Answer:
If $40,000 is invested in the trust fund in the year 2021 and if it earns a very good rate of return of 10% per year, the amount of each scholarship, starting in 2035 will be:
= $167,089.93
Explanation:
a) Data and Calculations:
Investment in the trust fund in 2021 = $40,000
Investment period = 15 years (2021 to 2035)
Rate of return = 10%
From an online financial calculator:
N (# of periods) 15
I/Y (Interest per year) 10
PV (Present Value) 40000
PMT (Periodic Payment) 0
Results
FV = $167,089.93
Total Interest $127,089.93
Answer:
The answer is:
April 10, 2019:
Dr Cash 96,900
Cr Treasury stock 91,800
Cr Paid-in capital 5,100
(to record resell of 1,700 repurchase shares at $57)
Explanation:
While the share was repurchased at $54 each; the Treasury stock account is debited at 54 x 1,700 = 91,800. Thus, when resell takes place, treasury stock account must be credited by 91,800.
Cash receipt is 57 x 1,700 = 96,900. Thus, this amount is debited in Cash Account.
The difference between the Dr Cash and Cr Treasury stock will Credited in to Paid-in Capital Account at the amount 5,100; which is also calculated as 1,700 x ( 57-54).
Answer:
b.(1/2, 1/2)
Explanation:
If one vendor is located at “1/2” then the best possible respond of the other vendor is “1/2”, both of them of capture the equal share of the market.
Therefore, Nash equilibrium is (1/2 , 1/2).
Answer:
Gilbert Company's total expected cash disbursements for purchases in the month of August are $45,000.
Explanation:
In August the 75% of July purchases payments and 25 % of August purchases Payments will bedisbursed.
Cash Disbursement of August
August Payment = $15,000
July Payment = $30,000
Total Disbursement = $15,000 + $30,000
Total Disbursement = $45,000
Working:
July payment = $40,000 x 75% = $30,000
August Payment = $60,000 x 25% = $15,000
Answer:
5 units and $2,175
Explanation:
a. The computation of the economic order quantity is shown below:
= 
=
= 2,000 units
The total cost of ordering cost and carrying cost equals to
= Annual ordering cost + Annual carrying cost
= Purchase cost + Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 10,000 × $8 + 10,000 ÷ 2,000 × $150 + 2,000 ÷ 2 × $0.75
= 80,000 + $750 + $750
= $81,500
Now in case of ordering 5,000 yields at discount price of $6.50 the total cost is
= Purchase cost + Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 10,000 × $6.50 + 10,000 ÷ 5,000 × $150 + 5,000 ÷ 2 × $0.75
= $65,000 + 300 + $1,875
= $67,175
Therefore there will be 5 units should store at a time and cost of inventory is 300 + $1,875 = $2,175
