Salaries Suppose you are offered two identical jobs,job 1 paying a starting salary of $20,000 with yearlyraises of $1000 at the end of each year and job 2 paying a starting salary of $18,000 with yearly increasesof $1600 at the end of each year.a. Which job will pay more in the fifth year on the job?b. Which job will pay more over the first 5 years?

Salaries Suppose you are offered two identical jobs,job 1 paying a starting salary of $20,000 with yearlyraises of $1000 at the end of each year and job 2 paying a starting salary of $18,000 with yearly increasesof $1600 at the end of each year.a. Which job will pay more in the fifth year on the job?b. Which job will pay more over the first 5 years?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 18MC: Employees at Rayon Enterprises earn one day a month of vacation compensation (twelve days total each...

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Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.
Accounting for bonus and vacation pay Cathy Muench a factory worker, earns 1,000 each week. In addition, she will receive a 4,000 bonus at year-end and a four-week paid vacation. Prepare the entry to record the weekly payroll and the costs and liabilities related to the bonus and the vacation pay, assuming that Muench is the only employee.
COMPUTING OVERTI ME RATE OF PAY AND GROSS WEEKLY PAY Rebecca Huang receives a regular salary of 2,600 a month and is paid 1 times the regular hourly rate for hours worked in excess of 40 per week. (a) Calculate Huangs overtime rate of pay. (b) Calculate Huangs total gross weekly pay if she works 45 hours during the week.
Employees at Rayon Enterprises earn one day a month of vacation compensation (twelve days total each year). Vacation compensation is paid at an hourly rate of $45, based on an eight-hour work day. Rayons first pay period is January. It is now April 30, how much vacation liability has accumulated if the company has four employees and no vacation compensation has been paid? A. $1,440 B. $4,320 C. $5,760 D. $7,200
You are offered a job that pays $37,000 during the first year with an annual increase of 9% per year beginning in the second year. That is, beginning in year 2, your salary will be 1.09 times what it was in the previous year. What can you expect to earn in your fourth year on the job? Round your answer to the nearest dollar.
An investment firm has a job opening with a salary of N45,000 for the first year. Suppose that during the next 39 years, there is a 5% raise each year. Find the total compensation over the 40-year period.
Engineering Economics An employee was promised by his boss that he will have a salary of P300,000 on his first month and will be increased by 31.6% on the succeeding months. What will be his total salary for one year if interest is 24% compounded annually.
A new graduate has taken a job with an annual salary of $60,000. She expects her salary to go up by 2.5% each year for the first five years. Her starting salary is stored in cell A4 of an Excel worksheet, and the salary increase rate is stored in cell B4. Construct a table with years 1 through 5 in cells A6:A10 and her salary in cells B6:B10. Write the formula for her salary in year 2 (in cell B7) that can be copied and pasted correctly in cells B8 through B10
A young engineer’s starting salary is $75,000. The engineer expects annual raises of 2%. The engineer will deposit 15% of annual salary at the end of each year in an investment account that averages 6% interest. How much will the engineer have saved for retirement after 40 years?
Suppose you have two job offers to consider for similar positions. Company A will pay a salary of $85,000 per year and offers the most common retirement plan 401(k) match, which is 50 cents for each dollar you contribute on up to 6% of your pay. Company B will pay a salary of $75,000 per year and offers a dollar-for-dollar match on up to 10% of your pay. Assume you spend 10 years working at the company, that salary and retirement contributions all occur monthly, and the average APR is 7%. 1. What are the balances on these two account options? Include both your contribution and the employers. 2. Explain which option you would take. NEED BOTH PARTS
You expect to start working three years from today, and to work for 30 years thereafter. In years 4 through 13 (i.e years 1 through 10 of your working career) your salary will be $55,000. In year 14, your salary will increase by $5,000 and continue at this new level through the end of year 18. In year 19, your salary will increase by a further 20%. It will remain at this new level for the rest of your working life. Assume that you expect to live 30 yeas following the date of your retirement, and that the appropriate discount rate is 8%, compounded annually. Further assume that all income is received at the end of each year. Suppose that you wish to spend an equal amount in each of the next 33 years, and that your annual retirement will be 20% lower than our spending in the first 33 years. How much will you be able to spend in each of the first 33 years, and in each of your retirement? (Assume that your entire spending takes place at the beginning of each year).
The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. How much needs to be deposited each monthfor a year at a 12% nominal rate, compounded monthly, so that each employee will receive a $2,500 bonus? a. $2,070 b. $3,840 c. $3,940 d. $4,170.