Answer:
$37,848.9
Explanation:
We can use the interest rate formula to figure out how much is in the account after the first 3 years. The interest rate formula is show below:
[tex]A = P (1 + r)^t[/tex]
Let me delineate what each part of this equation means:
A = The total amount
P = The initial amount of money put into the account
R = the interest rate
T = Time
The equation gives us the following:
You place $7,500 each year for three years The interest rate is 5%At the end of the 4th year $10,000 will be placed in the accountFirst, let's calculate the P in the equation.
You put $7,500 each year for 3 years, so multiply 7,500 by 3.
[tex](7,500) * (3) = 22,500[/tex]
Next, let's start putting everything into the equation, like this:
[tex]A = 22,500(1 + .05)^3[/tex]
(When doing interest rate you have to move the decimal over twice)
Now that we have the equation, let's solve it!
[tex]A = 22,500(1.05)^3\\A = 22,500(1.15763)\\A = 26,046.6[/tex]
After 3 years $26,046.6 is in the account.
But, don't forget the last part of the question!
But you have a fourth year too!
Add the $10,000 onto the $26,046.6
That equals $36,046.6.
Lets plug this back into the equation for the final year
[tex]A = 36046.6(1.05)^1\\A = 37848.9[/tex]
Thus, the final answer will be $37,848.9
Hope this helps!
- Kay :)
After saving the money for the four years and by adding $10,000 in the end of fourth year the money the amount that will be saved is $48,942.23.
What is Future Value?
The temporal value of money is based on the simple notion that one dollar today is worth more than one dollar in the future. This is because one can invest the dollar they have today and have it increase at a rate of return, or interest, over time.
The formula for future value is-
[tex]\begin{aligned}\text{FV}&=\text{CF}\times\dfrac{(1+r)^n-1}{\text{r}}+\text{FV}\\&=\$7,500\times\dfrac{(1+0.05)^4-1}{0.05}+\$7,500\\&=\$48,942.23\end{aligned}[/tex]
Thus, the future value by the end of the fourth year is $48,942.23.
For further details about the future value refer to this link:
https://brainly.in/question/40202543
A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2,100. The first monthly deposit occurred on June 1, 2008 and the last monthly deposit will be on January 1, 2015. The account also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5,000 and occurred on October 1, 2008. The last $5,000 withdrawal will occur on January 1, 2015. How much remains in the account after the last withdrawal?
Answer:
The amount left in the account after last withdrawal is $61,945
Explanation:
The first monthly deposit occurred on June 1, 2008 and the last monthly deposit will be on January 1, 2015 = 80 deposit
Monthly deposit = 2,100
Interest rate = 12% / 1% per month
Firstly, we calculate the future worth of the monthly deposit
FW = A(F/A, i, n)
A = 2,100, i = 1%, n= 80
FW = $2100*[(1+0.01)^80 - 1 / 0.01]
FW = $2100*[2.216715 - 1 / 0.01]
FW = $2100*(121.671)
FW = $255,509.10
We calculate the effective interest rate
i(effective) = (1 + i nominal monthly interest rate)^n - 1
i `%, n = 3(no of months in quarter)
i (effective) = (1+0.01)^3 - 1
i (effective) = (1.01)^3 - 1
i (effective) = 1.030301 - 1
i (effective) = 0.030301
i (effective) = 3.0301%
The effective quarterly interest rate is 3.0301%
We calculate the future worth of the quarterly drawings
FW = A[(1+i)^n - 1 / i]
A = 5,000(drawing), i = 3.0301%, n = 26(number of drawings)
FW = 5,000*[(1+0.030301)^26 - 1 / 0.030301]
FW = 5,000*[2.17303717 - 1 / 0.030301]
FW = 5,000*(38.71282)
FW = $193,564.10
The future worth of the quarterly withdrawal is $193,564.10
We calculate the amount left in the account after last withdrawal
Amount left in account = FW(monthly deposits) - FW(quarterly drawings)
Amount left in account = $255,509.10 - $193,564.10
Amount left in account = $61,945
Thus, the amount left in the account after last withdrawal is $61,945
Consider a capacity constrained process producing a high profit margin product. What will the impacts on revenue and profits be if processing time for the bottleneck resource is reduced by 10% while everything else remains the same?
