You deposit $16,000 per year for 12 years (deposits at the end of each year) in an account that pays an annual interest rate of 14%. What will your account be worth at the end of 12 years? 11. You plan to borrow $389,000 now and repay it in 25 equal annual installments (payments will be made at the end of each year). If the annual interest rate is 14%, how much will your annual payments
Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4. Compute the increase or decrease in profit assuming the proposal is accepted, show the contribution Income Statement for current and proposed. Present Proposed Sales 100,000 137500 Variable expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750 difference: 19250 4a. What is the operating leverage for the current and proposed?
,Sarah L. G January 6, 2013 Written Assignment #1 1. A) $1,000 with 5% interest after 10 years gives you $1,628. Therefore, you would gain $628 in interest. B) If the interest is withdrawn each year, a total of $500 would be earned because the $1,000 investment would earn $50 of simple interest each year. C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years.
One of the stylists serves as the manager, receiving an extra $500 per month. In addition to the base salary, each stylist receives a commission of $6 per haircut. Each stylist can do as many as 20 haircuts a day, but the average is 14 haircuts each per day. The Cute Cut Salon is open an average of 24 days per month. Other financial information is as follows: (18 marks) Advertising | $500 per month | Rent | $1,000 per month | Supplies | $1.50 per haircut | Utilities | $300 per month plus $0.50 per haircut | Magazines | $50 per month | Cleaning supplies | $0.25 per haircut | Price per haircut | $15 | a. Compute the fixed costs per month, the variable costs per haircut, the contribution margin and the monthly break-even point for the number of haircuts.
If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.
The $2,000 Sergio will receive if he accepts the landlord’s offer will be: Question 19. (TCOs 2, 3, 6, 8, 9, & 10) Rockwell purchased a tract of land for $125,000 in 2004 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $300,000. Highway engineers surveyed the property and indicated that he would probably get $200,000. The highway project was abandoned in 2012, and the value of the land fell to $80,000. What is the amount of loss Rockwell can claim in
Thus, the $11,000 distribution reduces the new $10,000 stock basis to zero, with a $1,000 LTCG. | Question 3 | | 1 / 1 point | A calendar year C corporation reports a $41,000 NOL in 2013, but it elects S status for 2014 and generates an NOL of $30,000 in that year. At all times during 2014, the stock of the corporation was owned by the same 10 shareholders, each of whom owned 10% of the stock. Kris, one of the 10 shareholders, holds an S stock basis of $2,300 at the beginning of 2014. How much of the 2014 loss, if any, is deductible by Kris?
Independent labels that order more than 100,000 CDs a year pay approximately $.65 per CD. Labels that buy less than 10,000 CDs a year pay approximately $1.20 per CD. These costs include the printing of 4-page package inserts and tray cards. Royalty Costs Record labels pay two royalties: The first is a record royalty to the performing artist(s); the second is a mechanical royalty to composers and publishers. Some companies pay record royalties on a percentage (8% to 16%) of the suggested list retail price (SLRP) less a packaging cost, generally 15% to 25% of the SLRP.
The complete income distribution is 29 percent make 30-50,000 dollars, 22 percent make 50-75,000 dollars, 12 percent make 75-100,000 dollars, and 8 percent make over 100,000 dollars every year. NASCAR’s fan distribution is quite significant because it varies greatly in some place. In the Northeast 20 percent of the fans reside, the Midwest 24 percent, South 38 percent, and the West just 8 percent. Also a few notables are 74 percent of NASCAR fans own their own homes 64 percent are married while 22 percent are single and 14 percent are divorced or
That means the other 88 percent of beneficiaries “include a wide cross section of families with children, couples, and others” (Furman, 2012, p. 1). The value of the minimum wage adjusted to inflation is also about 20 percent less than it was when Ronald Reagan first became president in 1981 (Furman, 2012). Currently, 19 million people are working for less than $10.10 an hour, while nearly 50 million are living below the poverty line (Furman, 2012). The minimum wage isn’t properly adjusted to inflation, therefore putting much more of a financial burden on minimum-wage working citizens. With rent averaging roughly $1,230 a month, you wonder how people could possibly live working for the current federal minimum wage (Glink,