Payment amount to reach an investment goal
Instead of borrowing to by a car, Chelsie and her husband Carlos decide to save and pay cash for a car in three years. How much would they have to save each month to accumulate $22,000 if the sinking fund pays 5% annual interest?
Cathy is saving for her retirement by putting $325 each month into an ordinary annuity. If the annuity is expected to pay an annual interest rate of 8.5%, how much will she save for her retirement in 30 years?
1. The following data apply to the Maryland Manufacturing Company: debt ratio 60% current ratio 2.1 x total asset turnover 1.8 x days sales outstanding 42 days based on a 365 day year gross profit margin on sales 25% sales-cost of goods sold)/sales inventory turnover ratio 4 ...continues
Management Accounting - Relevant cost and revenues - changes to a facility layout
A company is thinking about changing the layout of the facilities with these estimations in mind: -Machine moving and reintallation will cost $100,000 -Total sales will increase by 20% to $1,200,000 b/c of a decrease in production cycle time required under the new plant layout. Average contribution margin (sales dollars - f ...continues
3. Therapeutic Systems sells its products for $8 per unit. It has the following costs: Rent $120,000 Factory labor $1.50 per unit Executive salaries $112,000 Raw material $.70 per unit Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $6, compute the ...continues
Determine how many dollars of new funds are needed to finance the growth.
Owen's Electronics has 90 operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly w ...continues
You enter into a forward contract to buy a 10-year, zero coupon bond that will be issued in one year. The face value of the bond is $1,000, and the 1-year and 11-year spot interest rates are 3 percent per annum and 8 percent per annum, respectively. Both of these interest rates are expressed as effective annual yields. a. ...continues
A department store has the following credit terms. The finance charge if any is based on the previous balance before payments or credits are deducted. the rates are 1.5%per month up to $1,000and 1.25%per month in excess of 1,000.There is no finance charge if the full amount of the new balance is paid within 30 days after the cyc ...continues
Personal Finance Investments...answer questions 1-6
I have received an inheritance for which I need to make wise investment decisions. I have received a $100,000 inheritance and would like to invest. Since I recognize the importance of diversification, invest the amount in a variety of financial instruments. 1. Decide on a good investment mix; in other words, decide what percen ...continues
If a company wants to have $100,000 in a contingency fund 10 years from now, the amount the company must deposit each year in years 1 through 5, at an interest rate of 10% per year, is closest to? A. Less than $8,000 B. $8,420 C. $9,340 D. MORE THAN $10,000
