The payback period for the investment is 4.7 years.
The payback period is a financial metric used to determine the time it takes to recoup the initial investment in a project. To calculate the payback period, we need to analyze the net cash flows and determine when the cumulative net cash flows become positive.
In this case, the initial investment is -$119,000. In the first year, the net cash flow is $11,900, reducing the cumulative net cash flows to -$107,100. In the second year, the net cash flow is $21,900, further reducing the cumulative net cash flows to -$85,200. This pattern continues in subsequent years, with the cumulative net cash flows gradually decreasing.
By the end of the fourth year, the net cash flow is $50,730, resulting in cumulative net cash flows of -$12,570. At this point, the cumulative net cash flows turn positive in the fifth year, which has a net cash flow of $41,900. The cumulative net cash flows then increase to $29,330. The sixth year also has a net cash flow of $41,900, causing the cumulative net cash flows to reach $71,230.
Based on this analysis, we can conclude that the payback period for the investment is 4.7 years. This means that it takes approximately 4 years and 7 months to recover the initial investment. The payback period provides a simple measure of the investment's liquidity and helps assess its risk and potential profitability.
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Managing "Generational Differences" Managing diversity enables people to perform to their maximum potential. Diversity Management is the process and programs by which managers make everyone more aware of and sensitive to the needs and differences of others. 1.How would an effective leader and high performing manager successfully motivate an organization with multiple generational employees? 2. See attachment on next page: Traditionalists, Baby Boomers, Gen Xers, Millennials (Gen Y), Gen Zers
An effective leader and high-performing manager can successfully motivate an organization with multiple generational employees by understanding and leveraging
1)The unique strengths, values, and motivations of each generation. They can:
a. Foster a culture of inclusivity and respect, where each generation feels valued and appreciated for their contributions.
b. Provide clear goals and expectations that align with the organization's mission and values, allowing employees from different generations to understand the bigger picture and their role in it.
c. Tailor communication strategies to accommodate different generational preferences. For example, using face-to-face meetings for Traditionalists and Boomers, incorporating technology for Gen Xers and Millennials, and utilizing social media platforms for Gen Zers.
d. Offer opportunities for professional development and growth that cater to the unique aspirations and learning styles of each generation.
e. Encourage cross-generational collaboration and mentoring, where employees from different generations can learn from and support one another, fostering a sense of unity and shared knowledge.
2)Traditionalists: Born 1928-1945; tend to be loyal, hardworking, and respectful of authority.
Baby Boomers: Born 1946-1964; tend to be competitive, optimistic, and driven.
Gen Xers: Born 1965-1980; tend to be independent, adaptable, and focused on work-life balance.
Millennials (Gen Y): Born 1981-1996; tend to be tech-savvy, confident, and value work that has meaning and purpose.
Gen Zers: Born 1997-2012; tend to be entrepreneurial, socially conscious, and value diversity and inclusion.
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Critically discuss how the alternative method for project completion acceleration (Critical Chain Project Management scheduling method) can help solve the management of slack on resource-limited projects. Also give an example.
The Critical Chain Project Management (CCPM) scheduling method is an alternative approach to project management that aims to improve project completion time and manage resource constraints effectively. One key advantage of CCPM is its ability to address the management of slack on resource-limited projects.
In traditional project management, slack refers to the extra time allocated to activities beyond their estimated duration to account for uncertainties or delays. However, this approach can lead to inefficiencies, as project participants tend to utilize the full allocated time, resulting in a longer project duration. Additionally, in resource-limited projects, the presence of slack can create challenges in managing resource utilization effectively.
CCPM tackles this issue by focusing on the critical chain, which is the longest sequence of dependent tasks that determines the project's duration. The method identifies the critical chain and protects it by incorporating project buffers at strategic points to account for uncertainties and variations in task durations. These buffers are placed at the end of the critical chain rather than at individual activities, eliminating the presence of slack.
By eliminating slack, CCPM encourages project participants to focus on completing their tasks as efficiently as possible, without the temptation to use the extra time provided by traditional slack management. This helps in accelerating project completion and improving resource utilization. Resources are allocated based on the critical chain's needs, ensuring that they are utilized optimally and not wasted on non-critical activities.
Here's an example to illustrate the benefits of CCPM in managing slack on a resource-limited project:
Suppose a construction project involves multiple contractors and limited resources, such as equipment and skilled labor. In a traditional project management approach, each contractor might be given a buffer of extra time, leading to inefficiencies as they utilize the full allocated time. This can result in delayed project completion and underutilization of resources.
With CCPM, the project manager identifies the critical chain of activities required to complete the project. Instead of providing individual slack to each contractor, the project manager allocates project buffers strategically at key points along the critical chain. These buffers account for uncertainties and variations in task durations.
Contractors are then incentivized to complete their tasks efficiently, as any delays on the critical chain would impact the overall project duration. This leads to improved resource utilization, as contractors are focused on completing their tasks within the allocated time, without unnecessary slack.
As a result, the project can be completed faster, and resource limitations are managed more effectively. The CCPM approach ensures that resources are allocated based on the critical chain's needs, optimizing their utilization and reducing idle time or wastage.
In conclusion, the alternative method of project completion acceleration, Critical Chain Project Management (CCPM), helps solve the management of slack on resource-limited projects by eliminating the presence of slack and focusing on the critical chain. By strategically placing project buffers along the critical chain, CCPM encourages efficient task completion and optimal resource utilization, leading to accelerated project completion. This approach improves project efficiency and helps overcome the challenges posed by resource limitations.
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A LORUP is similar to a RIZEN but it is taller and steeper.
A RIZEN is similar to a MOUNTAIN but it is taller and steeper.
A BUMPA is similar to a HILL but it is shorter and steeper.
1. A BUMPA is shorter than a RIZEN.
ATrue
BFalse
The statement "A BUMPA is shorter than a RIZEN" is true.
To understand why this statement is true, let's break down the given information:
- A LORUP is similar to a RIZEN but it is taller and steeper.
- A RIZEN is similar to a MOUNTAIN but it is taller and steeper.
- A BUMPA is similar to a HILL but it is shorter and steeper.
