What is the present value of the first alternative? What is the present value of the second alternative? What is the present value of the third alternative?
Q: Question 22
A: An account receivable is defined as it is money that has not been paid by customers after using the ...
Q: Ogilvy Company manufactures and sells one product. The following information pertains to each of the...
A: The income statement is prepared to find net income or losses incurred during the period.
Q: Angel owned a property costing Php. 2,000,000.00. She exchanged her property with the lot of Princes...
A: Formula: Gain on exchange = Princess Fair market value of the property - Additional cash - Angel ow...
Q: Format: 111,111 National Co. has the following balance sheet as of December 31, 2022. P 100,000 100,...
A: Forecast in Additional Fund Needed (AFN) Forecast of Additional Fund Needed in the financial stateme...
Q: On September 1, 2021, Evansville Lumber Company issued $80 million in 20-year, 10 percent bonds paya...
A: Discount Amortization=Amount of bonds issued×Rate of interest×Number of monthPeriod of issuance Prem...
Q: Compute the individual product and total sales volume variances for August. Compute the individual ...
A: 1. Sales Volume Variance Budgeted Sales Volume in Kg (A) Actual Sales Volume in Kg ...
Q: When an entity changed at the end of the reporting period longer or shorter than one year, an entity...
A: If there is change in the reporting period longer or shorter than one year. The entity has to disclo...
Q: Los Angeles Company provided the following information during the current information. What amount s...
A: Cash flow statement provided information about the cash inflows and cash outflows of the company.Cas...
Q: On 1-1-2011, the company REGAL purchased 30% of the outstanding voting shares of company ARON for $6...
A: Working Note:- Particulars Amount $ Amount $ Net value of assets of Aron on the date of purchas...
Q: hat amount should be reported as net cash provided by investing activities? 2. What amount should b...
A: Solution Working note Cash flow from operating activities Cash receipt from customers 2000000 ...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. 125,000 425,...
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization i...
Q: National Co. has P5 million in inventory and P2 million in accounts receivable. Its average daily sa...
A: The inventory conversion period means, in how many days the inventory is converted into sales by the...
Q: Below are approximate amounts related to cash flow information reported by five companies in previou...
A: The question is related to the Cash Flow Statement. Cash Flow Statement is summary of cash receipts ...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: Net Income: The amount of money earned by a person or corporation after subtracting expenses, allowa...
Q: Which of the following statements is false?
A: Depreciation is a cost charged over the fixed assets for over a period of time. Fixed Assets are the...
Q: At the beginning of current year, Cash Company reported the following shareholders' equity: Share ca...
A: Amount Beginning Balance of Retained Earnings 28,00,000 Add: Net Income for the curre...
Q: May 01 Petty cash Cash May 15 Janitorial expenses Miscellaneous expem Postage expenses
A: Journal entries refer to the process of documenting all the transactions of a company in its books.
Q: Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers resu...
A: As per the definition of perpetual inventory system , inventory counting is done continuously and up...
Q: Determine the Break-even point in terms of sales value and in units. b. How many units must be sold ...
A: Solution Formula used Breakeven point in unit =total fixed cost /contribution margin...
Q: If your school has a subscription to the FASB Codification, log in and prepare responses to the foll...
A: Revenue Recognition: Revenue recognition is a generally accepted accounting standard (GAAP) that out...
Q: You are the auditor of Birham Ltd and are in the process of completing the audit for the year ended ...
A: Management’s written representation refers to the written document which is provided to the auditor ...
Q: While calc
A: Free cash flow is usually generated from its business operations after minus the capital expenditure...
Q: Establishes the tax differences between individuals and corporations in the United States.
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If yo...
Q: Indicate the effect each of the three transactions has on the financial statement categories listed ...
A: Double entry system: In accounting every entry has dual effect, that means, if some entry is passed ...
Q: On November 1, Jasper Company loaned another company $270,000 at a 8.0% interest rate. The note rece...
A: Interest revenue reported in first year = Amount of loan x rate of interest x No. of months / 12
Q: For each transaction indicate whether it should:
A: In accounting we follow double entry system. Each transaction has...
Q: tealesxille Sanctuary is a family-owned and operated wildlife park located in Melbourne. Healesville...
A: Answer:- The answers to each individual situation is as follows; i) Here the omission of manual invo...
Q: solve the given annuity: ₱1,500 deposited at the beginning of each month for 2 years at 9% compounde...
