Text exercises week 4 Essay Example | Topics and Well Written Essays - 1500 words

Text exercises week 4 - Essay ExampleThe parallelism sheet of Technical Inc. for the year ended 31st December 2006 indicates the overall position of the company at that specific time. The story provides a summary of the assets and liabilities and the long term debts. The shareholders equity and retained gelt are in any case included in the statement. The balance sheet provides a clear sight on what the company owns and what it owes, in other words, the value of the company is depicted in the balance sheet. It also includes the details of the investments made by the investors and shareholders. The sum of all the liabilities and the shareholders equity always needs to be fitted to assets.This statement provides the retained wages for a specific period of time. The statement of Technical Inc shows that the company has pith retained earnings of almost $73,100 as of 31st December 2006. The statement outlines the changes in the retained earnings for specific periods. These are gen erally prepared in accordance to the General Accepted Accounting Principles. The statement of retained earnings can be reconciled with the beginning and ending of the retained earnings for a specific period of time here 1st January 2006 until 31st December 2006. The retained earnings for a period can be obtained as the net of the previous retained earnings along with that of the present-day(prenominal) year.If the absorb rate increases, the amount required after 20 years (from part a) will be lesser as the present value of the $ 20,000 required for 30 years will be lower. The basis is that the discount rate will be high, which will reduce the amount required.An increase in the interest rate will also lower the amount required now (from part b), as higher interest will earn higher returns and hence the future value of the investment will be higher. This will lead to a lesser investment to obtain the required amount.An increase in the earnings rate will reduce the single deposit a mount required computed in part a. The