Business Math Worksheet Checkbook Reconciliation, Bids, Loans, Purchase Comparisons Flashcards
Exercise 1.
On June 1, you open a bank account.
Note the following:
* You open the account with an initial cash deposit of $4,000;
* You immediately deposit a check for $2,282.49;
* A fee for check printing and purchasing is $40.00;
* There are three wire transfers out of the account, each for $950.00;
* Each outgoing wire transfer requires a $23.50 fee;
* There are debit/purchase charges of $374.88
The true balance for this account is ____________.
Exercise 1.
$4,000.00 + $2,282.49 – $40.00 - ($950 x 3) – ($23.50 x 3) - $374.88 = $2,947.11
Exercise 2.
On April 30, the checkbook showed a balance of $28,927.52
Note the following:
* Per the bank, there was a returned (bounced) client deposit check for $2,400.00
* Per the bank, there was an NSF fee of $53.00
* Per the bank, there was a regular bank fee of $32.00
* There are outstanding checks (not on statement) of $3,122.88
The true checkbook balance is ___________.
Exercise 2.
$28,927.52- $2,400.00 - $53.00 - $32.00 = $26,442.52
Exercise 3.
On March 31, the bank statement showed a remaining balance of $8,907.94
On the same date, the checkbook showed a balance of $9,571.48
Note the following:
* A bank service charge for $25.00;
* 3 Outstanding checks, written for $791.50, $212.77, and $19.56;
* 2 Deposits of $1,237.37, and 425.00, entered in the checkbook, but not in the bank statement;
The true, reconciled balance, for both checkbook and bank statement is ____________.
Exercise 3.
Bank Statement: $8,907.94 –($791.50 + $212.77 + $19.56) + ($1,237.37 + 425.00) = $9,546.48
Checkbook: $9,571.48- $25.00 = $9,546.48
Exercise 4.
On July 31, the bank statement showed a remaining balance of $150,000.00
On the same date, the checkbook showed a balance of $152,993
Note the following:
* A check was written for $6,500.00, but incorrectly entered in the checkbook for $5,600.00;
* Per the bank, there is a bank service charge for $35.00;
* Outstanding checks, written for $2,392.00
* Deposit of $4,450.00, entered in the checkbook, but not in the bank statement
The true, reconciled balance, for both checkbook and bank statement is___________.
Exercise 4.
Bank Statement: $150,000.00 - $2,392.00 + $4,450.00 = $152,058.00
Checkbook: $152,993.00 + ($5,600 - $6,500 note that you are adding a negative) - $35.00 =
$152,058.00
Exercise 5.
You prepare a bid for a job. Note the following estimated items, round to the nearest dollar:
* Materials $23,000
* Labor $12,500
* Equipment Rental $3,000
* Subcontractors $14,000
* Tax on Materials Only 6.5%
* Overhead on Labor Only 34%
* Markup 14%
* Bid Bond 1%
Your total bid for this job is __________.
Exercise 5.
$23,000 + $12,500 + 3,000 + $14,000 + $1,495 + $4,250 + $8,154 + $664 = $67,063
Your total bid for this job is $67,063
Exercise 6.
You prepare a bid for a job. Note the following estimated items, round to the nearest dollar:
* Materials $5,500
* Labor $3,000
* Subcontractors $5,000
* Tax on Materials Only 6%
* Overhead on Labor Only 35%
* Markup 17%
Your total bid for this job is __________.
Exercise 6.
$5,500 + $3,000 + $5,000 + $330 + $1,050 + $2,530 = $17,410
Your total bid for this job is $17,410.
Exercise 7.
You prepare a bid for a job. Note the following estimated items, round to the nearest dollar:
* Materials $115,000
* Labor $63,000
* Equipment Rental $8,000
* Subcontractors $45,000
* Tax on Materials Only 6%
* Overhead on Labor Only 33%
* Markup 11%
* Bid Bond .75%
Your total bid for this job is __________.
Exercise 7.
$115,000 + $63,000 + $8,000 + $45,000 + $6,900 + $20,790+ $28,456 + $2,154 = $289,300
Your total bid for this job is $289,300.
Exercise 8.
