UNIT 4 Exam Review 1) You have purchased $70,000 worth of goods. The dealer is giving you terms of 3/10, n/60. You were billed on March 15 and given a loan rate of 6.5%. If you take out a loan to take advantage of the discount, how much do you really save by getting the loan and taking advantage of the discount, but still paying interest? Answer: Amount of discount = 70,000 * .03 = $2100.
• debit to Allowance for Doubtful Accounts for $3,300. Multiple Choice Question 182 The financial statements of the Melton Manufacturing Company reports net sales of $300,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days? • 60.8 • 96.1 • 36.5 • 48.7 Find the final exam answers here ACC 291 Final Exam Answers Multiple Choice Question 119 Stine Company purchased machinery with a list price of $64,000. They were given a 10% discount by the manufacturer.
2. On January 1, 2007, Fire wire Company acquired 40 percent of Browser Company's common stock. For this acquisition, Fire wire paid $45,000 above book value. The full differential was attributed to equipment with a remaining life of ten years and zero salvage value at the date of acquisition. During 2007 and 2008, Browser reported net income of $90,000 and $50,000 and paid dividends of $40,000 and $60,000, respectively.
Both monies pooled together after taxes add together the sum of £1626.56. With outgoings at £1140 and £1625 pooled together there is a difference of £405 which split between the two girls would be a total of £202.50. Using the online household equivalence calculator this compensates Praveena’s loss of income by 37%. Case study 2 Casper is in the process of paying for his holiday which will cost him £2000, he is considering what to do? If Casper decided to take out a loan that charges 20% APR over one year for the amount of £2000 over 12 months he would expect to pay £183 per month for 12 months with interest of £205.
Dawn Tipton ACC-309 Case 19-15 Professor Ed Kaplan Microsoft Corporation- On March 30th 2012 at 7:10pm Microsoft Corporation’s (MSFT) common stock price closed at $32.21 per share. This was a decrease of 0.05 from the previous day’s close of $32.26. While reviewing Microsoft’s past twelve months, I have found that the fifty-two week low was in June 2011 and it closed at $23.65 per share. The stock has some slight fluctuations between June 2011 and mid November 2011. Since November, the stock has shown an increase through mid March 2012 where it reached the fifty-two week high of $32.95 per share.
The asset's original cost was $160,000 and this amount was entirely expensed in 2006. This particular asset has a 10-year useful life and no salvage value. The straight-line method was chosen for depreciation purposes. Additional data: 1. Income in 2010 before depreciation expense amount to $400,000 2.
An investor purchased call options for $2 per option. This investor purchased 1,000 of these call options on a stock that has a standard deviation of 20% and an exercise price of $140/share. The investor has a liquidity problem at this point and needs to sell the call options at current value. The current stock price is $120/share and the option will expire in a ½ year. What is the total profit or loss to the investor?
Why? 4. Which of the following trade or business expenditures of Ajax Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction. Expenditure Amount Salaries and wages to employees $400,000 Purchase of new office
He projects that he will need to have $500,000 in 5 years in order to get the business off the ground. He has found an investment that will yield 12% interest compounded quarterly. How much will he need to invest today to have the amount he requires to start his practice? Part A: Table 6-2 Part B: 3% Part C: 20N Part D: PV = FV(IF) 500000(.55368) 276840 Problem 3: Elizabeth Corday is borrowing $20,000 at 11% over 6 years. She will make annual payments on the loan at the end of each year.