You are considering purchasing a warehouse. The cost to purchase the warehouse is $491,000. Renting the equivalent space costs $19,400 per year.
Required:
1. If the annual interest rate is 6.5%, at what rate must rental cost increase each year to make the cost of renting comparable to purchasing? Assume that the rent will be paid at the end of each year.
Answers
Answer:
2.55%
Explanation:
Let us think of the rental cost as a growing perpetuity. Therefore Using the formula for the present value of growing perpetuity, we want to find the growth rate g so that:
$491,000=$19,400/6.5%-g
Or
Equivalent 6.5% -$19,400/$491,000
Hence:
6.5% -3.95%
=2.55%
Therefore the rental costs must grow at a rate of 2.55% per year for the cost of renting to be comparable to the cost of purchasing the warehouse.
Related Questions
In which 2 ways can you create a customized template for a project in qbo
Answers
The two ways you can create a customized template for a project in QuickBooks online are as follows:
1. Use an inbuilt project template and then customize it to your style. This method involves the use of a standard or custom template. Then, you can adjust the tasks, due dates, and assignees as required.
2. Create a new project template by customizing it to match your needs.
Thus, the two ways of creating a project template in QuickBooks online as stated above are not complicated.
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What does it mean for a country to have an absolute advantage?
Answers
Absolute advantage refers to the capacity of a person, business, region, or nation to produce more of a given commodity or service with about the same amount of inputs in a certain amount of time, etc.
What is an example of an absolute advantage?Consider California and Mexico as two nations that produce tequila and wine, respectively. Off to the right, a list of the goods that each country can create is presented. As you can see, California has a clear edge in creating both items because it can produce more of everything.
How is absolute advantage determined?Low-cost production enables the achievement of an absolute advantage. In other senses, it describes a person, business, or nation that has cheaper production costs. When (in comparison to rivals): Fewer materials are required to make a product, such an advantage is developed.
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Pearl Corporation bought Noodle Bowl Limited at the end of the fiscal year. While negotiating the purchase price, Pearl’s management team referred to the following three recent appraisals from independent valuation consultants.
Appraised Value Appraisal Method
Noodle Bowl brand name $50 million Cash flow model based on observed royalty rates
Noodle Bowl workforce $40 million Estimate of the replacement cost to recruit and train an equivalent workforce
Favorable lease agreements $20 million Cash flow model of the anticipated savings from Noodle Bowl's favorable (below market) $20 million contractually guaranteed rental rates for retail space
Required:
Which of the above intangibles is likely to be recorded as a distinct identiflable asset in Pearl Corporation's consolidated financia statement? Which is likely to be recorded as part of goodwill? Explain your reasoning.
Answers
Answer:
Identifiable Asset is the one which can be separated from the business and can be identified separately. The asset should have the capability to be disposed of individually. Favorable lease agreements are one such asset which qualifies these conditions. Thus, Favorable lease agreements should be recorded as a distinct asset in Pearl Corporation's consolidated financial statement.
Every such asset which cannot be identified separately should be recorded as goodwill. We cannot recognize Noodle Bowl workforce and Noodle Bowl brand name as a distinctive asset. Thus, they both should be recorded as a part of goodwill.
According to the above material, there exist large differences between economic growth rate using traditional expenditure approach and the satellite night-light data. How do you evaluate the night-light data method? and can you identify several reasons why there exists such differences?
Answers
The use of satellite night-light data as a method to evaluate economic growth has both strengths and limitations. Reasons for Differences between Traditional Expenditure Approach and Night-light Data: Informal Economy, Data Limitations, Urbanization Bias and Structural Changes.
Here is an evaluation of the night-light data method and several reasons for the differences observed between the traditional expenditure approach and the night-light data:
Evaluation of the Night-light Data Method:
Objective and Timely: Satellite night-light data provides an objective and timely measure of economic activity. Wide Coverage: Night-light data can cover large geographical areas, including remote and inaccessible regions. Granularity: The data can be analyzed at a fine-grained level, allowing for detailed spatial analysis of economic patterns. This can help identify pockets of growth and disparities within regions.Reasons for Differences between Traditional Expenditure Approach and Night-light Data:
Informal Economy: The traditional expenditure approach relies on official economic data, which may not fully capture the informal sector. Data Limitations: Night-light data has its limitations. It primarily measures economic activity related to lighting, which may not capture other dimensions of economic growth such as services or knowledge-based industries. Urbanization Bias: Night-light data tends to be more representative of urban areas with higher population density and greater access to electricity. Structural Changes: The traditional expenditure approach focuses on consumption and investment, while night-light data primarily captures the energy consumption associated with lighting.For such more question on economic:
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Please answer thank you !!!