You prepare a bid for a job. Note the following estimated items, round to the nearest dollar:
* Materials $34,000
* Labor $7,000
* Subcontractors $22,000
* Tax on Materials Only 5%
* Overhead on Labor Only 32%
* Markup 12%
* Bid Bond $7.00 per $1,000 of: the first $30,000 of bid
$6.25 per $1,000 of: $30,001 to $100,000 of bid
$5.50 per $1,000 of: $100,001 to $500,000 of bid
Your total bid for this job is __________.
Exercise 8.
$34,000 + $7,000 + $22,000 + $1,700 + $2,240 + $8,033 + $210 +$281 = $75,464
Your total bid for this job is $75,464
Exercise 9.
Contractor Smith obtains a loan for $50,000 interest only, at 11% for one year. What is his monthly payment?
Exercise 9.
$50,000 x .11 (11% annually) = $5,500
$5,500 ÷ 12 (months) = $458.33
The monthly payment on this loan is $458.33
Exercise 10.
Roofer Silva obtains a loan for $120,000. The interest rate is 13% and the loan term is 2 years. At the end of the loan, what is the total amount of interest that will have been paid?
Exercise 10.
$120,000 x .13 (13% annually) = $15,600
$15,600 x 2 (years) = $31,200
The total interest paid on this loan is $31,200
Exercise 11.
Contractor Williams obtained a loan for $80,000. The interest rate is 9%. There are 2 points discounted from the loan proceeds and paid as an origination fee from the loan distribution. What is the effective/actual interest rate?
Exercise 11.
Subtract the 2 points (2%) from the loan.
$80,000 x .02 (2%) = $1,600
$80,000 - $1,600 = $78,400
Borrower will pay original 9% on original amount. $80,000 x .09 (9%) = $7,200
Divide that interest payment by the final amount borrowed. $7,200 ÷ $78,400 = .0918 (9.18%)
The effective interest rate is 9.18%
Exercise 12.
Plumber Watson obtained a loan for $150,000. The interest rate is 13%. There are 3 points discounted from the loan proceeds and paid as an origination fee from the loan distribution. What is the effective/actual interest rate?
Exercise 12.
Subtract the 3 points (3%) from the loan.
$150,000 x .03 (3%) = $4,500
$150,000 - $4,500 = $145,500
Borrower will pay original 13% on original amount. $150,000 x .13 (13%) = $19,500
Divide that interest payment by the final amount borrowed. $19,500 ÷ $145,500 = .1340 (13.4%)
The effective interest rate is 13.4%
Exercise 13.
Contractor Kanovsky is considering buying a new truck. Given the following facts, will the new
equipment
increase or decrease the monthly expenses? By how much?
OLD TRUCK:
Monthly payment $0
Insurance $120/month
Maintenance & Repairs $140/month
NEWTRUCK:
Monthly payment $240
Insurance $150/month
Maintenance & Repairs $0
Exercise 13.
Add the monthly costs of the old truck: $120 + $140 = $260
Add the monthly costs of the new truck: $240 + $150 = $390
Old = $260/month; New = $390/month. $390 - $260 = $130 (with ‘New’ being greater)
The new truck will increase monthly costs by $130
Exercise 14.
In the above example, Contractor Kanovsky didn’t use some key facts. See below for updated information. Now, will the new equipment increase or decrease the monthly expenses? By how much?
OLD TRUCK:
Monthly payment $0
Insurance $120/month
Maintenance & Repairs $140/month
Mileage 13 MPG
NEW TRUCK:
Monthly payment $240
Insurance $150/month
Maintenance & Repairs $0
Mileage 20 MPG
Assume the truck will be driven 1,500 miles per month, and the price of gasoline is $2.85 per gallon.
Exercise 14.
Add the fixed monthly costs of the old truck: $120 + $140 = $260
Add in cost of gas: 1,500 ÷ 13 = 115 gallons (miles ÷ miles per gallon = gallons purchased) 115 x
$2.85 = $328 (rounded)
Add gas to other costs for monthly cost of old truck: $120 + $140 + $328 = $588 Add the fixed
monthly costs of the new truck: $240 + $150 = $390
Add in cost of gas: 1,500 ÷ 20 = 75 gallons (miles ÷ miles per gallon = gallons purchased) 75 x
$2.85 = $214 (rounded)
Add gas to other costs for monthly cost of new truck: $240 + $150 + $214 = $604 Old = $588/month
New = $604/month
$604 - $588 = $16 (with ‘New’ being greater)
The new truck will increase monthly costs by $16
