Income from a precious metals mining operation has been decreasing uniformly for 5 years. If income in year 1 was $300,000 and it decreased by $30,000 per year through year 4, the annual worth of the income at 10% per year is closest to: (a) $310, 500 (b) $203, 900 (c) $258, 600 (d) $164, 800 (e) None of the above
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- You invested in RYURX and RYIHX which each had a loss on the year. RYURX had a year-to-date loss of 5% while RYIHX had a year-to-date loss of 7%. If you invested a total of $15,500 and had a total year-to-date loss of $915, how much did you invest in each company?Thorpe Mfg., Inc., is currently operating at only 87 percent of fixed asset capacity. Current sales are $410,000. Suppose fixed assets are $350,000 and sales are projected to grow to $479,000. How much in new fixed assets is required to support this growth in sales? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) New fixed assetsSuppose you are a financial consultant and the following item has been brought to your attention: Turner Company received a new geological report informing it that the amount of coal in its coal mine is 30% greater than in previous estimates. As a result, the cost per ton of coal has decreased. Also, the cost of goods sold reported for the year had decreased by $175,000. Required: a. From the pull-down menu, select the appropriate income statement classifications of the item. b. Determine the amount related to the item that would appear in the income statement. c. Determine whether the item will increase or decrease the net income. Notes: 1. Assume a tax rate of 42% 2. All items are material. Classification What is the amount related to the item? Would net income increase or decrease? O Increase i Choose One $0 O Decrease
- Currently, Atlas Tours has $5.4 million in assets. This is a peak six-month period. During the other six months temporary current assets drop to $400,000 (for computation purposes still consider these temporary current assets). Temporary current assets $1,200,000 Permanent current assets 1,800,000 Capital assets 2,400,000 Total assets $5,400,000 Short-term rates are 4 percent. Long-term rates are 5 percent. Annual earnings before interest and taxes are $1,080,000. The tax rate is 38 percent. a. If the assets are perfectly hedged throughout the year, what will earnings after taxes be? (Enter answers in whole dollar, not in million.) Earnings after taxes $ b. If short-term interest rates increase to 5 percent when assets are at their lowest level, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6–8 (Enter answers in whole dollar, not in million.) Earnings after…Currently, Atlas Tours has $5.4 million in assets. This is a peak six-month period. During the other six months temporary current assets drop to $400,000 (for computation purposes still consider these temporary current assets). Temporary current assets $1,200,000 Permanent current assets 1,800,000 Capital assets 2,400,000 Total assets $5,400,000 Short-term rates are 4 percent. Long-term rates are 5 percent. Annual earnings before interest and taxes are $1,080,000. The tax rate is 38 percent. a. If the assets are perfectly hedged throughout the year, what will earnings after taxes be? (Enter answers in whole dollar, not in million.)A company monitored the cost of its product inspection for 8 years. The costs were AED 170 per year for the first 4 years, but increased consistently by AED S0 per year the last 4 years. The interest rate was 10% per year. Answer the below questions by matching with the closest answer. v Calculate the total present worth in year-0. A AED-1164.71 Calculate the future worth in year-&. B. AED -1906.63 C. AED-2743.40 D.AED -2496.65 E. AED-722.16 F. AED-875.71
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- Sara is trying to analyze Henley Company finances but realizes that she was missing the company's net profits after taxes for the current year. Find the company's net profits after tax.ROA = 2.5%Total asset turnover = 0.5COGS = $105,000Gross profit margin = 0.30Database Systems is considering expansion into a new product line. Assets to support expansion will cost $890,000. It is estimated that Database can generate $1,860,000 in annual sales, with an 13 percent profit margin. What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.) Net Income Return on assets 96RJS generated $78,000 net income this year. The firm's financial statements also show that its interest expense was $40,000, its marginal tax rate was 35 percent, and its invested capital was $1,000,000. If its average cost of funds is 11 percent, what was RJS's economic value added (EVA) this year? Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any. $ _______