A: Answer - Formula, Future Value Annuity = P * { (( 1*I)n-1)*(1*I)} / i.
Q: receipts from repayment of loan made to another entity payments for wages and other operating expens...
A:
Q: RESET 23. What is the best way to manage the credit card? i. Always pay the minimum amount ii. Make ...
A: Solution: A Credit card is a card that allow holders to do shopping, Payments or withdraw cash with ...
Q: Depreciation and amortization are added back in computing operating cash flows because: a They repr...
A: Cash Flow statement is just a detailed cash account. It shows how changes in balance sheet and incom...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization i...
Q: Problem #1 Admission by Purchase of Interest The capital balance of the Song and Monte partnership o...
A: The partnership comes into existence when two or more persons agree to do the business and further s...
Q: F Polk, after being in Bakery business for some years without keeping proper records, now decides to...
A: Answer:-
Q: National Co. has a total annual cash requirement of P9,030,000 which are to be paid uniformly. Natio...
A: The question is related to Baumol Cash model. The optimum cosh conversion size is calculated with th...
Q: hat amount should be reported as unappropriated retained earnings at year-end?
A: Solution Concept Reacquisition of share to be held as treasury does not affect the retained earnings...
Q: What is a voucher system
A: Accounting transactions are a set of activities that take place as a result of the day to day transa...
Q: Midus ind has the following data for the month ended on March 31. Prepare cash budget for the month ...
A: To identify the expected disbursements and receipts of cash for a given period of time, cash budget ...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization i...
Q: hich of the following statements is true? O If a taxpayer places a 40% business use automobile in se...
A: MACRS provisions are applicable to Listed property and luxury Automobiles In that case, the Taxpayer...
Q: Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The ...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P...
A: Under the cost method of accounting, the purchase of treasury stock is recorded by debiting the trea...
Q: petitor. If correct, this may have disclosure implications. Management advises you that although the...
A: (a) The auditors prepare a management representation letter, which is signed by the business's senio...
Q: Green Mountain Power Company obtained authorization to issue 20-year bonds with a face value of $10 ...
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: P2-6 Journalising transactions, posting to accounts in four-column format and preparing a LO trial b...
A: The journal entries are prepared to record day to day transactions of the business on regular basis.
Q: National Co. has the following balance sheet as of December 31, 2022. Current assets P 600,000 Fixed...
A: Additional Needed Fund: AFN is a financial term utilised when a company wants to grow. To put it ano...
Q: be credit sales at terms n/30. National estimates that a proposed relaxatio om 30 days to 45 days. B...
A: The answer is stated below:
Q: By definition, which of the following represents the owners of a corporation? Your answer: O Custome...
A: The balance sheet represents the financial position of the business with assets and liabilities on a...
Q: *A KSU graduate plans to start a consulting firm now by borrowing $75,000 at a compound interest rat...
A: Solution Given Loan amount $75000 Interest rate 5% Number of year 10 years We ...
Q: Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a con...
A: Income statement refers to a statement which shows the revenue and expense of the company of a parti...
Sally Hamilton has performed well as the chief financial officer of the Maxtech Computer Company and has earned a bonus. She has a choice among the following three bonus plans: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
-
A $50,000 cash bonus paid now.
-
A $10,000 annual cash bonus to be paid each year over the next six years, with the first $10,000 paid now.
-
A three-year $22,000 annual cash bonus with the first payment due three years from now.
Required:
Evaluate the three alternative bonus plans. Sally can earn a 6% annual return on her investments. (Round your answers to nearest whole dollar amount.)
-
What is the present value of the first alternative?
-
What is the present value of the second alternative?
