Answer:
$9583.89
Explanation:
value of each payment (P): $2,100
interest rate per period (r): 12/100 = 0.12
number or periods (n): 7
present value of annuity (PV): ??
using the annuity formula: 
PV = $9583.89
The federal government has accounted for between two-thirds and three-quarters of all government spending since World War II. Since the end of the Korean War in the early 1950s, the federal government's purchases of goods and services as a percentage of GDP have been falling.
Automatic increases and decreases in government expenditure and taxation that follow the economic cycle. The majority of government spending in the United States took place at the state and municipal levels up to the Great Depression of the 1930s.
The federal government has accounted for between two-thirds and three-quarters of all government spending since World War II. Federal Expenditures and Purchases as a Percentage of GDP, 1950–2008.
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The question is reproduced in the table below for clarity
Oven Contribution
Hours Required Margin Per Unit
Muffins 0.2 $4
Coffee Cakes 0.3 $5
Answer:
Total contribution margin = $ 60,000.00
Explanation:
<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.</em>
Therefore Crane Company should alocate the oven hours to maximise the contribution per unit of oven hour. This is done as follows:
Step 1
<em>Calculate he contribution per oven hour and rank the product</em>
cont/hr ranking
Muffin $4/0.2 hour = 20 <em> 1st</em>
Coffee cakes $5/0.3 hour= 16.67 2nd
<em>Because Muffin generates the highest contribution per hour of Oven, Crane should allocate all the resource to it</em>
Step 2
<em>Calculate the Total contribution from the production of Muffin</em>
Total contribution margin = 20 per her × 3000
= $ 60,000.00
Answer:
Cash $60,000 (debit)
Investment Income $60,000 (credit)
Explanation:
It is Important to note that the Acquirer (Horicon Corp) is a Corporate.
The Acquisition of 25% of the common stock of Sheboygan Corp constitute an Asset for Horicon Corp since Economic Benefits are expected to be received from the Investment.
The Receipt of Dividends from these shares will constitute Investment Income and the entry is as follows :
Cash $60,000 (debit)
Investment Income $60,000 (credit)
Answer:
Average rate of return= 10.17
%
Geometric return = 9.23%
Explanation:
<em>Geometric average return</em>
This is compounded annual rate of return which is used to measure the performance of an asset over a certain number of years. It helps to measure the return generated by an investment taking into account the volatility .
Unlike the arithmetic average the geometric average gives an idea of the real rate taking into account of volatility
The formula below
Geometric Return =(1+r1) (1+r2) ...... (1+rn)^1/n
Geometric Average return =
(1.12× 1.19× 1.21× 0.88× 1.26× 0.95)^(1/6) - 1 =0.09233168
Geometric return =0.0923
× 100= 9.23%
Geometric return = 9.23%
Average rate of return
<em>The average return is the sum of the returns over the years dividend by the Numbers of returns</em>
Average return = sum of return / No of returns
(12% + 19% + 21% + (12%) + 26% + (5%))/6 =10.17
%
Average rate of return= 10.17
%
Geometric return = 9.23%
