2. On January 1, 2017, Gaskin Cabinetry Company purchases $300,000 of equipment by paying $50,000 in cash and
signing a 10-year mortgage note at 13% for the balance. Gaskin will make yearly payments of $46,072. The
amortization schedule for the first five payments is provided.
01/01/2017
01/01/2018
01/01/2019
01/01/2020
01/01/2021
01/01/2022
Beginning Principal Interest Total Ending
Balance Payment Expense Payment Balance
$250,000
$250,000 $13,572 $32,500 $46,072 236,428
236,428 15,336 30,736 46,072 221,092
221,092 17,330 28,742 46,072 203,762
203,762 19,583 26,489
46,072 184,179
184,179 22,129 23,943 46,072 162,050
Prepare the journal entry for the purchase of the equipment and for the January 1, 2018 mortgage payment.
Answer.

2. On January 1, 2017, Gaskin Cabinetry Company Purchases $300,000 Of Equipment By Paying $50,000 In

Answers

Answer 1

Answer:

(a) Debit Equipment for $300,000; Credit Cash for $50,000; and Credit Mortgage Note for $250,000

(b) Debit Mortgage Note for $13,572; Deebit Interest expense - Mortgage for $32,500; Credit Cash for $46,072.

Explanation:

(a) Prepare the journal entry for the purchase of the equipment.

The journal entries will look as follows:

Date              Accounts Name and Explanation     Debit ($)      Credit ($)  

1 Jan 2017     Equipment                                           300,000

                       Cash                                                                         50,000

                       Mortgage Note                                                      250,000

                     (To record purchase of the equipment.)                                  

(b) Prepare the journal entry for the January 1, 2018 mortgage payment.

The journal entries will look as follows:

Date                Accounts Name and Explanation       Debit ($)     Credit ($)

1 Jan 2018       Mortgage Note                                      13,572

                         Interest expense - Mortgage              32,500

                         Cash                                                                           46,072

                       (To record mortgage and interest payments.)                          


Related Questions

1) Why is the healthcare industry perceived as being less proactive than other industries in the area of computerized information systems? How can this perception be changed? 2) How are the concepts of EDI, e-commerce, and e-health interrelated? 3) What is driving the increased use of computerized care protocols in healthcare? 4) What is public key infrastructure, and why is it receiving so much attention within the healthcare industry? 5) Why is strategic planning for information systems important to organizations in today’s healthcare environment? What risks are associated with not having an IS plan? 6) What is the relationship between strategic information systems planning and the systems development life cycle?

Answers

Answer:

All the answers to questions are given below:-

Explanation:

Answer1):- Its healthcare sector involves providing quality healthcare services to consumers and patients, invests throughout the production of new tools and innovations that promote medical services and provide opportunities to the community area. It makes computerized information system development to be non-core competency for the healthcare industry. It makes the healthcare industry less proactive in its development, because the quality of healthcare services may not improve. The computerized information system, however, offers transparency, electronic reporting, and data exchange that typically benefits patients or customers rather than service providers. It also makes the industry less competitive but the trend is evolving and it is also being implemented proactively by organizations.

You can shift your view with the following initiatives: -

Bypassing a regulation to make computerized information system compulsory for the organizations in the industry within their organization. Establish a centralized information system and make another organization to connect it to the centralized system that the government agencies will monitor with their data. Encouraging the industry to also provide facilities in remote areas that require the computerized information system to process data rapidly. Spreading awareness and convincing organizations about the importance of transparency, ethical behavior, safe and rapid information processing through the information system.

Answer2):- EDI, e-commerce, and e-health definitions are interrelated, as explained below:-

Together this electronic information focuses on business transactions. The numerical research can be carried out by means of EDI, e-commerce, and e-health. So that this helps to grasp the analysis of the possibilities. The creation of software can be done which leads the company to save its data and information through EDI, e-commerce, and e-health. Technology and innovation could well impact through to the achievement of EDI, e-commerce, and e-health integration.