A) No impact on revenue or profits
B) Higher revenue and profits
C) Lower revenue and profits
D) Higher profits with no change in revenue
Answer:
The answer is "Option B"
Explanation:
In this question, Higher incomes and profits are correct because it minimizes the congestion operating frequency by 10%. It takes a long time and decreasing the processing, which would have had an impact on revenue and profit directly. Performance would grow, generating additional sales, that's why choice b is correct.
Denise sells silk scarves at a hobby fair. Each scarf sells for $25 and has a variable cost of $15. Denise’s booth rental for one day is $30. Based on this information, what total revenue amount does Denise need to earn to break-even?
Answer:
Break-even point (dollars)= $75
Explanation:
Giving the following information:
Each scarf sells for $25 and has a variable cost of $15. Denise’s booth rental for one day is $30.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 30 / [(25 - 15)/25]
Break-even point (dollars)= $75
A charitable corporation buys a new piece of land with plans to start building a hospital in two years. On the next property tax assessment date, the land is still vacant, and construction has not begun. In most states, what is the most likely result of the charity's petition for exemption from real estate taxes?A. Because the charity owns the land, the property is exempt.
B. Because the land is not being used, the property is not exempt.
C. If building permits have been issued, the property is exempt.
D. If the charity is a church, the property is exempt.
Answer: B. because the land is not being used, the property is not exempt
Explanation:
From the information given in the question, we are told that a charitable corporation buys a new piece of land with plans to start building a hospital in two years and that as at the the next property tax assessment date, the land is still vacant, and construction work has not begun on the land.
The most likely result of the charity's petition for exemption from real estate taxes will be that the property will be that because the land is not being used, the property is not exempt.
If your company matches 75 cents on the dollar,and you contribute $200 a paycheck, how much will your employee match?
On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 6%. The market interest rate is 4%. The issue price of the bond was $11,016. Your company used the effective-interest method of amortization. At the end of the first year, your company should:_____.a. debit Interest Expense for $800, credit Premium on Bonds Payable for $145.00, and credit Interest Payable for $655.00.b. debit Interest Expense for $655.00 and credit Interest Payable for $655.00.c. debit Interest Expense for $655.00, debit Premium on Bonds Payable for $145.00, and credit Cash for $800.d. debit Interest Expense for $800, debit Premium on Bonds Payable for $145.00, and credit Interest Payable for $655.00.
Answer:
Debit Interest Expense $440.64, Debit Premium on Bonds Payable $159.36 and Credit Cash $600
Explanation:
Amount paid in cash = $10,000 * 6% = $600
Interest expense = $11,016 * 4% = $440.64
Amortization of premium on bonds payable = Amount paid in cash - Interest expense
Amortization of premium on bonds payable = $600 - $440.64
Amortization of premium on bonds payable = $159.36.
Debit Interest Expense $440.64
Debit Premium on Bonds Payable $159.36
Credit Cash $600
The price of cups increased from $3.75 to $4.05 and the quantity demanded of plates decreased from 4,950 to 4,450. Calculate the cross-price elasticity of demand for plates. Round your answer to the nearest hundredth.
Answer:Cross elasticity of demand = -1.25
Explanation:
Cross elasticity of demand= Per entage change in quantity of commodity A (plates)/ Percentage change in price of commodity B(cups)
Percentage change in quantity demanded for plates = (New quantity - old quantity/ old quantity ) x 100
={ (4450-4950)/4950] ×100
=-500/4950
= - 0.10×100= - 10%
Percentage change in price of cups =(New price - old price/ old price) x 100 [(4.05-3.75)/3.75]×100
=0.3/ 3.75
= 0.08×100= 8%
Cross price elasticity of demand = - 10%/8%
= - 1.25
Here, the cross elasticity of demand for these goods of cups and plates is negative(-1.25) showing that they are complementary goods since as the price for cups increases, the demand for plates decreased.
