Question

teams 2.1 percent on its savings, how much will the fim QUESTION 22 Retreaded Tires plans to save $23.500, 524500, 526 500, and 528,000 at the end of each year for Years 1 to 4, respectively have saved at the end of Year 4? $100878 30 $102.140 20 $105,608.11 $104,174 00 $111.860.57 QUESTION 23 The Dry Dock has inventory of $431,700, accounts payable of 594 200 cash of 551950, and accounts receivable of 5103.680 What is the cash ratio? 064 55 053 90 134 rest paid of $12.400 The tax rate is 28 percent. How much net income did the QUESTION 24 Henry and Gracia Farms has sales of $509,600 costs of $448.150. depreciation expense of 536.100, and firm eam for the period? 57 778 39,324 $10.30 58.671 55.886 Chal Say and Submit to save and submit Chek Sawe All Answers to all

Answer 1

22:

Future value is the present value of money plus interest earned. Interest factor are used to find future value.

FV = PV (1+r)^n

As the investment is made at end of each year we will start with n-1 = 3 for year1

2 for year 2 and 1 for year 3

4th year investment will not earn any interest as it is made at the end of year.

Year	PV	FV factor $1 at 2.1%	Future Value
1	$23,500	1.0643322(1.021)^3	$25,011.81
2	$24,500	1.042441(1.021)^2	$25,539.80[$24,500*1.0424411]
3	$26,500	(1.021)^1	$27,056.5[$26,500*1.021]
4	$28,000	1	$28,000
		Total	$105,608.11 [$25,011.81+$25,539.80+$27,056.5+$28,000]

Answer C

23:

Cash ratio is measurement of company's liquidity.It is ratio of cash and cash equivalent to current liability.

=cash/current liability

=$51,950/$94,200

=0.55

Here, accounts payable is a current liability which will have to be paid off in near future (within 12 month)

24:

Net income is difference between all the expenses and income.

Tax is charged on income after deducting all the expenses.

Sales	$509,600
Less:
Cost	$448,150
Depreciation	$36,100
Interest	$12,400
Income before tax [$509,600-$448,150-$36,100-$12,400]	$12,950
Tax (28%) 12,950*28%	$3,626
Net Income [12,950-3,626]	$9,324