2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.
Inventory per the books is $483,172. Your inventory turnover is one times per year and the industry standard is 1.5 times per year. Per our conversations over the year I have suggested that you should evaluate the inventory and those items that still have in inventory for more that 24 months should be either at a very little profit or at least at your cost. The sale of these items can then either reinvest into items that will turnover or to reduce debt. The accounts payable at the Fiscal Year End increased by almost 200%.
You cannot tell your landlord that you are only going to pay 70% of rent this month because housing cost is not negotiable. The same is true with healthcare and education. Insurance and pension can be adjusted but it takes a lot of paperwork and most time you have to wait for the enrollment period to adjust the insurance. References Careeroverview.com (2013) Automotive Service and Mechanic Salary, Earnings and Wage Information. Retrieved from http://www.careeroverview.com/automotive-mechanic-salaries.html Erhard BMW of Bloomfield hills (2013) Automotive Technician – MICHIGAN
How many years will it take for $197,000 to grow to be $554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest? 8. At what quoted annual interest rate must $134,000 be invested so that it will grow to be $459,000 in 15 years if interest is compounded weekly? 9. An annuity pays $24,000 per year for 11 years (first payment one year from today).
Martinez uses the effective-interest method of amortizing bond premium. At the end of the first year, Martinez should report unamortized bond premium of: 1. Question: : (TCO C) Sisco Co. purchased a patent from Thornton Co. for $180,000 on July 1, 2007. Sisco amortizes the patent over a period of 10 years. Expenditures of $92,000 for successful litigation in defense of the patent were paid on July 1, 2011.
Law and Analysis The taxpayer relief act of 1997 exempted from taxation the profits on the sale of a personal residence of up to $500,000 for married couples filing jointly and $250,000 for singles. This exemption applies to residences the taxpayer(s) lived in for at least two years over the last five. Taxpayers can only claim the exemption once every two years Under § 1.121-1 Exclusion of gain from sale of principle residence of the Internal Revenue Code, the sale of the home of Mr. Junkiewicz and his wife in 2013 is not a taxable transaction as
Financial Planning By Hilary B Gross Hyacinth Irons Algebra with Applications May 29, 2013 Throughout our marriage, my husband and I, with our ever-growing family, have lived in Georgia twice, South Carolina, Texas and Virginia. We weren’t able to buy a home anywhere because we never knew if we would be in one spot for more than two years. It is hard to find and keep a job because of the constant moving, not to mention that when we would have to pay day care expenses from three to four children. It would have eaten up any paycheck I earned and then some, so the budget has always been tight. Then, five years ago, we had a run in with fate.
(2) Reduce the amount of our electric and gas bill by 7% within the next year. (3) Start a recycling program at home by separating recyclable items from our regular trash each week. Specific Action Steps First Goal: Currently, my husband and I drive approximately 250 miles per week. This includes getting to work and back each day, going to the shopping malls, and just going out for a drive every now and then. I cannot change the distance between my house and my job, so I cannot make very much concession there.
The net cash inflow and cash outflow are calculated using sales and production figures for the next 8 years. The unit cost from the first year is £0.89 which is the cost per mashing without depreciation and divided by 13,000 bottles. From this information provided, the cost will increase by 3.5% and also the selling price will increase by 4% every year (reference 4). These figures are based on the current rate inflation of 4% which is shown in appendix 9 The capital allowances are worked out on cased of 20% (Reference 5) and the annual investment allowance is £100,000 is available (Reference 6) in the first year which is restricted to £87,359. This figure is substrated from the acquisition giving a result of £332,641 which is the written down value.
* $18 M purchase price * $1.8 M selling price * Investment in PPE (2007) was $16 M * Investment in PPE (2008) was $2 M * $4 M in Sales (2008) * $10 M in Sales (2009-2013) * COGS: 75% of Sales * SG&A: 5% of Sales * $2 M Operating Savings (2008) * $3.5 M Operating Savings (2009-2013) * Depreciation was on a straight-line basis for 6 years beginning in 2008 * $18 M / 6 years = $3 M * 40% tax rate * NWC: 10% of Sales * Salvage value was zero * The FCF per year was determined using the following: * Net Income + Depreciation Expense - ∆ Net Working Capital + Investment in PPE After generating the FCF for each year, I had to solve for NPV and IRR to value the investment. I calculated 2 NPVs—one using Excel’s NPV equation and the other by discounting each year’s FCF using the WACC I calculated earlier. Both methods gave me negative NPVs. * Excel NPV: ($489,344.33) * Discounted FCF NPV: ($538,153.89) Lastly, I used Excel to