Answer:
Total= $107,130.79
Explanation:
Giving the following information:
McClary Tires plans to save $20,000, $25,000, $27,500, and $30,000 at the end of each year for Years 1 to 4, respectively.
The discount rate is 3.3%.
To calculate the future value, we need to use the following formula for each cash flow:
FV= PV*(1+i)^n
Cf1= 20,000*1.033^3= 22,046.06
Cf2= 25,000*1.033^2= 26,677.23
Cf3= 27,500*1.033= 28,407.5
Cf4= 30,000
Total= $107,130.79
Since it says “Double” it means you’re multiplying by 2 each time. So the answer is 8,000.
(17-18) 1,000x2=2,000
(18-19) 2,000x2=4,000
(19-20) 4,000x2=8,000
The bank account would be a. Transaction Account
Answer:
Debit Supplies expense account $650
Credit supplies account $650
Explanation:
When supplies are purchased but yet to be used, the entries required are
Debit supplies account
Credit cash/accounts payable
When supplies are used up, the entries required are
Debit Supplies expense account
Credit supplies account
As such where On December 31, Treats Catering Inc.'s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $350 of supplies actually remain in the supply cabinet, the supplies used up
= $1,000 - $350
= $650
adjusting entries required
Debit Supplies expense account $650
Credit supplies account $650
Being entries to recognized supplies used up.
Answer:
A) $82,622
Explanation:
first we must determine the net cash flows for years 1-4:
net cash flows = [(total revenue - total costs) x (1 - tax rate)] + depreciation expense
- CF1 = [($234,135 - $125,565 - $66,750 - $3,300) x (1 - 40%)] + $3,300 = $26,412
- CF2 = [($226,460 - $119,444 - $68,950 - $4,500) x (1 - 40%)] + $4,500 = $24,640
- CF3 = [($255,132 - $133,665 - $69,690 - $1,500) x (1 - 40%)] + $1,500 = $31,666
- CF4 = [($272,318 - $138,923 - $68,900 - $700) x (1 - 40%)] + $700 = $38,977
now we can calculate the project's NPV:
NPV = -10,000 + 26,412/1.11 + 24,640/1.11² + 31,666/1.11³ + 38,977/1.11⁴ = -10,000 + 23,795 + 19,998 + 23,154 + 25,675 = $82,622
