Answer:
$23,022.68
Explanation:
We are to calculate the future value of this amount using the two different interest rates and find the difference
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$19,500 (1.063)^35 = $165,462.23
$19,500 (1.069)^34 = $188,484.91
$188,484.91 - $165,462.23 = $23,022.68
Answer:
$62,900
Explanation:
To calculate the ending balance of accounts receivable we can use the following formula:
ending balance of accounts receivable = beginning accounts receivable ($68,000) + services on account ($12,900) - collections from customers ($18,000) = $62,900
Answer:
21.08 times
Explanation:
Calculation to determine the cash coverage ratio for 2017
Using this formula
Cash coverage ratio=(Earnings before interest and taxes+Depreciation)/Interest paid
Let plug in the formula
Cash coverage ratio= ($1,640+$320)/$93
Cash coverage ratio=$1,960/$93
Cash coverage ratio = 21.08 times
Therefore the cash coverage ratio for 2017 is 21.08 times