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3 years ago

Assume the appropriate discount rate for the following cash flows is 4.78 percent per

Business

1 answer:

lana66690 [7]3 years ago

8 0

Answer:

$9,589.75

Explanation:

The computation of the present value of the cash flows should be shown in the excel spreadsheet. Kindly find the two attachment out of which one attachment contains the final values, the other attachment contains the formula sheet

After applying the formulas,

The present value of the cash flows is $9,589.75

Hence, the same is to be considered

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On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne GmbH, a German corporation, f

nirvana33 [79]

Answer: $197,600

Explanation: Don Co is making a sale to Cologne GmbH and on the date of the transaction there is an exchange rate called the spot rate. Don Co will record in its books the value of the transaction on the set date at the spot rate which is:

200,000 euros @ .988

= $197,600

on the date of the settlement of the debt by Cologne GmbH, the spot rate is also considered which will be 200,[email protected] .995 = $199,000

Note that on the payment date, the exchange rate has gone up and now Don Co has a higher receivable value that what is in its book.

the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.

8 0

3 years ago

Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available

Marysya12 [62]

Answer:

C. $222,500 ÷ $313,500

Explanation:

Calculation for cost to retail ratio

COST

Beginning inventory $30,000

Add; Purchases $190,000

Add: Freight in $2,500

Cost $222,500

RETAIL

Beginning inventory $45,000

Add: Purchases $260,000

Add: Net mark ups $8,500

Retail $313,500

Therefore, the cost to retail ratio will be

$222,500 $313,500

5 0

3 years ago

A tax free municipal bond provides a yield of 3.2%. What is the equivalent taxable yield on the bond given a 35% tax bracket

lutik1710 [3]

Answer:

4.92%

Explanation:

Equivalent taxable yield on the bond = Rate / (1-Tax rate)

= 3.2% / 1 - 0.35

= 0.032 / 0.65

= 0.049230

= 4.9230%

= 4.92%

3 0

3 years ago

What are the three primary sources of assets?The three primary sources of assets are(1) investments by owners (issue of stock),(

ANEK [815]

Answer:

True

Explanation:

The three main sources of assets for a business are:

investments by owners (total paid in capital), refers to the money that the owners are willing to invest in the company and it should be used to finance operating activities.
borrowing from creditors, refers to both long term and short liabilities that allow the company to increase their assets, e.g. merchandise or equipment purchased on credit, or a loan.
earnings activities, refers to the company's retained earnings from previous years that is reinvested in new or existing projects.

5 0

3 years ago

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year w

babymother [125]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Jan. 1: Inventory 40 units at $165

Aug. 13: Purchase 200 units at $180

Nov. 30: Purchase 60 units at $200

Available for sale 300 units

There are 75 Units of the item in the physical inventory on December 31.

1) FIFO (first-in, first-out)

The cost of ending inventory is the cost of the last units bought.

Ending inventory= 60*200 + 15*180= $14,700

2) LIFO (last-in, first-out)

The cost of the ending inventory is the cost of the first units bought.

Ending inventory= 40*165 + 35*180= $12,900

3) Weighted-average:

Weighted average price= (165 + 180 + 200)/3= 181.67

Ending inventory= 181.67*75= $13,625.25

7 0

3 years ago