The table below provides the total revenues and costs for a dental practice for one year Total Revenues (5) 950,000 Total Costs (5) Wages and Salaries 600,000 Risk free return of 4% on owner's capital of $1,000,000 40,000 Interest on bank loan 30,000 150,000 10,000 Cost of supplies Depreciation of capital equipment Additional wages the dentist owner could have earned in her next best alternative Risk premium of 5% on the owner's capital of $1,000,000 a. What are the explicit costs for this firm? The explicit costs are: (Type an integer) 0 50,000

The table below provides the total revenues and costs for a dental practice for one year Total Revenues (5) 950,000 Total Costs (5) Wages and Salaries 600,000 Risk free return of 4% on owner's capital of $1,000,000 40,000 Interest on bank loan 30,000 150,000 10,000 Cost of supplies Depreciation of capital equipment Additional wages the dentist owner could have earned in her next best alternative Risk premium of 5% on the owner's capital of $1,000,000 a. What are the explicit costs for this firm? The explicit costs are: (Type an integer) 0 50,000

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

Use the following data for a home health firm to answer the following question. Net income after taxes: $1,000,000 Depreciation: 300,000 Interest: 100,000 Capital expenditures: 400,000 Working capital expenditures: 500,000 Long-term debt: 1,000,000 Income taxes:400,000 What is the current value of “free cash flow”?
For life insurance policies, some of the premium pays for the cost of the insurance and the remainder goes towards the cash value of the policy and earns interest like a savings account. consider the following insurance company options. Company 1: pays 4.5% compounded monthly on the cash value of their policies Company 2: pays 4.52% compounded semi annually on the cash value of their policies what is the APY offered by each company? (round your answer to the nearest hundredth)
A purchaser has a total weekly income of $788. The lender is using a 26% housing expense-to-income ratio. Based on this ratio, what is the maximum monthly loan payment that the buyer will qualify for? 98. $205 $820 $888 A. B. C. D. $2,459 A business produces an annual net income of $103,000. The annual operating costs total $31,000. T rate of return is 11%. What is the estimated value of the business? 99.
For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.2% compounded monthly on the cash value of their policies Company 2: pays 4.21% compounded semiannually on the cash value of their policies What is the APY offered by each company? (Round your answers to the nearest hundredth.) Company 1 % Company 2 %
Choose the transaction that will both decrease cash and net income. Purchase of laptop on terms 40% down and the balance n/30 O Payment of interest-bearing note Grant of cash advance to an employee Advance payment of one-year rent
For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.1% compounded monthly on the cash value of their policies Company 2: pays 4.11% compounded semiannually on the cash value of their policies What is the APY offered by each company? (Round your answers to the nearest hundredth.) Which company offers a higher yield?
Use PMT  P(r/n) / (1- (1+r/n)-nt to determine regular pymt amt, rounded to nearest dollar. Home cost $209,000, bank requires 20% down pymt and 3pts at closing. The cost of the home is financed for 30-year fixed rate at 9.5%. P=$209,000 - $41,800 = $167,200 Down Pymt= $41800 Rate= 9.5% or 0.095 Time = 30 years fixed Points= 3 or 0.03 (167200*0.03=5106) N=12 167200(0.095/12) = 1323.666666666667 divided by: (1-(1+0.095/12)-12(30) = -360 (1-(1.007916666666667)-360 = HOW DO I CALCULATE this, this is where I am getting stuck on the calculator. I keep getting this answer 17.09486179680438, when I do 1.007916666666667-360 Please help me understand what I'm doing wrong on the bottom calculation.
Use PMT  P(r/n) / (1- (1+r/n)-nt to determine regular pymt amt, rounded to nearest dollar. Home cost $209,000, bank requires 20% down pymt and 3pts at closing. The cost of the home is financed for 30-year fixed rate at 9.5%. P=$209,000 - $41,800 = $167,200 Down Pymt= $41800 Rate= 9.5% or 0.095 Time = 30 years fixed Points= 3 or 0.03 (167200*0.03=5106) N=12 167200(0.095/12) = 1323.666666666667 divided by: (1-(1+0.095/12)-12(30) = -360 (1-(1.007916666666667)-360 = 17.09486179680438 1-17.09486179680438 = -16.09486179680438 1323.6666666667 / -16.09486179680438 (this is the one I am having trouble calculating on my calculator) Please help me understand what I'm doing wrong on the bottom calculation.
Computing the cost of a discount interest loan The financial managers at Montross Corporation are arranging the financing for working capital requirements for the upcoming year. Montross’s local bank offers a discount interest loan at a quoted (simple) interest rate of 4.00%. With a discount interest loan, interest is payable up front, and the actual amount received is less than the face amount of the loan. Suppose Montross applies for a $200,000 loan with a nine-month term. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR) of this loan. (Fill In) Value Interest payment ________________    Amount of cash received ________________    Annual percentage rate (APR) ________________    Effective annual rate (EAR) ________________    What is the nine-month rate if the bank charges a $100 processing fee? Pick one choice. 3.15% 4.12% 3.05% 2.84%
Based on the following data, calculate the items requested: Rental Costs Annual rent Insurance Security deposit $ 7,930 $ 200 $ 925 Buying Costs Annual mortgage payments Property taxes Rental cost Buying cost Down payment/closing costs Growth in equity Insurance/maintenance Estimated annual appreciation $ 10,750 (9,850 is interest) $ 2,000 $ 5,450 $900 $ 1,600 $2,250 Assume an after-tax savings interest rate of 5 percent and a tax rate of 26 percent. Assume this individual has other tax deductions that exceed the standard deduction amount. a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)
Based on the following data, calculate the items requested: Rental Costs Buying Costs Annual rent Insurance $ 7,630 Annual mortgage payments $ 170 Property taxes Security deposit $ 775 Down payment/closing costs Growth in equity $ 10,300 (9,700 is $ 1,880 $ 5,000 $ 600 Insurance/maintenance Estimated annual appreciation $ 1,300 $ 1,950 Assume an after-tax savings interest rate of 7 percent and a tax rate of 32 percent. Assume this individual deductions that exceed the standard deduction amount. a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your nearest whole dollar.)
Determine the down payment and the amount to be financed for each home described below. (a) $340,340; 10% down The down payment is $ The amount to be financed is $ (b) $740,000; 20% down The down payment is $ The amount to be financed is $