Based on this information, we can see that a RIZEN is taller and steeper than a LORUP. And since a BUMPA is shorter and steeper than a HILL, we can infer that a BUMPA is also shorter than a RIZEN.
In summary, a BUMPA is indeed shorter than a RIZEN, making option A True the correct answer.
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what are 2 ways in which your company can avoid a disruption
created by a regular vendor that cannot deliver a component of a
product you make?
To avoid disruptions caused by a regular vendor's inability to deliver a component, a company should diversify its supplier base and implement a contingency plan. These measures can help ensure the continuity of production and minimize the impact on the company's operations.
There are several ways in which a company can avoid a disruption caused by a regular vendor that cannot deliver a component of a product they make. Here are two possible solutions:
1. Diversify your supplier base: By having multiple vendors for the same component, you can reduce the risk of disruption caused by a single vendor. This way, if one vendor fails to deliver, you can quickly switch to another supplier without interrupting your production. It is important to establish relationships with alternative vendors in advance and ensure they meet your quality standards.
2. Implement a contingency plan: Develop a detailed contingency plan that outlines the steps to be taken if a regular vendor fails to deliver a component. This plan should include identifying alternative suppliers, establishing clear communication channels, and having a backup inventory of essential components. By having a well-prepared contingency plan, your company can minimize the impact of disruptions and maintain a smooth production process.
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All of the following describe the costs of globalization EXCEPT? It decreases product and service quality. It crushes competition. It creates access to global export markets and advanced technology. It hampers economic freedom.
The option that does not describe a cost of globalization is: "It creates access to global export markets and advanced technology." This option actually highlights one of the benefits of globalization.
The costs of globalization refer to the negative impacts or disadvantages associated with the process of increasing interconnectedness and integration of economies around the world. Let's evaluate each option to determine which one does not describe the costs of globalization:
1. It decreases product and service quality: One of the costs of globalization can be a decrease in product and service quality. When companies focus on reducing costs to remain competitive in the global market, they may cut corners and compromise on quality. So, this statement describes a cost of globalization.
2. It crushes competition: Globalization can indeed lead to increased competition, as companies from different countries can now compete in the same market. This can sometimes lead to the consolidation or elimination of smaller local businesses. Therefore, this statement accurately describes a cost of globalization.
3. It creates access to global export markets and advanced technology: This statement describes one of the benefits of globalization rather than a cost. Globalization allows companies to access new markets around the world, which can increase their sales and profits.
4. It hampers economic freedom: Globalization can sometimes lead to restrictions on economic freedom, as countries may impose trade barriers or regulations to protect domestic industries. This can limit the freedom of companies to engage in global trade. Therefore, this statement describes a cost of globalization.
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(Entry for Retirement of Bond; Bond Issue Costs) On January 2, 2016, Prebish Corporation issued $1,500,000 of 10% bonds to yield 11% due December 31, 2025. Interest on the bonds is payable annually each December 31. The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2019, Prebish called $1,000,000 face amount of the bonds and retired them. Instructions a. Determine the price of the Prebish bonds when issued on January 2, 2016. b. Prepare an amortization schedule for 2016-2020 for the bonds. c. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Prebish as a result of retiring the $1,000,000 of bonds on January 2, 2019, and prepare the journal entry to record the retirement. Principal PV: 0.35218 Interest payment PV:5.88923
The price of the Prebish bonds when issued on January 2, 2016 can be determined using the present value (PV) formula. The PV of the principal is $1,500,000 multiplied by the PV factor of 0.35218, which equals $528,270.
The PV of the annual interest payments is calculated by multiplying the annual interest payment of $150,000 (10% of $1,500,000) by the PV factor of 5.88923, resulting in $933,385. Therefore, the price of the bonds when issued is the sum of the PV of the principal and the PV of the interest payments, which equals $1,461,655.
To prepare an amortization schedule for the bonds from 2016 to 2020, you need to calculate the interest expense and the reduction of the carrying value each year. The interest expense is the carrying value at the beginning of the year multiplied by the effective interest rate of 11%. The reduction of the carrying value is the interest expense minus the annual interest payment. You can calculate the carrying value for each year by subtracting the reduction of the carrying value from the previous year's carrying value.
To compute the amount of loss, if any, to be recognized by Prebish as a result of retiring $1,000,000 of bonds on January 2, 2019, you need to compare the carrying value of the retired bonds to the amount paid to retire them. The carrying value of the retired bonds can be calculated by using the amortization schedule. If the carrying value is higher than the amount paid to retire the bonds, there will be a loss recognized. The loss is the difference between the carrying value and the amount paid to retire the bonds.
To record the retirement of the bonds on January 2, 2019, Prebish would debit the Bonds Payable account for the face amount of the retired bonds ($1,000,000) and credit the Loss on Bond Retirement account for the amount of loss recognized. They would also credit the Cash account for the amount paid to retire the bonds.
In conclusion, the price of the Prebish bonds when issued on January 2, 2016 is $1,461,655. The amortization schedule for the bonds from 2016 to 2020 can be prepared by calculating the interest expense and reduction of the carrying value each year. The amount of loss, if any, to be recognized by Prebish as a result of retiring $1,000,000 of bonds on January 2, 2019 can be determined by comparing the carrying value of the retired bonds to the amount paid to retire them. The journal entry to record the retirement would include debiting the Bonds Payable account, crediting the Loss on Bond Retirement account, and crediting the Cash account.
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demonstrate with the aid of a diagram the effect of opening
trade on a competitive industry with external economies ? (20
marks)
Opening trade can have a significant impact on a competitive industry with external economies. External economies refer to the benefits that a firm or industry receives from factors outside of its control, such as the presence of a skilled labor force or a well-developed infrastructure.
To demonstrate the effect of opening trade on such an industry, we can use a diagram. Consider a competitive industry with a downward-sloping demand curve and an upward-sloping supply curve. Initially, without trade, the industry operates at a domestic equilibrium point where quantity supplied equals quantity demanded.
When trade is opened, firms in the industry can now access a larger market and benefit from economies of scale. This results in an outward shift of the supply curve, indicating increased production and lower average costs. As a result, the equilibrium price decreases, and the quantity supplied increases. Consumers also benefit from lower prices.