It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $1,000. Assuming an interest rate of 4% compounded annually, determine the capitalized cost for maintaining the statue.
Answer:
$24,630.54
Explanation:
Calculation to determine the capitalized cost for maintaining the statue
First step is to calculate the Effective interest rate
Effective interest rate = (1+.04/4) ^4 -1
Effective interest rate= 0.04060
Last step is to calculat the capitalized cost for maintaining the statue using this formula
Capitalized cost =Annual maintenance cost /Effective interest rate
Let plug in the formula
Capitalized cost = ($1,000/0.04060)
Capitalized cost = $24,630.54
Therefore the capitalized cost for maintaining the statue will be $24,630.54
Assuming that the price elasticity of demand for slinkys (slinkys are a metal spring-like children's toy) is 2, an increase in the price of slinkys of 15% would result in (for slinkys) ___________a. an increase in the quantity supplied of 30%b. a decrease in demand of 30%c. a decrease in the quantity demanded of 7.5%d. a decrease in the quantity demanded of 30%
Answer: d. a decrease in the quantity demanded of 30%
Explanation:
Price elasticity of a good is used to measure the magnitude of change in the quantity demanded of the good as a result of a change in price.
Price elasticity = Change in Quantity demanded / Change in Price
2 = Change in quantity demanded / 15%
Change in Quantity demanded = 2 * 15% = 30%
The elasticity is listed as positive but is supposed to be negative even though this can cause confusion. Normal goods are assumed to have a negative elasticity so unless stated otherwise, assume elasticity is negative.
This is why the change is a decrease in quantity demanded.
Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond?
a. the price of the bond will fall
b. the price of the bond will raise
Answer: a. the price of the bond will fall.
Explanation:
If one buys a 7% coupon, 20-year bond today when it’s first issued and the interest rates suddenly rise to 15%, the value of the bond will decrease.
This is because there's an inverse relationship between price and interest rates, that is, the increase in one variable will lead to the decrease in the other variable. When there is a rise in the inters rate, it should be noted that the payments on fixed coupon are worth less.
Therefore, the price of the bond will fall.
The Greenback Store’s cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $40,000. Every dollar of sales contributes 25 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.75 and fixed costs of $440,000. Every dollar of sales contributes 75 cents toward fixed costs and profit. Both companies have sales of $800,000 for the month. Required: a. Compare the two companies’ cost structures. b. Suppose that both companies experience a 15 percent increase in sales volume. By how much would each company’s profits increase?
Answer:
Greenback Store One-Mart
Amount % Amount %
a. Sales $800,000 100% $800,000 100%
Variable cost $600,000 75% $200,000 25%
Contribution margin $200,000 25% $600,000 75%
Fixed cost $40,000 5% $440,000 55%
Operating profit $160,000 20% $160,000 20%
Break even point $160,000 $586,666.67
Workings
Greenback Store Break even point = Fixed cost / Contribution margin ratio = 40,000 / 0.25 = 160,000
One-Mart Break even point = Fixed cost / Contribution margin ratio = 440,000 / 0.75 = 586,666.67
b. Greenback Store
Increase in sales = $800,000*15% = $120,000
Company profit Increase by + (Increase in sales * Contribution margin ratio = 120,000 * 25% = $30,000
Thus, with the increase in 15% of sales of Greenback Store, the profit of the company increase by $30,000
One-Mart
Increase in sales = $800,000*15% = $120,000
Company profit Increase by + (Increase in sales * Contribution margin ratio = 120,000 * 75% = $90,000
Thus, with the increase in 15% of sales of One-Mart , the profit of the company increase by $90,000.
In constructing a common-size income statement, depreciation will be______. A. omitted since it is a noncash expense. B. expressed as a percentage of sales. C. added back to convert net income to cash flows. D. expressed as a percentage of total assets. E. expressed as a percentage of gross fixed assets.