Answers
Answer:
I think its the 3 one
refers to the average percentage of business received from a company's accounts in a particular category. is the meaning of?
Answers
It can be concluded to state that the turnover refers to the average percentage of business received from a company's accounts in a particular category. The statement given above is the meaning of a turnover.
The turnover of a company or an organization can be referred to or considered as the total revenues generated by a firm during the regular course of its business operations with a view to earn the desired returns out of this activity. It is always denoted in terms of percentage if it relates to a particular category.
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Which of the following is most likely to happen if a borrower fails to make
payments on time?
A. The borrower's credit score will decrease.
B. The lender will charge a lower interest rate.
C. The lender will increase the credit limit.
D. The borrower's creditworthiness will improve.
Answers
A. The borrower's credit score will decrease.
Answer:
A. The borrower's credit score will decrease.
Explanation:
Are lease agreements non refundable?
Answers
Answer:
Explanation:
Yes, you may stay for month and In last by writing you may ask landlord to adjust the security for arrears or rent.
Or you may give advance notice to the landlord that you would vacate the premises on so n so date and for that period you would not pay the rent and same may be adjusted from security.
Davis Supply maintains an average inventory of 2,000 dinosaur skulls for sale to filmmakers. The carrying cost per skull per year is estimated to be $150.00 and the fixed order cost is $44. What is the economic order quantity (EOQ)? (Round to the nearest whole number.)
Answers
Answer:
34
Explanation:
Given that:
The annual average inventory requirement = 2000
The carrying cost per order per annum = 150
The fixed cost per order = 44
Thus, the Economic ordering quantity can be calculated by using the formula;
\(Economic \ Order \ Quantity (EOQ)=\sqrt{\dfrac{2 \times Annual \ Demand \times Cost \ Per \ order}{ Annual \ holding \ cost \ per \ unit}\)
\(Economic \ Order \ Quantity (EOQ)=\sqrt{\dfrac{2 \times 2000 \times 44}{ 150}\)
\(Economic \ Order \ Quantity (EOQ)=\sqrt{\dfrac{176000}{ 150}\)
\(Economic \ Order \ Quantity (EOQ)=\sqrt{1173.33333}\)
Economic Order Quantity (EOQ) = 34.25
Economic Order Quantity (EOQ) ≅ 34 to the nearest whole number.
Managers are responsible for helping company's code of ethics. to understand and follow their
Answers
Answer:
Yes, managers play an important role in helping employees understand and follow their company’s code of ethics. A code of ethics is a set of guidelines that outlines the ethical standards and values that a company expects its employees to uphold. Managers are responsible for communicating the code of ethics to their employees, providing training and guidance on ethical behavior, and ensuring that employees comply with the code. By promoting ethical behavior and leading by example, managers can help create a positive and ethical work environment.
Explanation:
Zero Calories Company has 16,000 shares of cumulative preferred 1% stock, $40 par and 80,000 shares of $150 par common stock. The following amounts were distributed as dividends:
Year 1 $21,600
Year 2 4,000
Year 3 100,800
Determine the dividends per share for preferred and common stock for each year.
Answers
Three groups that participate in the process of establishing gaap are users, preparers, and auditors. these groups are represented by various organizations. for each organization listed below, indicate which of these groups it primarily represents.a. securities and exchange commissionb. financial executives internationalc. american institute of certified public accountantsd. institute of management accountantse. association of investment management and research
Answers
Answer:
Find the answer below
Explanation:
A.securities and exchange commission. - SEC primarily represents USERS
b. Financial executives international - This primarily represents PREPARERS
c. American institute of certified public accountants - This primarily represents AUDITORS
d.Institute of management accountants - This primarily represents PREPARERS
e. Association of investment management and research -This primarily represents USERS
How can organizations manage diversity on a long-term basis?
Answers
Managing diversity within organizations on a long-term basis requires a comprehensive approach that fosters an inclusive and equitable work environment. Key strategies for managing diversity include:
How can organizations manage diversity on a long-term basis?Cultivating an Inclusive Culture: Organizations should promote a culture that values diversity and inclusion. This involves creating policies and practices that celebrate diversity, address biases and discrimination, and ensure equal opportunities for all employees.
