

A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)

5 0

3 years ago

Journalize the following transactions assuming a perpetual inventory system:

natulia [17]

Answer:

May 5

Merchandise Inventory $6,000 (debit)

Freight Charges $100 (debit)

Accounts Payable : Archie Co. $6,000 (credit)

Cash $100 (credit)

May 12

Accounts Payable : Archie Co. $2,500 (debit)

Merchandise Inventory $2,500 (credit))

May 14

Accounts Payable : Archie Co. $3,500 (debit)

Discount Received $70 (credit)

Cash $3,430 (credit)

Explanation:

May 5

Recognize the Assets of Merchandise and a Liability : Accounts Payable : Archie Co. as a result of purchase.

Also Recognize the Freight Expenses since this is a F.O.B delivery

May 12

De-recognize the Liability : Accounts Payable - Archie Co. and the Merchandise Inventory asset to the extend of Merchandise returned to Archie Co.

May 14

De-recognize the Liability : Accounts Payable : Archie Co. of $3,500 and the Cash assets to the extend of Payment made to Archie Co less cash discount of $3,430 .

5 0

3 years ago