Answer:
Sidewinder, Inc.
The addition to retained earnings is:
= $73,250
Duela Dent:
Income taxes = $45,200.
Alaskan Peach Corp.:
Balance Sheet as of December 31, 2019
Assets
Current assets:
Cash $203,000
Accounts receivable 263,000
Inventory 548,000 $1,014,000
Long-term assets:
Tangible net fixed assets 5,200,000
Patents and copyrights 857,000 $6,057,000
Total assets $7,071,000
Liabilities and Equity:
Current liabilities:
Accounts payable $286,000
Notes payable 179,000 $465,000
Long-term liabilities:
Long-term debt $1,150,000
Total liabilities $1,615,000
Accumulated retained earnings 4,686,000
Common stock (missing figure) 770,000
Total liabilities and equity $7,071,000
Explanation:
a) Data and Calculations:
Sidewinder, Inc.:
Sales revenue $714,000
Cost of goods sold $348,000
Depreciation expense $93,000
Interest expense $58,000
Tax rate = 25%
Cash dividends paid = $88,000
Income Statement
Sales revenue $714,000
Cost of goods sold 348,000
Gross profit $366,000
Depreciation expense 93,000
EBIT $273,000
Interest expense (58,000)
Income before tax $215,000
Tax rate (25%) 53,750
Net income $161,250
Cash dividends paid 88,000
Addition to Retained
Earnings $73,250
Duela Dent (single):
Taxable income = $180,800
Income tax (25%) 45,200
Alaskan Peach Corp.:
Account Titles Debit Credit
Cash $203,000
Accounts receivable 263,000
Inventory 548,000
Patents and copyrights 857,000
Tangible net fixed assets 5,200,000
Accounts payable $286,000
Notes payable 179,000
Long-term debt 1,150,000
Accumulated retained earnings 4,686,000
Common stock (missing figure) 770,000
Totals $7,071,000 $7,071,000
b. 7 days, 5 workers
c. 5 days, 7 workers
d. 8 days, 3 workers
Answer: c. 5 days, 7 workers
Explanation: With the project requirements provided, and with the least of number of resources working on the task not less than the number of those assigned to the task.
The least amount of time for the project to complete would be approximately 5 days, and the resources needed to complete the task would be approximately 7 workers.
Answer:
d. Lack of complexity: This refers to an oversimplication of policies that sacrifices depth and nuance.
Explanation:
Projects dedicated to information security policy are improved by lack of complexity . When the process for project execution is simplified, it is easy to understand and execute the various project stages, making processes more efficient. Simplification is a valuable tool businesses are using more and more to reduce wastage and increase returns.
On the other hand complexity in a project makes it hard to understand, and easier to make time-wasting mistakes.
Answer:
PV= $2,106.18
Explanation:
Giving the following information:
Annual payment= $500
Number of periods= 5 years
Interest rate= 6%
To calculate the present value, first, we need to determine the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {500*[(1.06^5) - 1]} / 0.06
FV= $2,818.55
Now, the present value:
PV= FV/(1+i)^n
PV= 2,818.55/1.06^5
PV= $2,106.18
The present value of a $500 payment received at the end of each of the next five years at an appropriate discount rate of 6 percent is approximately $2,106.
The question you asked involves the concept of calculating the present value of a series of future payments, also known as an annuity. The present value of an annuity can be determined using the formula:
PV = PMT * [(1 - (1 + r)^-n)/r]
where 'PV' is the present value, 'PMT' is the periodic payment, 'r' is the discount rate (as a decimal), and 'n' is the number of periods.
Plugging in the values from your question we get:
PV = 500 * [(1 - (1 + 0.06)^-5) /0.06]
This will give us the present value of the cash flows. Thus, the present value for a $500 payment received at the end of each of the next five years, worth to you today at the appropriate discount rate of 6 percent is $2,106.
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Answer: $538,806.50
Explanation:
This question is a compound interest question. If the savings increased at 14% per year then the amount when he is 68 will be;
Future Value = Present Value * ( 1 + Interest Rate ) ^ Years
Years = 68 - 20
= 48
Future Value = 1,000 ( 1 + 14%) ^ 48
= 1,000 * 538.8065
= $538,806.50