In the diagram, the new equilibrium point represents the industry after trade. The lower price and increased quantity supplied demonstrate the positive impact of opening trade on a competitive industry with external economies. This is because trade allows firms to expand their operations, achieve economies of scale, and lower production costs, ultimately benefiting both producers and consumers.
In summary, opening trade can lead to lower prices, increased production, and improved efficiency in a competitive industry with external economies. This diagram visually depicts the positive effects of trade on such an industry.
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Using your work sheet, actively describe the subject matter of Koehler's The strike and, or Palmer and Ives' Across the Continent, and speculate on what hidden messages or symbolism each work contains.
When I mean" actively" I'm hoping you'll use strong descriptive words. This mean you have to more carefully compose your starter post, and then be free form of discussion in your response posts.
Hint: the compositions themselves hold the key to any messages. Please see the syllabus for the discussion board grading.
Koehler's "The Strike" depicts a dramatic scene of coal miners protesting for better working conditions. The subject matter is the struggle for labor rights and the power dynamics between workers and management.
The composition captures the intense emotions of the striking miners through bold brushstrokes and contrasting colors, conveying their determination and solidarity. The hidden message in this artwork is the importance of collective action and standing up against injustice.
In "Across the Continent" by Palmer and Ives, the subject matter is the expansion of the American West during the 19th century. The composition showcases a train crossing a vast landscape, symbolizing progress, exploration, and the taming of the frontier.
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Ruby Toy has developed a new toy called the Magic Robot. The company has a standard costing system to help control costs and has establish the following standards for the toy. Direct Material: 8 diodes per toy at $0.30 per diode; Direct Labour: 1.2 hours per toy at $7 per hour. During August, the company produced 5,000 toys. Production data on the toy for August follows: Direct Materials: 70,000 diodes were purchased at a cost of $0.28 per diode. 20,000 of these diodes were still in inventory at the end of the month. (there was no opening Inventory). Direct Labour: 6,400 direct were worked at the cost of $48,000. Compute the direct material price variance for August. What is a possible cause of this variance?
calculate the material quantity variance and indicate a possible cause.calculate the direct labour rate and efficiency variance, and indicate possible cause for this.
The direct material price variance for August is $400 favorable. One possible cause of this variance could be the purchase of diodes at a lower cost per diode than the standard.
The direct material price variance is calculated by subtracting the actual cost of materials from the standard cost of materials and multiplying the difference by the actual quantity of materials used. In this case, the standard cost per diode is $0.30, and the actual cost per diode is $0.28. The difference in cost per diode is $0.02, and since 70,000 diodes were purchased and used, the total favorable variance is $0.02 * 70,000 = $1,400 favorable.
To calculate the direct material price variance, we need to consider the diodes that were still in inventory at the end of the month. Since 20,000 diodes were still in inventory, the favorable variance related to those diodes is $0.02 * 20,000 = $400 favorable.
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Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a fim's observable market value, stock prices, and book values, integrating information from both the market and the firm's financial statements. Consider the case of Cold Goose Metal Works Inc.: Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $9,000,000 and a current stock price of $34.00 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it aiso expects it will have to issue 2,500,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,000,000 ). If Cold Goose's forecast turns out to be correct and its price/earnings. (P/E) ratio does not change, what does the company's management expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.) $29.23 per share $34.00 per share $21.92 per share $36.54 per share
Future stock price expected to be $29.23 per share one year from now.
To calculate the expected stock price one year from now, we need to determine the future earnings after tax and the price-to-earnings (P/E) ratio.
Calculate the future earnings after tax:Next year's after-tax income is forecasted to increase by 25%. Therefore, the future earnings after tax would be:
Future Earnings After Tax = Current Earnings After Tax + (Current Earnings After Tax * Forecasted Increase)
= $9,000,000 + ($9,000,000 * 0.25)
= $9,000,000 + $2,250,000
= $11,250,000
Calculate the new number of shares outstanding:The company expects to issue 2,500,000 new shares of stock, increasing the total shares outstanding from 5,500,000 to 8,000,000.
Calculate the future earnings per share (EPS):Future EPS = Future Earnings After Tax / New Shares Outstanding
= $11,250,000 / 8,000,000
= $1.40625
Calculate the future stock price using the P/E ratio:The P/E ratio is the current stock price divided by the earnings per share (P/E ratio = Stock Price / EPS). Since the problem states that the P/E ratio will not change, we can use the current P/E ratio to calculate the future stock price.
Current P/E ratio = Stock Price / Current EPS
Current EPS = Current Earnings After Tax / Current Shares Outstanding
= $9,000,000 / 5,500,000
= $1.63636 (approx.)
Current P/E ratio = $34.00 / $1.63636
= 20.7727 (approx.)
Future Stock Price = Future EPS * Current P/E ratio
= $1.40625 * 20.7727
≈ $29.23 per share
Therefore, the company's management expects its stock price to be approximately $29.23 per share one year from now.
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On June 10, Pharoah Company purchased $6,450 of merchandise on account from Riverbed Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $480 on June 11. Damaged goods totaling $350 are returned to Riverbed for credit on June 12. The fair value of these goods is $70. On June 19, Pharoah pays Riverbed Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Pharoah Company.
On June 10, $6,450 was recorded in both Accounts Payable and Inventory. On June 11, $480 was recorded as Freight Expense and Cash. On June 12, $350 was recorded in both Accounts Payable and Inventory. Finally, on June 19, $6,170 was recorded in Accounts Payable, $130 in Inventory, and $6,040 in Cash.
Separate entries for each transaction on the books of Pharoah Company are as follows:
June 10:
Accounts Payable $6,450
Inventory $6,450
This entry records the purchase of merchandise on account from Riverbed Company. The inventory increases, reflecting the goods received, and the accounts payable represents the amount owed to Riverbed.
June 11:
Freight Expense $480
Cash $480
This entry records the payment of freight costs incurred by Pharoah Company for the purchased merchandise. The freight expense is recognized as an expense, and cash is reduced to reflect the payment made.
