EFFREY NOBLE Madison College

Transcription

1 V * V- r Tenth Edition ERYL CLEAVE A] Southwest Tennessee'Community College EFFREY NOBLE Madison College PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto

2 CONTENTS PREFACE iii CHAPTER 1 REVIEW OF WHOLE NUMBERS AND INTEGERS Place Value and Our Number System 4 1 Read whole numbers. 4 2 Write whole numbers. 6 3 Round whole numbers. 7 4 Read and round integers Operations with Whole Numbers and Integers 10 1 Add and subtract whole numbers Add and subtract integers Multiply integers Divide integers Apply the standard order of operations to a series of operations. 23 Summary 27 Exercises Set A 33 Exercises Set B 35 Practice Test 37 Critical Thinking 39 Case Study: Take the Limo Liner 40 Case Study: Leaky Roof? Sanderson Roofing Can Help 40 Case Study: The Cost of Giving 41 CHAPTER 2 REVIEW OF FRACTIONS Fractions 44 1 Identify types of fractions Convert an improper fraction to a whole or mixed number Convert a whole or mixed number to an improper fraction Reduce a fraction to lowest terms Raise a fraction to higher terms Adding and Subtracting Fractions 51 1 Add fractions with like (common) denominators Find the least common denominator for two or more fractions Add fractions and mixed numbers. 52

3 2-3 Multiplying and Dividing Fractions 59 1 Multiply fractions and mixed numbers Divide fractions and mixed numbers. 61 Summary 65 Exercises Set A 71 Exercises Set B 73 Practice Test 75 Critical Thinking 77 Case Study: Bitsie's Pastry Sensations 78 Case Study: Greenscape Designs 79 CHAPTER 3-4 DECIMALS Decimals and the Place-Value System 82 1 Read and write decimals. 82 > 2 Round decimals Operations with Decimals 85 1 Add and subtract decimals Multiply decimals Divide decimals * Decimal and Fraction Conversions 92 1 Convert a decimal to a fraction Convert a fraction to a decimal. 93 Summary 96 Exercises Set A 99 Exercises Set B 101 Practice Test 103 Critical Thinking 105 Case Study: Pricing Stock Shares 106 Case Study: JK Manufacturing Demographics 106 CHAPTER 4 BANKING Checking Account Transactions Make account transactions Record account transactions Bank Statements Reconcile a bank statement with an account register. 121 Summary 128 Exercises Set A 133

4 Practice Test 141 Critical Thinking 143 Case Study: Mark's First Checking Account 144 Case Study: Expressions Dance Studio 145 CHAPTER 5 EQUATIONS 148 ill Hiiil Mmmmm 5-1 Equations Solve equations using multiplication or division Solve equations using addition or subtraction Solve equations using more than one operation Solve equations containing multiple unknown terms Solve equations containing parentheses Solve equations that are proportions Using Equations to Solve Problems Use the problem-solving approach to analyze and solve word problems Formulas Evaluate a formula Find an equivalent formula by rearranging the formula. 168 Summary 171 Exercises Set A 175 Exercises Set B 177 Practice Test 179 Critical Thinking 181 Case Study: Shiver Me Timbers 182 Case Study: Artist's Performance Royalties 182 Case Study: Educational Consultant 183 CHAPTER 6 PERCENTS Percent Equivalents Write a whole number, fraction, or decimal as a percent Write a percent as a whole number, fraction, or decimal Solving Percentage Problems Identify the rate, base, and portion in percent problems Use the percentage formula to find the unknown value when two values are known Increases and Decreases Find the amount of increase or decrease in percent problems Find the new amount directly in percent problems. 199

5 Summary 205 Exercises Set A 207 Exercises Set B 209 Practice Test 211 Critical Thinking 213 Case Study: Wasting Money or Shaping Up? 214 Case Study: Customer Relationship Management 214 Case Study: Carpeting a New Home 215 CHAPTER 7 BUSINESS STATISTICS ^Graphs and Charts Interpret and draw a bar graph Interpret and draw a line graph Interpret and draw a circle graph Measures of Central Tendency Find the mean Find the median Find the mode Make and interpret a frequency distribution Find the mean of grouped data Measures of Dispersion Find the range Find the standard deviation. 239 Summary 244 Exercises Set A 249 Exercises Set B 253 Practice Test 257 Critical Thinking 259 Case Study: Progeny Plastics Inc. 260 Case Study: ink Hombre: Tattoos and Piercing 261 CHAPTER 8 TRADE AND CASH DISCOUNTS Single Trade Discounts Find the trade discount using a single trade discount rate; find the net price using the trade discount Find the net price using the complement of the single trade discount rate Trade Discount Series Find the net price applying a trade discount series and using the net decimal equivalent Find the trade discount applying a trade discount series and using the single discount equivalent. 270

