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
Answer:
We will consider positive interest rate which is i=0.21 or i=21%
Explanation:
The formula for Future value is:

The present value will become:

where:
n is the number of years
Since the condition is same present value,so the given data form the equation:

Divide above equation by 

Let
. Above equation will become:

Rearranging above equation:

Solving the quadratic equation:
z=1.1, z=0.9
Let
will become:


For z=1.1

For z=0.9

we will consider positive interest rate which is i=0.21 or i=21%
23% decrease.
We can do this by simply dividing 1,650,000 by 2,150,000. That would give us 0.7674. Multiply that by 100 and you have 76.74%.
However, this is the percent amount of how 1,650,000 is out of 2,150,000. So, we need to simply minus this answer by 100 to get 23.26, or 23%.
The number one reason for failure of a new business is poor management.
Hope that helped! (: