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user100 [1]
3 years ago
13

A borrows 10,000 from B and repays with 40 quarterly installments at a 4% annual effective rate. After 6 years, B sells the righ

ts to future payments to C, at a price which yields C 6% annual effective over the remaining installment periods. What price did C pay
Business
1 answer:
Vsevolod [243]3 years ago
6 0

Answer:

$4,303.68

Explanation:

Quarterly payment = $10,000 / 32.835 (PVIFA, 1%, 40 periods) = $304.55

After 6 years, the principal due = $4,483

Present value of an annuity = payment x PVIFA = $304.55 x 14.13126 (PVIFA, 1.5%, 16 periods) = $4,303.68

The difference is not significant since the remaining payments are not many, and the increase in quarterly rate is only 0.5%

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How can you change your city
Mice21 [21]

Answer:

cleaning up trash off the side of the road...

8 0
3 years ago
At the end of the year, the deferred tax asset account had a balance of $4 million attributable to a temporary difference of $16
Alex

Answer:

1 . Dr ncome tax expense 7

Dr Deferred tax asset 4

Cr Income tax payable 11

2. Dr Income tax expense3

Cr Valuation allowance-Deferred tax asset3

Explanation:

Preparation of Journal entries

JournalDebitCredit

(In million)

1 . Dr ncome tax expense 7

($11-$4=7)

Dr Deferred tax asset 4

($16× 25% = $4)

Cr Income tax payable 11

($44 × 25% = $11 )

2. Dr Income tax expense3

Cr Valuation allowance-Deferred tax asset3

(3/4 × $4) = $3 million

Deferred tax asset= ($16× 25%)

Deferred tax asset= $4 million

Income tax payable= ($44 × 25%)

Income tax payable= $11 million

5 0
3 years ago
Consider the case of the Henderson Company.
sashaice [31]

Answer:

I) Days sales outstanding (DSO) for all customers?      48.7days

= (53*0.9)+(10*0.1) = 48.7 days

II) Net sales?                                                                  $166.600

The Net sales = Gross sales - sales allowance  

The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==>  0.02 * 0.1 * 170 ===> 0.34 mn

∴ The Net sales = 17 - 0.34 mn = 16.66 mn

   Amount paid by discount customers?                     $13.600

Explanation:

I. General Credit Policy Information

  Credit stamps                                                               2/10 Net 30

  Days sales outstanding (DSO) for all customers    48.7days

  DSO for customers who take the discount (10%)      10days

  DSO for customers who forgo the discount (90%)    53days

II. Annual Credit Sales and Costs ($ millions)

  Gross sales                                                                 $170.000

  Net sales?                                                                   $166.600

  Amount paid by discount customers                      $13.600

  Amount paid by non discounted customers           $153.000

 Variable operating costs (82% of gross sales)         $139.40

 Bad debts                                                                    $0.0

 Credit evaluation & collection costs (10% of gross sales) $17.00

7 0
4 years ago
Read 2 more answers
A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the
user100 [1]

Answer:

sersu4s4rsw4jtrs5jr

f6fygof78

Explanation:

druxrtd6r]

6r77rf[7]

^çftdritf6y8gu798

7 0
3 years ago
The management of Irving Inc., an apparel company based in Letonia, decides to expand the company's operations to several other
sergeinik [125]

Answer:

The answer to this question is B. It can modify its Web site according to the foreign countries' cultures.

Explanation:

A business environment is all internal and external factor that is capable of influencing organisations decision. While internal environment are mostly within the business itself, external factors are from without which means the business has little or no control  

For organisations to succeed in a foreign market, it is required to deal with large society and cultural differences that is practiced in that country.

 social - cultural factor is one of the external factors that can influence a business decision from without in the environment in which it operates.

The social cultural factors which includes belief, norms and customs of the people in that environment are what the business should adhere to in other to succeed in such country.

Therefore, modifying its web site according to the foreign country's culture is a step to achieve what has been explained above.  

Hence the answer to this question is B   It can modify its Web site according to the foreign countries' cultures.

3 0
3 years ago
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