I think I have the correct answers but I would like a second opinion

Problem 5-3 Future Value and Multiple Cash Flows [LO 1] Wells, Inc., has identified an investment project with the following cas

Fed [463]

Answer:

a. $6,562.52

b. $7,218.32

c.$7,843.64

Explanation:

The present value of the cash flows would be found first and after, the present value has been determined, the future value would be found

Present value can be calculated using a financial calculator

Cash flow in year 1 = $1,060

Cash flow in year 2 = $1,290

Cash flow in year 3 = 1,510

Cash flow in year 4 = $2,250

Present value when interest rate is 6% = $5,198.131267

Present value when interest rate is 14% = $4,273.825287

Present value when interest rate is 21% = $3,659.117655

Now we find the future value

Future value = present value ( 1 + r)^n

r = interest rate

n = number of years

a. $5,198.131267(1.06)^4 = $6,562.52

b. $4,273.825287(1.14)^4 = $7,218.32

c. $3,659.117655 (1.21)^4 = $7,843.64

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.

3. Press compute

3 0

3 years ago

Liz Raiborn Inc. has the following financial results for the years 2019 through 2021 for its three regional divisions: 2019 2020

krok68 [10]

Answer:

return on sales = operating profit / net sales

Southwest 2019 = $875 / $14,675 = 5.96%

Southwest 2020 = $975 / $21,775 = 4.48%

Southwest 2021 = $1,125 / $25,775 = 4.36%

Midwest 2019 = $1,025 / $6,475 = 15.83%

Midwest 2020 = $1,375 / $6,775 = 20.3%

Midwest 2021 = $1,325 / $6,975 = 19%

Southeast 2019 = $775 / $12,175 = 6.37%

Southeast 2020 = $975 / $12,775 = 7.63%

Southeast 2021 = $1,375 / $13,075 = 10.52%

asset turnover = net sales / average total assets

Southwest 2019 = $14,675 / $13,775 = 1.07

Southwest 2020 = $21,775 / $13,975 = 1.56

Southwest 2021 = $25,775 / $16,575 = 1.56

Midwest 2019 = $6,475 / $4,475 = 1.45

Midwest 2020 = $6,775 / $3,975 = 1.7

Midwest 2021 = $6,975 / $3,975 = 1.75

Southeast 2019 = $12,175 / $5,075 = 2.4

Southeast 2020 = $12,775 / $5,375 = 2.38

Southeast 2021 = $13,075 / $5,375 = 2.43

return on investment = net income / cost of investment

Southwest 2019 = $875 / $13,775 = 6.35%

Southwest 2020 = $975 / $13,975 = 6.98%

Southwest 2021 = $1,125 / $16,575 = 6.79%

Midwest 2019 = $1,025 / $4,475 = 22.9%

Midwest 2020 = $1,375 / $3,975 = 34.59%

Midwest 2021 = $1,325 / $3,975 = 33.33%

Southeast 2019 = $775 / $5,075 = 15.27%

Southeast 2020 = $975 / $5,375 = 18.14%

Southeast 2021 = $1,375 / $5,375 = 25.58%

Explanation:

Revenue 2019 2020 2021

Southwest $ 14,675 $ 21,775 $ 25,775

Midwest 6,475 6,775 6,975

Southeast 12,175 12,775 13,075

Total $ 33,325 $ 41,325 $ 45,825

Net Operating Income 2019 2020 2021

Southwest $ 875 $ 975 $ 1,125

Midwest 1,025 1,375 1,325

Southeast 775 975 1,375

Total $ 2,675 $ 3,325 $ 3,825

Average Total Assets 2019 2020 2021

Southwest $ 13,775 $ 13,975 $ 16,575

Midwest 4,475 3,975 3,975

Southeast 5,075 5,375 5,375

Total $ 23,325 $ 23,325 $ 25,925

4 0

3 years ago

In a market system, scarce goods are allocated through the operation of fixed prices that are determined by consumers and produc

anygoal [31]

Answer:

The correct answer is: market prices that are determined by consumers and producers acting in their own self-interest.

Explanation:

In a market system, the price of a good is determined by the intersection of demand for goods by consumers and the supply of goods by the producers. The price is determined at the point where the market forces of demand and supply are equal.

The producer is trying to maximize its profit while the consumer is trying to maximize its utility. Both are working for their self-interest and in this way are able to allocate scarce resources through the working of the market system.

3 0

3 years ago

At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubt

Wewaii [24]

Answer:

(a) Prepare the entries to record sales and collections during the period.

Dr Accounts Receivable $ 800,000

Cr Sales $ 800,000

Dr Cash $ 763,000

Cr Accounts Receivable $ 763,000

(b) Prepare the entry to record the write-off of uncollectible accounts during the period

Dr Allowance for Uncollectible Accounts $ 7,300

Cr Accounts Receivable $ 7,300

(c) Prepare the entries to record the recovery of the uncollectible account during the period.

Dr Accounts Receivable $ 3,100

Cr Allowance for Uncollectible Accounts $ 3,100

Dr Cash $ 3,100

Cr Accounts Receivable $ 3,100

(d) Prepare the entry to record bad debt expense for the period.

Dr Bad Debt Expense $ 20,200

Cr Allowance for Uncollectible Accounts $ 20,200

Explanation:

Initial Balance

Dr Accounts Receivable $ 200.000

Cr Allowance for Uncollectible Accounts $ 9.000

During the period, it had net credit sales of $800,000

Dr Accounts Receivable $ 800.000

Cr Sales $ 800.000

Collections of $763,000

Dr Cash $ 763.000

Cr Accounts Receivable $ 763.000

It wrote off as uncollectible accounts

Dr Allowance for Uncollectible Accounts $ 7.300

Cr Accounts Receivable $ 7.300

A $3,100 account previously written off as uncollectible was recovered

Dr Accounts Receivable $ 3.100

Cr Allowance for Uncollectible Accounts $ 3.100

Dr Cash $ 3.100

Cr Accounts Receivable $ 3.100

Assuming 5% of accounts receivable, the journal entry:

Dr Bad Debt Expense $ 20.200

Cr Allowance for Uncollectible Accounts $ 20.200

FINAL Balance

Dr Accounts Receivable $ 229.700

Cr Allowance for Uncollectible Accounts $ 25.000

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessar to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

8 0

3 years ago

Dixie, a driver for Express Delivery Company, leaves the truck's motor running in neutral and carelessly forgets to set the park

Butoxors [25]

Answer:

To recover on the ground of negligence, Fazio must show that Express Delivery owed him a duty of care, that Express Delivery (through Dixie) breached that duty, that Fazio was injured, and that Express Delivery's breach caused that injury.

Explanation:

There is no question that in operating the truck, Dixie was acting on Express Delivery's behalf and that her actions breached the duty of reasonable care necessary to park the truck.

6 0

4 years ago