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kkurt [141]
3 years ago
9

A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end of five years, or as equal an

nual payments at the end of each of the next five years. If the interest rate on the loan is 10%, what annual payments should be made so that both forms of payment are equivalent
Business
1 answer:
Elina [12.6K]3 years ago
4 0

Answer:

$16,379.75

Explanation:

Calculation for the annual payments that should be made

Using financial calculator to find the PMT

FV = $100,000

Interest rate = 10%

N= 5 years

PMT?

Hence,

PMT = $16,379.75

Therefore the annual payments that should be made so that both forms of payment are equivalent will be $16,379.75

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Which of the following would cause a "Prior Period Adjustment" to be reported on the 2025 Statement of Retained Earnings?
Fynjy0 [20]

Answer:

Cause of a "Prior Period Adjustment in 2025 Statement of Retained Earnings:"

A. Failure to Accrue Revenue at 12/31/24, but not 12/31/21 Depreciation Overstatement.

Explanation:

A company's failure to accrue revenue in accordance with the accrual concept and revenue recognition principle means that there is a "Prior Period Error" which must be corrected retrospectively in the financial statements (Retained Earnings).  Retrospective restatement involves the correction of the error arising from the recognition, measurement, and disclosure of amounts of elements of financial statements.  The restatement is done as if a prior period error had never occurred.

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3 years ago
Economic production has fallen to less than full potential due to inadequate incentives for firms to produce. The duration of th
Brilliant_brown [7]

Answer:

short-term

Explanation:

Based on the information provided within the question it can be said that the duration of this economic condition will likely be short-term. Meaning that it will only last a small amount of time, mostly because this is a problem that needs to / and can be solved in order to increase the economic production to full potential and increase firm revenue.

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3 years ago
2021 2020 Income Statement Information Sales revenue $ 8,400,000 $ 7,900,000 Cost of goods sold 5,535,600 5,400,000 Net income 3
Vinil7 [7]

Answer:

2021 2020 Income Statement Information

Sales revenue $ 8,400,000 $ 7,900,000

Cost of goods sold 5,535,600 5,400,000

Net income 332,500 198,000

Balance Sheet Information

Current assets $ 1,550,000 $ 1,450,000

Long-term assets 2,150,000 1,850,000

Total assets $ 3,700,000 $ 3,300,000

Current liabilities $ 1,150,000 $ 850,000

Long-term liabilities 1,550,000 1,550,000

Common stock 750,000 750,000

Retained earnings 250,000 150,000

Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000

<h2>1. </h2>

Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.)

The four main profitability ratios are:

  1. gross profit margin = (revenue - COGS) / revenue = ($8,400,000 - $5,535,600) / $8,400,000 = 0.341 or 34.1%
  2. net profit margin = net profit / revenue = $332,500 / $8,400,000 = 0.03958 or 3.96%
  3. return on assets = net income / average total assets = $332,500 / [($3,700,000 + $3,300,000)/2] = $332,500 / $3,500,000 = 0.095 or 9.5%
  4. return on equity = net income / shareholders equity = $332,500 / $1,000,000 = 0.3325 or 33.25%

<h2>2. </h2>

Determine the amount of dividends paid to shareholders in 2021.

retained earnings 2021 - retained earnings 2020 = net income - dividends

$250,000 - $150,000 = $332,500 - dividends

$100,000 + dividends = $332,500

dividends = $332,500 - $100,000 = $232,500

8 0
3 years ago
List online activities you can participate in to stack search results of your professional name for potential employers.
finlep [7]

Explanation:

<em>let</em><em> </em><em>AB</em><em> </em><em>be</em><em> </em><em>the</em><em> </em><em>deck</em><em> </em><em>and</em><em> </em><em>CD</em><em> </em><em>be</em><em> </em><em>the</em><em> </em><em>hill</em><em> </em>

8 0
3 years ago
Read 2 more answers
George Jefferson established a trust fund that provides $170,500 in scholarships each year for worthy students. The trust fund e
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The returns of a capital amount to a compensation rate for depositing the money, to calculate these returns an interest rate is used by which the deposited capital is multiplied, in this case the rate is 4%.

As the money distributed is only the product of interest, then that money is the result of multiplying the capital by the interest rate, to obtain how much money Mr. Jefferson contributed, the reverse process will have to be done.

Answers

let <em>C</em> be the capital, then :

C\times4 \%  = 170500\\C\times\frac{4}{100}= 170500\\C=170500\times\frac{100}{4}\\C=4262500

The capital contributed by Mr. Jefferson was <em>$4,262,500</em>

3 0
3 years ago
Read 2 more answers
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