June 12:
Accounts Payable $350
Inventory $350
This entry records the return of damaged goods to Riverbed Company. The inventory is reduced to reflect the returned goods, and the accounts payable is decreased to reflect the reduced amount owed due to the return.
June 12:
Accounts Payable $280
Inventory $70
Loss on Damaged Goods $210
This entry records the recognition of a loss on damaged goods. The inventory is further reduced to reflect the fair value of the damaged goods returned, and a loss on damaged goods is recorded as an expense.
June 19:
Accounts Payable $6,170
Inventory $130
Cash $6,040
This entry records the payment to Riverbed Company in full, less the purchase discount. The accounts payable is reduced by the payment amount, the inventory is adjusted for the remaining goods, and cash is reduced to reflect the payment made.
In conclusion, the provided journal entries demonstrate the transactions for Pharoah Company's purchase, payment of freight costs, return of damaged goods, recognition of loss on damaged goods, and final payment to Riverbed Company.
By accurately recording these transactions, Pharoah Company maintains an updated record of its inventory, liabilities, and expenses, allowing for proper financial reporting and tracking of its business activities.
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The market demand and supply curves for coffee at a café are given for the following equations.
QD = 18 – 2P
QS = -3 + 5P
Solve the equations to find the equilibrium price and quantity. (HINT: if you choose to use a supply/demand schedule to solve, use the prices $1 through $6)
At the equilibrium price of $3, the quantity demanded (QD) and quantity supplied (QS) are both 12 units. The equilibrium price is $3 and the equilibrium quantity is 12 units.
To find the equilibrium price and quantity, we need to set the quantity demanded (QD) equal to the quantity supplied (QS) and solve for the price (P).
Given:
QD = 18 - 2P
QS = -3 + 5P
Setting QD equal to QS:
18 - 2P = -3 + 5P
Let's solve this equation to find the equilibrium price:
18 + 3 = 5P + 2P
21 = 7P
Dividing both sides by 7:
P = 21/7
P = 3
Now that we have the equilibrium price (P = 3), we can substitute it back into either the quantity demanded or quantity supplied equation to find the equilibrium quantity.
Using the quantity demanded equation:
QD = 18 - 2P
QD = 18 - 2(3)
QD = 18 - 6
QD = 12
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Consider historical data showing that the average annual rate of return on the S&P/TSX Composite portfolio over the past 60 years has averaged roughly 8% more than the Treasury bill return and that the S&P/TSX Composite standard deviation has been about 35% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 3%. Calculate the utility levels of each portfolio for an investor with A = 2. Assume the utility function is U = E(r) - 0.5 × Ao². (Do not round intermediate calculations. Round your answers to 4 decimal places.)
For an investor with A = 2, the utility level of the S&P/TSX Composite portfolio can be calculated using the provided historical data, assuming the investor's utility function is U = E(r) - 0.5 × Ao².
To calculate the utility level of the S&P/TSX Composite portfolio, we need to consider the average annual rate of return and standard deviation. Given that the S&P/TSX Composite portfolio has averaged 8% more than the Treasury bill return over the past 60 years.
The current T-bill rate is 3%, we can estimate the expected return for the S&P/TSX Composite portfolio as 0.08 + 0.03 = 0.11 (or 11%). Next, we use the provided utility function U = E(r) - 0.5 × Ao², where E(r) is the expected return and Ao is the investor's risk aversion parameter, given as A = 2.
For the S&P/TSX Composite portfolio, the utility level is calculated as U = 0.11 - 0.5 × 2 × (0.35^2) = 0.11 - 0.5 × 2 × 0.1225 = 0.11 - 0.1225 = -0.0125. Similarly, for the Treasury bill portfolio, the expected return is 0.03 (or 3%). Using the same utility function, the utility level is calculated as U = 0.03 - 0.5 × 2 × (0.0^2) = 0.03.
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Intro A stock just paid an annual dividend of $2.3. The dividend is expected to grow by 8% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1.25% per year, from 8% in year 4 to 3% in year 8 and stay at that level forever. The required rate of return is 12%. Part 1 What is the expected dividend in 8 years? 2+ decimals Save Part 2 What is the value of the stock in 8 years? 1+ decimals Save Part 3 What is the value of the stock now? Attempt 1/1 Attempt 1/1 Attempt 1/1
1) Expected dividend in 8 years: $4.32.
2) Value of the stock in 8 years: $36.00.
3) Value of the stock now: $20.83.
1)To calculate the expected dividend in 8 years, we start with the initial dividend of $2.3 and apply the growth rate of dividends. For the first 4 years, the growth rate is 8%, resulting in a dividend of $2.3 * (1 + 0.08)⁴ = $3.34. From year 5 to year 8, the growth rate declines by 1.25% per year.
Therefore, the dividend in year 8 is $3.34 * (1 + 0.08 - 0.0125)⁴ = $4.32.
2) The value of the stock in 8 years can be determined using the dividend discount model (DDM). We divide the expected dividend in year 8 ($4.32) by the required rate of return (12% or 0.12), resulting in $4.32 / 0.12 = $36.00.
3) To calculate the value of the stock now, we need to discount the future value (value in 8 years) back to the present using the required rate of return.
The present value of the stock is obtained by dividing the value in 8 years ($36.00) by (1 + 0.12)⁸ = $20.83.
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E ellook Consider Fulton Manufacturing Company's 52 percent bonds that mature on April 15, Year 12. Assume that the interest on these bonds is paid and compounded annually Determine the value of a $1,000 denomination Fulton bond as of April 15, Year 1, to an investor who holds the band until maturity and has the following required rate of return. Use Table II and Tishle IV to answer the questións Round your answers to the nearest cent a. 5 percent $ b. 7 percent 749.375 $ c.9 percent S 642.920 What would be the value of the fulton bonds at an o percent required rate of return if the interest were paid and compounded semiannually? O toon Key
The value of Fulton bonds at a 0 percent required rate of return, with semiannual compounding, is $1,000.
When the required rate of return is 0 percent and interest is paid and compounded semiannually, the value of the Fulton bonds remains at their face value of $1,000. This is because a 0 percent required rate of return implies that the investor is indifferent to earning any additional return on their investment.
