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3 years ago

12

Suppose the inflation rate is 2% per year. If you currently think of $40,000 as an acceptable retirement income and are expectin

g to retire in 40 years, what will the equivalent annual income then be, adjusted for inflation rate of 2% per year

1 answer:

Svetllana [295]3 years ago

3 0

40,000x(1.02^40)=$88,322

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The accumulation of budget deficits by the United States has created

wariber [46]

Answer:

a national debt

Explanation:

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3 years ago

Financial data for Stirling Inc. for last year are as follows:

Tom [10]

Answer:

profit margin: 6.04%

Assets turnover: 2.08

ROI 25.89%

Residual Income 137,330

Explanation:

<u><em>profit margin:</em></u>

income/sales = 326,480/5,404,000 = 0.060414507 = 6.0414507%

<u><em>Assets turnover:</em></u>

$\frac{net \: sales}{average \: assets} \\\\where:\\average \: assets = \frac{ending + beginning}{2}$

(2,561,000 + 2,629,000)/2 = 2,595,000 average assets

5,404,000/2,595,000 = 2.082466281 Assets TO

<u><em>ROI</em></u>

$\frac{net \: income}{average \: equity} \\\\where:\\average \: equity= \frac{ending + beginning}{2}$

(1,206,000+1,316,000)/2 = 1,261,000 average equity

326,480/1,261,000 = 25.890563%

<u>Residual Income:</u>

current income - income at desired RoR

That means calculate which income generates a ROI of 15% which is the minimum required return:

ROI = income / equity = 0.15

X/1,261,000 = 0.15

X=1,261,000 x 0.15 = 189,150

Now we calculate the diference between this number and the current income.

326,480 - 189,150 = 137,330 Residual Income

8 0

3 years ago

On July 31, 2017, Crane Company had a cash balance per books of $6,355.00. The statement from Dakota State Bank on that date sho

Ivan

Question Completion:

Prepare a bank reconciliation statement as of July 31, 2017.

Answer:

<h3>Crane Company</h3>

Bank Reconciliation Statement as of July 31, 2017

Balance as per bank statement $7,905.80

Add Uncredited deposits 1,309.30

Less Checks outstanding 1,979.10

Balance as per adjusted cash book $7,236.00

Explanation:

a) Data and Analysis:

July 31, 2017:

Cash balance per books of $6,355.00

Bank statement balance = $7,905.80

Reconciling items:

1. Bank service charge$19.00

2. Direct EFT receipt $1,630.00

3. Uncredited deposits $1,309.30

4. Understated check No. 2480 $45

5. Checks outstanding $1,979.10

6. NSF charge of $685.00 (W. Krueger)

Cash Book Adjustment as of July 31, 2017

Balance as per cash book $6,355.00

add: Direct EFT receipt 1,630.00

less: Bank service charge 19.00

Understated check No. 2480 45.00

NSF charge 685.00

Adjusted Cash Book balance $7,236.00

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3 years ago

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3 years ago

What is the rate at which one currency is converted to another currency called?

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My answer would be C ''Foreign Exchange Rate''.

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3 years ago

Read 2 more answers