Answer:
NPV = $750,598.49
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = amount invested / cash flow = $1,400,000 / $350,000 = 4 years
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-1,400,000.
Cash flow each year from year 1 to 10 = $350,000.
I = 10%
NPV = $750,598.49
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
The debt-to-equity ratio of the company is 0.2
Explanation:
The formula to compute the debt to equity ratio is as:
Debt to equity ratio = Debt / Equity
Where
Debt is total liabilities which amounts to $700,000
Equity is total equity which amounts to $3,500,000
Putting the values in the above formula:
= $700,000 / $3,500,000
= 0.2
Debt to equity ratio of the company is 0.2
Answer:
Equipment and notes payable
Explanation:
Since the equipment is purchased by signing the note payable which affected the two accounts i.e equipment and the note payable. In this, the cash transaction is not involved, so cash should not be considered
The journal entry would be
Equipment A/c Dr $10,000
To Notes payable $10,000
(Being the equipment is purchased by signing a note payable)
Answer:
$718,400
Explanation:
For computation of total amount of cash payments first we need to find out the decrease in merchandise, purchases and increases in accounts payable which is shown below:-
Decrease in merchandise = Balance at the beginning of the year - Balance at the end of the year
= $218,000 - $204,200
= $13,800
Purchases = Cost of goods sold - Decrease in merchandise
= $738,000 - $13,800
= $724,200
Increase in Accounts Payable = Accounts Payable balance at the end of the year - Accounts payable at the beginning of the year
= $102,000 - $96,200
= $5,800
Cash paid for merchandise = Purchases - Increase in Accounts Payable
= $724,200 - $5,800
= $718,400
Solicited business proposals are executed in reaction to a purchaser's want, at the same time as unsolicited proposals are used to market it to capacity customers.
It is an internal suggestion due to the fact it's miles from a worker in the organization. And unsolicited due to the fact this is an idea that became an independent idea up and the employee now desires to endorse this idea to the top of the employer.
The advent of an unsolicited proposal consists of a statement of the hassle or opportunity that the concept addresses to reinforce the argument stated in the record.
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