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SSSSS [86.1K]
3 years ago
8

Beverly Hills started a paper route on January 1. Every three months, she deposits $550 in her bank account, which earns 8 perce

nt annually but is compounded quarterly Four years later, she used the entire balance in her bank account to invest in an investment at 7 percent annually. How much will she have after three more years?
Business
1 answer:
aleksandrvk [35]3 years ago
6 0

Answer:

Total amount= $12,558.68

Explanation:

Giving the following information:

Every three months, she deposits $550 in her bank account, which earns 8 percent annually but is compounded quarterly Four years later, she used the entire balance in her bank account to invest in an investment at 7 percent annually.

First, we need to calculate the total accumulated money after four years with the following formula.

FV= {A*[(1+i)^n-1]}/i

A= deposit= 550

N= 16

i=0.08/4= 0.02

FV= {550*[(1.02^16)-1]}/0.02= 10,251.61

Now, we calculate the second investment:

FV= PV*(1+i)^n= 10,251.62*(1.07^3)= $12,558.68

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Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent. The company presented
Harlamova29_29 [7]

Answer:

<em>e. concept testing.</em>

Explanation:

Concept testing is the method of determining the likely reaction of the consumer to a product idea prior to advertising.

The purpose of concept testing is to verify that a product idea is superior over competitive solutions to help consumers get a job done through a work-to-be-done lens.

We need to know what measures consumers use to assess the successful implementation of the work-to-be-done to make this decision.

The concept testing procedures succeed because such consumer measures are developed around them.Using this approach is the only idea test method and is an important step in our cycle of development, Outcome-Driven Development (ODI).

3 0
3 years ago
Crain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for U.S. consumers. The manu
Dovator [93]

Answer:

Crain Company's total taxes would decrease by $64,740

Explanation:

the income statement for the parent company:

total revenue $2,490,000

- COGS          ($1,490,000)

<u>- S&A costs     ($390,000)</u>

EBIT                   $610,000

<u>- taxes              ($201,300)</u>

net income       $408,700

the income statement for the subsidiary:

total revenue $3,490,000

- COGS          ($2,490,000)

<u>- S&A costs      ($199,000)</u>

EBIT                   $801,000

<u>- taxes              ($368,460)</u>

net income       $432,540

total taxes paid = $201,300 + $368,460 = $569,760

if the parent company increases the selling price by 20%

the income statement for the parent company:

total revenue $2,988,000

- COGS          ($1,490,000)

<u>- S&A costs     ($390,000)</u>

EBIT                 $1,108,000

<u>- taxes              ($365,640)</u>

net income       $742,360

the income statement for the subsidiary:

total revenue $3,490,000

- COGS          ($2,988,000)

<u>- S&A costs       ($199,000)</u>

EBIT                   $303,000

<u>- taxes               ($139,380)</u>

net income        $163,620

total taxes paid = $365,640 + $139,380 = $505,020

the parent company's total taxes would decrease by = $569,760 - 505,020 = $64,740

5 0
3 years ago
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $8
Georgia [21]

Answer:

A debit to Unearned Rent and a credit to Rent Earned for $2,400

Explanation:

When cash is collected in advance for revenue from lease, the revenue will not be recorded as revenue until the lease service has been performed. Hence the cash collected in advance will be recorded as

Debit Cash  $6,400

Credit Deferred revenue  $6,400

Being cash collected on October 1 for lease to run for 8 months.

Between October 1 and December 31 is 3 months.

Hence, amount earned

= $800 × 3

= $2,400

To recognize this amount, Debit Unearned/Deferred revenue, credit revenue with the amount earned.

4 0
3 years ago
What problem makes public goods necessary?
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There are several problems that make public goods necessary, but the primary one is that without access to certain public goods and services like parks and schools, poor people would have practically no chance at advancement. 
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3 years ago
Carson Company began operations on February 1, 2016, and experienced the following events during the year: 1. Earned $150,000 of
Nikolay [14]

Answer:

What is Carson Company's net realizable value of the accounts receivable at the end of 2016?  

Dr Accounts receivable $ 22,000

Explanation:

1. Earned $150,000 of revenue on account

Dr Accounts receivable $ 150,000

Cr Sales $ 150,000

2. Collected $125,000 cash from accounts receivable  

Dr CASH $ 125,000

Cr Accounts receivable $ 125,000

Adjusted the accounting records to reflect management's belief that $3,000 of the accounts receivable balance would be uncollectible.  

Dr Bad Debt Expense $ 3,000

Cr Allowance for Uncollectible Accounts $ 3,000

What is Carson Company's net realizable value of the accounts receivable at the end of 2016?  

Dr Accounts receivable $ 22.000

The net realizable value of the accounts have to consider the estimated value that would be uncollectible, this case :

$150,000  Credit Sales

-$125,000  Cash from Accounts Receivable

 -$ 3,000  Accounts Receivable balance that would be uncollectible.  

===========

 $ 22,000 ==> Net realizable value of the accounts receivable

6 0
3 years ago
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