6 8-3 Cash Discounts and Sales Terms Find the cash discount and the net amount using ordinary dating terms Interpret and apply end-of-month (EOM) terms Interpret and apply receipt-of-goods (ROG) terms Find the amount credited and the outstanding balance from partial payments Interpret freight terms. 280 Summary 284 Exercises Set A 287 Exercises Set B 289 Practice Test 291 Critical Thinking 293 Case Study: Image Manufacturing's Rebate Offer 295 Case Study: McMillan Oil & Propane, LLC 296 Case Study: The Artist's Palette 296 CHAPTER 9 MARKUP AND MARKDOWN Markup Based on Cost Find the cost, markup, or selling price when any two of the three are known Find the cost, markup, selling price, or percent of markup when the percent of markup is based on the cost Markup Based on Selling Price and Markup Comparisons Find the cost, markup, selling price, or percent of markup when the percent of markup is based on the selling price Compare the markup based on the cost with the markup based on the selling price Markdown, Series of Markdowns, and Perishables Find the amount of markdown, the reduced (new) plice, and the percent of markdown Find the final selling price for a series of markups and markdowns Find the selling price for a desired profit on perishable and seasonal goods. 323 Summary 327 Exercises Set A 333 Exercises Set B 335 Practice Test 337 Critical Thinking 339 Case Study: Acupuncture, Tea, and Rice-Filled Heating Pads 340 Case Study: Carolina Crystals 340

7 CHAPTER 10 PAYROLL Gross Pay Find the gross pay per paycheck based on salary Find the gross pay per weekly paycheck based on hourly wage Find the gross pay per paycheck based on piecework wage Find the gross pay per paycheck based on commission Payroll Deductions Find the federal tax withholding per paycheck using IRS tax tables Find federal tax withholding per paycheck using the IRS percentage method Find Social Security tax and Medicare tax per paycheck «f 4 Find net earnings per paycheck The Employer's Payroll Taxes Find an employer's total deposit for withholding tax, Social Security tax, and Medicare tax per pay period Find an employer's SUTA tax and FUTA tax due for a quarter. 366 Summary 370 Exercises Set A 375 Exercises Set B 377 Practice Test 379 Critical Thinking 381 Case Study: Score Skateboard Company 383 Case Study: Welcome Care 383 Case Study: First Foreign Auto Parts 384 CHAPTER 11 SIMPLE INTEREST AND SIMPLE DISCOUNT The Simple Interest Formula Find simple interest using the simple interest formula Find the maturity value of a loan Convert months to a fractional or decimal part of a year Find the principal, rate, or time using the simple interest formula Ordinary and Exact Interest Find the exact time Find the due date Find the ordinary interest and the exact interest Make a partial payment before the maturity date Promissory Notes Find the bank discount and proceeds for a simple discount note Find the true or effective interest rate of a simple discount note Find the third-party discount and proceeds for a third-party discount note. 40 Summary 410 Exercises Set A 415

8 Exercises Set B 417 Practice Test 419 Critical Thinking 421 Case Study: 90 Days Same as Cash! 423 Case Study: The Price of Money 423 Case Study: Quality Photo Printing 424 CHAPTER 12 CONSUMER CREDIT Installment Loans and Closed-End Credit Find the amount financed, the installment price, and the finance charge of an installment loan Find the installment payment of an installment loan Find the estimated annual percentage rate (APR) using a table Paying a Loan Before It Is Due: The Rule of Find the interest refund using the rule of Open-End Credit Find the finance charge and new balance using the average daily balance method Find the finance charge and new balance using the unpaid or previous month's balance. 442 Summary 445 Exercises Set A 449 Exercises Set B 451 Practice Test 453 Critical Thinking 455 Case Study: Know What You Owe 456 Case Study: Massage Therapy 456 CHAPTER 13 COMPOUND INTEREST, FUTURE VALUE, AND PRESENT VALUE Compound Interest and Future Value Find the future value and compound interest by compounding manually Find the future value and compound interest using a $1.00 future value table. ( Find the future value and compound interest using a formula or calculator application (optional) Find the effective interest rate Find the interest compounded daily using a table Present Value Find the present value based on annual compounding for one year Find the present value using a $1.00 present value table Find the present value using a formula or a calculator application (optional). 478 Summary 482 Exercises Set A 487

9 3 Calculate the current bond yield. 552 Exercises Set B 489 Practice Test 491 Critical Thinking 493 Case Study: How Fast Does Your Money Grow? 494 Case Study: Planning: The Key to Wealth 494 Case Study: Future Value/Present Value 495 CHAPTER 14 ANNUITIES AND SINKING FUNDS 496 HANDS OFF MY SOCIAL SECURITY! ^ 14-1 Future Value of an Annuity Find the future value of an ordinary annuity using the simple interest. formula method Find the future value of an ordinary annuity with periodic payments using a $1.00 ordinary annuity future value table Find the future value of an annuity due with periodic payments using the simple interest formula method Find the future value of an annuity due with periodic payments using a $1.00 ordinary annuity future value table Find the future value of a retirement plan annuity Find the future value of an ordinary annuity or an annuity due using a formula or a calculator application Sinking Funds and the Present Value of an Annuity Find the sinking fund payment using a $1.00 sinking fund payment table Find the present value of an ordinary annuity using a $1.00 ordinary annuity present value table Find the sinking fund payment or the present value of an annuity using a formula or a calculator application. 518 Summary 523 Exercises Set A 529 Exercises Set B 531 Practice Test 533 Critical Thinking 535 Case Study: Annuities for Retirement 537 Case Study: Accumulating Money 538 Case Study: Certified Financial Planner 538 CHAPTER 15 BUILDING WEALTH THROUGH INVESTMENTS Stocks Read stock listings Calculate and distribute dividends Bonds Read bond listings Calculate the price of bonds. 551

