Answer:
Hello, good morning. How's your day so far? thats the answer
Answer: A. N = 12; 1 = 8/4; PV = 25,000; FV = 0; CPT PMT
Explanation:
A is the correct option because,
N = 12
The period is 3 years but the payments are quaterly so the actual period is;
= 3 years * 4
= 12 quarters/ periods.
I = 8/4
The interest rate is 8% but this is stated as a Yearly value which needs to be adjusted to a quarterly value by dividing it by 4.
PV = 25,000
The Present Value of the loan is $25,000 because this is the amount that Art's Market was given in the present.
When all of this is inputted into the calculator, the answer will be; PMT = $2,363.99.
Answer:
$64,500= purchases
Explanation:
Giving the following information:
beginning inventory= $18,000
Ending inventory= $21,500
Cost of goods sold= $61,000.
To calculate the purchases during the year, we need to use the following formula:
COGS= beginning inventory + purchases - ending inventory
61,000= 18,000 + purchases - 21,500
64,500= purchases
Answer:
I would prefer cash basis over the accrual bases.
Explanation:
Remember accounting entries are prepared on the basis of Accrual Principle. That is transactions are recognized when they meet the definition and recognition criteria of assets, liabilities, incomes and expenses not when cash is received. Taxable Income calculation follows this accrual principle as well.
This means an will mean that as an investor in a rent-to-own business, i will be taxed more often on the Revenues which are not yet paid for and this will be bad for my liquidity.
I would want to have my cash and pay the taxes when i have actually received cash on my revenues so that i wont run into liquidity problems. This is only possible if the cash basis was to be used.
