Answer:
$34,263.69
Explanation:
This is a time value of money(TVM) question. Since the $300,000 is at the start of the retirement. That would be the present value of the annuity payments. So, using a financial calculator, input the following;
Present value; PV = -300,000
Total duration; N = 18
Interest rate; I/Y = 9%
Onetime future value ; FV = 0
then compute recurring payment ; CPT PMT = 34,263.687
Therefore, her yearly annuity for the next 18 years will be $34,263.69
Answer:
The total cost of fabric purchases is $1,949,400
Explanation:
Numbere of units produced 19000
RM required per unit 12
Total RM needs 228000
Add: Ending inventory of RM 11400
Total needs 239400
Less: Beginning inventory of RM 22800
Budgeted Purchase units 216600
Price per unit 9
Budgeted Purhase in $1949400
Therefore, The total cost of fabric purchases is $1,949,400
Answer:
Profit Margin = income / sales
45,000 / 1,000,000 = 4.5%
Return on Assets = income / assets
45,000 / 250,000 = 18%
Assets turnover = sales / assets
1,000,000 / 250,000 = 4
Earning per share: income / shares outstanding
45,000 / 40,000 = 1.125
Price- Earning ratio = market price / EPS
28 / 1.125 = 24,89
Return on Equity = income / equity*
45,000 / 120,000 = 37.5%
Debt to Equity ratio liab / equity
130,000 / 120,000 = 1,08
Explanation:
*solving for equity
Assets = laib + equity
250,000 = 130,000 + equity
equity = 120,000
Answer:
A & C are correct
Explanation:
Payback period is a capital budgeting technique used to determine the number of years it would take a project cash inflows to fully recover the initial amount invested. Since it involves basic addition of subsequent expected cash inflows to determine at what point in time the balance changes from negative to positive ,regular payback period does not take into account the time value of money.
Additionally, payback period determination ignores future cashflows after the balance has changed from negative to positive. Due to this reason, it does not take into account the project's entire life.