Answer3):-  Increased use of computerized health-care protocols is:-

Precision and accuracy:-The computer-based protocol is better than human and manual work because it does the work with the necessary accuracy (the right solution) and consistency (the same result every time). This means that the treatments for every patient seeking treatment are the same. The facility will begin work on six sigma levels early. Doing the right thing at right time, every time:- Since devices that are backed up by computers and associated protocol have an attached server, they can produce a lot of customer-related data, thereby helping to have the best solution at all times. No human error:- Computer-based systems can function without human interference hence the human error is not involved. Since this idiosyncratic risk is now minimized the process waste will be reduced and the efficiency will be increased. Continuous control mechanism:- The computer-based protocols can track the patient's progress in a better way and can intimate the caregiver to take appropriate action if and when necessary. This ensures that quality treatment is provided. The lower cost involved:- Initially, computer-based protocols have to be installed and thus have a fixed one-time cost, unlike monthly care costs such as carers' salaries.

Answer4):- It's the public key infrastructure that is a structure used only to create, store, and distribute certificate authority to confirm that a particular biometric system belongs to a specific entity.

Healthcare providers often need medicine and direct information about health. Medical conditions among patients and families are often a cause of pride anxiety. To provide outstanding patient service, medical service professionals must always see their clients as individual beings.

Answer5):- Information systems are important in today's world for any organization. This makes the work quick, unified, and straightforward, allowing efficient execution of the tasks and achieving the goals. Similarly, there are many roles in a health-care organization that require the help of a framework for string information systems.  

Failure to have an IS plan can result in errors or complete implementation failure of an IS network. The IS forum is useless unless properly understood and implemented. Therefore the tasks performed by the healthcare environment information system can only be effectively performed if it has a plan based on it.

Answer6):- Strategic Information System is an information system designed to ensure the seamless flow of information between the different entities of an organization. This offers the other companies a profitable Adventure.

The systems development life cycle (SDLC), is used to model or include a technical and non-technical structure for providing a quality program that meets or exceeds market expectations.

Which of these is not an example of good practice when differentiating phonological awareness instruction?


a.

Increasing the intensity of instruction by teaching in smaller group sizes.


b.

Expecting all children to be able to produce rhyming words at the same time of the year.


c.

Increasing the intensity of instruction by giving individual children more opportunities to respond.


d.

Supporting children's understanding of an activity by using visual supports.

Answers

The option that is not an example of good practice when differentiating phonological awareness instruction is (b) Expecting all children to be able to produce rhyming words at the same time of the year.

What is good practice?

Recognizing that children learn at various speeds and have varied degrees of preparedness is a key component of good practice in differentiating phonological awareness training. It is unrealistic to anticipate that all kids will develop at the same rate.

Each child's unique requirements and talents are taken into account while differentiating instruction. Therefore, it is inconsistent with the ideas of differentiation to expect all kids to be able to come up with rhymes at the same time of the year.

Therefore the correct option is b.

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. The 14th amendment outlines the path for citizenship in the United States. What are the ways you can be a citizen in this country? (3 points)
*
3 points
completing the naturalization process
immigrating from a different country
Being born on American soil
Being a natural-born child of American citizens
knowing all 50 state capitals
saying the pledge of allegiance

Answers

The 14th Amendment outlines the path to citizenship in the United StatesSome the ways you can be a citizen in this country is

completing the naturalization processBeing born on American soilBeing a natural-born child of American citizens

The United States Constitution's 14th Amendment was approved in 1868. It was passed in response to the post-Civil War citizenship debate involving former slaves.

Being a natural-born citizen of the United States means that you automatically became one when you were born to parents who were both citizens of the country. Being born on american Soil will also give citizenship.

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Duality and interpretation of dual variables

Answers

In the event that the base issue is an expansion issue, the double issue is a minimization issue as well as the other way around.

What is Duality?

By and large, the duality hypothesis tends to itself to investigate of the association between two related straight programming issues, where one of them, the base, is an expansion issue and the other, the double, is a minimization issue.

Duality of dual variables

Duality gives a ton of computational benefit in an issue with a lesser number of factors and a huge number of imperatives.

Interpretation of dual variables

The duality includes an exceptional connection between an LP issue and another, the two of which include similar unique information.

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The question is incomplete, Complete question probably will be:

Explain in brief the event of Duality and interpretation of dual variables.

Selected financial data for Amberjack Corporation follows.

Selected financial data for Amberjack Corporation follows.

Answers

Financial Data includes all market and financial data, price quotes, news, analyst predictions, study findings, signals, graphs, and other data and information made available through the Trading Platform.