10 15-3 Mutual Funds Read mutual fund listings Calculate return on investment. 557 Summary 560 Exercises Set A 565 Exercises Set B 567 Practice Test 569 Critical Thinking 571 Case Study: Dynamic Thermoforming, Inc. 572 Case Study: Corporate Dividends and Investments 573 CHAPTER 16 MORTGAGES Mortgage Payments Find the monthly mortgage payment Find the total interest on a mortgage and the PITI Amortization Schedules and Qualifying Ratios Prepare a partial amortization schedule of a mortgage Calculate qualifying ratios. 585 Summary 589 Exercises Set A 593 Exercises Set B 595 Practice Test 597 Critical Thinking 599 Case Study: Home Buying: A 30-Year Commitment? 600 Case Study: Investing in Real Estate 601 CHAPTER 17 DEPRECIATION Depreciation Methods for Financial Statement Reporting Depreciate an asset and prepare a depreciation schedule using the straight-line method Depreciate an asset and prepare a depreciation schedule using the unitsof-production method Depreciate an asset and prepare a depreciation schedule using the sum-ofthe-years'-digits method Depreciate an asset and prepare a depreciation schedule using the decliningbalance method Depreciation Methods for IRS Reporting 616 r> 1 Depreciate an asset and prepare a depreciation schedule using the modified accelerated cost-recovery system (MACRS). 616 Summary 621 Exercises Set A 625 Exercises Set B 627

11 Practice Test 629 Critical Thinking 631 Case Study: O'Brien Nursery 632 Case Study: The Life of a Mower 633 CHAPTER 18 INVENTORY Inventory Use the specific identification inventory method to find the ending inventory and the cost of goods sold Use the weighted-average inventory method to find the ending inventory and the cost of goods sold Use^the first-in, first-out (FIFO) inventory method to find the ending inventory and the cost of goods sold Use the last-in, first-out (LIFO) inventory method to find the ending inventory and the cost of goods sold Use the retail inventory method to estimate the ending inventory and the cost of goods sold Use the gross profit inventory method to estimate the ending inventory and the cost of goods sold Turnover and Overhead Find the inventory turnover rate Find the department overhead based on sales or floor space. 652 Summary 658 Exercises Set A 663 Exercises Set B 665 Practice Test 667 Critical Thinking 669 Case Study: Decorah Custom Canoes 670 Case Study: Aspen Lake Extreme 671 CHAPTER 19 INSURANCE Life Insurance Estimate life insurance premiums using a rate table Apply the extended term nonforfeiture option to a cancelled whole-life policy Property Insurance Estimate renters insurance premiums using a rate table Estimate homeowners insurance premiums using a rate table Find the compensation with a coinsurance clause Motor Vehicle Insurance Find automobile insurance premiums using rate tables. 686 Summary 692 Exercises Set A 695

12 Exercises Set B 697 Practice Test 699 Critical Thinking 701 Case Study: How Much Is Enough? 702 Case Study: Soul Food Catering 703 CHAPTER 20 TAXES Sales Tax and Excise Tax Use the percent method to find the sales tax and excise tax Find the marked price and the sales tax from the total price Property Tax Find the assessed value Calculate property tax Determine the property tax rate Income Taxes Find taxable income Use the tax tables to calculate income tax Use the tax computation worksheet to calculate income tax. 722 Summary 726 Exercises Set A 729 Exercises Set B 731 Practice Test 733 Critical Thinking 735 Case Study: Computing Taxes Due 736 Case Study: A Tax Dilemma 736 ~VS Possession 1 " ^! 1} lindlyiduaislawfu l i nil! iff fraudulent!!! Ik S'-^finvolvingO ~ " ** tflf Jcustody S>I JBSS~; «fcrime!!ll defendant!..-..-if.detection-, I CHAPTER 21 FINANCIAL STATEMENTS The Balance Sheet Prepare a balance sheet Prepare a vertical analysis of a balance sheet Prepare a horizontal analysis of a balance sheet Income Statements Prepare an income statement Prepare a vertical analysis of an income statement Prepare a horizontal analysis of an income statement Financial Statement Ratios Find and use financial ratios. 760 Summary 769 Exercises Set A 775 Exercises Set B 779

13 Practice Test 783 Critical Thinking 785 Case Study: Contemporary Wood Furniture 786 Case Study: Balanced Books Bookkeeping 787 STOP AND CHECK SOLUTIONS 789 ANSWERS TO ODD-NUMBERED EXERCISES 835 GLOSSARY/INDEX 855