Answer:
I would need to invest 672,097.26 at 10.7% annual rate
If rate drops by half then the investment will be for 819,815.38
Explanation:
We are asked to to an invesmtent today to yield 1,000,000 in 40 years.
Notice this will be a lump sum not an annuity as this will be just one investment.
Amount 1,000,000.00
time 0.11
rate 40.00000
Principal at 10.7% 672,097.26
Principal at 5.35% 819,815.38
Answer:
$232,500
Explanation:
The computation of the amount of expected cash outflows for selling and admin expenses is shown below:
Utilities expense $2,500
Administrative salaries $100,000
Sales commission ($800,000 × 5%) $40,000
Advertising $20,000
Rent on administrative building $60,000
Miscellaneous administrative expenses $10,000
Total budgeted cash sales and administrative expenses $232,500
We added those expenses which affect the cash balance i.e decrease in cash balance so that the correct amount could arrive
All other items are not relevant. hence,ignored it
Answer:
d. profitability
Explanation:
Profitability ratio tells us about the ability to make income by using assets and operation of the business. It deals with different types of income like Gross income, net income, income before interest and tax. Return on Assets (ROA) is the ration that exact ratio which shows the efficiently his firm manages its assets and operations to generate net income.
Answer:
$115
Explanation:
The computation of the cost of the ending inventory is shown below:
Total units purchased
= 7 units + 5 units + 6 units
= 18 units
And, the total cost is
= 7 units × $8 + 5 units × $10 per unit + 6 units × $11 per unit
= $56 + $50 + $66
= $172
And, the closing units inventory units is
= 18 units - 6 units
= 12 units
So, the cost of ending inventory is
= $172 × 12 units ÷ 18 units
= $115
Answer: $2,974.45 million
Explanation:
Cost of goods sold for Year 7 = $2,945 million
Cost of goods sold is expected to increase by 1%.
Cost of goods sold in Year 8 will be:
= 2,945 * (1 + 1%)
= $2,974.45 million
