What does it mean to have liability for a company?

g You will be receiving cash flows of: $2,000 today, $3,000 at end of year 1, $5,000 at end of year 3, and $7,000 at end of year

enot [183]

Answer:

The present value of the cashflows will be $12830.30

Explanation:

The present value of the cashflows can be calculated by dividing the cash flows by the appropriate discount rate and for the appropriate time period.

The present value of the given cash flows will be,

Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n

As the first payment is received today, it will already be in the present value so it will not be discounted.

Present value = 2000 + 3000 / (1+0.1) + 5000 / (1+0.1)^3 + 7000 / (1+0.1)^5

Present value = $12830.295 rounded off to $12830.30

5 0

3 years ago

Read 2 more answers

Multiple Choice Question 71 Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of

seropon [69]

Answer:

Allocated MOH= $5,250,000

Explanation:

Giving the following information:

Overhead costs:

Machining = $5,000,000

Assembling= $2,500,000

Regular:

Direct labor hours= 10,000

Machine hours= 10,000

Number of parts= 90,000

Supreme:

Direct labor hours= 15,000

Machine hours= 30,000

Number of parts= 160,000

First, we need to calculate the estimated overhead rate for each department. For Machining, we will use the machine hours. For Assembling, we will use the direct labor hours.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

<u>Machining:</u>

Estimated manufacturing overhead rate= 5,000,000/ (10,000 + 30,000)= $125 per machine hour

<u>Assembling:</u>

Estimated manufacturing overhead rate= 2,500,000/(25,000)= $100 per direct labor hour

Now, we can allocate overhead to supreme.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= (125*30,000) + (100*15,000)= $5,250,000

6 0

2 years ago

At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, no stock was issued and the comp

viva [34]

Answer:

$10,000

Explanation:

As provided no equity is issued, therefore,

Common stock + Net income = Stockholder's equity

We know common stock = $70,000

Further there might be some dividend paid, which shall be deducted from net income to compute total value of Stockholder's equity.

Therefore,

$70,000 + $18,000 - Dividend = $78,000

$88,000 - $78,000 = Dividend = $10,000

Therefore, dividends paid during the month = $10,000

5 0

3 years ago

Employers cite dressing inappropriately as one of the biggest mistakes job applicants make in interviews. True or False

IrinaK [193]

Answer:

True

Explanation:

If you dress inappropriately, that is not showing a good first impression. Most, if not all jobs want to have employees that can dress well, cooperate, and work well with others.

6 0

3 years ago

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons, Frank and Greg, in equal shares. The

SVETLANKA909090 [29]

Answer:

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons, Frank and Greg, in equal shares. The will disinherits a third son, Hal. Don and Elsie divorce, but Don dies before changing his will. Under the Uniform Probate Code:

c. Frank and Greg receive the entire estate in equal shares.

Explanation:

Uniform Probate Code is applicable in almost 18 states of the United States that was developed to standardize the laws of wills, trusts, and intestacy.
The option a is not correct as Elsie can't get the half of the farm as Don and Elsie were divorced.
The option b is also incorrect as Elsie can't get the half of farm as well as Hal will not get the share.
The option c is correct as it is in accordance with Uniform Probate Code.
The option d is incorrect as state can't inherits the entire estate in the presence of heirs.

6 0

2 years ago