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Dahasolnce [82]
3 years ago
9

Six equal annual contributions are made to a fund, with the first deposit on December 31, 2019. Required: Using the future value

tables, determine the equal contributions that, if invested at 10% compounded annually, will accumulate to a fund of $30,000 on December 31, 2024.
Business
1 answer:
Tasya [4]3 years ago
6 0

Answer:

The answer is $3,888.22

Explanation:

This is an annuity due because the cash flow is being done on the first day of each period.

Annuity is a fixed sum of money paid to or receceived from someone or business every year.

Future Value(FV) = $30,000

Interest rate(i or I/Y) = 10%

Number of years(N)= 6 years

Annuity (PMT) = ?

Using a Financial calculator to solve it (Texa BA II Plus )

Annuity (equal contributions) will be $3,888.22

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Libre, Inc. has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accou
Mama L [17]

Answer:

The estimated bad debt expense for the year amounts to $9,400

Explanation:

The  estimated bad debt expense  for the year is computed as:

As the percentage of credit sales method is used for estimating the bad debt expense. Therefore, it is computed as:

Bad debt expense = Net Credit Sales × Estimate Percent

where

Net credit sales amounts to $188,000

Estimate percent is 5%

So, putting the values above:

Bad debt expense = $188,000 × 5%

Bad debt expense = $9,400

Therefore, the bad debt expense amounts to $9,400

3 0
3 years ago
If investors expect a total return of 14.60%, what will be Goodwin’s expected dividend and capital gains yield in two years—that
storchak [24]

Answer:

First Expected Dividend will come in at the end of Year 3 or t=3 assuming current time is t=0.

D3 = $ 4.25, Growth Rate for year 4 and year 5 = 22.1 %

Therefore, D4 = D3 x 1.221 = 4.25 x 1.221 = $ 5.18925 and D5 = D4 x 1.221 = 5.18925 x 1.221 = $ 6.33607

Growth Rate post Year 5 = 4.08 %

D6 = D5 x 1.0408 = 6.33607 x 1.0408 = $ 6.59459

Required Return = 13.6 %

Therefore, Current Stock Price = Present Value of Expected Dividends = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(5)] + 4.25 / (1.136)^(3) + 5.18925 / (1.136)^(4) + 6.33607 / (1.136)^(5) = $ 45.979 ~ $ 45.98

Price at the end of Year 2 = P2 = Present Value of Expected Dividends at the end of year 2 = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(3)] + 4.25 / (1.136) + 5.18925 / (1.136)^(2) + 6.33607 / (1.136)^(3) = $ 59.3358 ~ $ 59.34

Dividend Yield at the end of year 3 = DY3 = D3 / P2 = 4.25 / 59.34 = 0.07612 or 7.612 %

Total Required Return = 14. 6 %

Therefore, Required Capital Gains Yield = 14.6 % - 7.612 % = 6.988 %

7 0
3 years ago
Mrs. Cox, a head of household, earned a $313,000 salary and recognized a $29,300 net long-term capital gain this year. Use Indiv
SCORPION-xisa [38]

Explanation:

. $4,395 ($29,300 long-term capital gain × 15%)

6 0
3 years ago
Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and
IRISSAK [1]

Answer:

1.Overhead Rate = Overhead Costs/ Direct Labor Costs

Budget Overhead Rate = 3060,000/ 1700,000= 1.8

Actual Overhead Rate = 3217,500/ 1650,000= 1.895

Dakota Products

                                Budget for 2017                  Actual Results for 2017

Direct material costs $2,250,000                          $2,150,000

Direct manufacturing labor costs 1,700,000          1,650,000

Manufacturing overhead costs 3,060,000            3,217,500

2.During March, the job-cost record for Job 626

Direct materials used $55,000

Direct manufacturing labor costs $45,000

Actual Overhead  = 1.895 * $45,000= $ 85295.45

Normal Overhead = 1.8 * 45,000= $ 81,000

2.The  actual cost of Job 626 =$ 55,000+ $ 45,000+ $ 85295.45= $ 185,295.45

2.The  normal cost of Job 626 =$ 55,000+ $ 45,000+ $ 81,000= $181,000

3. Under- or Overallocated Overhead under normal costing=

     Budgeted Overhead - Actual Overhead= 3,060,000 -  3,217,500=

157,500 underapplied

There is no under- or overallocated overhead under actual costing because  overhead costs actually are at their actual costs. There is no difference between calculated and actual.

4. Normal Costing would give an idea before 2017 and it is easier to make decision prior to changes. Actual results can only be obtained after the process. Managers find it easier to pre plan . So normal costing is adoptable.

4 0
3 years ago
A newly created design business called Smart Art is just finishing up its first year of operations. During the year, there were
vladimir2022 [97]

Answer:

Bad debts expenses shall be $ 850

Explanation:

The balance in the bad debts expense account shall be the aggregate of the amounts written off and the estimated uncollectible accounts based on ageing at the year end.

Amount written off during the year                                                 $ 650

Estimated uncollectible account provided at year end                 <u>$ 200</u>

Total Bad Debts expenses                                                               $ 850

4 0
3 years ago
Read 2 more answers
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