Answer:
$3144.20
Explanation:
Using the formula of Future Value FV = PV(1 + R)^N
where;
Present Value PV = $1633
Rate R = 0.14
∴
FV = $1633(1 + 0.14)^5
FV = $1633(1.14)^5
FV = $3144.20
Answer:
Cost of goods manufactured 655,900
Explanation:
<em>First, we add the three cost component:</em>
materials used in production 62,100
direct labor 198,200
overhead 403,100
total cost added during the period 663,400
<em>Then, using the WIP beginning and ending figures, we solve for cost of goods manufactured</em>
WIP january 1st 187,500
cost added 663,400
WP endind <u> (195,000) </u>
Cost of goods manufactured 655,900
Answer: Short term is less costly
Explanation:
Total interest cost under long term financing = 800,000 × 12% × 2
= 800000 × 0.12 × 2
= $192,000
Total interest cost under short term financing = (800,000 × 7% ×1)+ (800,000 × 13.95% × 1) =
= (800000×0.07×1) + (800,000×0.139×1)
= $167,600
Based on the above solution, Short term financing is less costly.
Answer:
M2 decreases and M1 increases.
Explanation:
M1 and M2 are measures of money.
M1 is the narrowest definition of money. It includes currency, travellers check, demand deposit and other checkable deposits.
M2 includes M1 , small denomination time deposit, money market deposit and other assets that can easily be changed into cash easily and at a very little cost.
M3 includes M2, large domination time deposit and less liquid assets.
If $125,000 is withdrawn from the money market funds ,m2 reduces because money market fund is a component of m2.
M1 increases because $125,000 is converted to cash.
I hope my answer helps you.
Answer:
The correct answer is $56,000.
Explanation:
According to the scenario, the given data are as follows:
Average checks per day = $14,000
Days in clearing = 4 days
Interest rate = 0.018% per day
So, we can calculate the company's float by using following formula:
Company's Float = Average checks per day × Days in clearing
By putting the value in the formula, we get
Company's Float = $14,000 × 4
= $56,000
