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Bond [772]
3 years ago
7

Periodic outlays for inventory control software at Baron Chemicals are expected to be $150,000 immediately, $200,000 in 1 year,

and $350,000 in 2 years. What is the present worth of the costs at an interest rate of 10% per year, compounded continuously
Business
1 answer:
Nady [450]3 years ago
7 0

Answer:

Total present value=$617,523.24

Explanation:

The formula for calculating continuous compounding is given as follows

F=P(e^it)

F=future value

P=present value

i=interest rate

t=time involved i.e 1 year or 2 year

e=Mathematical constant=2.7183

By applying above mentioned formula, the present value of inventory control software by Baron Chemicals shall be calculated as follows:

Present value of year 2 Cash flow= $286,555.76

($350,000/e^10%*2)

Present value of year 1 Cash flow=  $180,967.48

($200,000/e^10%*1)

Present value of year 0 Cash flow= $150,000

Total present value=$617,523.24

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North Company has completed all of its operating budgets. The sales budget for the year shows 50,220 units and total sales of $2
Dmitriy789 [7]

Answer:

The income taxes figure of $203,000 is missing from the information  provided:

The net income from the  budgeted income statement is $466,520

Explanation:

The multiple step income statement differentiates operating revenue from  non-operating revenue,operating expenses from one off non-operating expenses as operating gains and losses from  non-operating ones

    North Company  budgeted income statement

Total sales revenue                                   $2,190,100

Variable costs of sale($24*50,220)          ($1,205,280)

Gross profit                                                  $984,820

Selling and administrative expenses         ($305,300)

Profit before interest & taxes                      $678,940

Interest expense                                           ($10,000)

Income taxes                                                 ($203,000)

Net income                                                     $466,520

5 0
3 years ago
The standard cost of product 777 includes 2.9 units of direct materials at $6.8 per unit. During August, the company bought 29,2
Olegator [25]

Answer:

Total Material Variance = $1,636 Favorable

Material Price Variance = $2,920 Unfavorable

Material Quantity Variance = $4,556 Favorable

Explanation:

Total Material Variance = Standard Cost - Actual Cost

Standard Cost = Standard units \times Standard Price

Standard Units = 10,300 \times 2.9 = 29,870 units

Standard cost =  29,870 \times $6.8 = $203,116

Actual Cost = 29,200 \times $6.90 = $201,480

Total Material Variance = $203,116 - $201,480 = $1,636 Favorable

Material Price Variance = (Standard Rate - Actual Rate) \times Actual Units

= ($6.8 - $6.9) \times 29,200 = - $2,920 Unfavorable

Material Quantity Variance = ( Standard Units - Actual Units) \times Standard Price

= (29,870 - 29,200) \times $6.8

= $4,556 Favorable

Final Answer

Total Material Variance = $1,636 Favorable

Material Price Variance = $2,920 Unfavorable

Material Quantity Variance = $4,556 Favorable

8 0
3 years ago
4)
vova2212 [387]

Answer:

I. The three (3) main functions of money in an economy are;

a. Medium of exchange.

b. Unit of account.

c. Store of value.

II. Liquidity is a characteristic of money.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

I. The three (3) main functions of money all over the world are;

a. Medium of exchange.

b. Unit of account.

c. Store of value.

II. The rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange.

In conclusion, money is a generally accepted medium of exchange around the world and money being a store of value makes it possible to transfer purchasing power between traders and buyers from the present to the future.

4 0
3 years ago
Select the correct answer.
enot [183]

Answer:

Od Home Page

i selected

7 0
3 years ago
Read 2 more answers
Which best describes the role that government and business pay in investments?
love history [14]

B) They both invest money to earn profit


4 0
3 years ago
Read 2 more answers
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