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3 years ago

The function f(x) = 2,000(1 + )12t models the balance in a savings account.

Business

2 answers:

Naddika [18.5K]3 years ago

8 0

? wat class this for

tresset_1 [31]3 years ago

4 0

Answer:

In the exponential function f(x) = P(1 + )nt :

P = principal value

r = the annual interest rate

n = number of compounding periods in a year

t = time in years

For the given function, P = 2,000, r = 0.0225, or 2.25%, and n = 12. So, the interest compounds 12 times a year, or monthly.

Therefore, the savings account had an initial balance of $2,000 and compounds monthly at an interest rate of 2.25%.

Explanation:

Explanation from PLATO

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Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2018, for $283,294,7

Olegator [25]

Answer:

Balance sheet:

Net liability = $285,349,947

Income statement:

Interest expense = $34,055,227

Statement of cash flows:

Operating: $32,000,000

Investing: Nil

Financing: $283,294,720

Explanation:

The workings are attached:

Balance sheet

Net liability = carrying value at the end of the year = $285,349,947

This will appear in the balance sheet as net liability.

Income statement:

Interest expense will be appearing in the income statement.

Interest expense = $32,000,000

Statement of cash flows:

Operating cash flow:

Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement.

Operating: It is the interest expense = $32,000,000

Investing cash flow:

Cash flow from investing activities is one of the sections on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.

Investing: This will be nil, as this is not an investment

Financing cash flow

Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends

Financing: This will be the $283,294,720

4 0

3 years ago

Ron Landscaping's income statement reports net income of $73,300, which includes deductions for interest expense of $10,500 and

andrew-mc [135]

Answer: 11.1 times

Explanation:

Times Interest Ratio = Earnings before Interest and Tax/ Interest

Earnings before Interest and tax = Net Income + Interest + Tax

= 73,300 + 10,500 + 32,900

= $116,700‬

Times Interest ratio = 116,700/10,500

= 11.1 times

6 0

3 years ago

Problem 11-1A Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displa

tester [92]

Missing information:

__?__ Paid the amount due on the note to Locust at the maturity date.

__?__ Paid the amount due on the note to NBR Bank at the maturity date.

Nov. 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $24,000.

Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

2017

__?__ Paid the amount due on the note to Fargo Bank at the maturity date.

Required: prepare journal entries

Answer:

2016 Apr. 20 Purchased $37,500 of merchandise on credit from Locust, terms n/30.

April 20, 2016, merchandise purchased on account

Dr Merchandise inventory 37,500

Cr Accounts payable 37,500

May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8% annual interest along with paying $2,500 in cash.

May 19, 2016, replaced account payable with note payable

Dr Accounts payable 37,500

Cr Cash 2,500

Cr Notes payable 35,000

July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value of $54,000.

July 8, 2016, borrowed $54,000 from bank

Dr Cash 54,000

Cr Notes payable 54,000

__?__ Paid the amount due on the note to Locust at the maturity date.

August 17, 2016, paid note payable to Locust

Dr Note payable 35,000

Dr Interest expense 690.41 ($35,000 x 8% x 90/365)

Cr Cash 35,690.41

__?__ Paid the amount due on the note to NBR Bank at the maturity date.

November 5, 2016, paid bank's debt.

Dr Notes payable 54,000

Dr Interest expense 1,775.34 ($54,000 x 10% x 1220/365)

Cr Cash 55,775.34

Nov. 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $24,000.

November 28, 2016, borrowed $24,000 from bank

Dr Cash 24,000

Cr Notes payable 24,000

Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

December 31, 2016, accrued interests on bank debt

Dr interest expense 130.19 (= $24,000 x 6% x 33/365)

Cr Interest payable 130.19

2017

__?__ Paid the amount due on the note to Fargo Bank at the maturity date.

January 27, 2017, paid bank's debt.

Dr Note payable 24,000

Dr Interest payable 130.19

Dr Interest expense 106.52 (= $24,000 x 6% x 27/365)

Cr Cash 24,236.71

8 0

3 years ago

The Volt Battery Company has forecast its sales in units as follows: January 2,900 February 2,750 March 2,700 April 3,200 May 3,

goblinko [34]

Answer:

(the image attached) for the monthly production budget for january through June

Explanation:

1st We will list each month sales

Then, we will calcualte the desired ending inventory as 110% of next month sales:

february sales 2,750

So, January ending inventory: 2,750 x 1.10 = 3,025

And so on with all the months.

Then we subtract the beginning inventory as those units are already produced/ in company's stocks

Giving as a result the units to be produced.

3 0

3 years ago

1. What is the revised net operating income if unit sales increase by 16%? 2. What is the revised net operating income if the se

weeeeeb [17]

Answer:

1) NOI = $90,240

2) NOI = 29,250

3) NOI = 133,260

4) NOI = 110,190

Explanation:

The question is incomplete.

Sales (38,000 units) $342,000 ($9.00 per unit)

Variable expenses $228,000 ($6.00 per unit)

Contribution margin $114,000 ($3.00 per unit)

Fixed expenses $42,000

Net operating income $72,000

1. What is the revised net operating income if unit sales increase by 16%

If unit sales increase, we can calculate this with a 16% increase in the contribution margin.

$NOI=CM*(1+0.16)-FE=114,000*1.16-42,000=132,240-42,000\\\\NOI=90,240$

2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%?

A reduction of $1.50 in price means a reduction of the same amount in the contribution margin per unit (CMu), as the variable expenses stay the same .

Also, the contribution margin increases by 25%, for the increase in units sold (q).

$NOI=CM_u*q-FE=(3.00-1.50)*(38,000*1.25)-42,000\\\\NOI=1.5*47,500-42,000=71,250-42,000\\\\NOI=29,250$

3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6%?

The selliing price will be added to the contribution margin per unit.

The units sold are increased 6%.

$NOI=CMu*q-FE=(3.00+1.50)*38,000*1.06-(42,000+6,000)\\\\NOI=4.5*40,280-48,000=181,260-48,000\\\\NOI=133,260$

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?

The contribution margin per unit, with a increase in price and an increase in variable cost, becomes:

$CM_u=P-VE_u=9.00*(1.20)-(6.00+0.30)=10.80-6.30=4.50$

The units sold is now:

$q'=(1-0.11)q=0.89q=0.89*38,000=33,820$

Then, the net operating income becomes:

$NOI=CM_u*q-FE=4.5*33,820-42,000=152,190-42,000\\\\NOI=110,190$

5 0

3 years ago