Contemporary Business Math for Colleges - Speech or Presentation Example

 Contemporary Business Math for Colleges Part I: 1. The first step in using the step approach to finding the greatest common divisor is to: B. Divide larger number into smaller number 2. 4/5 + 6/5 equals: 4/5 + 6/5 = (4+6)/5 = 2 C. 2 3. Which of the following is not a prime number? D. 24 4. Sandy Portnoy bought 1 5/8 lbs. of ham, 6 1/4 lbs. of sliced corned beef and 5/8 lb of cole slaw. What is the total weight of her purchases? 15/8+61/4+5/8 = 13/8+25/4+5/8 = (13+50+5)/8 68/8 = 32/4 32/4 = 81/4 A. 8 1/4 5. The price of a new bike has increased by 1/3. If the original price of the bike was $90, what is the new price today? (1/3) x 90 = 30 90+30 = $120 B. $120 6. The price of a new vacation home increased by 1 3/4 times over the last 5 years. If the original price of a vacation home was $18,000, what is the new price of the vacation home today? 13/4 = 7/4 7/4 x 18000 = 31500 The increase over the past five years = 31500 The new price = $(18000+31500) $53,000 E. None of the above 7. Elliot Sloan felled a tree that was 120 feet long. Elliot decided to cut the tree into pieces measuring 1 1/4 feet each. How many pieces can be cut from this tree? 120/(11/4) = 120/(5/4) 120 x 4/5 = 96 C. 96 8. Roast beef at Market A was $3.995 per pound. AT Market B, it was $3.614 per pound. How much cheaper is Market B per pound? $3.995 - $3.614 = $.381 C. $.381 9. The level of Bill's tank at the beginning of January read 252.25 gallons. During the month, it was filled with 416.82 gallons. Bill used 241.84 gallons in January. What is the number of gallons of oil that Bill has to begin February? (252.25 + 416.82) – 241.84 = 427.23 B. 427.23 10. Dave Adams bought season's tickets to a professional basketball team's games. The cost was $795.82. The package included 42 home games. What is the average price of the tickets per game? Round to the nearest cent. ($795.82/42) = $18.95 C. $18.95 11. Loui's Jeweler had the following MasterCard sales: $66,99; $32,88; $17.50. Returns for the day were $32.80 and $10.90. What would be the amount of the net deposits for Long Jeweler on the Merchant Batch Summary slip? ($66, 99 + $32, 88 + $17.50) – ($32.80 +$10.90) = $73.67 B. $73.67 12. The bank statement for Mat Co. revealed a balance of $900 while the checkbook balance showed $1.420. Checks outstanding totaled $35. A check printing charge for $5.00 was on the bank statement. There was a $50 NSF shown on the bank statement. There was a $500 deposit in the transit. What is the reconciled balance? Bank statement balance ($) $900 Add: Deposit $500 $500 Deduct: Outstanding check $35 Check printing charge $5 NSF $50 ($90) $410 Reconciled balance $1310 E. None of the above 13. The checkbook balance of Roger Co. is $681.54. The bank statement reveals a balance of $2,111.28. The bank statement showed interest earned of $61, and a service charge of $59.64. There is a deposit in transit of $2,279.11. Outstanding checks totaled $881.45. The bookkeeper in further analyzing the bank statement noticed a collection of a note by bank for $3,140. Roger Co. forgot to deduct a check for $313.96 during the month. The reconciled balance is: Bank statement balance ($) $2,111.28 Add: Deposit $2,279.11 Note collection $3,140 Interest earned $61 5480.11 Deduct: Outstanding check $881.45 Check $313.96 (1195) Reconciled balance $4285.11 E. None of the above 14. The bank statement of June 30 for Russell Co. Showed a balance of $5,154.32 while the checkbook showed a balance of $1,600.10. The bookkeeper of Russell Co. noticed from the bank statement the bank had collected a note for $958.10. There was a deposit in transit made on June 1 for $2,182.90 along with the outstanding checks of $4,821.82. Check charges were $42.80. The reconciled balance is: Bank statement balance ($) $5,154.32 Add: Deposit $2,182.90 Collection note $958.10 $3141 Deduct: Outstanding checks $4,821.82 Check charges $42.80 ($4864.62) $1723.62 Reconciled balance $3430 E. None of the above 15. The checkbook balance of Roger Co. is $982.50. The bank statement reveals a balance of $1,051.82. The bank statement showed interest earned of $3.82, a service charge of $15.00, along with a deposit in transit of $210.00. Outstanding checks totaled $270.50. The bookkeeper in further analyzing