Diversity Training and Education: Providing training and education programs to employees on topics such as unconscious bias, cultural competency, and inclusive communication can increase awareness and understanding of diversity issues.
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A chart of accounts
A is setup in alphabetical order
B includes account balances
C is a listing of all accounts used by a company
D all the above
Answers
Answer:
I think the answer is D) all the above.
On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The firstpayment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a:_____
Answers
Answer:
Credit to notes payable for $165000
Explanation:
Journal entries for issuance of Note Payable :
Cash Account ..... Debit $165000
7% Note payable Accounts .... Credit $165000
Note:
Note payable is a liability so it is credited as on date of issuance.
when making decisions about which products to carry in your store or warehouse a source of good advice on market trends is?
Answers
Answer:
When doing so, trend is Important or advisable
List four issues you may have as a parent deciding succession plans for a family owned business of which you are in control. Include an idea on how you would address or attempt to resolve each issues.
Answers
Answer:
1. family fights, 2. kids not wanting to work at the family business, 3. lack of training, 4. pressure to hire family members, 1. hire other people that arent in the family, 2. convinve them to work there, 3. hire well trained people to train family, 4 hire them and see is they are good for the job or not and have themmstart at a easy position
Explanation:
3 of 45
In order to determine exactly what portion of a mortgage loan the VA will guarantee on behalf of
a qualified veteran, the borrower must apply for a
Answers
Answer:
Certificate of Eligibility (COE)
Explanation:
In order to determine exactly what portion of a mortgage loan the VA will guarantee on behalf of a qualified veteran, the borrower must apply for a Certificate of Eligibility (COE).
The Certificate of Eligibility (COE) is a letter issued by the Department of Veterans Affairs (VA), which attests the eligibility of the veteran for a VA-backed home loan. There are a few ways to obtain a COE:
Through mail, by filling out the VA Form 26-1880 (Request for Certificate of Eligibility).Through the VA's website.Through lenders.Veterans must also have at least one of the following Character of Service (COS) requirements upon discharge from the military: Honorable, General, Uncharacterized, and Under Honorable Conditions.
The Lumber Division of Sheffield Corp. produces and sells lumber that can be sold to outside customers or within the company to the Construction Division. The following data have been gathered for the coming period: Lumber Division: Capacity 120000 board feet Price per board foot $4.50 Variable production cost per bd. ft. $1.25 Variable selling cost per bd. ft. $0.50 Construction Division: Board feet needed 30000 Outside price paid per bd. ft. $4.00 If the Lumber Division sells to the Construction Division, $0.35 per board foot can be saved in shipping costs. If current outside sales are 150000 board feet, what is the minimum transfer price that the Lumber Division could accept
Answers
Answer:
$1.4
Explanation:
Calculation to determine the minimum transfer price that the Lumber Division could accept
Using this formula
Minimum transfer price =Variable production cost per bd. ft.+(Variable selling cost per bd. ft. -per board foot saved in shipping costs)
Let plug in the formula
Minimum transfer price= $1.25 +($0.50-$0.35)
Minimum transfer price=$1.25+$0.15
Minimum transfer price=$1.4
Therefore the minimum transfer price that the Lumber Division could accept is $1.4
Why the companies need to extend their product life cycle?
Answers
Answer:
because of the product and the correct one is the one of the product is not working properly
A graphic designer needs a laptop for audio/video editing, and notices that they can elect to pay for a Dell XPS laptop, or lease from the manufacturer for monthly payments of each for four years. The designer can borrow at an interest rate of % APR compounded monthly. What is the cost of leasing the laptop over buying it outright?
Answers
Based on the information given, the cost of leasing the laptop over buying it outright will be $399.06.
The following can be gotten from the complete information:
Monthly payment required for lease= 79
Time in months = 4 years = 4 ˣ 12 = 48
Interest rate =7% = 0.07
The Monthly interest rate (i) will be:
= 0.07/12= 0.00583
Then, the present value of the lease will be calculated. This will be:
= [79 × (1-(1/(1+0.00583⁴⁸)] / 0.00583
= 3299.06
Therefore, the cost of leasing over buying will be:
= present value of lease - cost of buying
= 3299.06 - 2900
= $399.06
Therefore, the correct option is $399.06.
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1. You have a business idea to start a computer training business developed for the elderly. You are working on estimating the costs required to start up and operate your business along with how much capital you will need now and in the future. What are some examples of fixed and variable costs you may have with this business idea? What is the difference between short-term and long-term capital and how will it help you meet the business costs?
