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Black_prince [1.1K]
3 years ago
9

After retirement, you expect to live for 24 years. You would like to have $75,000 income each year. How much should you have sav

ed in your retirement account to receive this income, if the annual interest rate is 9 percent per year
Business
1 answer:
poizon [28]3 years ago
5 0

Answer:

The amount that you should have saved in your retirement account to receive this income is:

= $727,995.88.

Explanation:

a) Data and Calculations:

Expected lifespan = 24 years

Expected annual income = $75,000

Interest rate per year = 9%

The amount of savings in the retirement account to receive this income is calculated from an online financial calculator as follows:

N (# of periods)  24

I/Y (Interest per year)  9

PMT (Periodic Payment)  75000

FV (Future Value)  0

 

Results

PV = $727,995.88

Sum of all periodic payments = $1,800,000.00

Total Interest = $1,072,004.12

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American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively Ameri
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Answer:

a. Particulars                                Amount

Gross sales                                  $925,000

Less: COGS                                 <u>$490,000</u>

EBITDA                                        $435,000

Less: Depreciation                      <u>$120,000</u>

EBIT                                              $315,000

Less: Interest on notes payable <u>$8,800   </u>  (220000*4%)

EBT                                               $306,200

Less: Tax (35%*306200)             <u>$107,170</u>

Net Income                                   <u>$199,030</u>

<u />

b. Operating cash flow = Net income + Depreciation

Operating cash flow = $199,030 + $120,000

Operating cash flow = $319,030

6 0
3 years ago
Financial data for Joel de Paris, Inc., for last year follow:
suter [353]

Answer:

profit margin: 7.09%

<u />

<u>Turnover: </u>

Assets : 1.85

Account Receivable: 11.53

Inventory: 9.05

ROI: 28.94%

2.- residual income 91,395

Explanation:

sales 4,700,000

net income 333,000

<u>profit margin:</u>

net income / sales

333,000 / 4,700,000 = 0,070851 = 7.09%

<u>Turnovers:</u>

Will be sales over an asset account to calcualte how many times  the assets converts to cash or rotate.

the average will be calcualte as (beginning + ending)/2

<em>Assets turnover:</em>

sales/average assets

sales 4,700,000

(2,505,000 + 2,585,000) / 2 = 2,545,000

Ratio: 1,8467 = 1.85

<em>Account Receivable Turnover:</em>

sales/ average turnover

sales 4,700,000

(344,000 +471,000)/2 = 407,500

Ratio: 11,5337 = 11.53

<em>Inventory Turnover</em>

Sales/ average inventory

Sales 4,700,000

(568,000 + 471,000)/2 = 519,500

Inventory turnover: 9,04716 = 9.05

<u>ROI</u>

net income / average equity

<u>where:</u>

average equity : (beginning + ending)/2

1,092,000 + 1,209,000 = 1,150,500

333,000/1,150,500 = 0,28943

<u></u>

<u>Residual income:</u>

net income - Equity x expected return

    333,000 - 1,150,500 x 0.21 =

     333,000  -  241,605‬  = 91,395

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Myrtle Flower Company, sends its management trainees to an assessment center. There, the employees are assigned to small groups
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Answer:

leaderless group discussion

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Answer:

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Explanation:      

A.  A more appealing product needs to be offered to rivals for new product.

B. planning of money.

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D. The company should pursue, the long-term direction management.

E. conservative defense to project

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B. conduct a sustainable competitive method and compete against rivals.

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D. conduct the operations.

Organizational objectives are achieved by the following methods:

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B. statement of the mission.

C. plan of action.

D. business module.

E. strategic vision.

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B. short-term success and build profit.

C. realignment in the market.

D. developing lasting success.

E. re-create the bussiness models.

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A. lowering the operating profit margins than rivals to drive sales

growth.

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C. pursing similar personalized customer service or quality dimensions as rivals.

D. Confination of operations to the markets.

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An investor buys 100 shares of walmart at $45 per share on margin with an initial margin of 70% and a maintenance margin of 25%.
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6250 + 56 = 6250 price
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