Linda Clark received 175,000 from her mother's estate. She placed the funds into the hands of a broker, who purchased the following securities on Linda's behalf: a. Common stock was purchased at a cost of 95,000 . The stock paid no dividends, but it was sold for 160,000 at the end of three years. b. Preferred stock was purchased at its par value of 30,000 . The stock paid a 6% dividend (based on par value) the following year for three years. At the end of three years, the stock was sold for 27,000 . c. Bonds were purchased at a cost of 50,000 . The bonds paid 3,000 in interest every six months. After three years, the bonds were sold for 52,700. (Note: In discounting a cash flow that occurs semiannually, the procedure is to halve the discount rate and double the number of periods. Use the same procedure in discounting the proceeds from the sale.)
The securities were all sold at the end of three years so that Linda would have funds available to open a new business venture. The broker stated that the investments had earned more than a 16% return, and he gave Linda the following computations to support his statement:
(c) Linda wants to use the 239,700 proceeds (160,000+27,000+52,700= 239,700) from sale of the securities to open a retail store under a 12 -year franchise contract. What annual net cash inflow must the store generate for Linda to earn a 14% return over the 12 -year period? Round computations to the nearest whole dollar.
Answers
The bonds were sold after three years for $52,700. After three years, all of the securities were sold so Linda would have the money she needed to start a new firm. The broker claimed that the investments had generated a return of greater than 16%. Therefore, Linda makes a 16% return on investment.
What do you understand about the stock market?Securities buyers and sellers can connect, communicate, and conduct business on the stock market. The markets provide price discovery for stock in firms and act as a gauge for the state of the national economy. Because market participants compete in an open market, buyers and sellers may be sure that they will receive a fair price, a high level of liquidity, and transparency. The London Stock Exchange was the first stock exchange, and it got its start in a café where traders gathered to trade shares in 1773. Philadelphia hosted the country's first stock exchange in 1790. The Buttonwood Agreement which gave its name after the buttonwood tree under which it was signed, opened New York's Wall Street in 1792.
Calculation:
Common stock
Gain on sale ($160,000 - $95,000)
= $ 65,000
Preferred stock
Dividends paid (6% x $30,000 x 3 years)
= 5,400
Loss on sale ($27,000 - $30,000)
= 3,000
Bonds:
Interest paid - ($ 6,000 x 3 years)
= 18,000
Gain on sale - ($52,700 - $50,000)
= 2,700
Net gain on all investments - $88,100
= $88,100 / 3 years / $175,000 = 16.8%
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Related Questions
What is the advantage of using a job scout? personal finance
Answers
Domain knowledge. Tech recruiters know the fundamental aspects regarding the human component of technology development just as sales recruiters know which skills are in high demand among sales teams; and how people can proactively fit into the selling process. They know account-based, social, solution-based, and other methods of selling; and which type of selling credentials or experience matches each framework. Specialist job recruiters under retainer arrangement with top brands know the corporate culture and preferred worker personas of the companies they serve. This insider knowledge enables sales recruiters to orchestrate the best and longest lasting people-job matches in the industry.
Time-saving. Because sales recruiters operate with surgical precision, both employers and job seekers who use their services save considerable amount of time compared to casting very wide nets using traditional ways of job search. Sales recruiters unburden employers from the task of creating a shortlist of good candidates. They also help job seekers avoid doing multiple interviews for each company they apply to by simulating the filtering effect of the interview process for them.
Trust. Top sales recruiters know the terrain and the dynamics of what they are doing such that they consistently deliver acceptable outcomes. This reliability builds trust, especially among hiring managers who are often beset with hundreds of diverse resumes that require long, tedious hours of diligent review just to sift a few good candidates from hordes of unqualified applicants. Job seekers handled by leading sales recruiters get extra mileage on their application, as a result of employer trust.
Passion/driven to perform. Aside from being experts, specialist job recruiters are passionate about their role and are driven to perform because outcomes dictate their profitability. Like sales professionals, for example, sales recruiters need to “close winning deals” between a company and a sales applicant. The more such deals they close, the better their revenue and reputation get. That means you can expect job recruiters to share the responsibility of job-hunting for you.