Decimal place definition

A decimal number is one with a whole number and a fractional component that are separated by a point. Examples include 3.5, 6.79, 78.32, etc. The decimal point separates the whole number 42 from its fractional component in the above illustration. Forty Two Point Eight Five is how it is written verbally.

The ones place is the decimal place that is one after the decimal point. The tenths place is located one place after the decimal point. To determine where the decimal is, keep an eye on the 9

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All slides in a presentation must use the same transition. True or False?

Answers

It is false, different transitions are better.

Explain two ways that artists can make money from their music. (4 marks)

Answers

Answer:

Look at explanation.

Explanation:

If they make music at guitar piano and harmonium then their music will be best .

They can earn money if they have soft voice with nice tune of music.

1. They could do lessons and have people pay 2. They could make records and sell them with a record label

A contractor purchased a dozer for $180,000 and anticipates using it for nine years. The salvage value of the dozer at the end of the nine years is estimated to be $27,000. Using the straight-line method of depreciation accounting, determine the book value of the dozer at the end of each of the nine years.

Answers

The salvage value of the dozer at the end of year 1 is $163,000

The salvage value of the dozer at the end of year 2 is $146,000

The salvage value of the dozer at the end of year 3 is  $129,000

The salvage value of the dozer at the end of year 4 is  $112,000

The salvage value of the dozer at the end of year 5 is 95,000

The salvage value of the dozer at the end of year 6 is 78,000

The salvage value of the dozer at the end of year 7 is 61,000

The salvage value of the dozer at the end of year 8 is $44,000

The salvage value of the dozer at the end of year 9 is $27,000.

What is the book value of the dozer?

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

(180,000 - $27,000) / 9 = $17,000

Book value = cost of the asset - depreciation expense

Year 1 = $180,000 - $17,000 = $163,000Year 2 = $163,000 - $17,000 = $146,000Year 3 = $146,000   - $17,000 = $129,000Year 4 =  $129,000 - $17,000 = $112,000Year 5 =   $112,000 - $17,000 = 95,000Year 6 = 95,000  - $17,000 = $78,000Year 7 = $78,000 - $17,000 = $61,000Year 8 =  $61,000  - $17,000 = $44,000Year 9 =   $44,000- $17,000 = $27,000

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___________consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.

Answers

Marketing analytics consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.

Marketing is the process of discovering, developing, and delivering value to satisfy a target market's needs for products and services, possibly including the choice of a target market's target audience. For the purpose of generating, conveying, delivering, and trading offerings that are valuable to customers, clients, partners, and society at large, marketing refers to a variety of activities, institutions, and procedures. Creating interest in a company's goods or services is the main goal of marketing. This is accomplished through market study, research, and consideration of the interests of a company's ideal clients, then luring them in with content that would be instructive and beneficial to the target audience. Discovering the needs of the consumer and fulfilling those demands is the process of marketing.

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Since you are selling friendship bracelets online, the Internet service provider (ISP) is your agent.
True
False

Answers

Answer:

false

Explanation:

the internet service provider is a service for internet not an agency

Answer:

true on edgin

Explanation:


Recommended methods to protect yourself from identity
theft and fraud include____

Answers

A. Placing a credit freeze with the credit bureaus is the correct answer.

Answer:

A. Placing a credit freeze with the credit bureaus is the correct answer.

Explanation:

mark please

true or false Deflation can be differentiated from disinflation in that the deflation rate is always negative while the disinflation rate is always positive.

Answers

Answer:

True

Explanation:

The deflation arise when there is a decline in the general level of the price in the overall economy. It could be said as a negative rate of inflation

On the other hand, the disinflation arise when the inflation rate is the decline over time but it would remain positive

Therefore the given statement is true

hence, the same is to be considered

Businesses collect
information on where people live, what they buy, and how they spend their time.

Answers

Businesses collect demographic information on where people live, what they buy, and how they spend their time. Businesses collect demographic information on where people live, what they buy, and how they spend their time.

what is the marketing?

Answers

Explanation:

the action or business of promoting and selling products or services, including market research and advertising.

Discuss the impact of Vision 2030 on the unemployment rate in the kingdom. How Vision 2030 has helped in creating new employment opportunities

Answers

The KSA Vision 2030 aims to implement some strategies to help reduce the kingdom's unemployment rates, which have been exacerbated by the COVID-19 pandemic.

