Answer:
The correct answer is d.no effect on the accounting equation
Explanation:
The accounting equation is = Assets = Liabilities - Owner's Equity
The sale for $5,000 is recorded in a Profit and Loss Statement not in a Balance Sheet because is not an Assets or Liabilities nor Owner's Equity
Answer:
It will need to collect 800`s $15 class
Assuming 4 clases per month
200 student
Explanation:
15 - 6 = <em>9 Contribution Margin</em>
<em />
<em>Fixed Cost</em>
2 employee 2,400
mayor salari 1,800
equipment dep 1,000
utilities 240
Total fixed 5,440
(5,440+1,760)/9 = 800
It gives you more ideas to make the final product better than what it original product
First, you have to calculate the amount of tuition when the student reaches age 18. Do this by multiplying $11,000 by 1.07 each year from age 12 until it reaches age 18. Thus, 7 times.
At age 18: 16,508
At age 19: 17,664
At age 20: 18,900
At age 21: 20,223
Then, we use this formula:
A = F { i/{[(1+i)^n] - 1}}
where A is the monthly deposit each year, F is the half amount of the tuition each year illustrated in the first part of this solution, n is the number of years lapsed.
At age 18:
A = (16508/2) { 0.04/{[(1+0.04)^6] - 1}} = $1,244.389 deposit for the 1st year
Ate age 19
A = (17664/2) { 0.04/{[(1+0.04)^7] = $1,118 deposit for the 2nd year
At age 20:
A = (18900/2) { 0.04/{[(1+0.04)^8] = $1,025 deposit for the 3rd year
At age 21:
A = (18900/2) { 0.04/{[(1+0.04)^8] = $955 deposit for the 4th year
Answer:
Esquire should purchase machine B since its present value is lower than machine B's ($69,917.73 < $73,356.18)
Explanation:
Machine A:
PV of purchase cost $63,000
PV of maintenance costs = $2,000 x 6.7101 (PV annuity factor, 10 periods, 8%) = $13,420.20
PV of resale value = -$6,615 / 1.08¹⁰ = -$3,064.02
total PV = $63,000 + $13,420.20 - $3,064.02 = $73,356.18
Machine B:
PV of purchase cost $52,500
PV of maintenance costs:
- $8,000 / 1.08³ = $6,350.66
- $10,000 / 1.08⁶ = $6,301.70
- $12,000 / 1.08⁸ = $4,765.37
total PV = $69,917.73