Cost-effective (for job seekers). Some sales recruiters do not charge fees from job seekers up front. That means sales professionals can seek help from multiple job recruiters without paying anything until they successfully land a job. However, payback happens upon any successful onboarding. Some recruiters — especially those focusing on the C-suite — which provide premium services do require payment at the onset. Nearly all job recruiters charge participating employers for their specialist services, either via a retainer, contingency, or other types of arrangement.
Good hand in the negotiation table. Job recruiters have excellent negotiation skills, developed from years of balancing employer, job seeker, and sales recruiter priorities (they make money by playing off the relative values being exchanged by jobseekers and employers). These negotiation skills sometimes result to better compensation packages for jobs seekers but not always.
Game-changing career advice. Some specialist job recruiters provide crucial career advice for free. Because they need to close acceptable deals with employers, they need to prime all talents under their care for every hiring challenge ahead. As domain experts, they know which skills, certifications, or credentials a job seeker needs to successfully land a particular sales role. They even advise applicants on how they should behave and answer questions during interviews.
when proving cash , cash balance is compared to _____.?
Answers
When proving cash, the cash balance is compared to the chequebook balance. Thus, option 'D' is the correct option.
What is cash balance?The sum of money that a business has on hand at the moment is called its cash balance. This cash is held in reserve to cover any unforeseen financial shortfalls. Without this financial safety net, companies could find themselves unable to cover their expenses. Normally, cash balances are put toward debt repayment or given as dividends to investors.
Cash balance = beginning cash balance + cash inflows – cash outflows.On the balance sheet, cash is categorized as a current asset, which causes it to rise on the debit side and decrease on the credit side. Due to the order of liquidity, cash will often be at the top of the current asset part of the balance sheet. Currency, bank accounts, and undeposited cheques are all considered cash on a balance sheet.
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Unstable cildiei 1.
NISM
Kelly Krantz
3 points
13. Kelly Krantz saved $250.00 to buy clothes and supplies for the new school year. She went to the mall
and bought the following items: 3 pair of jeans that cost $35.00 each; 5 shirts that cost $15.50 each;
new shoes for $48.00; 6 notebooks at a cost of $1.50 each; and a pack of pens for $2.75. How much
more or less than she budgeted did she actually spend?
Your answer
Submit
Log
Answers
Answer:
$62.50 more
Explanation:
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15. Why is unemployment a closely watched figure by the government?
16. Briefly explain the connection between a person’s level of education and his or her potential for employability and earnings.
Economics
Answers
If the employment rate is high then the economy is booming, the standard of living is high and the spending and output in the economy is high.
An individuals level of education can negatively or positively impact their employability and earnings. A person with higher education and experience is mostly likely to be faster employed and receive higher earnings in comparison to a person with lower education and experience.
If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity?
Answers
Bonds acquired at premiums often have lower yields to maturity than bonds purchased at market rates. This is further explained below.
What is a bond?Generally, Bonds are financial securities that reflect loans made to the issuer by the bondholders themselves. When it comes to borrowing money, governments (at all levels) and companies (of all sizes) often turn to bonds.
In conclusion, If you buy a bond at a discount, the yield to maturity will be lower than its coupon rate.
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Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $53,900; total assets, $199,400; common stock, $88,000; and retained earnings, $40,093.)
Answers
To provide a comprehensive analysis of Cabot Corporation's financial statements, I would need more specific information about the individual financial statements, such as the income statement and the statement of cash flows. Without these details, it is challenging to provide a detailed analysis of the company's financial performance.
However, based on the given information, we can make a few general observations:
Sales: The company's sales figures are not provided in the information provided. Sales are a critical indicator of a company's revenue generation and growth.
Inventory: The balance sheet shows that the inventory amount at December 31, 2014, was $53,900. Inventory represents the value of goods held by the company for sale or production. Monitoring inventory levels is important to ensure efficient management of working capital and to avoid stockouts or obsolescence.
Total assets: The total assets of Cabot Corporation at December 31, 2014, were $199,400. Total assets include both current and non-current assets, such as cash, accounts receivable, property, plant, and equipment. Comparing the total assets over time can provide insights into the company's asset growth and investment strategies.
