1 answer

Use Excel.. (PV, FV, or PMT) The table below represents the annual earnings from Tina's Trading...

Question:

Use Excel.. (PV, FV, or PMT)

The table below represents the annual earnings from Tinas Trading Company, a mid-size manufacturing company. Annual earnings

The table below represents the annual earnings from Tina's Trading Company, a mid-size manufacturing company. Annual earnings are reinvested into an account which earn 9.7% interest annually. What is the company's retained earnings account at the end of the last period? Net CF FV Year 2012 2013 2014 2015 2016 2017 2018 $ $ $ $ $ $ $ Income Expense 350,000.00 $ 155,000.00 413,678.00 $ 118,745.00 202,341.00 $ 121,713.63 213,469.76 $ 124,756.47 225,210.59 $ 127,875.38 237,597.17 $ 131,072.26 250,665.02 $ 134,349.07 8a) X= Tina's Trading Company round 2, with annual earnings reivested into an account which earned 9.7% interest annually. However, in 2014 Tina has a lawsuit for negligence to report failing parts and loses $500,000 as an expense. How much money (X) is in the company's retained earnings account at the end of the last period? (Hint: setup a table similar to 8a) 8b) 8b) | Xe

Answers

a)
Year Income Expense Net CF FV
2012 $ 350,000.00 $ 155,000.00 $         195,000.00 $339,839.91
2013 $ 413,678.00 $ 118,745.00 $         294,933.00 $468,550.61
2014 $ 202,341.00 $ 121,713.63 $           80,627.37 $116,764.01
2015 $ 213,469.76 $ 124,756.47 $           88,713.29 $117,113.93
2016 $ 225,210.59 $ 127,875.38 $           97,335.21 $117,134.07
2017 $ 237,597.17 $ 131,072.26 $         106,524.91 $116,857.83
2018 $ 250,665.02 $ 134,349.07 $         116,315.95 $   116,315.95
X = $1,392,576.30
b)
Year Income Expense Net CF FV
2012 $ 350,000.00 $ 155,000.00 $         195,000.00 $339,839.91
2013 $ 413,678.00 $ 118,745.00 $         294,933.00 $468,550.61
2014 $ 202,341.00 $ 621,713.63 $        (419,372.63) ($607,332.60)
2015 $ 213,469.76 $ 124,756.47 $           88,713.29 $117,113.93
2016 $ 225,210.59 $ 127,875.38 $           97,335.21 $117,134.07
2017 $ 237,597.17 $ 131,072.26 $         106,524.91 $116,857.83
2018 $ 250,665.02 $ 134,349.07 $         116,315.95 $   116,315.95
X = $668,479.69

1 The table below repres Year 2012 mtu 000 Income 350000 413678 202341 213469.76 225210.59 237597.17 250665.02 Expense 155000

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