Reference no: EM131207970
Present Value of an Annuity Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value table in Exhibit 8. Round to the nearest whole dollar. First year $ 0.93458 Second Year $ Third Year $ Fourth Year $ Total present value $ 800,000 b. By using the present value table in Exhibit 10. Round to the nearest whole dollar. $ c. Why is the present value of the four $200,000 cash receipts less than the $800,000 to be received in the future? The present value is less due to the compounding of interest over the 4 years. Feedback
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Shares of common stock were outstanding
: A company reported net income of 5.6 million. At the beginning of the year, 3.4 million shares of common stock were outstanding and at the end of the year, 3.6 million shares were outstanding. No dividends were declared.
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Determine the earnings per share of common stock
: BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 8% (issued at face amount) .. $7,500,000 Preferred 2% stock, $10 par .......... 7,500,000 Common stock, $50 par .......... 7,500,000. Determine the earnings pe..
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Distributes lightweight lawn chair
: Deckyard Company distributes a lightweight lawn chair that sells for $27 per unit. Variable expenses are $13.50 per unit, and fixed expenses total $65,250 annually. Prepare two contribution format income statements, one showing the results of last ye..
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Calculate the dividends per share on each class of stock
: Sea Horse Inc., a software development firm, has stock outstanding as follows: 80,000 shares of 1% preferred stock of $15 par, and 200,000 shares of $65 par common. During its first four years of operations, the following amounts were distributed as ..
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Present value of annuity
: Present Value of an Annuity Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value table in Exhibi..
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A volume variance is computed for
: A volume variance is computed for:
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Recorded in special cash receipts journal
: Review the transactions listed below and determine the ones that would be recorded in a special cash receipts journal. Cash, Equipment sold for cash, Merchandise purchased for cash, cash from credit customers in payment of their account, or credit sa..
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Setting materials-slabor-overhead standards is challenging
: Setting materials, labor, and overhead standards is challenging. If standards are set too low, companies might purchase inferior products and employees might not work to their full potential. Identify four types of specialists that you would assemble..
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Prepare bank reconciliation
: The following data were accumulated for use in reconciling the bank account of Zek’s Co. for May 2016: Cash balance according to the company’s records at May 31, 2016, $24,403. Prepare a bank reconciliation, using the format shown in Exhibit 13. Refe..
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