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Assume that the quotes given below are from a newspaper. "petrol prices fall for the second time during this year", "price of video games is set to fall again" "price of foreign holidays increases" Explain whether the producers of the relevant companies i) Are likely to raise or cut back on production as a result of these news items. Explain your reasons. ii) What is the term used for this rise or cut down of production?
please help ASAP
Answers
Answer:
which subject
Explanation:
¯\_ʘ‿ʘ_/¯¯\_ʘ‿ʘ_/¯¯\_ʘ‿ʘ_/¯
What type of relationship exists between interest rates and aggregate spending?
There is a(n) ______ relationship between interest rates and aggregate spending. When interest rates ______, aggregate spending decreases.
Answers
Answer:
mark brainlest
Explanation:
Higher real interest rates reduces aggregate expenditure by increasing the cost of loans while increasing the earnings from savings. Both factors reduce expenditures by reducing consumption and investments, and therefore, aggregate expenditure.
volatile, not permanent, RAM
: non-volatile, permanent, often referred to as ‘space’
secondary memory/storage
primary memory/storage
peripheral
Answers
Answer:
RAM - primary memory/storage
please mark me as brainliest please
Answer:
RAM - primary memory/storage
Explanation:
Which of the following is a reason that your company might not want to increase its market share?
A.
The market saturation for your product is low.
B.
Many of your company's competitors have bad reputations.
C.
Your company has a limited capacity for producing your product.
D.
The price of your product is very competitive.
Answers
Answer:
C: Your company has a limited capacity for producing your product.
Explanation:
hope this helps!
what is the difference between the turbo button and the victim button
Answers
turbo victim: A button inside your head and heart. You press it any time you give away the power you have to change your life
started business with cash Rs 100000 and furniture Rs 50000
Answers
Answer:
See below
Explanation:
Cash and furniture are assets. An increase in assets is debited. The amounts used to buy the in facilitating the transactions is the capital.
The journal entry will be as below,
Cash A/c Dr. Rs 100,000
Furniture A/c Dr. Rs 50,000
Capital A/c Cr. Rs 150,000
When supplies are purchased on credit it means that ______. (Check all that apply.)
A. the business will pay for the supplies at a later time
B. a liability has been incurred
C. the Accounts Payable account will be increased
D. the business will be paying for the supplies right away
Answers
When supplies are purchased on credit it means that the Accounts Payable account will be increased.
What is a credit Purchase ?
A credit buy, sometimes known as a purchase made "on credit," is when you make a purchase for something that you will receive today but have to pay for later. When you use a credit card, for instance, your financial institution pays for the items or services up front before charging you for them.
If a company buys items on credit, it will debit the purchasing account, which will increase it inventory since the products were bought from a third party. When a company makes a credit purchase, the purchase journal credits the accounts payable account.
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you have been asked to review the december 31, 2024, balance sheet for champion cleaning. after completing your review, you list the following three items for discussion with your superior: an investment of $34,000 is included in current assets. management has indicated it has no intention of liquidating the investment in 2025. a $140,000 note payable is listed as a long-term liability, but you have determined that the note is due in 10 equal annual installments with the first installment due on march 31, 2025. deferred revenue of $72,000 is included as a current liability even though only two-thirds will be recognized as revenue in 2025, and the other one-third in 2026.
Answers
After reviewing Champion Cleaning's December 31, 2024 balance sheet, I have identified three items that require discussion with my superior:
The investment of $34,000 included in current assets - although management has indicated that they have no intention of liquidating the investment in 2025, it should still be monitored.
The $140,000 note payable listed as a long-term liability - however, the note is due in 10 equal annual installments, with the first installment due on March 31, 2025.
Deferred revenue of $72,000 included as a current liability - although only two-thirds will be recognized as revenue in 2025 and the other one-third in 2026.
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belle co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. during the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. by the end of the year 31 sets were sold. using the lifo method, the cost of ending inventory is:
Answers
Using the LIFO method, the cost of ending inventory of Belle company is $12.00.
Belle Co. also bought an additional 27 goods, totaling a total of 58. Specifically, 27 is equivalent to 7 + 8 + 12. The phrase "Last In First Out" refers to the idea that the items that were purchased last should be used up first.