As a result, the semiannual compounding has no effect on the value of the bonds. The interest payments received by the investor will simply offset the compounding effect, resulting in the bond's value remaining at its face value. Therefore, the value of the Fulton bonds at a 0 percent required rate of return, with semiannual compounding, is $1,000.
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E look Consider Fulton Manufacturing Company's 52 percent bonds that mature on April 15, Year 12. Assume that the interest on these bonds is paid and compounded annually Determine the value of a $1,000 denomination Fulton bond as of April 15, Year 1, to an investor who holds the band until maturity and has the following required rate of return. Use Table II and Tishle IV to answer the questións Round your answers to the nearest cent a. 5 percent"?
Prepare a trial balance on April 30, 2020.
April 1 Invested €19,400 cash in her business in exchange for ordinary shares. 1 Hired a secretary-receptionist at a salary of €679 per week payable monthly. 2 Paid office rent for the month €1,067. 3 Purchased dental supplies on account from Dazzle Company €3,880. 10 Performed dental services and billed insurance companies €4,947. 11 Received €970 cash advance from Leah Mataruka for an implant. 20 Received €2,037 cash for services performed from Michael Santos. 30 Paid secretary-receptionist for the month €2,716. 30 Paid €2,328 to Dazzle for accounts payable due
In order to prepare a trial balance, we need to add up the balances of all of the accounts in the general ledger and put them into a table. After that, we need to check that the total debit balance equals the total credit balance. Here is the trial balance for the given transactions:
AccountsDebitCreditCash €19,400 €8,877 €28,277Accounts Receivable €4,947 €4,947Supplies €3,880 €3,880Prepaid Rent €1,067 €1,067Dental Equipment €0 €0Accumulated Depreciation-Dental Equipment €0 €0Accounts Payable €3,880 €2,328 €1,552Salary Payable €0 €0Unearned Service Revenue €0 €0Common Stock €19,400 €19,400Retained Earnings €0 €0Service Revenue €2,037 €4,947 €6,984Salaries Expense €0 €2,716 €2,716Rent Expense €0 €1,067 €1,067Supplies Expense €0 €0Insurance Expense €0 €0Depreciation Expense €0 €0Interest Expense €0 €0Totals€39,327€39,327Therefore, the total debit balance equals the total credit balance which confirms that the trial balance is correct.
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3. Treasury Pricing [【【 LO1] With regard to bid and ask prices on a Treasury bond, is it possible for the bid price to be higher? Why or why not?
No, it is not possible for the bid price of a Treasury bond to be higher than the ask price.
The bid price refers to the price at which a buyer is willing to purchase the bond, while the ask price represents the price at which a seller is willing to sell the bond. The bid price is typically lower than the ask price.
This price difference is due to the nature of the bond market, where buyers are seeking to purchase securities at a lower price, while sellers aim to sell at a higher price. The bid price reflects the maximum price buyers are willing to pay, while the ask price reflects the minimum price sellers are willing to accept.
The bid and ask prices form a bid-ask spread, with the difference between the two representing the market liquidity and transaction costs. Market participants, such as brokers or dealers, facilitate the buying and selling process by offering bids and asks within this spread.
Therefore, it is not possible for the bid price to be higher than the ask price in the context of Treasury bond pricing.
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Some of the advantages of teams in the workplace are to increase employees' motivation, make better decisions, and benchmark with co-workers for comparison that leads to reduce performance O True Fabe
The statement "Some of the advantages of teams in the workplace are to increase employees' motivation, make better decisions, and benchmark with co-workers for comparison that leads to reduced performance" is false.
The advantages of teams in the workplace are to increase employees' motivation.
The statement above is true.
Teams in the workplace help to increase employees' motivation. Members of a team receive praise for their efforts, and this can lead to an increase in their motivation.
Make better decisions: Teams are often made up of members with varying areas of expertise. A team can, therefore, be more effective at making decisions because it can bring together a range of different opinions, ideas, and perspectives.
Benchmark with co-workers for comparison that leads to reduced performance. The statement above is false. Benchmarking with coworkers will not lead to a reduction in performance. Rather, benchmarking with coworkers can help to identify areas where an individual may need to improve, leading to increased performance.
In conclusion, the statement "Some of the advantages of teams in the workplace are to increase employees' motivation, make better decisions, and benchmark with co-workers for comparison that leads to reduced performance" is false.
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As a part of human culture, religion is an example of
a. nonmaterial culture. OF b. material culture. c. Human nature. d. culture shock. 1 point
Religion is an example of nonmaterial culture. Nonmaterial culture refers to the intangible aspects of a society that are not physically observable but are deeply ingrained in the beliefs, values, norms, symbols, and practices of its members. Religion, as a system of beliefs and practices related to the divine or supernatural, falls under this category.
Religion encompasses a wide range of ideas, rituals, moral codes, and spiritual beliefs that guide individuals and communities in their understanding of the world, their purpose in life, and their interactions with others. These aspects of religion are abstract and cannot be touched or seen, but they hold significant meaning and influence in shaping human behavior, social relationships, and collective identity.
Religious ideas, such as concepts of God or the afterlife, are not physical objects but rather concepts that exist within the minds and hearts of believers. Rituals and practices associated with religion, such as prayer, worship, or meditation, involve symbolic actions and expressions that hold deep cultural and spiritual significance.
Therefore, religion is a prime example of nonmaterial culture, highlighting the profound impact that intangible beliefs and practices have on shaping human societies and individual lives.