Answer:
B. expressed as a percentage of sales.
Explanation:
The common size income statement is the income statement where n each line the item on the income statement should be expressed as a percentage of sales
In the given options, the option B is correct as it shows that the depreciation would be expressed in sales percentage
Therefore all other options are wrong
MacKenzie Company sold $640 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 5.5% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record this sale transaction would be:________
Answer and Explanation:
The Journal entry is shown below:-
Cash Dr, $604.80 ($640 × 5.5%)
Card Expense $35.20
To Sales $640
(Being sale is recorded)
Here we debited the cash and expenses as assets are increasing also it increased the expenses On the other hand it also increased the sales. Also assets and expenses contains normal debit balance and the sales revenue contains normal credit balance
Madison Company issued an interest-bearing note payable with a face amount of $30,600 and a stated interest rate of 8% to the Metropolitan Bank on August 1, Year 1. The note carried a one-year term.
a. The amount of cash flow from operating activities on the 2016 statement of cash flows would be:________
b. Based on this information alone, the amount of total liabilities appearing on Madison's Year 1 balance sheet would be:________
Answer:
a. $0
b. $31,620
Explanation:
a. Notes Payable do not fall under Operating activities in the cashflow statement but rather under Financing Activities which is where cash transactions that provide the business with capital and liability funds are accounted for.
The Operating activity balance from this is therefore $0.
b. The liabilities will include the Note and the interest accumulated at year end.
Interest accumulated = 30,600 * 8% * 5/12 months = $1,020
Liabilities = 30,600 + 1,020 = $31,620
estimated cost: a. managers use to make decisions about the future b. find a right price c. is not useful for
Answer:
managers use to make decisions about the future
Explanation:
Estimated cost is the cost that is projected to be incurred by a business when undertaking a project, program, or operation.
It comprises of the list of expenses that will be spent on an activity in the future.
Therefore it is used by managers to decide on the best activity to undertake in the future.
Usually the activity that has the lowest cost is balanced against the required quality.
Effective Annual Rate A loan is offered with monthly payments and a 8 percent APR. What's the loan's effective annual rate (EAR)?
Answer:
The loan's effective annual rate (EAR) is 8.30%.
Explanation:
Effective Annual Rate (EAR) can be described as an interest rate which been adjusted for compounding over particular period.
EAR therefore simply refers to the interest rate paid to an investor in a year after taking compounding into consideration.
The EAR can be computed using the following formula:
EAR = ((1 + (i / n))^n) - 1 .............................(1)
Where;
i = Annual percentage rate (APR) = 8%, or 0.08
n = Number of compounding periods or months in a year = 12
Substituting the values into equation (1), we have:
EAR = ((1 + (0.08 / 12))^12) - 1
EAR = ((1 + 0.00666666666666667)^12) - 1
EAR = 1.00666666666666667^12 - 1
EAR = 1.08299950680751 - 1
EAR = 0.08299950680751, or 8.299950680751%
Approximating to 2 decimal places, we have:
EAR = 8.30%
Therefore, the loan's effective annual rate (EAR) is 8.30%.
Shares of Corporation have a beta of 0.90. The market risk premium is 7%, and
the risk-free rate is 8%. Corporation paid a dividend of $1.80 per share, and the
dividend is expected to grow at 7% forever. The share currently sells for $25.
Corporation has a debt-equity ratio of 50%. Its cost of debt is 8%, before taxation,
taxation rate is 30%.
What is the weighted average cost of capital of Corporation?
Answer:
The weighted average cost of capital of Corporation is 11.4%
Explanation:
Now use following formula to calculate the weighted average cost of equity
WACC = ( Weight of equity x Cost of equity ) + ( Weight of debt x Cost of debt (after tax ) )
Weight
Equity = 100%
Debt = 50%
Cost
First we need to calculate the cost of equity using CAPM formula
Cost of equity = Risk free rate + Beta x ( Market risk premium )
Placing values in the formula
Cost of equity = 8% + 0.90 x 7%
Cost of equity = 14.3%
Cost of debt = 8%
Cost of debt (after tax ) = 8% x ( 1 - 30% ) = 5.6%
Placing values in the formula of Weighted average cost of capital
WACC = ( ( 100%/150% ) x 14.3% ) + ( ( 50% / 150% ) x 5.6% )
WACC = 9.53% + 1.87%
WACC = 11.4%
Preparing an income and expense statement helps in answering the question, "Where does all my money go?" This statement takes __________and ___________subtracts to determine an individual's or a family's cash surplus or deficit situation.
