Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common
stock outstanding as of the beginning of 2021. Power Drive has the following transactions affecting stockholders' equity in 2021. March 1 Issues 56,000 additional shares of $1 par value common stock for $53 per share. May 10 Purchases 5,100 shares of treasury stock for $56 per share. June 1 Declares a cash dividend of $1.55 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,550 shares of treasury stock purchased on May 10 for $61 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $4,600,000; and Retained Earnings, $2,100,000. Net income for the year ended December 31, 2021, is $610,000. Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2021.
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The question is incomplete. The complete question is :
You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar.
Regular withdrawal $ 2200
Interest rate 2%
Frequency Monthly
Time 20 years
Solution :
Given :
Monthly withdrawal = $ 2200
Interest rate = 2%
Frequency = monthly
Time = 20 years
= 20 x 12 = 240 months
Formula used :
with Z = 1 + r
where, w = monthly withdrawal
P = principal amount
r = monthly interest rate
Y = Number of months
So, w = 2200
r = 2% = 0.02
Z = 1 + r
= 1 + 0.02 = 1.02
Y = 240
Therefore,
= 111,231829
≈ 111,232 (rounding off)
Thus, the account balance = $ 111,232