Answer:
$641,455.26
Explanation:
Calculation to determine the value of your retirement plan after 40 years
First step is to determine FV Using financial calculator
N = 40*12 = 480
I = 8%/12 = .6667
PV = 0,
PMT = $150
CPT FV =$523,651.17
N = 20*12 = 240
I = 8%/12 = .6667
PV = 0
PMT = $200 ($350 - $150)
CPT FV =$117,804.08
Now let determine the value of your retirement plan after 40 years
Sum of FV =$523,651.17+$117,804.08
Sum of FV =$641,455.26
Therefore the value of your retirement plan after 40 years will be $641,455.26
Answer:
How is providing customer information to a law firm different than providing email addresses and symptoms to a pharmaceutical company?
Both are live saving professions, every detailed of their clients must be well documented in order to get the best services as far as life is concerned. A law firm must be sure of every details submitted in order to tackle anything that might affect such clients in court of law while a client must provide a detailed information as regards his/her health in order to get the right prescription for health service
Explanation:
Answer:
(a) What was the total of accounts written off during the first 11 months?
bad debts written for the first 11 months = allowance for bad debt accounts January 1 balance + bad debt expense - allowance for bad debt accounts November 30 balance = $13,085 + $21,937 - $9,919 = $25,103
(b) As the result of a comprehensive analysis, it is determined that the December 31, 2010, balance of the Allowance for Bad Debts account should be $9,450. Show the adjustment required in the journal entry format.Allowance for bad debt Debit $Bad debt expenses Credit $
to determine the amount of bad debt expense that must be adjusted, we must subtract the estimated balance in December 31 from the balance in November 30 = $9,919 - $9,450 = $469. Since the November 30 amount is larger, it means that we over estimated our bad debt expense and it must be reduced:
Dr Allowance for doubtful accounts 469
Cr Accounts receivable 469
Answer:
Yes, Tangshan Mining company should accept the project.
Explanation:
Payback period is the number of years it takes for a project's expected cash inflows to recover the initial investment amount.
Tangshan company's required payback period = 3.5 years
<u>Year CF Net CF</u>
0 -5,000,000 -5,000,000
1 1,800,000 -3,200,000
2 1,900,000 -1,300,000
3 700,000 -600,000
4 1,800,000 1,200,000
<em>Payback period = last year with -net CF +(absolute net CF that year /total CF the following year)</em>
Payback period = 3 + (600,000 / 1,800,000)
=3 + 0.33
= 3.33 years
Since 3.33 years is lower than the required payback period of 3.5 years, Tangshan Mining company should ACCEPT the new project; it will take less years to fully recover the initial amount investment.