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The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of slverware she is losing tvery week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enough knives. She decides she heeds to order some more sliverware, but wants to take advantage of any quantity discounts her vendor will offer. > For a small order (2,000 pleces or less ) her vendor quotes a price of $1.80/ piece. > If she orders 2,001 to 5,000 pinces, the price drops to $1.60/ piece. >5,001 to 10,000 pleces brings the price to $1,40/ plece, and >10,001 and above reduces the price to $1.25/plece. Lisa's order costs are $200 per order, her annual holding costs are 5%, and the annual demand is 47,800 pleces. For the best option (the best option is the price level that results in an EOQ within the acceptable range): a) What is the optimum ordering quantity? units (round your response to the nearest whole number). > If she orders 2,001 to 5,000 pieces, the price drops to $1.60 piece. >5,001 to 10,000 pieces brings the price to $1.40/ piece, and >10,001 and above reduces the price to $1.25/ piece. Lisa's order costs are $200 per order, her annual holding conts are 5%, and the annual demand is 47,000 pleces. For the best option (the best option is the price level that results in an EOQ within the acceptable range): a) What is the optimum ordering quantyy? units (round your response to the neares whole number). b) What is the annual holding cost? 5 (round your response to two decimal places). c) What is the annual ordering cost? 3 (round your response to two decimal places).
The answers to the questions are as follows:
a) The optimum ordering quantity is 2,536 units.
b) The annual holding cost is $203.52.
c) The annual ordering cost is $3,766.61.
To determine the optimum ordering quantity, we need to calculate the Economic Order Quantity (EOQ). The EOQ formula is given by:
EOQ = √((2 * Demand * Ordering Cost) / Holding Cost)
Let's calculate the EOQ using the given information:
Demand = 47,800 pieces
Ordering Cost = $200
Holding Cost = 5% = 0.05
EOQ = √((2 * 47,800 * 200) / 0.05)
Now, let's determine the price level that results in an EOQ within the acceptable range. The acceptable range is between 2,001 to 5,000 pieces, which has a price of $1.60 per piece.
Since the EOQ is the optimal ordering quantity, we need to round it to the nearest whole number. Let's calculate:
EOQ = √((2 * 47,800 * 200) / 0.05)
EOQ ≈ 2,536
The optimum ordering quantity is approximately 2,536 units.
Now, let's calculate the annual holding cost. The holding cost is given by:
Annual Holding Cost = EOQ * (Holding Cost * Unit Cost)
Since the unit cost is $1.60, the annual holding cost is:
Annual Holding Cost = 2,536 * (0.05 * 1.60)
Now, let's calculate the annual ordering cost. The annual ordering cost is given by:
Annual Ordering Cost = (Demand / EOQ) * Ordering Cost
Annual Ordering Cost = (47,800 / 2,536) * 200
Now, let's round our answers:
a) The optimum ordering quantity is approximately 2,536 units.
b) The annual holding cost is approximately $203.52.
c) The annual ordering cost is approximately $3,766.61.
Therefore, the answers to the questions are as follows:
a) The optimum ordering quantity is 2,536 units.
b) The annual holding cost is $203.52.
c) The annual ordering cost is $3,766.61.
Please note that the calculated values may vary slightly due to rounding.
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A bottling machine has a theoretical capacity of 93 bottles per minute. During every nine hour shift
it operates continuously but is shut down 20 minutes for cleaning, 12 minutes inspection, and 14
minutes for lubrication. What is its rated capacity?
A) 95 bottles/minute
B) 90 bottles/minute
C) 85 bottles/minute
D) 100 bottles/minute
The rated capacity of the bottling machine, after accounting for the total downtime of 46 minutes during a nine-hour shift, is 47 bottles per minute.
The rated capacity of a bottling machine is the maximum number of bottles it can produce per minute under normal operating conditions. In this case, the machine has a theoretical capacity of 93 bottles per minute. However, during every nine-hour shift, it is shut down for a total of 46 minutes for cleaning, inspection, and lubrication.
To find the rated capacity, we need to subtract the total downtime from the theoretical capacity.
Total downtime = 20 minutes (cleaning) + 12 minutes (inspection) + 14 minutes (lubrication) = 46 minutes
Rated capacity = Theoretical capacity - Total downtime = 93 bottles per minute - 46 minutes = 47 bottles per minute
Therefore, the rated capacity of the bottling machine is 47 bottles per minute.
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Which of the following statements is FALSE?
Select one:
a.
Companies participate in the ISO because it's increasingly becoming a requirement if an organization wants to do business with aFortune 500 company.
b.
Companies in the Baldrige program must demonstrate that they have achieved superior quality in several different areas.
c.
The ISO 9000 is an international program, and the Baldrige Award is a national quality program.
d.
The Baldrige Award program indicates whether a company is following its system for quality improvement, whereas the ISO 9000 focuses on results.
The false statement among the given options is option (c) because the false statement is option (c) because the ISO 9000 is an international quality management standard, not a program, while the Baldrige Award is a national quality program in the United States.
Here is a step-by-step explanation:
a. This statement is true. Companies participate in the ISO (International Organization for Standardization) because it is increasingly becoming a requirement if an organization wants to do business with a Fortune 500 company. The ISO certification demonstrates that a company follows international standards for quality management.
b. This statement is true. Companies in the Baldrige program must demonstrate that they have achieved superior quality in several different areas. The Baldrige Award is a prestigious national recognition in the United States for organizations that excel in performance excellence and quality management.
c. This statement is false. The ISO 9000 is an international quality management standard, not a program. It provides guidelines for organizations to establish and maintain effective quality management systems. On the other hand, the Baldrige Award is a national quality program in the United States, administered by the National Institute of Standards and Technology (NIST) and the Baldrige Performance Excellence Program.
d. This statement is true. The Baldrige Award program indicates whether a company is following its system for quality improvement. It evaluates the processes and approaches used by a company to improve its performance and achieve superior results. On the other hand, the ISO 9000 focuses on the results achieved by an organization in terms of meeting customer requirements and continuously improving its processes.
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During the year, Decker Corporation reported Net income of $1,930.6 million and paid dividends of $661.8 million.
Which of the following describes how these transactions would affect Decker’s equity accounts? (in millions)
Select one:
a. Increase earned capital by $1,268.8
b. Increase contributed capital by $1,930.6 and decrease earned capital by $661.8
c. Decrease contributed capital by $661.8 and increase earned capital by $1,930.6
d. Increase contributed capital by $1,268.8
e. None of the above
During the year, the transactions of net income and dividends would affect Decker Corporation's equity accounts as follows:
b. Increase contributed capital by $1,930.6 million and decrease earned capital by $661.8 million.
Net income represents the profit earned by a company during a specific period. It increases the earned capital, which is a component of the equity accounts. Therefore, the net income of $1,930.6 million would increase the earned capital.
