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Acct 301 Week 6 Assignment Ch

Exercise 6-2 Future value; single amounts [LO6-2] Determine the future value of $30,000 under each of the following sets of assumptions: (Use FV of $1 ) (Round "FV Factors" to 5 decimal places and final answers to the nearest dollar amount.) Annual Rate Period Invested Interest Compounded Future Value 1. 8% 20 years Semiannually $ 2. 16 10 years Quarterly $ 3. 12 20 months Monthly $ Explanation: 1. FV = $30,000 (4.80102*) = $144,031 * Future value of $1: n = 40, i = 4% (from FV of $1) 2. FV = $30,000 (4.80102*) = $144,031 * Future value of $1: n = 40, i = 4% (from FV of $1) 3. FV = $30,000 (1.22019*) = $36,606 * Future value of $1: n = 20, i = 1% (from FV of $1) Annual Rate Period Invested Interest Compound ed Future Value 1. 10% 15 years Semiannu ally $ 2. 20 3 years Quarterly $ 3. 36 30 months Monthly $ 1. FV = $21,000 (4.32194*) = $90,761 * Future value of $1: n = 30, i = 5% (from FV of $1) 2. FV = $21,000 (1.79586*) = $37,713 * Future value of $1: n = 12, i = 5% (from FV of $1) 3. FV = $21,000 (2.42726*) = $50,973 * Future value of $1: n = 30, i = 3% (from FV of $1) 2. Exercise 6-3 Present value; single amounts [LO6-3] Determine the present value of the following single amounts: (Use PV of $1 ) (Round "PV Factors" to 5 decimal places and final answers to the nearest dollar amount.)

Instructor Explanation: Chapter 1, Page 22 Points Received: 4 of 4  Comments: 3. Question : (TCO 4) Using the following balance sheet and income statement data,  what is the earnings per share? Current assets $ 9,000 Net income $ 12,000 Current liabilities 4,000 Stockholders’ equity 27,000 Average assets 44,000 Total liabilities 6,000 Total assets 30,000 Average common shares outstanding was 10,000 Student Answer: $1.20  $2.00  $0.83  $0.44  Instructor Explanation: Chapter 2, Pages 55-56 Points Received: 4 of 4  Comments: 4. Question : (TCO 4) A useful measure of solvency is which of the following? Student Answer: current ratio  earnings per share  return on assets ratio