Harley-Davidson Inc. manufactures motorcycles. During the years following 2018 (the company's 115th anniversary year), thecompany's gross income can be approximated¹ by 1.97 -0.13 billion dollars per year, wheret is time in years since January 1, 2018.Assume this rate holds through January 1, 2023, and assume a continuous interest rate of 2.0% per year.(a) What was the income of the Harley-Davidson Company in 2018 (t = 0)? What is the projected gross income in 2022 (t = 4)?The gross income in 2018 was 1.97billion dollars.The projected gross income in 2022 is 1.45(b) What was the present value, on January 1, 2018, of Harley-Davidson's gross income for the four years from January 1, 2018 toJanuary 1, 2022?Round your answer to two decimal places.i 6.624ibillion dollars(c) What is the future value, on January 1, 2022, of the gross income for the preceding 4 years?7.09billion dollars.billion dollars1www.marketwatch.com, accessed December 16, 2020.

The objective of the question is to calculate the gross income of Harley-Davidson Inc. for the years…

Answered: Harley-Davidson Inc. manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Harley-Davidson Inc. manufactures motorcycles. During the years following 2018 (the company's 115th anniversary year), the company's gross income can be approximated ¹ by 1.97 -0.13t billion dollars per year, where t is time in years since January 1, 2018. Assume this rate holds through January 1, 2023, and assume a continuous interest rate of 2.1% per year. (a) What was the income of the Harley-Davidson Company in 2018 (t = 0)? What is the projected gross income in 2022 (t = 4)? The gross income in 2018 was 1.97 billion dollars. The projected gross income in 2022 is 1.45 (b) What was the present value, on January 1, 2018, of Harley-Davidson's gross income for the four years from January 1, 2018 to January 1, 2022? Round your answer to two decimal places. i billion dollars. ! billion dollars i (c) What is the future value, on January 1, 2022, of the gross income for the preceding 4 years? ! billion dollars
The Zander Corporation wishes to accumulate $2,000,000 for plant expansion. The funds are required on December 31, 2025. Zander intends to make five equal annual deposits at the beginning of the year in a fund that will earn interest at 8% compounded annually. The first deposit was made on January 1, 2021. What is the amount of the required annual deposit? The required annual deposit is (round up to the nearest dollar):
Assume that in 2018, the first edition of a comic book was sold at auction for $585,400. The comic book was originally sold in 1935 for $.05. For this to have been true, what was the annual increase in the value of the comic book? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual increase %
Am. 355.
Assume that in 2020, the first edition of a comic book was sold at auction for $691,600. The comic book was originally sold in 1936 for $.10. What was the annual increase in the value of the comic book? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Annual increase = %
Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,673,000, or it can make annual payments of $347,100 for 15 years, each payment due on the last day of the year. Click here to view factor tables. Which method of payment do you recommend, assuming an expected effective interest rate of 10% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value of annual payments Recommended payment method Annual Payments 44
A company has had record profits and decided to use some of the profits to pay for manufacturing improvements. If the company can invest $1,600,000.00 in an a annuity will that will make payments at the beginning of every six months for 4 years. If the annuity pays 5.6%, compounded semi-annual. What is the size of payments that the company can expect?The payment amount will be $. (Round to 2 decimal places.)
Vaughn Cosmetics Co. purchased machinery on December 31, 2024, paying $54,400.00 down and agreeing to pay the balance in four equal installments of $53,600.00 payable each December 31. An assumed interest of 10% is implicit in the purchase price. Click here to view factor tables. Prepare the journal entries that would be recorded for the purchase and for (1) the payments and (2) interest on the following dates. (Round present value factor to 5 decimal places, e.g. 1.23465 and final answers to 2 decimal places, e.g. 38,548.23. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) (a) (b) (c) (d) (e) December 31, 2024. December 31, 2025. December 31, 2026. December 31, 2027. December 31, 2028.
Waterway Industries will receive $26500 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $26500 receipts, assuming a 8% interest rate?
Assume that in 2018, the first edition of a comic book was sold at auction for $632,600. The comic book was originally sold in 1935 for $.10. For this to have been true, what was the annual increase in the value of the comic book? Annual increase: ____%
Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your answer is partially correct. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date :. 31, 2024 Account Titles and Explanation Equipment Discount on Notes Payable Notes Payable Cash Debit 116615.00 21985.00 Credit 0 99000 39600
On December 31, 2023, ABC company borrows $480,000 from the First Bank to start a business. The loan requires quarterly payments for 10 years and the interest rate on the loan is 12%. ABC company's quarterly payment is:

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