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erastova [34]
3 years ago
11

Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance packag

e of $128,000 cash, another $139,000 to be paid in one year, and an annuity of $37,500 to be paid each year for four years with the first payment coming at the end of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) What is the present value of the total severance package, assuming an annual interest rate of 7%
Business
1 answer:
katen-ka-za [31]3 years ago
4 0

Answer:

$127,020

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $37,500

I = 7%

PV = $127,020

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

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Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000
serious [3.7K]

Answer:

<u>Equivalent Units Materials    10400      </u>

<u>   Equivalent Units  Conversion 10960     </u>

<u>Cost Per Equivalent Unit   Materials      $9.8365 </u>

<u>Cost Per Equivalent Unit D.  Labor      $ 7.2810 </u>

<u>Cost Per Equivalent Unit    FOH     $ 2.2992</u>

Explanation:

Particulars       Units        % of Completion               Equivalent Units

                                      Materials Conversion      Materials Conversion

Complete     12000        100          100                12000         12000

Add EWIP     2000        100           20                 2000             400

<u>Less BWIP    3600        100           40                 3600            1440         </u>

<u>Equivalent Units                                                  10400         10960     </u><u> </u>

<u />

<em><u>In FIFO as the name suggests we take out the units first completed. So we deduct the Beginning Work in Process (BWIP) from the sum of completed units and ending work in process (EWIP).</u></em>

<em />

Costs added during period: Direct materials  Direct labor  Factory overhead                          

                                   (10,400 at $9.8365)

                                                102,300          79,800          25,200

<u>Equivalent Unit                         10400           10960           10960</u>

<u>Cost Per Equivalent Unit         $9.8365        7.2810          2.2992</u>

<u />

<u />

3 0
3 years ago
National Express reports the following costs and expenses in June 2020 for its delivery service. Indirect materials $7,100 Drive
FrozenT [24]

Answer:

a. Delivery service (product) costs = $44,120

b. Period costs = $20,560

Explanation:

a)                Delivery service (product) costs  

Indirect materials                                   $7,100

Depreciation on delivery equipment   $11,900

Dispatcher's salary                                $5,810

Gas and oil for delivery trucks              $2,700

Drivers' salaries                                      $16,300

Delivery equipment repairs                   <u>$310     </u>

Total                                                        <u>$44,120</u>

b)                              Period costs

Property taxes on office building    $950

CEO's salary                                      $12,100

Advertising                                        $5,500

Office supplies                                  $700

Office utilities                                     $1,100

Repairs on office equipment            <u>$210    </u>

Total                                                   <u>$20,560</u>

5 0
3 years ago
Which of the following is considered a capital asset for federal income tax purpose?
Alex73 [517]

Answer:

b) Land used in your business

Explanation:

For tax purposes the IRS classifies capital assets as those that have a productive life of more than one year and is not normally sold during the course of a business's operations.

Capital assets are a type of production cost, they are used in the production process to generate revenue.

They are expensed over the useful life of the asset in the form of depreciation.

Land is an example of capital assets for the purpose of federal income tax.

It provides the site of production and is not an item that is sold in the short run. Rather it is used over several years.

5 0
3 years ago
The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, the beginning of the
kakasveta [241]

Answer:

$213,000

Explanation:

We will figure out first Hawk's share of profit to reach the capital account is shown below:-

Hawk's share of profit = $258,000 ÷ 2

= $129,000

Capital account of Hawk as on December 31 = Opening Balance + Capital Introduced + Profit Share - Drawings

= $160,000 + $10,000 + $129,000 - $86,000

= $213,000

So, we have got the answer after solve the below formula.

3 0
3 years ago
QUESTION 7 of 20: Money market refers to:
julsineya [31]
Money market refers to trading in short-term debt investments. It facilitates the lending and borrowing of money on a short-term basis.
7 0
2 years ago
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