If accounting information is to be useful, it must be expressed in terms of

You’re trying to save to buy a new $180,000 Ferrari. You have $29,000 today that can be invested at your bank. The bank pays 3.6

Fudgin [204]

Answer:

It will take 337.18 years before you have enough to buy the car.

Explanation:

This can be calculated using the future value (FV) formula as follows:

FV = PV * (1 + r)^n ...................... (1)

Where:

FV = future value or the price of Ferrari = $180,000

PV = present value or thee amount you have today = $29,000

r = annual interest rate = 3.6%, or 0.036

n = number of years = ?

Substituting the values into equation (1) and solve for n, we have:

$180,000 = $29,000 * (1 + 0.036)^n

$180,000 - $29,000 = 1.036^n

151,000 = 1.036^n

Loglinearizing, we have:

log151,000 = nlog1.036

5.17897694729317 = n * 0.0153597554092142

n = 5.17897694729317 / 0.0153597554092142

n = 337.18

Therefore, it will take 337.18 years before you have enough to buy the car.

3 0

3 years ago

The monumental failure of Jack Welch, the legendary leader of GE (General Electric), is that he was great transactional leader b

sammy [17]

Answer:

False

Explanation:

6 0

3 years ago

Read 2 more answers

The Cole Beverage Company (CBC) has a soft drink product that has a constant annual demand of 3,600 cases per year. A case of th

skad [1K]

Answer:

a. 480

Explanation:

The computation of the economic order quantity is given below:

$EOQ = \sqrt{\frac{2\times annual \ demand \times ordering\ cost }{carrying \ cost}} \\\\= \sqrt{\frac{2\times 3600\times \$32}{\$1} }$

= 480 units

The carrying cost could be determined below:

= $4 × 25%

= $1

hence, the carrying cost is $1

Therefore the economic order quantity is 480

Thus, the correct option is a.

7 0

3 years ago

Merando Industries employs a 5-day workweek and a September 30 year-end. Normal weekly wages amount to $41760. If September 30 e

kati45 [8]

Answer:

Debit: Salaries and wages expense $25,056

Credit: Salaries and wages payable $25,056

(To recognize the salaries and wages payable at year-end)

Explanation:

Merando Industries employs a 5-day workweek - this means $41,760 normal weekly wages can be divided by 5 to arrive at the daily workweek wages, which is $41,760 / 5 = $8,352.

If the fiscal year-end is a Wednesday, the company has to recognize a salaries and wages payable of $25,056 due to the following:

the workweek remains 2 weekdays to complete
the company pays at the completion of the 5-day workweek
there is no need to recognize the remaining 2 days next year as salaries and wages payable since the employer may not have control over the employees - they may decide the exit the company

So, the amount to be recognized will be $8,352 x 3 = $25,056.

4 0

3 years ago

You wish to earn a return of 10% on each of two stocks, A and B. Each of the stocks is expected to pay a dividend of $4 in the u

Shtirlitz [24]

Answer:

a. will be higher than the present value of stock B

Explanation:

Use the formula for dividend discount model (DDM) to calculate the price of each stock;

For Stock A

Price = Div1 /(r-g)

where Div 1 = next year's expected dividend

r = required rate of return

g = dividend growth rate

Price = 4 / (0.10- 0.06)

Price = $100

For Stock B

Price = Div1 /(r-g)

Price = 4 / (0.10 - 0.05)

Price = $80

Therefore, the intrinsic value of stock A will be higher than the present value of stock B

3 0

4 years ago

If accounting information is to be useful, it must be expressed in terms of​

If accounting information is to be useful, it must be expressed in terms of