Answer: 71% or $12,780 annually.
Explanation:
To find the amount of the Annuity that represents a return on Capital each year you divide the cost of the Annuity by the total amount of the Annuity to be received if the single life annuity is used to the fullest.
First then, we would need to calculate the full value of the Annuity.
Janice expects to get $1,500 per month for 17.6 years.
That means the total value would be,
= 1,500 * 12 months * 17.6 years
= $316,800 is the Total Annuity Receivable.
Calculating the return on Capital we will have,
= Cost of Annuity / Total Annuity Receivable
= 225,000 / 316,800
= 0.71022727272
= 71%
Monthly calculated that would be,
= 0.71 (1,500 * 12)
= $12,780
The return on Capital is 71% or $12,780 annually.
Answer:
Net Increase in cash = $124,200
Explanation:
Note: The correct value for Year 2021 inventory is $510,300 not $10,300.
Also note: See the attached excel file for the statement of cash flows for 2022.
In the attached excel file, the following workings are used:
Workings:
w.1: Increase in accounts receivable = Account receivable in 2022 - Account receivable in 2021 = $237,600 - $205,200 = $32,400
w.2: Decrease in inventory = Inventory in 2022 - Inventory in 2021 = $450,900 - $510,300 = -$59,400
w.3: Decrease in accounts payable = Accounts receivable 2022 - Accounts receivable 2021 = $105,300 - $116,100 = -$10,800
w.4: Disposal of land = Land in 2021 - Land in 2022 = $270,000 - $216,000 = $54,000
w.5: Purchase of equipment = Equipment in 2022 - Equipment in 2021 = $702,000 - $540,000 = $162,000
Answer:
<u>Sustainable</u>
Explanation:
Sustainable development in simple terms refers to the development which can be sustained or carried forward for a long period of time.
It refers to satisfying and meeting the needs of the current generation without jeopardizing the needs and resource availability for the future generations.
Economic development refers to the rise in per capita income while sustainable development incorporates economic as well as human development.
Such development aims at judicious usage of resources , equitable distribution of resources and reduction in wastage.
Answer:
Record all transactions in a check register.
Explanation:
It's easier to track how money is spent if there is a paper trail.
Answer:
The correct answer is b. Adjusting revenues to only include organic revenue growth.
Explanation:
One of the quantitative planning techniques is the projection of financial statements or also called pro forma statements.
The applications that can be had among others are the following:
Know how the year will end for tax purposes in terms of income and deductions in order to make decisions before the end of the year.
Another application will be to know the external financing needs for the period you want to know.
The most common and practical method of projecting financial statements is based on sales.
