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When Santa Clara University needs to sue students for nonpayment of tuition, they hire the famous “white shoe” law firm of Dewey, Cheetham & Howe. On January 1, managing partner Sue M. Formi bought a $400,000 Aston Martin Superleggera, making a $40,000 cash down payment and signing a note for the rest at a 4% annual interest rate. Monthly payments of $6,600.00 are due at the end of each month for the next five years (60 total payments). The first payment is due January 31.
What is the loan balance after making the second payment? (Hint: Round to the nearest dollar. Do not use any dollar signs, commas, or decimals in your answer).
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- To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Deloch purchased the stereo systems for $138,000 and sold them for $258,000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 6 percent of sales. During the year, she paid $1,480 cash to replace a defective tuner. Required a-1. Prepare an income statement for Deloch’s first year of operation. a-2. Prepare a statement of cash flows for Deloch’s first year of operation.Deja owns a photo printing business and wants to purchase a new state-of-the-art photo printer that she found online for $9,275, plus sales tax of 5.5%. The supply company is offering cash terms of 2/15, n/30, with a 1.5% service charge on late payments, or 90 days same as cash financing if Deja is approved for a company line of credit. If she is unable to pay within 90 days under the second option, she would have to pay 22.9% annual simple interest for the first 90 days, plus 2% simple interest per month on the unpaid balance after 90 days. Deja has an excellent credit rating but is unsure of what to do. a) If Deja took the cash option and was able to pay off the printer within the 15-day discount period, how much would she save? How much would she owe? b) If Deja takes the 90 days same as cash option and purchases the printer on December 30 to get a current-year tax deduction, using exact time, what is her deadline for paying no interest in a non-leap year? In a leap year?Deja owns a photo printing business and wants to purchase a new state-of-the-art photo printer that she found online for $9,275, plus sales tax of 5.5%. The supply company is offering cash terms of 2/15, n/30, with a 1.5% service charge on late payments, or 90 days same as cash financing if Deja is approved for a company line of credit. If she is unable to pay within 90 days under the second option, she would have to pay 22.9% annual simple interest for the first 90 days, plus 2% simple interest per month on the unpaid balance after 90 days. Deja has an excellent credit rating but is unsure of what to do. d) Deja finds financing through a local bank. Find the bank discount and proceeds using ordinary interest for a 90-day promissory note for $9,500 at 8% annual simple interest. Is this enough money for Deja to cover the purchase price of the printer? Is this a better option for Deja to pursue, why or why not?
- Deja owns a photo printing business and wants to purchase a new state-of-the-art photo printer that she found online for $9,275, plus sales tax of 5.5%. The supply company is offering cash terms of 2/15, n/30, with a 1.5% service charge on late payments, or 90 days same as cash financing if Deja is approved for a company line of credit. If she is unable to pay within 90 days under the second option, she would have to pay 22.9% annual simple interest for the first 90 days, plus 2% simple interest per month on the unpaid balance after 90 days. Deja has an excellent credit rating but is unsure of what to do. c) If Deja takes the 90 days same as cash and pays within 90 days, what is her payoff amount? If she can't pay until April 30, how much additional money would she owe? (Assume ordinary interest and exact time and a non-leap year)A business man who owns a chain of fast foods needs to borrow 15,000 dollars to remodel his business. The bank offers to loan the 15,000 to the business man for 24 months only. He must make monthly payments of 1000 dollars. Find the monthly interest rate of the loan and the effective annual interest rate using the interpolation methodJames was a high school teacher earning a net salary of $4500 per month. After working for one year, he quit his job to start his own kiosk business dealing in various consumer goods. In order to learn how to run the business, James enrolled in a TAFE to acquire accounting skills. James’ course was for 6 months. James had to pay $3,000 as tuition for the 3 months. After the training, James borrowed $40,000.00 from his uncle whom he pays 8 percent interest per year. Also, James withdrew $ 50,000 from his savings account. He had been earning 5 percent interest per year for this account. Further, to start the business James used his own premises given to him by his father. His father had been receiving $11,000 from rent per year. Finally, to start the business James uses $75,000 he had been given by his father to go on holiday to USA. James’s first year of business can be summarised as follows: "image" Based on your calculations of accounting profit and economic profit, would you advise…
- Maria is a graduate student; she borrows some money to buy a new car at the beginning of her graduation year. The car dealership allows her to defer payments for 12 months. Then Maria makes 48 end-of month payments thereafter. If the original note (loan) is for $30,000 and interest in 2% per month on the unpaid balance, how much will Maria’s payment be? Please Include equations used and cashflow diagramRufaro has been a full-time student at the University of Manitoba for the past four years. She has just completed her bachelor of commerce degree from the Asper School of Business and her last day of exams was April 23 . Her total student loan is $37,000.00. She has decided to take her six-month grace period and convert it to principal, then start making payments of $300.00 per month using the variable interest rate of prime +2.5%. The prime rate at the start of the grace period was 4%, after which it increased by 0.75% on August 11 . Complete the table below to determine the total principal Rufaro will owe at the end of the grace period. (Give all "Number of Days" quantities as fractions with denominator 365.) \table[[Date Range,\table[[Balance],[(P)]],\table[[Annual],[Interest Rate],[(r)]],\table[[Number],[of Days],[RM Company, owner of RM Mall, charges Hope Clothing Store, a rental fee of P60, 000 per month plus 5% yearly profits over P5, 000,000. Jacob, the owner of the store, directs his accountant Jun Reyes, to increase the estimate of bad debt expense and warranty costs in order to keep profits at P4, 750,000. Instructions:Should Jun Reyes follow his boss’ directive? Who is harmed if the estimates are increased?