One method will be to develop the local labor force by encouraging vocational training and entrepreneurship.

What was the Vision 2030 expected to perform?

The blueprint intends to create a working database for students by the end of the target period, from which private local sector companies can source qualified graduates. Another approach to addressing unemployment is to overhaul the educational system in order to provide young men and women with the necessary knowledge and skills for future jobs. As a result, the educational system will be more responsive to the needs of the labor market.

Another strategy for combating unemployment is known as 'Saudization,' which encourages and promotes the local workforce. The goal of this strategy is to increase the employment of Saudi nationals. These are some of the effects of the KSA Vision 2030 on unemployment.

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NPV and maximum return A firm can purchase new equipment for a ​$ 17,000 initial investment. The equipment generates an annual​ after-tax cash inflow of ​$ 4,000 for 7 years. a. Determine the net present value​ (NPV​) of the​ asset, assuming that the firm has a cost of capital of 13​%. Is the project​ acceptable? b. Determine the maximum required rate of return that the firm can have and still accept the asset. a. The net present value​ (NPV) of the new equipment is ​$ 690.44. ​(Round to the nearest​ cent.) Part 2 Based on its​ NPV, is the new equipment​ acceptable? ​ (Select the best answer​ below.) Yes Your answer is correct. No Part 3 b. The maximum required rate of return the firm can have and still accept the new equipment is enter your response here​%. ​(Round to two decimal​ places.)

Answers

The net present value​ (NPV) of the new equipment is ​$ 690.44. ​.

Based on the NPV, the project is acceptable.

The maximum required rate of return the firm can have is 14.29%.

What is the NPV?

Net present value is the present value of after-tax cash flows from an investment less the amount invested. Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable

Net present value = -17,000 + 4000 / 1.13 + 4000 / 1.13² + 4000 / 1.13³ + 4000 / 1.13^4 + 4000 / 1.13^5 + 4000 / 1.13^6 + 4000 / 1.13^7 = $690.44

The maximum required rate of return is the internal rate of return. Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

IRR = 14.29%

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Give us an example of a marketing brief you admired for a recent marketing project or program? Elaboratively discuss importance of 4 P's in the same

Answers

Product, pricing, place, and promotion make up the four Ps. They serve as an illustration of a "marketing mix," or the collection of tools and techniques utilized by marketers to accomplish their marketing goals.

A website is an illustration of a marketing project. The website could be a component of a marketing effort that conveys a consistent message for a new product launch. A press release, a social media post, and an email could all be additional campaign projects.

The marketing mix, which includes the four Ps of marketing (product, pricing, place, and promotion), is frequently used. These are the main factors that go into creating and promoting a good or service, and they interact heavily.

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a.
Accounting systems that must follow GAAP.
b.
External parties for whom financial accounting
reports are prepared.
C
The role managers play when they are monitoring
day-to-day operations and keeping the company on
track.
d.
Internal decision makers.

Answers

a. Accounting systems that must follow GAAP must adhere to generally accepted accounting principles (GAAP) in order to produce accurate financial reports. These principles include standards for the recognition, measurement, and disclosure of financial transactions. b. External parties for whom financial accounting reports are prepared include investors, creditors, regulators, and other stakeholders. These parties rely on the accuracy of the financial data to make informed decisions. c. The role managers play when they are monitoring day-to-day operations and keeping the company on track is to ensure that the company is meeting its goals and objectives. This includes monitoring performance, analyzing data, creating budgets, and developing strategies. d. Internal decision makers are those within the company who use financial information to make decisions. This includes executives, managers, and other personnel who use financial data to make decisions about the future of the company.

You agree to lease a car for 5 years at $300 per month. You are not required to pay any money up front or at the end of your agreement. If your opportunity cost of capital is 0.5% per month, what is the cost of the lease?

Answers

To calculate the cost of the lease, we need to consider the opportunity cost of capital over the 5-year period.

Given:

Lease term: 5 years

Monthly lease payment: $300

The opportunity cost of capital: 0.5% per month

First, let's calculate the total amount paid over the lease term:

Total payment = Monthly payment * Number of months

Total payment = $300 * (12 months/year * 5 years)

Total payment = $300 * 60

Total payment = $18,000

To calculate the cost of the lease, we need to determine the present value of the total payment at the opportunity cost of capital rate.