Correct question read;
"This statement takes __________and subtracts_________ to determine an individual's or a family's cash surplus or deficit situation.
Answer:
note of income; the expenses
Explanation:
Remember, the income and expense statement as the name implies is a financial statement that takes note of all incomes into a financial account and then subtracting identified expenses from the income to determine if there was a loss or profit.
By following this method, one ultimately would be able to answer the question, "Where does all my money go?".
Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. Doing this helps Toyota manage the ______ of industrial demand.
a. volatility
b. division
c. durability
d. development
Answer:
a. volatility
Explanation:
From the question, we are informed that "Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. In case of Doing this it helps Toyota manage the volatility of industrial demand.
volatility of industrial demand do occur where there is uncertainty as far as demand is concerned in the consumer products , as a result of this most firms to catch up with compitition, growing their sales an lot more , so in this case Toyota still continues to manufacture its traditionally fueled cars, trucks, and SUVs even though there is Mirai for the U.S. market.
One effective way to manage credit card debt is to:
A. exaggerate your income when applying for a credit card.
B. spend your entire credit limit before making any payments.
C. replace high-interest credit cards with low-interest options.
D. always pay only the minimum payment required each month.
Answer:
C. replace high-interest credit cards with low-interest options.
Explanation:
A credit card provides a secure and convenient way to pay for goods and services even when they do not have money. The credit card gives the user access to instant credit every time they use it. The user does not incur any charges should they pay the amount due before its due date.
Credit card interest rate charges are among the highest in the industry. If the user is late in their payment, the interest fee and other charges accumulate real quick. Shifting to cards with lower interest is one way of managing credit card debts.
Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%. What is the investment's coefficient of variation?
a. 0.67
b. 0.73
c. 0.81
d. 0.89
e. 0.98
Answer:
A)0.67
Explanation:
Coefficient of variation can be regarded as the method that is usually devices in the assessment of the total risk per unit of return in a particular investment.
To calculate the investment's coefficient of variation, we use the expresion below
Coefficient of variation = standard deviation/expected return.
Given:
expected return = 15%
standard deviation = 10%.
Coefficient of variation =10/15
= 0.67
Hence, the investment's coefficient of variation is 0.67
On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accountin g for cash discounts What is the correct entry for Flores on November 17, assuming the correct payment was received on that date? A) cash 7,840 Accounts receivable 7,840 B) cash 7,840 Sales discounts 8,00 Accounts receivablhe C) 7,84 cash Sales Accouts receivable D) 8,000 Cash Sales discounts l6 8,00 Accounts receivable 160 Sales
Answer:
Following are the solution to this question:
Explanation:
In all the given choices some of the data is missing so, its correct entry can be defined as follows
Cash account $7,840
Sales discount $160
To Accounts receivable $8,000
why does location matter?
answer: you need to know where your at
The market price of a security is $50. Its expected rate of return is 13%. The risk-free rate is 4% and the market risk premium is 6%. What will be the market price of the security if its beta doubles (and all other variables remain unchanged)? Assume that the stock is expected to pay a constant dividend in perpetuity.
Answer: New Market price =$29.55
Explanation:
Using the CAPM,Capital Asset Pricing Model CAPM formule , The expected return on stock is given as
Er = Rf +β( Mr)
which means
Expected return = Risk free rate + beta (market risk premium)
13%= 4% +beta (6%)
beta= 13%-4%/6%=0.13-0.04 /0.06
beta= 1.5
The dividend expected to be paid is given as
Expected dividend, D = Price of security X Expected return
= 50 X 13%
= $6.5
Now, if beta doubles, Expected return becomes
Er = Rf + 2β( Mr)
Er= 4% + 2 x 1.5( 6%)
=4%+ 3.0( 6%)
0.04 + 0.18
Er = 0.22 = 22%
New Market price
Expected dividend, D = Price of security X Expected return
Price = Expected dividend, D/Expected return
= $6.5/0.22
=$29.55
Steady Company’s stock has a beta of 0.20. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate of Steady Company’s cost of equity?
