Answer:
They should invest $5,119,047.619 today.
Explanation:
The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.
The formula for the value or price of perpetuity is,
P0 or V = Cash Flow / r
Thus,
P0 or V = 215000 / 0.04 = $5,119,047.619
<h3><u>
Full Question:</u></h3>
The raw materials or reactants of the photosynthetic process include
A. glucose and oxygen.
B. carbon dioxide and glucose.
C. carbon dioxide and water.
D. carbon dioxide and oxygen.
The raw materials or reactants of the photosynthetic process include carbon dioxide and water.
<h3><u>
Explanation:</u></h3>
The process by which the light energy obtained from the sun is converted into chemical energy is photosynthesis. This process takes place in all plants having chloroplast pigments. The raw materials of this process is water and carbon dioxide.
In the photosynthesis process water, carbon dioxide and minerals will be converted into oxygen and some organic compounds that are filled with energy. This acts as an energy source for the plants to survive. This process will not be possible in the absence of the chloroplast pigment.
Answer:
a.
Break even sales in units = 93000 Units
b.
Sales in units required for Target Income = 118000 units
Explanation:
a. Anticipated Break even sales in units
The break even in units is the number of units that a business must sell in order to for its total revenue to be equal to total costs and for it to break even. The break even in units is calculated as follows,
Break even in units = Fixed Costs / Contribution margin per unit
Where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
Break even sales in units = 1860000 / (125 - 105)
Break even sales in units = 93000 Units
b. Operating income
To calculate the number of units required to earn a certain income or profit, we simply use the break even equation and add the income or profit amount required in the fixed cost. Thus the sales in units required to earn an operating income of $500000 is,
Sales in units required for Target Income = (1860000 + 500000) / (125 - 105)
Sales in units required for Target Income = 118000 units
Answer:
1. Debit Cash account $1,900
Credit Accounts receivable $1,800
Credit Interest Income $100
2. Debit Accounts receivable $330
Debit Bank charge $50
Credit Cash account $380
Explanation:
The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items. These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.
Considering the transactions that are the reconciling items in the question, the transactions that will;
Increase cash are a customer's note receivable collected by the bank $(1,800), and interest earned $(100)
Decrease cash balance are bank service fees ($50), and an NSF check from a customer ($330)
A)
Sales. 14
COGS. (8)
Dep. (2)
Interest (1)
Net profit before tax=3 million
Tax. 0.35×3 = (1.05)
Net income= 1.95
Cash flow= net income+ depreciation
Cash flow=1.95+2=3.95
B)
Net income=1.95-1=0.95
Cash flow=3.95+1=4.95