PV = FV / (1 + r)^n

Where:

PV = Present Value (cost of the lease)

FV = Future Value (total payment)

r = Opportunity cost of capital per period

n = Number of periods

Let's plug in the values:

PV = $18,000 / (1 + 0.005)^60

Using a calculator, we find:

PV ≈ $16,719.07

Therefore, the cost of the lease, considering the opportunity cost of capital, is approximately $16,719.07.

Discussion Questions
If someone owes you money, and that person or business goes into bankruptcy, why
would it make a difference if you were a secured or unsecured creditor?
>
o First define secured and unsecured creditor then explain.

Answers


Hi how was your day mine was fine

Why is it important to stick to a study schedule even if you are caught up with everything? a It guarantees higher grades on your exams. b It helps to create good study habits. c It is time set aside so you can take a break from watching television. d It gives you more time to play your favorite game without interruption.

Answers

Answer:

Explanation:

B - It helps to create good study habits.

STEP 5 Use practical examples from BRICK 'n TILE to differentiate between short and long-run costs. (10) TOTAL: [50]​

Answers

BRICK 'n TILE, a hypothetical company, can differentiate between short-run and long-run costs by considering examples such as immediate production costs (short-run) and investment in new production facilities (long-run).

Short-run costs refer to expenses that a company incurs in the immediate period, where some factors of production are fixed and cannot be easily adjusted. In the case of BRICK 'n TILE, short-run costs could include the costs of raw materials, labor, utilities, and maintenance for their existing production facilities. These costs are essential for the day-to-day operations and can be directly linked to the current level of production.

On the other hand, long-run costs encompass expenses that can be adjusted in the long term to adapt to changes in production levels and scale. For BRICK 'n TILE, an example of a long-run cost would be the investment in new production facilities or equipment. If the company decides to expand its operations or increase its capacity, they may need to construct a new manufacturing plant or purchase advanced machinery. These costs are incurred over an extended period and are associated with strategic decisions that affect the company's production capabilities in the long run.

Differentiating between short-run and long-run costs is crucial for effective financial planning and decision-making. Short-run costs help determine the immediate profitability of the company's operations, while long-run costs factor in the potential growth and expansion strategies. Understanding the distinction between these cost categories allows BRICK 'n TILE to make informed decisions regarding short-term production levels and long-term investment in infrastructure and technology.

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Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and Gamma, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by Roland for return touchups and refinishes after the homeowner occupies the home. Roland paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, Roland generates about one-third of its total revenues and gross profits from each of the three builders. Roland has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered:Major refinishes Hours on job $70
Touchups Number of visits $180
Communication Number of calls $20
Builder Major Refinishes Touchups Communication
Alpha 80 150 360
Beta 35 110 205
Gamma 42 115 190
(a) Assuming that each of the three customers produces gross profits of $100,000, calculate the profitability from each builder after taking into account the support activity required for each builder.

Alpha

Beta

Gamma

Answers

Answer: See attachment

Explanation:

Based on the information provided, the question has been solved and attached.

Profitability for Alpha:

Revenue = $100,000

Cost = $39800

Profit = $60200

Profitability for Beta:

Revenue = $100,000

Cost = $26350

Profit = $73650

Profitability for Gamma:

Revenue = $100,000

Cost = $27440

Profit = $72560

Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and

Basics Ltd reported current liabilities of R3 000 and a quick ratio of 1,2. The company has current assets of R6 000. If the company reports the cost of goods sold at R4 000 for the given year, what is the inventory turnover?

Answers

The inventory turnover for the given year is 3.33, calculated by dividing the cost of goods sold by the average inventory of R1200.