31 units were sold by the business. There are only 8 sets of paint for $1.50 because 27 of them have already been newly acquired, and 4 came from the initial inventory.
The cost of the ending inventory is,
I = 8($1.5) = $12
The inventory system known as LIFO stands for Last In, First Out. This implies that the price of the most recent inventory purchase serves as the basis for determining the price of the goods sold.Learn more about Last In First Out, here
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How can I make money on the internet, List some that are easy for multiple people
Answers
Answer:
You can use some beermoney websites such as Swagbucks and RewardXP. You do surveys and tasks to earn money. I personally use RewardXP. You can cash out in PayPal, gift cards, and even prepaid gift cards that can be used as debit/credit cards. I have personally made $60 from RewardXP.
-1 Name the Act that makes provision for employees to improve their work performance.
Answers
Over your lifetime, as a driver, it is estimated that you will
A. Most likely never be in a car accident
B. Be in one car accident
C. Be in two car accidents
D. Be in three to four car accidents
Answers
Answer:
The average is about three to four car accidents in their lifetime. Thats about 1 car accident every 18 years.
Explanation:
D is the correct option
here is a riddle again
If you drop me I’m sure to crack, but give me a smile and I’ll always smile back. What am I?
Answers
Answer:
a mirror
Explanation:
1. What is the purpose of using credit?
2. List several sources of consumer credit.
3. What types of information are asked for on a typical credit
Application?
4. How are store credit accounts different from bank credit card
Accounts?
5. How are credit cards different from charge cards?
6. How is a single payment similar to an installment loan? How is it
Different?
7. Give two examples of collateral that might be used to secure a loan.
8. What is the responsibility of a cosigner of a loan?
9. How is a line of credit different from other types of loans?
10. List several benefits of using credit.
Answers
Answer: To earn CREDIT
Explanation:
Hannah is a real estate assistant. her broker has asked her to be available for tasks in the field rather than in the office. what would we call hannah?
Answers
Hannah is a real estate assistant can also be called an independent contractor.
What does an independent contractor do?An independent contractor is known to be anyone that is said to be self-employed.
They can be a consultant, lawyer, accountant, agent, engineer or any other kind of work which a person is known to provides services to other firms or people for a fee.
Therefore, based on the scenario given, Hannah is a real estate assistant can also be called an independent contractor.
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When creating a résumé, other experiences should be included only if they are relevant to the job objective.truefalse
Answers
When creating a résumé, other experiences should be included only if they are relevant to the job objective. true
Why is it crucial to just include information that is relevant on your resume?
Recruiters want to be certain that you are serious about the position and are not simply flooding the internet with applications for every open position. This implies that if you have a lot of expertise in other, unrelated subjects, you might want to opt to concentrate exclusively on those that are specifically relevant to the career or field you seek.
Employers may learn more about you, see your qualifications, and request an interview by reviewing your resume.
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What is the role of the FTC in U.S. cybersecurity law and policy? In your opinion, does it play too big, or too small, of a part in safeguarding consumers from unfair and deceptive trade practices?
Answers
The answer to the role of the FTC in U.S. cybersecurity law and policy is that the FTC protects customers from unfair and deceptive trade practices. It is authorized to enforce Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices, and this includes data security.
The Federal Trade Commission is a vital agency when it comes to safeguarding consumers from unfair and deceptive trade practices, which includes cybersecurity law and policy. FTC's responsibility and authority are broad, from shielding customer privacy to protecting businesses from unfair competition. This agency has long been committed to consumer protection.
The FTC also performs investigations and initiates enforcement actions against companies whose data security practices are inadequate and do not meet the required security standards. Additionally, it provides helpful information to assist businesses in safeguarding customers' personal data, such as consumer protection data. Therefore, it is safe to say that the FTC is doing a good job of safeguarding consumers from unfair and deceptive trade practices.
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If $15,000 is invested at a rate of 4. 75% compounded continuously for 25 years, what is the final value of the investment? round the answer to the nearest penny.
Answers
The final value of the investment after 25 years of compound interest is $47,857.
What is compound interest?Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.
It occurs when interest is reinvested, or added to the loaned capital rather than paid out, or when the borrower is required to pay it so that interest is generated the next period on the principal amount plus any accumulated interest.