2. The income statement, also known as the profit and loss statement, helps track income and expenses over a given time period. You can keep track of your revenue, or money earned, through two different accounting methods: cash or accrual. What are the differences between each method and why would a business prefer one over the other? Explain and discuss.
3. You have likely heard the expression that "it takes money to make money." This is true of starting a business as well. Once you have determined your financial plan and the capital you need, which source of financing would you choose: debt financing or equity financing? Why or why not? Explain the requirements of both and discuss your choice for financing and why you might prefer one over the other.
4. Suppose you are working on the balance sheet for your business. You need to determine your equity as an owner. Consider the following details:
Total assets: $37,777
Total liabilities: $16,575
How would you determine your equity as the business owner? Explain the process you would take to determine the owner's equity. Provide two examples of assets and two examples of liabilities. Finally, provide the dollar value of owner's equity, given the dollar figures above.
5. Your accountant, Justin, is explaining the functions of different parts of your accounting forms so you can work on them while he is on vacation. Justin showed you how to calculate different types of ratios, including profit margin, return on investment (ROI) margin, return on equity (ROE), current ratio, and debt-to-equity ratio. What did you learn from Justin's instructions? How would you calculate each ratio? Explain how to calculate each ratio with the appropriate formula.
THERE ARE 5 SHORT ANSWER QUESTIONS THANK YOU
Answers
A computer training business catering to elderly individuals may have fixed costs such as rent for location, salaries of instructors, and necessary equipment expenses like computers and software.
What are the Variable Costs?The variable costs involved in the operation could be advertising campaigns, utility bills, and materials or supplies required during each class.
Short-term capital is what covers the day-to-day operations and immediate expenditures, whereas long-term capital equals larger spendings; purchasing a property or expanding the business.
Gaining an understanding of the distinction between both makes sure you possess sufficient funds to tackle unforeseen emergency outlays while being prepared for impending potential future expenses without causing cash flow problems later on.
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What is TRUE about credit unions?
OA. They are not insured by the government.
OB.
OO
C.
D.
They do not have any govemment regulations.
They only offer savings accounts.
They are owned by members.
Answers
The true about credit unions is they are owned by members. Credit unions are non profit organizations. The correct option (D).
What do you mean by the credit unions?A particular kind of financial cooperative that offers conventional banking services is a credit union.
Credit unions can be established by major firms, organizations, and other entities for their employees and members. They can range in size from small, volunteer-only operations to large organisations with thousands of participants across the country.
The fact that credit unions have significantly fewer physical facilities than the majority of banks can be a disadvantage for customers who prefer in-person assistance.
The earnings of credit unions are not subject to corporate income tax.
Therefore, the true about credit unions is they are owned by members. Credit unions are non profit organizations.
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Which of the following would cause consumers to demand fewer slices of pizza?
A. an increase in the supply of pizza slices
B. a decrease in the supply of tacos
C. an increase in the price of pizza slices
Answers
Answer:
C.
Explanation:
All the others make the supply of pizza larger, or high demand
10 year plan independence and freedom
Answers
This is the roadmap to freedom, my ten-year financial strategy to become financially independent in ten years.
What is 10 year plan independence?I began my FIRE (Financial Independence, Retire Early) adventure from scratch in March 2019. This meant that I had a long road ahead of me as a specific individual on an average pay. You might have seen in my 10-year savings plan that my FIRE fund is growing at a faster rate each year. Generating credit and compound interest make this possible (interest on interest).
I anticipate an annual interest rate of 8% overall. Since index funds are typically expected to produce between 7 and 10% in annual interest, I'm a little more wary.
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Help help help help help help help help
Answers
Answer:
Taxes
Explanation:
Answer:
answer is services. C one option
PLC Ltd. found the following debts to be bad on the dates shown
Answers
The acronym PLC, which stands for a public limited company, indicates that the firm's shares are publicly traded. It is the British equivalent of "Inc." in the United States.
What is PLC?In the United Kingdom, a public limited company (PLC) is a type of public business. PLC is the counterpart of a publicly listed firm in the United States that uses the Inc. or corporation classification. The inclusion of the PLC acronym following a business's name is required, and it informs investors and anybody interacting with the firm that it is a publicly listed corporation. PLC, which stands for a public limited company, is an acronym for public corporations in the United Kingdom.