To calculate the inventory turnover, we first need to determine the inventory value. We can use the quick ratio formula to find the inventory amount.Quick ratio = (Current assets - Inventory) / Current liabilitiesRearranging the formula, we have: Inventory = Current assets - Quick ratio * Current liabilitiesSubstituting the given values, we have:Inventory = R6000 - 1.2 * R3000Inventory = R6000 - R3600Inventory = R2400The inventory value is R2400. To calculate the inventory turnover, we divide the cost of goods sold by the average inventory. In this case, the cost of goods sold is given as R4000. The average inventory is the sum of the beginning and ending inventory divided by 2. Since we don't have information about the beginning and ending inventory, we can assume they are equal, resulting in an average inventory of R2400/2 = R1200.Inventory turnover = Cost of goods sold / Average inventoryInventory turnover = R4000 / R1200Inventory turnover = 3.33Therefore, the inventory turnover for the given year is 3.33.

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The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with: Multiple Choice A debit of $7600 to Office Equipment, a debit of $4.200 to Accounts Receiveble, and a credit of $3.400 tó Accounts Payoble. A debit of $7600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts ReceivableA debit of $7600 to Office A debit of $3.400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7600 to Cffice Equipment A debit of $7600 to Office Equipment, a credit of $4.200 to Cash, and a credit of $3,400 to Accounts Payable

Answers

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with :  A debit of $7600 to Office Equipment, a credit of $4.200 to Cash, and a credit of $3,400 to Accounts Payable. Thus, option D is the correct answer.

What is office equipment?

Office equipment is a fixed asset account that stores the costs of purchasing office equipment. Because the asset costs recorded in this account are expected to be held for more than a year, it is classified as a long-term asset account.

For the purchase of office equipment, the Office equipment account is debited with the cost of the asset, cash account is credited with the amount of immediate payment ,and  Accounts payable is credited by the amount due.

Therefore, A debit of $7600 to Office Equipment, a credit of $4.200 to Cash, and a credit of $3,400 to Accounts Payable is the correct answer.

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help me with this ...im stuck in this

help me with this ...im stuck in this

Answers

Option A is correct. The yield to maturity is given as 10.13%

How to solve for the yield to maturity

The formula to solver this is given as:

PV = C * (1 - (1 + r/2)^(-2n)) / (r/2) + F / (1 + r/2)^(2n)

Definition of terms in the formula

PV = present value (price) of the bond

C = coupon payment

r = yield to maturity (semi-annual yield)

n = number of years to maturity

F = face value of the bond

The information from the question are:

Current yield = 8% (semi-annual yield = 8%/2 = 4%)

Maturity value (F) = $1,000

Years to maturity (n) = 8

Coupon rate = 5% p.a. (semi-annual coupon rate = 5%/2 = 2.5%)

Coupon payment (C) = 2.5% * $1,000 = $25

Solve for PV

PV = $1,000 * 4% = $40

Then we would have

40 = $25 * (1 - (1 + r/2)^(-16)) / (r/2) + $1,000 / (1 + r/2)^(16)

Using RATE function in excel R = 5.065%.

Then YTM = (1 + 0.05065)^2 - 1 ≈ 0.1031 or

10.31%

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Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $120,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $835,000 per year. The fixed costs associated with this will be $204,000 per year, and variable costs will amount to 20 percent of sales. The equipment necessary for production of the Potato Pet will cost $865,000 and will be depreciated in a straight-line manner for the 4 years of the product life (as with all fads, it is felt the sales will end quickly). This is the only initial cost for the production. Pappy’s has a tax rate of 23 percent and a required return of 13 percent. Calculate the payback period, NPV, and IRR. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your IRR answer as a percent.)

Answers

Answer:

NPV: $84,659.21

Payback Period: less than 1 year

IRR: 32.17%

Explanation:

To calculate the payback period, we need to find out how long it will take to recover the initial investment of $120,000. We will do this by calculating the annual cash flows until the initial investment is fully recovered.

First, let's calculate the annual cash flows for each year:

Year 0:

-Initial investment: -$120,000

Year 1:

-Sales: $835,000

-Variable costs: $167,000 (20% of sales)

-Fixed costs: $204,000

-Depreciation: $216,250 ($865,000 / 4 years)

-EBT (Earnings before taxes): $247,750 ($835,000 - $167,000 - $204,000 - $216,250)

-Taxes: $56,972 (23% of $247,750)

-Net Income: $190,778 ($247,750 - $56,972)

-Annual Cash Flow: $311,028 ($190,778 + $120,000)

Year 2:

-Sales: $835,000

-Variable costs: $167,000

-Fixed costs: $204,000

-Depreciation: $216,250

-EBT: $247,750

-Taxes: $56,972

-Net Income: $190,778

-Annual Cash Flow: $311,028

Year 3:

-Sales: $835,000

-Variable costs: $167,000

-Fixed costs: $204,000

-Depreciation: $216,250

-EBT: $247,750

-Taxes: $56,972

-Net Income: $190,778

-Annual Cash Flow: $311,028

Year 4:

-Sales: $835,000

-Variable costs: $167,000

-Fixed costs: $204,000

-Depreciation: $216,250

-EBT: $247,750

-Taxes: $56,972

-Net Income: $190,778

-Annual Cash Flow: $311,028

The total cash inflow for the four years is $1,244,112 ($311,028 x 4 years). The payback period is the time it takes to recover the initial investment, which in this case is less than one year (around 0.39 years). Therefore, the payback period for this project is less than one year.

To calculate the NPV, we need to discount the annual cash flows to their present value using the required rate of return of 13%. The formula for NPV is:

NPV = -Initial Investment + (CF1 / (1+r)^1) + (CF2 / (1+r)^2) + ... + (CFn / (1+r)^n)

where CF is the annual cash flow, r is the required rate of return, and n is the number of years.

Substituting the values, we get:

NPV = -$120,000 + ($311,028 / 1.13^1) + ($311,028 / 1.13^2) + ($311,028 / 1.13^3) + ($311,028 / 1.13^4)

NPV = $84,659.21

Therefore, the NPV of the project is $84,659.21.

To calculate the IRR, we need to find the discount rate that makes the NPV equal to zero. We can do this using trial and error or by using the IRR function in Excel. Using Excel, we can calculate the IRR as 32.17%.

With an NPV of $304,883.82 and an IRR of around 19.47%, the Potato Pet project has a payback period of roughly 2.75 years. These findings imply that Pappy's Potato should take the project into consideration as it is anticipated to provide a profit.

What is the payback method and payback period?

The payback method calculates the amount of time needed to "payback" or repay the initial expenditure. The time it takes for an investment to create enough cash revenues to cover its associated financial outflow(s), usually expressed in years, is known as the payback period.

To calculate the payback period, we need to determine how long it will take for the project to generate enough cash inflows to recover the initial investment of $985,000 ($120,000 + $865,000).

we need to calculate the annual cash inflows:

Annual sales revenue = $835,000

Variable costs = 20% of sales = $167,000

Fixed costs = $204,000

Operating income before depreciation and taxes = $464,000 ($835,000 - $167,000 - $204,000)

Depreciation = $865,000 / 4 = $216,250

Taxable income = $247,750 ($464,000 - $216,250)

Taxes = $56,983 ($247,750 x 0.23)

Net income = $190,767 ($247,750 - $56,983)

Annual cash inflows = Net income + Depreciation = $407,017 ($190,767 + $216,250)

Now, we can calculate the payback period:

Year 1 cash inflows = $407,017

Cumulative cash inflows after Year 1 = $407,017

Year 2 cash inflows = $407,017

Cumulative cash inflows after Year 2 = $814,154

Year 3 cash inflows = $407,017

Cumulative cash inflows after Year 3 = $1,221,231

Year 4 cash inflows = $407,017

Cumulative cash inflows after Year 4 = $1,628,308

The payback period is between Year 3 and Year 4, as the cumulative cash inflows exceed the initial investment of $985,000 in Year 3 and total $1,221,231. The payback period is approximately 2.75 years (or 2 years and 9 months).

To calculate the NPV, we need to discount the annual cash inflows at the required rate of return of 13%.

Year 1 PV factor = 1 / (1 + 0.13)^1 = 0.885

Year 2 PV factor = 1 / (1 + 0.13)^2 = 0.783

Year 3 PV factor = 1 / (1 + 0.13)^3 = 0.693

Year 4 PV factor = 1 / (1 + 0.13)^4 = 0.613

NPV = ($407,017 x 0.885) + ($407,017 x 0.783) + ($407,017 x 0.693) + ($407,017 x 0.613) - $985,000

NPV = $304,883.82

The NPV is positive, which indicates that the project is expected to generate a return that exceeds the required return of 13%.

To calculate the IRR, we need to find the discount rate that results in an NPV of zero. We can use a financial calculator or Excel to do this. The IRR for this project is approximately 19.47%.

