A man deposits $ 14 comma 14,000 at the beginning of each year for 8 years in an account paying 4% compounded annually. He the
1 answer:
Answer:
Value of deposit after 15 years is $264,581.64
Explanation:
Given:
Amount deposited every year for 8 years = $14,000
Compound interest rate = 4%
It is an annuity as same amount is deposited every year. Using present value of annuity table to compute the value of deposits at present.
Present value of annuity factor at 4%, 8 years is 6.7327
Present value of deposits = 14,000 × 6.7327
= $94,257.8
This amount is deposited another account earning 7% semi-annually. Annual rate will be 7÷2 = 3.5%
Compounding period is 15×2=30 periods
Value of deposit after 15 years =
where, P is present value of deposits that is $94,257.8
i = 0.035
n = 30
Substitute these values in the above formula:
Value of deposit after 15 years =
= 94,257.8 × 2.807
= $264,581.64
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Answer: Step by step explanation of the consolidated balance sheet is given in the attached document.
Explanation:
Consolidated Balance Sheet
A consolidated balance sheet presents the assets and liabilities of a parent company and all its subsidiaries on a single document, with no distinctions on which items belong to which companies. If your company has $1 million in assets and it purchases subsidiaries with assets of $400,000 and $300,000, respectively, then your consolidated balance sheet will show $1.7 million in assets, and the sheet will commingle those assets. For example, in the asset section, accounts receivable will list the total amount of receivables held by all three companies.
When to Consolidate
A company must issue consolidated financial statements whenever it owns a controlling stake in another business – that is, whenever it owns more than 50 percent of that business. If the parent company owns 100 percent of the subsidiary, this is pretty straightforward. Complications arise, however, if the parent company owns a controlling stake with less than 100 percent ownership. Part of the subsidiary belongs to someone else, and that must be reflected on the balance sheet.