Dividends, on the other hand, are distributions of profits to shareholders. When dividends are paid, they reduce the earned capital since it represents the accumulated profits that are being distributed to the shareholders. In this case, the payment of $661.8 million in dividends would decrease the earned capital.
The increase in contributed capital refers to the additional capital raised by the company from shareholders through activities such as issuing new shares. The payment of dividends does not directly affect the contributed capital. Therefore, the increase in contributed capital by $1,930.6 million does not arise from the dividend payment.
In summary, the net income of $1,930.6 million would increase the earned capital, while the payment of $661.8 million in dividends would decrease the earned capital. The increase in contributed capital of $1,930.6 million is unrelated to the dividend payment.
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On January 1, Davis issued $800,000 in 10 year, 7% bonds. The bonds were
priced to yield 9%. Interest payments are made on June 30 and December
31. Make all necessary entries for 2022 through Dec. 31, 2022.
The entries for 2022 include the initial bond issuance, interest accruals, and interest payments. The interest expense is calculated based on the bond's face value, interest rate, and time period.
On January 1, 2022, when Davis issued $800,000 in 10-year, 7% bonds, the bonds were priced to yield 9%. To make the necessary entries for 2022 through December 31, 2022, we need to consider the interest payments made on June 30 and December 31.
1. On January 1, 2022:
- Debit Cash for $800,000 (the amount received from the bond issuance).
- Credit Bonds Payable for $800,000 (the face value of the bonds).
2. On June 30, 2022:
- Debit Interest Expense for ($800,000 * 7% * 6/12) = $28,000 (the interest accrued for the first 6 months).
- Credit Cash for $28,000 (the interest payment).
3. On December 31, 2022:
- Debit Interest Expense for ($800,000 * 7% * 6/12) = $28,000 (the interest accrued for the second 6 months).
- Credit Cash for $28,000 (the interest payment).
At the end of 2022, the balance in the Bonds Payable account remains the same. This is because the principal amount is repaid at maturity, not during the interest payment dates.
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Do shoppers really enjoy the online shopping experience? Compare and contrast the experience of shopping at your favorite retail store with the experience of shopping online. Make one list of things you enjoy about shopping in stores, and create a separate list of things you like about shopping online. How do your lists differ? What are the advantages and disadvantages of shopping in a physical store? What are advantages and disadvantages of shopping online? Can Internet based businesses deliver the rich shopping experience that brick-and-mortar stores provide? How might smartphones and other handheld devices change the way people shop?
Shoppers have different preferences and experiences with online shopping. The advantages and disadvantages of both methods should be considered based on individual needs and preferences.
The enjoyment of the online shopping experience varies among shoppers. When comparing shopping at a favorite retail store to shopping online, there are distinct differences. In stores, I enjoy the following:
1. Being able to physically see and touch products before purchasing.
2. Interacting with knowledgeable staff for advice and assistance.
3. Immediate gratification with the ability to take items home right away.
On the other hand, shopping online offers the following advantages:
1. Convenience of shopping from anywhere at any time.
2. Access to a wider range of products and brands.
3. Comparing prices and reading reviews easily.
There are disadvantages to both methods. In physical stores, potential downsides include limited selection, crowds, and the need for transportation. With online shopping, disadvantages can include longer delivery times, inability to physically examine products, and potential for scams.
Internet-based businesses can provide a rich shopping experience through features like detailed product descriptions, high-quality images, customer reviews, and personalized recommendations. Smartphones and handheld devices have revolutionized shopping by allowing users to browse and purchase products on-the-go, making the shopping experience more convenient and accessible.
In conclusion, shoppers have different preferences and experiences with online shopping. The advantages and disadvantages of both methods should be considered based on individual needs and preferences.
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Assignment 2 Financial Reporting and Ethics 30 1.A full set of financial statements consists of: 8 2. Explain each of the following means: 2a.Accrual basis 2b.Liquidation basis 2c. Unqualified opinion 2d.Globalisation 2e.Corporate social responsibility 2f.Utilitarianism 2g. Egalitarianism 2h.Corporate governance
2a. Accrual basis: Recognizes revenues and expenses when incurred, regardless of cash transactions.
2b. Liquidation basis: Used during liquidation, valuing assets at liquidation values and recognizing associated liabilities.
2c. Unqualified opinion: Audit opinion stating that financial statements comply with standards and present a true and fair view.
2d. Globalisation: Increased interconnectedness of economies, cultures, and societies worldwide.
2e. Corporate social responsibility: Company's commitment to ethical and responsible business practices.
2f. Utilitarianism: Ethical theory focused on maximizing overall happiness for the greatest number.
2g. Egalitarianism: Belief in equality, advocating for equal rights, opportunities, and resources.
2h. Corporate governance: System of rules and practices ensuring accountability and ethical decision-making.
2a. Accrual basis: Accrual basis refers to an accounting method that recognizes revenues and expenses when they are incurred, regardless of when the cash transactions occur.
2b. Liquidation basis: Liquidation basis refers to a method of accounting used when a company is in the process of being liquidated or ceasing operations. It involves valuing assets at their estimated liquidation values and recognizing any liabilities associated with the liquidation.
2c. Unqualified opinion: An unqualified opinion is a type of audit opinion issued by an external auditor, indicating that the financial statements present a true and fair view of the company's financial position and performance in all material respects and comply with the relevant accounting standards.
2d. Globalisation: Globalisation refers to the process of increased interconnectedness and integration of economies, cultures, and societies worldwide. It involves the flow of goods, services, capital, information, and technology across national borders.
2e. Corporate social responsibility: Corporate social responsibility (CSR) refers to a company's commitment to conducting business ethically and responsibly, taking into account its impact on society and the environment. CSR involves actions that go beyond legal requirements and aim to contribute positively to sustainable development.
2f. Utilitarianism: Utilitarianism is an ethical theory that focuses on maximizing overall happiness or utility for the greatest number of people. It considers the consequences of actions and promotes decisions that generate the most favorable outcomes for society as a whole.