In finance and economics, compound interest is common.
In contrast to simple interest, which does not compound since past interest is not added to the principal for the current period, compound interest allows interest to build over time.
So, the principal amount is $15,000 and the compound interest is 4.75% annually for 25 years.
Then, the amount after 25 years will be: $47,856.62
Rounding off: $47,857
(Refer to the chart attached below)
Therefore, the final value of the investment after 25 years of compound interest is $47,857.
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ASAP PLS 25 PTS to address a falling GDP, a government may:
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Keynes believed that Question 8 options: Say's law would hold in a laissez-faire economy. the economy would always be near or on its production possibilities frontier. wages and prices are often inflexible in the downward direction. the equilibrium level of output will always be at the full-employment level of output.
Answers
Answer:
wages and prices are often inflexible in the downward direction.
Explanation:
John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.
Keynes believed that wages and prices are often inflexible in the downward direction.
In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.
what is 4/8 = ??????????????????????
Answers
Answer:
4/8 is equivalent to 1/2
Explanation:
Hope it helps a lot :]
Answer:
4 divided by eight? if this is the question then the answer is 1/2
Explanation:
let me know if that was what you were asking
Chapter 3-22 Recording adopted budget (L03-5) The town of willingdon adopted the following general fund budget for the fiscal year beginning July 1
Prepare journal entries to record the adopted budget
Answers
Journal entries are a way to record financial transactions in accounting. Each journal entry consists of at least two parts: a debit and a credit. The debit and credit amounts must always be equal, which is known as the accounting equation of Assets = Liabilities + Equity.
The general journal entries to record the adopted budget at the beginning of the fiscal year would be:
Debit: Estimated Revenues - Taxes $14,900,000
Debit: Estimated Revenues - Intergovernmental Revenues $600,000
Debit: Estimated Revenues - Charges for Services $810,500
Debit: Estimated Revenues - Fines and Forfeits $150,000
Debit: Estimated Revenues - Miscellaneous Revenues $98,200
Credit: Appropriations - General Government $5,400,000
Credit: Appropriations - Public Safety $8,550,000
Credit: Appropriations - Public Works $1,540,000
Credit: Appropriations - Culture and Recreation $960,000
Credit: Appropriations - Miscellaneous $80,000
a-2. The entries in the subsidiary ledger accounts would be:
Subsidiary Ledger - Estimated Revenues:
Taxes: Debit $14,900,000
Intergovernmental Revenues: Debit $600,000
Charges for Services: Debit $810,500
Fines and Forfeits: Debit $150,000
Miscellaneous Revenues: Debit $98,200
Subsidiary Ledger - Appropriations:
General Government: Credit $5,400,000
Public Safety: Credit $8,550,000
Public Works: Credit $1,540,000
Culture and Recreation: Credit $960,000
Miscellaneous: Credit $80,000
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Full Question: During July, the first month f the fiscal year, the Town of Willingdon issued the following purchase orders and contracts.
General Government $800,000
Public Safety $400,000
Public works $75,000
Health and welfare $65,000
Miscellaneous $25,000
Total PO and contracts $1,365,000
Prepare the general journal entry to record the issuance of the POs and contracts.
Then show the entries in subsidiary ledger accounts.
How is a debit card different from a credit card?
A. A debit card is usually issued by a financial institution.
B. A debit card provides a way for people to make large purchases.
C. Spending on a debit card is limited to the funds available in an
account.
D. Spending can occur via a digital payment method.
Answers
Answer:
C
Explanation:
because thats wat ist is.- limited funds
Net Purchases + Purchases Returns and Allowances + Purchase Discounts equals:
O A. Gross Profit.
OB. Gross Purchases.
O C. Net Income.
OD. Net Loss.
Answers
Answer:
OB. Gross Purchases.
Explanation:
Gross purchases represent all the purchases a business made in a particular period. It includes returns outwards ( purchases returns), discounts and allowances received.
Net purchases are calculated by subtracting purchase returns, discounts received, and allowances from gross purchases.
Therefore, Net Purchases + Purchases Returns and Allowances + Purchase Discounts= gross purchases.