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d1i1m1o1n [39]
3 years ago
9

You will be receiving cash flows of: $1,000 today, $2,000 at end of year 1, $4,000 at end of year

Business
1 answer:
ExtremeBDS [4]3 years ago
6 0

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

Given:

Today invested amount = $1,000

1st payment(C1) = $2,000

2nd payment(C2) = $4,000

3rd payment(C3) = $6,000

Interest rate(r) = 7% = 0.07

Present value ( PV ) = ?

Computation of Present value:

Present \ value =\frac{C1}{(1+R)^1} +\frac{C2}{(1+R)^2} +\frac{C3}{(1+R)^3}\\ Here , n = 1 , 3, 5\ are \ Consicutive\\So , Present \ value =\frac{C1}{(1+R)^1} +\frac{C2}{(1+R)^3} +\frac{C3}{(1+R)^5}\\Present \ value =\frac{2,000}{(1+0.7)^1} +\frac{4,000}{(1+0.7)^3} +\frac{6,000}{(1+0.07)^5}\\Present \ value =\frac{2,000}{(1.07)^1} +\frac{4,000}{(1.07)^3} +\frac{6,000}{(1.07)^5}\\Present \ value =\frac{2,000}{1.7} +\frac{4,000}{1.225} +\frac{6,000}{1.40}\\Present \ value = 9,412.272

Total present value = $1,000 + 9412.272

= $10,412.272

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Explanation:

The loss would reduce any other eligible income of the applicant for the current year. An investor shall recover the QBI from various trades or businesses, including damages.

Upon deduction of all qualified company gains for the current year, the excess of the income shall be rolled forward to the next tax year. The unfavorable balance shall be shifted into the next fiscal year.

If the loss was incurred after 2018, the excluded or lost element is included in QBI and would otherwise be included in QBI, but is included in taxable income not until the year.

4 0
3 years ago
At the end of 2021, Kingbird Co. has accounts receivable of $762,000 and an allowance for doubtful accounts of $22,520. On Janua
mixer [17]

Answer:

a. Debit Allowance for doubtful debt $4,398

   Credit Accounts receivable $4,398

   Being entries to write off receivable due from Madonna Inc.

b. $739,480  before and after the write-off

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

The realizable value of accounts receivable before the write off is the net of the accounts receivable and the allowance for doubtful debt

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= $739,480

This amount remains the same after the write off as the write off will reduce the balances in both the allowance for doubtful debt account and accounts receivable.

6 0
3 years ago
Brenda Kraft has proven herself to be an able manager. Her section has a high project completion rate with the highest-quality p
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Answer:

Letter d is correct. An effective manager

Explanation:

Efficiency and effectiveness are two different concepts. A manager can be efficient and not effective, because efficiency is the conditions that will lead to effectiveness, which are the goals achieved. In Brenda's case, she was an effective manager because her section has a high project completion rate with the highest quality product and the lowest defects in her division.

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A company has 100 million shares outstanding trading for $8 per share. It also has $900 million in outstanding debt. If its equi
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Answer: :)

Explanation: :)

3 0
3 years ago
Which of the following is NOT true of the cash conversion​ cycle?
faltersainse [42]

Answer:

C. Cash Conversion Cycle​ = Production Cycle​ + Collection Cycle​ + Payment Cycle

Explanation:

At first glance, it is easy to identify that alternatives A and C are antagonistic meaning that one or the other must NOT be true.

Cash conversion cycle (CCC) describes the amount of days a company requires  to convert its investments into cash flows from sales.

Production Cycle​ and Collection Cycle are both related to assets and thus are positive in the equation for the CCC. The payment cycle is a liability and therefore must be taken as negative in the equation.

The alternative C. Cash Conversion Cycle​ = Production Cycle​ + Collection Cycle​ + Payment Cycle is NOT true

4 0
3 years ago
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