Answer:
What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)
and monthly payments (12 per year)?
Compare the annual cash outflows of the two payments.
- total semiannual payments per year = $2,820.62 x 2 = $5,641.24
- total monthly payments per year = $531.13 x 12 = $6,373.56
Why does the monthly payment plan have less total cash outflow each year?
- The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.
What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)?
- $2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)
Explanation:
cabinet cost $25,000
interest rate 10%
we can use the present value of an annuity formula to determine the monthly payment:
present value = $25,000
PV annuity factor (5%, 12 periods) = 8.86325
payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62
present value = $25,000
PV annuity factor (0.8333%, 60 periods) = 47.06973
payment = PV / annuity factor = $25,000 / 47.06973 = $531.13
Answer:
$607,000
Explanation:
False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account.
Sales and cash collections from customers during the year were $650,000 and $610,000, respectively.
False Value estimates that 6% of all sales will be returned.
During 2016, customers returned merchandise for credit of $28,000 to their accounts.
False Value's 2016 income statement would report net sales of:
The closing balance in the allowance for sales returns account will be: 32,000 opening balance + 6% 0f 650,000 - sales returns within the year of 28,000 = $43,000
Hence Net Sales will be 650,000 - 43,000 = $607,000
<span>If several years ago, the Jakob company sold a $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually, then the after-tax cost of debt of the firm will be 4.65%.</span>
Answer:
Receivables turnover ratio = 5
Explanation:
Receivables turnover ratio = Net Credit Sales / Average accounts receivable
Receivables turnover ratio = $100,000/$20,000
Receivables turnover ratio = 5
Average accounts receivable = (Beginning Account Receivable + Ending Account Receivable) /2
Average accounts receivable = ($15,000+$25,00)/2
Average accounts receivable = $40,000/2
Average accounts receivable = $20,000
Answer:
Agile methodology
Explanation:
This is the methodology adopted in project development most of the time.
This approach is usually been used because the customer could not wait for so long till the completion of the project.
For this i would give you an example that we order some food at a restaurant. The waiter come to us and he keeps on giving us food after every short intervals like water, salad, starter and soups to keep us engage. Otherwise the customer would lose his temper while waiting for so long. We must say that the attention span of the people is very short , they could not wait due to lack of patience.
So in real world of project development we adopt agile methodology where we develop and deliver the project to customer in every little intervals. In this context our customer use to be in loop meanwhile the development of whole project. It is good for project manager to get feedback from the customer side by side on every little chunk of project. This approach is very good to keep your customer in loop of development . We could do negotiation meanwhile ,if customer needs some changes we could do it side by side.
Agile methodology is most of time adopted when the customer is not potential and less technical. In this case the customer could not give clear requirements to team for developing the project. During this methodologies we keep on tracking the user demands and requirements. The team lead or business analyst use to elicit the dos and dons of the project. In this way of project development we could easily give clear ad transparent picture to our customer that hows your project is going. There are lot project development methodologies but agile development is one the best methodology to keep the customers in loop. While in loop with customers it is easy for team to maintain the quality assurance side by side , QA team could also get involve for the rectification of the project.