PLCs make up the majority of the firms listed on the London Stock Exchange. A PLC shares can be purchased by any regular investor. Unlike privately held companies, public companies are required to publish financial data and disclosures to the public on a regular basis.
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a. On October 1, Year 1, YD collected $24,000 for consulting services it agreed to provide during the coming year.
b. Adjusted the accounts to reflect the amount of consulting service revenue recognized in Year 1.
Required
a. Record the events under an accounting equation.
b. Prepare an income statement, balance sheet, and statement of cash flows for the 2013 accounting period.
c. Ignoring all other future events, what is the amount of service revenue that would be recognized in 2014?
Answers
Answer:
A. Assets= Liabilities + S/E
Cash= Unearned revenue + Retained earnings
$24,000 = $18,000 + $6,000
Bi) Income statement $6,000
Bii) Balance sheet Total Asset $24,000
Balance sheet Total Liabilities $24,000
Biii) Ending Cash Balance $24,000
C. $18,000
Explanation:
a. To Record the events under an accounting equation.
Event Assets= Liabilities + S/E
Cash= Unearned revenue + Retained earnings
Event $24,000 =$24,000 + $0
Adjustment. = -$6,000 + $6,000
$24,000 = $18,000 + $6,000
($24,000*3/12=$6,000)
($24,000*9/12=$18,000)
b) Preparation of an income statement, balance sheet, and statement of cash flows for the 2013 accounting period.
Bi)
Yard Designs INCOME STATEMENT
For the Year Ended December 31, 2013
Revenue $6,000
($24,000*3/12=$6,000)
Expense 0
Net Income $6,000
Therefore YD Income statement is $6,000
Bii)
Yard Designs BALANCE SHEET as of december 31, 2013
ASSETS
Cash $24,000
Total Assets $24,000
LIABILITIES
Unearned Revenue $18,000
($24,000*9/12=$18,000)
Total Liabilities $18,000
STOCKHOLDERS’ EQUITY
Retained Earnings $6,000
($24,000*3/12=$6,000)
Total Stockholders’ Equity $6,000
TOTAL LIAB. AND STOCKHOLDERS’ EQUITY $24,000
($18,000+$6,000)
Therefore YD Balance Sheet As Of December 31, 2013 will be :
Total Assets $24,000
Total Liabilities $24,000
Biii)
Yard Designs STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2013
Cash Flows From Operating Activities:
Cash Receipt from Revenue $24,000
Net Cash Flow from Operating Activities $24,000
Cash Flows From Investing Activities $0
Cash Flows From Financing Activities:
Net Change in Cash $24,000
Plus: Beginning Cash Balance $0
Ending Cash Balance $24,000
Therefore YD statement of Cash flow ending Cash Balance is $24,000
C. Calculation to determine the amount of service revenue that would be recognized in 2014
Based on the information given the Nine months of unearned revenue from 2013 will be recognized in 2014
2014 Recognized service revenue=$24,000*9/12
2014 Recognized service revenue= $18,000
Therefore the amount of service revenue that would be recognized in 2014 is $18,000
Calcula el interés simple de un capital de $24,000 invertido durante 5 años al 8% anual
Answers
Answer:
End Balance: $33,600.00
Total Interest: $9,600.00
Explanation:
Calculation steps:
Total Interest = $24000 × 8% × 5
= $9,600.00
End Balance = $24000 + $9,600.00
= $33,600.00
Score: 0/450
Question Value:
In 2018, the U.S. balance of payment numbers showed that income received was $1,060.4 billion and
income payments were $816.1. What was the net result?
an outflow of $816.1 billion
a net inflow of $244.3 billion
a net outflow of $244.3 billion
an inflow of $1,060.4 billion
Answers
The net result of the U.S. balance of payment numbers in 2018 was a net inflow of $244.3 billion.
In 2018, the U.S. balance of payment numbers indicated that income received was $1,060.4 billion, while income payments amounted to $816.1 billion.
To determine the net result, we need to subtract the income payments from the income received.
Net Result = Income Received - Income Payments
Substituting the given values into the equation, we have:
Net Result = $1,060.4 billion - $816.1 billion
Calculating the difference, we find:
Net Result = $244.3 billion
This signifies a net inflow of funds, indicating that the United States received more income from abroad than it paid out. It is important to note that a positive net result implies a surplus in the current account, which includes trade in goods and services, income receipts, and unilateral transfers.
This surplus indicates a favorable position for the U.S. economy in terms of its international financial transactions during that period.
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