-
What is the present value of the third alternative?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Sally Hamilton has performed well as the chief financial officer of the Maxtech Computer Company and has earned a bonus. She has a choice among the following three bonus plans: 1. A $50,000 cash bonus paid now. 2. A $10,000 annual cash bonus to be paid each year over the next six years, with the first $10,000 paid now. 3. A three-year $22,000 annual cash bonus with the first payment due three years from now. Required: Evaluate the three alternative bonus plans. Sally can earn a 6% annual return on her investments.After completing your Bachelor of Business (Accounting) degree, suppose you secure a permanent position as an accountant. You drafted a financial plan to retire in 30 years from now. So, you are thinking about creating a fund that will allow you to receive $40,000 at the end of each year for 25 years after your retirement. The interest rates are expected to be 2.25% per annum during the 30year pre- retirement period and 1.75% during the retirement period. Required: a) To provide the 25- year, $40,000 a year annuity, calculate how much should be in the fund account when you retire in 30 years. b) How much will you need today as a single amount to provide the fund calculated in part (a) if you earn 2.35% per year during the 30 years preceding your retirement?c) What effect would a change (increase/decrease) in the interest rates, both during and prior to retirement, have on the values calculated in parts (a) and (b)? Explain why. d) (Using different interest rates) Assume that the…1. The home improvement center (HIC) has an employment contract with the newly hired CEO. The contract requires a lump-sum payment of 32.4 million dollars to be paid to the CEP upon the successful completion of her first five years of service. HIC, wants to set aside an equal amount of money at the end of each year to cover this anticipated cash outflow and will earn 7,25% on the funds. How much must HIC is set aside each year for this purpose? a) 7 270 433 b)5 227 064 c)5 668 987 d) 5 606 026 e) 6 778 958
- After completing your Bachelor of Business (Accounting) degree, suppose you secure a permanent position as an accountant. You drafted a financial plan to retire in 35 years from now andthinking about creating a fund that will allow you to receive $25,000 at the end of each year for 30years after your retirement. The interest rates areexpected to be 2.45% per annum during the 35- year pre-retirement period and 3.15% during retirement. Required: a) To provide the 30-year, $ 25,000-a-year annuity, calculate how much should be in the fund account when you retire in 35 years. b) How much will you need today as a single amount to provide the fund calculated in part (a) if you earn 2.75% per year during the 35-yearpre-retirement period? c) (Using different…After completing a long and successful career as senior vice president for a large bank, you are preparing for retirement. After visiting the human resources office, you found that you have several retirement options to choose from: An immediate cash payment of $1.11 million. Payment of $53,000 per year for life. Payment of $43,000 per year for the first 3 years and then $63,000 per year for the remainder of your life (this option is intended to give you some protection against inflation). You believe you can earn 7 percent on your investments, and your remaining life expectancy is 6 years. Required: Calculate the present value of each option. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Determine which option you prefer.The Green Giant Corp. has a management contract with its CEO. The company will need to pay her $3,350,000 one-time when she has been with the company for 5 years The company wants to set aside an equal amount of funds each year until then to cover this anticipated cash outflow. The company can earn 8 percent on these funds. What should the annual deposit be to accumulate enough to cover the required payment?
- 1. A civil engineer planning for her retirement places 10% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $160,000 and she expects her salary to increase by 3% each year, what will be the future worth of her retirement fund after 15 years provided it earns 7% per year? 2. A company that manufactures purgable hydrogen sulfide monitors will make deposits such that each one is 7% larger than the preceding one. How large must the first deposit at the end of year I be if the deposits extend through year 10 and the fourth deposit is $5550? Use an interest rate of 10% per year.Jack is a very successful manager. He has a management contract which grants him a lump sum payment of $20 million be paid upon the completion of his first five years of service. The company wants to set aside an equal amount of funds at the end of each year to cover this anticipated cash outflow for Jack’s compensation. The company can earn 8 percent per year on these funds. How much must the company set aside each year for this purpose? (Keep at least 3 decimal places in intermediate steps. Choose an answer that is closest to yours.)Congratulations - you have secured your first job after graduating from Isenberg. Your employer is offering to pay out your signing bonus in one of two formats.The first option is the amount of $4400 in 6 years. The second option is to receive the amount of $1900 immediately followed by some unknown annuity that is paid at the end of each year for 6 years with the first annuity payment received at the end of year 1. Using an interest rate of 6.50%, determine the unknown annuity amount for the second option that would make the present value of both options equivalent.
- HR wants to offer a Country Club membership for a group of employees that will cost the company $10,000 dollars a year. They will begin annually starting one year from now. 1. What amount must be invested today at 8.0% compounded annually to fund the scholarship program in perpetuity? 2. Given the current economic climate the CEO has lowered the initial investment amount you had available to $100,000, how much do you now have for the Country Club membership program?Johan recently received his annual performance bonus from his employer. He has set up an investment savings plan to which he will contribute $2,300 each year from his bonus and $430 per month from his regular salary. Johan will make his initial contributions of $2,300 and $430 today. a. What will the plan be worth after 20 years if it earns 7.8% compounded monthly? b. How much did Johan’s contributions earn during the 20 years?A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $14,000 each, with the first payment occurring today, your child's 12th birthday. Beginning on your child's 18th birthday, the plan will provide $25,000 per year for four years What retum is this investment offering?