the bank statement noticed a collection of a note by the bank for $200. Roger Co. forgot to deduct a check for $180 during the month. The reconciled balance is: Bank statement balance ($) $1,051.82 Add: Deposit $210.00 Note collection $200 $410 Deduct: Interest earned $3.82 Service charge $15.00 Outstanding checks $270.50 Check $180 $469 ($59) Reconciled balance $992.82 E. None of the above 49. The rebate and payoff of a loan before the due date is based on the E. None of the above 50. Most companies calculate the finance charge on credit card accounts as a percentage of the: C. Average daily balance 51. The average daily balance is equal to the sum of daily balances C. Divided by number of days in billing cycle 52. Al Ree bought a new delivery truck for $18,000. Al put a down payment of $4,000 and paid $270 monthly for 60 months. The total finance charge: $(4000+ (270 x 60) = $(4000+16200) = $20,200 $20,200 – 18000) = $2200 B. $2,200 53. Brad James bought a desk for $12,000. Based on his income, he could only afford to pay back $1,000 per month. There is 1½ percent monthly interest charge on the unpaid balance. The U.S. Rule is used in the calculation. At the end of month one the balance outstanding is: $912000 – 11000) =$11000 11/2% of 11000 = 330 Total debt for the first month = $11330. E. None of the above 54. Ruth Sloan bought a new car for $20,000. She put down $6,000 and paid $280 for 60 months. The total finance charge to Ruth is: Car cost = $20000 Hire purchase cost= $6000 + (280 x 60) = $22800 $22800 – 20000 = $2800 A. $2,800 55. Jackie Flynn bought a new boat for $16,000. She put a $3,000 down payment on it. The bank's loan was for 60 months. Finance charges totaled $4,800. Her monthly payment is: Boat cost = $16000 Hire purchase cost = $(16000+4800) = $20800 $20800 - $4800 = $16000 $16000/60 = $296.67 C. $296.67 56. In your job as a cashier, a customer gives you a $20 bill to pay for a can of coffee that costs $3.84. How much change should you give back? $(20-3.84) = $16.16 B. $16.16 57. Over the last 5 days, you made the following number of sales calls: 8, 7, 9, 5, and 7. On the average, how many calls did you make each day? 8+7+9 +5 + 7 = 36 36/5 = 7.2 C. 7.2 58. Quik Call charges 18¢ per minute for long-distance calls. Econo Phone totals your phone usage each month and rounds the number of minutes up to the nearest 15 minutes. It then charges $7.90 per hour of phone usage, dividing this charge into 15-minute segments if you used less than a full hour. If your office makes 5 hours 3 minutes worth of calls this month using the company with the lower price, how much will these calls cost? 5hours x $7.90 = $39.5 (15/60) x $7.9 = $1.975 $39.5 + $1.975 = $41.48 B. $41.48 59. You are preparing to tile the floor of a rectangular room that is 15½ feet by 18½ feet in size. The tiles you plan to use are square, measuring 12 inches on each side, and are sold in boxes that contain enough tile to cover 25 square feet. How many boxes of tiles must you order to complete the job? 15½ x 18½ = 286.75 286.75/25 = 11.47 b. 12 60. The farm where you just started working has a vertical cylindrical oil tank that is 2.5 feet across on the inside. The depth of the oil in the tank is 2 feet. If 1 cubic foot of space holds 7.48 gallons, about how many gallons of oil are left in the tank? 2.5 x 2 = 5 feet 5 x 7.48 = 37 A. 37 Part II: Calculation of base, rate, and percentage as it relates to business transactions The calculation of the base, rate and percentage in business transactions is essential because the rates help in the measurement of business performance. Percentage is computed by multiplication of the rate by the base. The percentage is a portion of a given variable, which represents the quality of a variable (Deitz, 2013). Rate has assign, which signifies the percent of the variable in quest. The base is the original amount of the variable under consideration. The three parts constitute a percentage problem. In this regard, percentage = Rate x base Rate = percentage/base Base = percentage/ rate The percentage increase in a variable is computed by establishing the difference between an initial amount, the base and the final amount. The difference is divided by the initial amount. Then the fraction is converted to a percentage by multiplication of the fraction