2g. Egalitarianism: Egalitarianism is a belief in the principle of equality, advocating for equal rights, opportunities, and resources for all individuals. It emphasizes the elimination of social and economic disparities and promotes a fair and just society.
2h. Corporate governance: Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of various stakeholders, such as shareholders, management, employees, customers, and the community, to ensure accountability, transparency, and ethical decision-making within the organization.
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What is
the return/yield of a stock that was purchased one year ago for $30
and is now worth $18. The stock also paid a dividend of $4 for the
year.
Return/yield of -0.1333 or -13.33%. This means that the stock has experienced a negative return of 13.33% over the course of one year.
The return/yield of a stock can be calculated using the formula:
Return/Yield = (Ending Value - Beginning Value + Dividends) / Beginning Value
In this case, the stock was purchased one year ago for $30 and is now worth $18. The dividend paid for the year is $4.
Using the formula, we can calculate the return/yield:
Return/Yield = ($18 - $30 + $4) / $30
Return/Yield = ($-8 + $4) / $30
Return/Yield = -$4 / $30
Return/Yield = -0.1333 or -13.33%
The return/yield of the stock that was purchased one year ago for $30 and is now worth $18 can be calculated by subtracting the beginning value from the ending value and adding the dividends. In this case, the beginning value is $30, the ending value is $18, and the dividend is $4.
Plugging these values into the formula, we get a return/yield of -0.1333 or -13.33%. This means that the stock has experienced a negative return of 13.33% over the course of one year. It has decreased in value, taking into account both the change in price and the dividends received.
The return/yield of the stock that was purchased one year ago for $30 and is now worth $18, with a dividend of $4, is -13.33%. This negative return indicates that the stock has decreased in value over the course of one year, factoring in both the change in price and the dividends received.
It is important to consider the return/yield when assessing the performance of an investment, as it provides insight into the profitability or loss associated with owning the stock.
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Liquidation value is typically not relevant to estimating intrinsic value for profitable companies because value would generally be destroyed by selling such a company's assets individually. True Fals
True. Liquidation value is generally not relevant to estimating intrinsic value for profitable companies because selling their assets individually would likely result in value destruction.
The intrinsic value of a company refers to its underlying worth, often determined by assessing its future cash flows and profitability. For profitable companies, the primary focus is on their ability to generate consistent earnings and cash flows over time. Liquidation value, on the other hand, represents the estimated value of a company's assets if they were to be sold off individually. While liquidation value can be relevant for distressed or failing companies, it is typically not meaningful for profitable ones.
Profitable companies derive their value from their ongoing operations and the potential for future growth. Selling off assets individually, as would happen in liquidation, can disrupt the company's operations, brand value, and customer relationships. Additionally, the process of selling assets individually may incur significant costs, such as legal fees and transaction expenses, further eroding the overall value. Therefore, estimating the intrinsic value of a profitable company is better served by analyzing its earnings potential, growth prospects, competitive position, and other relevant factors rather than focusing on liquidation value.
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How much of the total principle is paid back over the first 5 years? Loan amount: $180000; Term: 30 years; Interest rate: 8.5%; Monthly payment. 8,117.52 O9,042.65 O 8,923.16 O8,618.33
The borrower of the $180,000 loan with a term of 30 years and an interest rate of 8.5% paid back $36,153 of the original loan amount over the first 5 years of the loan. The amount of principal paid back over the first 5 years is 20.08% of the original loan amount.
The monthly payment of the loan is $8,117.52, the loan amount is $180000, the term of the loan is 30 years, and the interest rate of the loan is 8.5%. Hence, we can find the amount of total payment as follows: Total payment = monthly payment * total number of payments= $8,117.52 * (30 * 12)= $2,924,507.2 The total amount of principal is the loan amount, which is $180,000. To find out how much of the total principal is paid back over the first five years, we need to find out how much of the principal is paid back in the first 60 payments (5 years * 12 months/year). We can use an amortization schedule to calculate the amount of principal paid back over the first five years. The amortization schedule shows the breakdown of each monthly payment into principal and interest for the entire term of the loan. After calculating the first 60 payments of the amortization schedule, the principal paid back over the first 5 years is $36,153. This means that the borrower has paid back $36,153 of the original $180,000 loan amount over the first 5 years of the loan. The amount of total payment is $2,924,507.2, while the total amount of principal is $180,000. The amount of the principal paid back over the first 5 years is $36,153. An amortization schedule is a table that shows the breakdown of each monthly payment into principal and interest for the entire term of the loan. It shows the remaining balance of the loan after each payment is made, as well as the interest paid and the principal paid for each payment. Using an amortization schedule, we can calculate the amount of principal paid back over any period of time. In this case, we wanted to find out how much of the total principal was paid back over the first 5 years of a 30-year loan with a monthly payment of $8,117.52, a loan amount of $180,000, and an interest rate of 8.5%.After calculating the first 60 payments of the amortization schedule, we found that the borrower paid back $36,153 of the original $180,000 loan amount over the first 5 years of the loan. This means that the borrower has paid back 20.08% of the original loan amount over the first 5 years.
The borrower of the $180,000 loan with a term of 30 years and an interest rate of 8.5% paid back $36,153 of the original loan amount over the first 5 years of the loan. The amount of principal paid back over the first 5 years is 20.08% of the original loan amount.
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Owner-managers collect income tax on behalf of the government and remit them to a. Canada Revenue Agency. b. their auditors. c. Canada Pension Plan. d. the Receiver General.
In the context of collecting income tax on behalf of the government, owner-managers are responsible for remitting the taxes to the Canada Revenue Agency (CRA).
The CRA is the designated authority in Canada for the administration and collection of various taxes, including income tax. Owner-managers play a crucial role in the tax system by collecting income tax from their employees or individuals on behalf of the government.
This includes deducting the appropriate amount of income tax from employee salaries or wages and ensuring its remittance to the appropriate authority. In Canada, the designated authority responsible for the administration and collection of income tax is the Canada Revenue Agency (CRA).
The CRA is a federal agency that oversees various tax-related matters, including income tax, goods and services tax (GST), and other federal tax programs. The owner-managers are required to remit the collected income tax to the CRA.
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