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Suppose that China is a small country of peanuts import, and the demand and supply of peanuts are as follows:

D=400-10P, S=50+5P,

The price of peanuts in the international market is set at USD 10. Please use figures and figures to illustrate the following problems:

(1) Under the free trade, China's peanuts production and import and export volume, the impact of free trade on domestic consumption and the welfare of manufacturers.

(2) China has imposed an quote limit of 200 units for peanuts import, the production and trade volume of domestic peanuts, and the welfare changes of consumers and manufacturers compared with free trade.

Answers

1. a. Under free trade, China's peanuts domestic production will be 100 units (50 + 5 x 10).

b. Under free trade, China's peanuts import will be 200 units (300 - 100).

c. Under free trade, China's peanuts export will be negative 200 units (100 - 300).

d. Free trade ensures that domestic consumption is met because domestic manufacturers will produce 100 units while the remaining 200 units demanded by consumers will be met through imports.

2. a. With a quota limit of 200 units for peanuts import, peanuts production will still be 100 units (50 + 5 x 10).

b. Under the quota limit, China's peanuts import will be 200 units (300 - 100) since internal production is not more than 100 units.

c. Under the quota limit, China's peanuts export will be zero units.

d. The quota limit will still ensure that domestic consumption is met because the quota of 200 units plus 100 units of internal production will meet domestic demand for 300 units.

What are Free Trade and Quota?

Free trade implies the absence of any government-imposed limits on imports and exports.  On the other hand, quota refers to the trade restriction imposed by governments.

Data and Calculations:

D = 400 - 10P

S = 50 + 5P

Where:

D = Demand

S = Domestic Supply

P = Price

Price = $10

a. The quantity demanded will be 300 units (400 - 10 x  10).

b. The quantity supplied (domestically) will be 100 units (50 + 5 x 10).

c. The import quantity will be 200 units (300 - 100).

c. Quota imposed on imports of peanuts = 200 units

Thus, there will be no changes in the welfare of consumers and manufacturers under the quota limit compared with free trade because the quota meets domestic demand.

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If Amelia would like to double her money in twelve years, how much interest does she need to earn O 12 percent O 16.6 percent O 6 percent 10 percent​

Answers

Out of the given answer choices, the interest rate that Amelia needs to earn to double her money in twelve years is 16.6 percent.

To find out how much interest Amelia needs to earn to double her money in twelve years, we need to use the compound interest formula.

This formula is used to determine the future value of an investment based on the principal, the interest rate, the number of compounding periods, and the time involved.
The formula is as follows: FV = PV x (1 + r/n)^(n*t)where FV = future value, PV = present value (the amount of money Amelia currently has), r = annual interest rate, n = number of times the interest is compounded per year, and t = time in years.

To double her money, Amelia needs to have a future value that is twice her present value. Therefore, we can set FV = 2PV and solve for r.

2PV = PV x (1 + r/n)^(n*t)Dividing both sides by PV, we get:2 = (1 + r/n)^(n*t)

Taking the natural logarithm of both sides, we get: ln(2) = ln[(1 + r/n)^(n*t)]

Using the power rule of logarithms, we can simplify the right side of the equation to ln(2) = (n*t) ln(1 + r/n)

Dividing both sides by (n*t), we get:ln(2) / (n*t) = ln(1 + r/n)

Finally, we can solve for r by raising both sides as the power of e: e^(ln(2) / (n*t)) = 1 + r/n

Subtracting 1 from both sides and multiplying by n, we get:r = n x (e^(ln(2) / (n*t)) - 1)

Plugging in the values given, we get:r = n x (e^(ln(2) / (n*12)) - 1)

We don't know the value of n, so we can try each of the answer choices to see which one gives us a value of r that works.

Using a financial calculator or a spreadsheet program like Excel, we can calculate the values of r for each interest rate.

Using 12 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0956 or 9.56 percent

Using 16.6 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.1407 or 14.07 percent

Using 6 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0488 or 4.88 percent

Using 10 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0794 or 7.94 percent

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What statement is true of SMART goals?

It only applies to short-term goals.

It refers to goals that you select as top priority.

They align your goals to the direction in which you want to go.

It only applies to long-term goals.​

Answers

They align your goals to the direction in which you want to go.

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