Answer:
the estimation of the cost of equity is 7.4%
Explanation:
The computation of the estimation of the cost of equity is shown below:
Here we used the Capital Asset Pricing model formula i.e.
Cost of equity = Risk free rate + Beta × market risk premium
= 6% + 0.20 × 7%
= 6% + 1.4%
= 7.4%
Hence, the estimation of the cost of equity is 7.4%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Which of the following are frequently mentioned goals of the Federal Reserve? Check all that apply.
Answer:
Stability in the financial system
– Price stability—fighting inflation
– Full employment
– Economic growth
– Interest rate stability
– Currency stability
Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $364,900 in its Accounts Receivable account and a credit balance of $4,200 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $370,000 in debit balances and $5,100 in credit balances. The company aged its accounts as follows:
Current $303,000
0-60 days past due 42,000
61-180 days past due 17,000
Over 180 days past due 8,000
$370,000
In the past, the company has experienced credit losses as follows: 1% of current balances, 5% of balances 0-60 days past due, 15% of balances 61-180 days past due, and 40% of balances over six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable.
Required:
a. Prepare the adjusting entry to record the allowance for doubtful accounts for the year.
b. Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.
Answer:
a. First calculate the adjusting entry to record allowance.
Uncollectible for the year is;
= (303,000 * 1%) + (42,000 * 5%) + (17,000 * 15%) + (8,000 * 40%)
= $10,880
Adjusting entry = Uncollectable amount - Credit balance on allowance
= 10,880 - 4,200
= $6,680
DR Bad Debt Expense $6,680
CR Allowance for Doubtful accounts $6,680
b.
Current Assets:
Accounts Receivable $370,000
Less: Allowance for doubtful accounts ($10,880)
$359,120
Current Liabilities
Customers Overpayments $5,100
The current liability above arises from the credit balance of $5,100 in the Accounts receivable account. Accounts Receivable should have a debit balance so if a credit balance occurs it is an overpayment by a customer.
The inability to physically possess artificial intelligence as it delivers service represents which fundamental difference of marketing services?
Answer:
The fundamental difference in marketing services referred to here is the tangibility of product vs the intangiblity of service.
Explanation:
There are two broad categories of marketing:
Product MarketingService MarketingThe big difference between the two is that the former is tangible whilst the latter is not.
The intangibility of service makes it harder (but not impossible) for the marketer to find a tangible element to which the consumer can connect to the brand.
Intangibility also means that (unlike a tangible product) it will be difficult for a consumer to return a service like that which has been rendered by AI. What any businesses do when a customer is not satisfied with a service is to do a refund. However, in a product scenario, the loss for a product returned is less than that of a refund for service because a defective product can always be fixed.
Cheers
The most recent price activity in this chart is a quadruple top breakout. The box size is $0.50 and the reversal size is three boxes. What is the price objective for the breakout using the horizontal count method?a. $19.00b. $21.50c. $12.50d. $22.00
Answer:
a. $19.00
Explanation:
Note: The graph is as attached below
The low of the column where a quadruple top breakout occurs is $8.5 and width is 7 and box size is 0.5
The width of the pattern is 7 which is multiplied by 0.5 which is the box size and the reversal size of 3 for an Extension estimate (7 x 0.5 x 3 = $10.5).
Now, $10.5 is added to the low of the column and hence price objective is $10.5 + $8.5 = $19
if the owner of a business invests $20,000 in her business , which 2 accounts are affected?
Answer:
The owner invests personal cash in the business. The company's asset account Cash increases. ... (If the company is a corporation, then the Common Stock account(s) will increase.)