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2 years ago

Aggie Company is going to trade-in an old piece of equipment for new equipment.

Business

1 answer:

Setler79 [48]2 years ago

6 0

Answer:

Option C,$2,997 is the correct answer.

Explanation:

The amount to be paid in quarterly installments over a 5 year period is the list price less the down payment and the trade-in value of $10,000 as shown below.

list price $65,000

down-payment ($6,000)

trade-in-value ($10,000)

balance $49,000

The quarterly installment can be computed using the pmt formula in excel as follows:

=pmt(rate,nper,-pv,fv)

rate is the quarterly interest rate of 8%/4=2%

nper is the number of quarterly installments which is 4*5=20

pv is the present value of the amount to be paid in installments which is $49000

fv is the future value ,it is not unknown,hence it is zero

=pmt(2%,20,-49,000,0)

=$2,996.68

approx.$$2,997

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Ms. Langley is 30 years old and has begun a retirement plan that permits he r to place monthly amounts of $400 into a retirement

elena-14-01-66 [18.8K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Ms. Langley is 30 years old and has begun a retirement plan that permits her to place monthly amounts of $400 into a retirement vehicle, beginning one month from now, for 30 consecutive years.

When Ms. Langley reaches her retirement at age 60, she expects to live for 25 more years. The interest rate is 6%.

First, we need to calculate the amount of money that she will have at age 60, using the following formula.

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

A= monthly deposit= 400

n= 30*12= 360

i= 0.06/12= 0.005

FV= {400[(1.005^360)-1]}/0.005= $401,806.02

Months= 25years*12= 300 months

Monthly= 401,806.02/300= $1,339.35

4 0

2 years ago

Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $270,000. During June

nika2105 [10]

Answer and Explanation:

The preparation of flexible budget report is shown below:-

Xion CO.

Flexible budget report

Flexible budget Actual results Variances Favorable/

Unfavorable

Sales $864,000 $885,000 $21,000 Favorable

(10,800 × $80)

(-) Variable

cost $378,000 $351,000 $27,000 Favorable

(10,800 × $35)

Contribution $486,000 $534,000 $48,000 Favorable

(-) Fixed cost $270,000 $285,000 $15,000 Unfavorable

Net income $216,000 $249,000 $33,000 Favorable

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2 years ago

A ten-year, inflation-indexed bond has a par value of $10,000 and annual coupon rate of 5 percent. During the first six months s

Anvisha [2.4K]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Par value of bond = $10,000

Coupon rate Annual = 5%

So, Coupon rate semi annual = 2.5%

Inflation rate semi annual = 2%

So, we can calculate the coupon payment for six months by using following formula:

New par value of bonds after inflation = $10,000 + ( $10,000 × 2% ) = $10,200

So, Coupon payment = New par value × Coupon rate semi annual

= $10,200 × 2.5%

= $255

5 0

2 years ago

Peak & vale accountants provides other firms with accounting services. questions of what is ethical involve the extent to wh

SIZIF [17.4K]

The Peak & Vale Accountants provides or offers other firms and institutions with accounting services. Questions of what is ethical involve the extent to which the Peak & Vale has an ethical duty beyond those duties mandated by the law.

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2 years ago

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, a

In-s [12.5K]

Answer:

1. Computation of Net Operating Cash flow

Particulars Year 1 $ Year 2 $

<u>Net Operating Cash flow</u>

Cash collected from clients $167,000 $197,000

Less: Cash Disbursement

Salaries $97,000 $107,000

Utilities $33,500 $47,000

Purchase of insurance policies $62,100 $0

Net Operating Cash Flow -$25,600 $43,000

Therefore, net operating cash flow for year 1 is -$25,600 and year 2 is $43,000.

2. Income Statement for each year

Particulars Year 1 $ Year 2 $

Revenue $184,000 $234,000

Expenses:

Salaries $97,000 $107,000

Utilities $38,500 $42,000

Insurance Policy($62, 100/3) $20,700 $20,700

Net Income $27,800 $64,300

Working:

Utilities for year 2 = $33,500 + $47,000 - $38,500 = $42,000

3. Computation of account receivables

Particulars Year 1 $ Year 2 $

Account receivables beginning balance $0 $17,000

Add: Account billed to client $184,000 $234,000

Less: Cash collections from clients $167,000 $197,000

Ending account receivables $17,000 $54,000

Therefore, net amount of account receivables for year 1 is $17,000 and year 2 is $54,000

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2 years ago