You decide to earn some money during the summer by running a lawn mowing service called Blade for Blade, Inc. You plan to work 138 hours per month.You will charge customers $20 per hour and 10% of your customers will pay you in cash and the rest of your customers will pay you in the following month. How much should your estimated accounts receivable balance equal on your balance sheet at the end of the month?

You decide to earn some money during the summer by running a lawn mowing service called Blade for Blade, Inc. You plan to work 138 hours per month.You will charge customers $20 per hour and 10% of your customers will pay you in cash and the rest of your customers will pay you in the following month. How much should your estimated accounts receivable balance equal on your balance sheet at the end of the month?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Home Work 2.35, Chapter 35A You would like to purchase a software business for $350,000 with a 10-year loan. Your local bank is willing to lend you money with an interest rate of 5% per year. Assuming you can pay $100,000 at the end of the 10 years from a savings account, while making quarterly payments. What quarterly payment, paid at the beginning of every quarter, will you have to pay the bank? What would the quarterly payments be if made at the end of the quarter?
Problem #1. Jason's uncle loaned him $26,560 to help start a landscaping business. They agreed that Jason would pay off the entire loan plus 3.24% annually compounded interest in 4 years, and that in the meantime he would make monthly deposits into a bank account to make sure that he has the amount needed when the loan comes due. The bank will pay 2.09%. (a) Find the total amount Jason will need to repay the loan. Show your work. (b) How much should each of his monthly deposits be? Show your work.
a. 1) How much money should be deposited into an account paying interest at a rate of 7.5% compounded quarterly so that at the end of 12 years the accumulated amount will be $28,960? 2) Jack buys a furniture set costing $23,845 and chose to finance the money through the store for 18 months. He would be charged 12% interest compounded monthly based on the unpaid balance. 3) What is his monthly installment and How much interest is paid over this period? b. 1) How much is the unpaid balance after 12 months?
OLA#8.2 Amy had a loan of $72,000 and made payments of $2,500 at the end of every month to settle it. If he received the loan at 4.12% compounded monthly, what was the balance on the loan at the end of one year? Please reply with algebra using detials
2.36. Suppose you want to accumulate $10,000 for a down payment for a house. You will deposit $400 at the beginning of every month in an account that credits interest monthly at the rate of 0.6% per month. How long will it take you to achieve your goal?
Question 8 Rinku has just finished her first year of university. She wants to tour Europe when she graduates in 3 years. By having a part-time job through the school year and a summer job during the summer, she plans to make regualr weekly deposits into a savings account, which bears 18% interest, compounded monthly (Assume there are four weeks in every month for this question). (a) If Rinku deposits $15 per week, how much will she save in 3 years (Round your answer to the nearest cent eg. X.XX)? $ (b) If Rinku deposits $20 per week, how much will she save in 3 years (Round your answer to the nearest cent eg. X.XX)? $ (c) Exactly how much does Rinku need to deposit every week if she want to save $4,800 in 3 years (Round your answer to the nearest cent eg. X.XX) $
23. Please calculate the interest that has been accrued as of December 31, 2014 in the given scenario. You invest $90,000 with a small business that has promised to pay you interest at a 6.5% rate. After 210 days, the small business will return the $90,000 plus interest to you. You invest with the business on August 1, 2014.
QUESTION 2 The effective interest rate per month at the Bank of Port Royal is 0.019. The effective interest rate per year at the Bank of Shipwreck Cove is 0.330. Captain Jack Sparrow needs to accumulate money in order to buy a new ship . He makes payments of 2.200 at the beginning of each month for 17 months into his account at the Bank of Port Royal. At the end of each month, the interest credited by the Bank of Port Royal is immediately transferred into Jack Sparrow's account at the Bank of Shipwreck Cove. Calculate the total amount ( in both banks ) at the end of 17 months.
Start your trial now! First week only $4.99!arrow_forward Question Read and analyze each given scenario and provide what is asked. Show your complete solutions. 1. It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%. a. If the bank compounds interest annually, how much will you have in your account on January 1, 20x9? b. What will your January 1, 20x9 balance be if the bank uses quarterly compounding? 2. It is now January 1, 2x16, and you will need P100,000 on January 1, 2x20. Your bank compounds interest at an 8% annual rate. How much must you deposit today to have a balance of P100,000 on January 1, 2x20? 3. If you deposited P200,000 in a bank account that pays 6% interest annually, how much will be in your account after five (5) years? 4. What is the present value of a security that will pay P290,000 in 20 years if securities of equal risk pay 5% annually? 5. What is the future value of a 5%, 5-year ordinary annuity that…
K1. 15) FIGURE OUT THE NEW STATEMENT BALANCE. You have a credit card that charges 18.99% on any outstanding balances, and 25% on cash advances, plus a fee of 3% of the amount of the cash advance. The closing date on the credit card is the 1st of each month. Last month you left a balance of $1800 on your credit card. This month you took out a cash advance of $450 and made $1600 in additional purchases. You made a payment of $950. What will the total of your new balance be on your next credit card statement, considering finance charges?
QUESTION 17 You wish to buy a $9,500 dining room set. The furniture store offers you a 2-year loan with an APR of 7.2 percent. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PAYMENT PER MONTH? How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PAYMENT PER MONTH?
8. Jill Kramer borrowed $25,000 to pay for a startup business. Jill must repay the loan at the end of five months in one payment with a 6 percent simple interest rate. What is the total amount that Jill must repay in five months?How much interest does Jill repay?