Answer:
Explanation:
PV formula=C/(1+R)^n, C- cash flow(CF) for the period, R-interest rate, n-number of period
PV of CF received in 2015= 3400000/(1+0.11)^1=3063063.06
PV of CF received in 2016= 12400000/(1+0.11)^2=10064118.17
PV of CF received in 2017=12400000/(1+0.11)^3=9066773.13
PV of CF received in 2018=13400000/(1+0.11)^4=8826995.05
PV of CF received in 2019=13400000/(1+0.11)^5=7952247.8
Net worth=NPV=[3063063.06+10064118.17+9066773.13+8826995.05+7952247.8]=38973197.21
TOTAL PV=3,897,3197.21
Answer:
Debit Building $338,000
Credit Cash $58,000
Credit Notes Payable $280,000
Explanation:
Preparation of the journal entry to Record the purchase of the building on January 1, 2021.
Based on the information given we were told that the company purchases an office building for the amount of $338,000 which means that if they paid $58,000 down and as well borrowed the remaining amount of $280,000 the journal entry to Record the purchase of the building on January 1, 2021 will be :
Debit Building $338,000
Credit Cash $58,000
Credit Notes Payable $280,000
(Being to record the purchase of building)
Answer:
Net Income $ 495,000
Explanation:
The net income represent the amount that would be left after all expenses have been deducted from all the sales revenue.
$
Sales revenue 4,597,000
Cost of goods sold <u>(3,399,000)</u>
Gross profit 1,198,000
Operating expenses <u> (448,000)</u>
Profit before taxes 750,000
Taxes (34%×750,000) <u> (255,000)
</u>
Net Income <u> 495,000
</u>
Answer:
A.True
Explanation:
A financial risk is the risk that could arise through borrowing. If an entity borrows money, it will have to pay the money back at some time, and will also have to pay interest. The risk is that if an entity borrows very large amounts of money, it might fail to generate enough cash from its business operations to pay the interest or repay the debt principal.
So based on the above discussion, the answer is A.True
Higher than 4.0 if it's weighted