by 100. % Increase/Decrease = Difference between Two Figures ÷ Previous Figure  Discounts, interest, commission, and markups and markdowns A discount is a reduction made in the cost of a product in order to promote sales. Discounts also enable customers to save because of less expenditure. The discount is calculated based on original cost of an item. Commission is the return received by a salesperson after completion of a business transaction. Commission is also computed as a percentage of sales made. Interest is the fee, which is paid by a borrower of assets. The interest acts as a compensation for the owner of an asset. It is the value of borrowed money. Additionally, an interest is also obtained through deposit of money with financial institutions. A Markup is the difference between the retail product cost and the revenue obtained from a product customer. The ratio can be compared to the gross margin in a financial statement analysis scenario. The mark-up margin represents the extra cost a retailer charges a customer in order to earn profit. Conversely, the markdowns are the reduction of the initial selling price in order to leverage on sales. According to Southam (2013), a retailer marks down a product because of stock accumulation. Additionally, products are marked down because of perishability of a product. Traders also markdown products in the course of offering discounts to their customers. Promotions also call for product markdown in order for potential customers to purchase the products. The mark-up helps in equalizing of marginal profits to marginal costs. Computation of depreciation Depreciation is the reduction of the value of an asset over time. There are many methods used in the calculation of depreciation. The commonly used methods are Straight-line method, double declining balance and the sum of year digits. The straight-line method of depreciation calculation spreads depreciation equally over the entire period of an asset. However, the salvage value of an asset must be ascertained prior to the computation of depreciation. Depreciation = (The asset cost-salvage value of an asset)/the useful life of an asset The double declining balance considers the accelerator in its computation. It allocates a high portion of depreciates in the beginning year of the product’s useful period. The method is commonly used in the computation of the depreciation pertaining to expensive assets like cars. This is because a new car’s depreciation is higher than that of an old car because of value disparity. The sum of year’s digits method considers the sum of all the years under consideration. The formula for the depreciation method: Depreciation = depreciation base x remaining useful life of an asset/the sum of the years digits In this case, the depreciation base is the difference between the cost of an asset and the salvage value of the asset. Depreciation computation is beneficial to an enterprise because e it guarantees a tax deduction given that it is a non-cash item in a business transaction. The tax deduction occurs over the whole period of the life of the asset. Additionally, depreciation results in high net profit in the income statement of a business entity. The item also boosts assets in the statement of financial position. Accelerated depreciation enables a trader to gain tax deduction in advance, which boosts the income of a business. Proper planning for depreciation enables a customer to save high amounts of income during periods of high-income (Southam and Deitz, 2013). It is a better option handling a worn out asset than writing off an asset. The deduction of depreciation is beneficial because of the tax deductions to an enterprise. Writing-off an asset does not benefit an asset in any way. Different depreciation methods suit different businesses depending on the line of product and capacity of an enterprise. Therefore, it is essential for a firm to identify eth form of depreciation, which works best for the firm. Depreciation also helps in the reporting of the expenses of a business. References Deitz, J. E. (2013). Contemporary business math for colleges. Australia: South-Western/ Cengage Learning. Southam, J. L. and Deitz, J. E. (2013). Contemporary Business Mathematics for Colleges. London, UK: International Thomson Business Press. Read More