Business Math, 9th Edition

Cover......Page 1
Title Page......Page 3
Copyright Page......Page 4
PREFACE......Page 5
What’s New in the 9th Edition Complete and Brief (Ch. 1–16) Editions......Page 6
TIME-TESTED PEDAGOGY AIDS STUDENT LEARNING......Page 7
RESOURCES FOR INSTRUCTORS......Page 8
PROVEN TO DRAMATICALLY IMPROVE STUDENT PERFORMANCE!......Page 9
VALUE PACKAGING OPTIONS: WHICH PACKAGE IS RIGHT FOR YOUR PROGRAM?......Page 11
VIDEO CASES HELP YOU BRING THE REAL WORLD OF BUSINESS MATH INTO THE CLASSROOM......Page 12
ACKNOWLEDGMENTS......Page 13
BRIEF CONTENTS
......Page 15
PHOTO CREDITS
......Page 16
CONTENTS......Page 17
CHAPTER 1 REVIEW OF WHOLE NUMBERS AND INTEGERS......Page 30
1 Read whole numbers.......Page 32
2 Write whole numbers.......Page 34
3 Round whole numbers.......Page 35
4 Read and round integers.......Page 36
1 Add and subtract whole numbers.......Page 38
2 Add and subtract integers.......Page 42
3 Multiply integers.......Page 44
4 Divide integers.......Page 47
5 Apply the standard order of operations to a series of operations.......Page 51
Summary......Page 55
Exercises Set A......Page 61
Exercises Set B......Page 63
Practice Test......Page 65
Critical Thinking......Page 67
Case Study: Leaky Roof? Sanderson Roofing Can Help
......Page 68
Case Study: The Cost of Giving
......Page 69
CHAPTER 2 REVIEW OF FRACTIONS......Page 70
1 Identify types of fractions.......Page 72
2 Convert an improper fraction to a whole or mixed number.......Page 73
3 Convert a whole or mixed number to an improper fraction.......Page 74
4 Reduce a fraction to lowest terms.......Page 75
5 Raise a fraction to higher terms.......Page 76
1 Add fractions with like (common) denominators.......Page 78
2 Find the least common denominator for two or more fractions.......Page 79
3 Add fractions and mixed numbers.......Page 80
4 Subtract fractions and mixed numbers.......Page 82
1 Multiply fractions and mixed numbers.......Page 86
2 Divide fractions and mixed numbers.......Page 88
Summary......Page 92
Exercises Set A......Page 97
Exercises Set B......Page 99
Practice Test......Page 101
Critical Thinking......Page 103
Case Study: Bitsie’s Pastry Sensations......Page 104
Case Study: Greenscape Designs......Page 105
CHAPTER 3 DECIMALS......Page 108
1 Read and write decimals.......Page 110
2 Round decimals.......Page 111
1 Add and subtract decimals.......Page 113
2 Multiply decimals.......Page 114
3 Divide decimals.......Page 116
1 Convert a decimal to a fraction.......Page 120
2 Convert a fraction to a decimal.......Page 121
Summary......Page 124
Exercises Set A......Page 127
Exercises Set B......Page 129
Practice Test......Page 131
Critical Thinking......Page 133
Case Study: JK Manufacturing Demographics......Page 134
CHAPTER 4 BANKING......Page 136
1 Make account transactions.......Page 138
2 Record account transactions.......Page 144
1 Reconcile a bank statement with an account register.......Page 150
Summary......Page 158
Exercises Set A......Page 163
Exercises Set B......Page 167
Practice Test......Page 171
Critical Thinking......Page 173
Case Study: Mark’s First Checking Account......Page 175
Case Study: Expressions Dance Studio......Page 176
CHAPTER 5 EQUATIONS......Page 178
1 Solve equations using multiplication or division.......Page 180
2 Solve equations using addition or subtraction.......Page 181
3 Solve equations using more than one operation.......Page 182
4 Solve equations containing multiple unknown terms.......Page 184
5 Solve equations containing parentheses.......Page 185
6 Solve equations that are proportions.......Page 186
1 Use the problem-solving approach to analyze and solve word problems.
......Page 189
1 Evaluate a formula.......Page 196
2 Find an equivalent formula by rearranging the formula.......Page 197
Summary......Page 200
Exercises Set A......Page 205
Exercises Set B......Page 207
Practice Test......Page 209
Critical Thinking......Page 211
Case Study: Artist’s Performance Royalties......Page 212
Case Study: Educational Consultant......Page 213
CHAPTER 6 PERCENTS......Page 214
1 Write a whole number, fraction, or decimal as a percent.......Page 216
2 Write a percent as a whole number, fraction, or decimal.......Page 218
1 Identify the rate, base, and portion in percent problems.......Page 221
2 Use the percentage formula to find the unknown value when two values are known.......Page 222
1 Find the amount of increase or decrease in percent problems.......Page 227
2 Find the new amount directly in percent problems.......Page 229
3 Find the rate or the base in increase or decrease problems.......Page 230
Summary......Page 234
Exercises Set A......Page 237
Exercises Set B......Page 239
Practice Test......Page 241
Critical Thinking......Page 243
Case Study: Customer Relationship Management......Page 244
Case Study: Carpeting a New Home......Page 245
CHAPTER 7 BUSINESS STATISTICS......Page 248
1 Interpret and draw a bar graph.......Page 250
2 Interpret and draw a line graph.......Page 253
3 Interpret and draw a circle graph.......Page 255
1 Find the mean.......Page 259
2 Find the median.......Page 260
3 Find the mode.......Page 261
4 Make and interpret a frequency distribution.......Page 263
5 Find the mean of grouped data.......Page 266
1 Find the range.......Page 270
2 Find the standard deviation.......Page 271
Summary......Page 276
Exercises Set A......Page 281
Exercises Set B......Page 285
Practice Test......Page 289
Critical Thinking......Page 291
Case Study: Ink Hombre: Tattoos and Piercing......Page 292
CHAPTER 8 TRADE AND CASH DISCOUNTS......Page 294
1 Find the trade discount using a single trade discount rate; find the net price using the trade discount.......Page 296
2 Find the net price using the complement of the single trade discount rate.......Page 298
1 Find the net price applying a trade discount series and using the net decimal equivalent.......Page 300
2 Find the trade discount, applying a trade discount series and using the single discount equivalent.......Page 302
1 Find the cash discount and the net amount using ordinary dating terms.......Page 306
2 Interpret and apply end-of-month (EOM) terms.......Page 309
3 Interpret and apply receipt-of-goods (ROG) terms.......Page 310
4 Find the amount credited and the outstanding balance from partial payments.......Page 311
5 Interpret freight terms.......Page 312
Summary......Page 316
Exercises Set A......Page 319
Exercises Set B......Page 321
Practice Test......Page 323
Critical Thinking......Page 325
Case Study: Image Manufacturing’s Rebate Offer......Page 327
Case Study: The Artist’s Palette......Page 328
CHAPTER 9 MARKUP AND MARKDOWN......Page 330
1 Find the cost, markup, or selling price when any two of the three are known.......Page 332
2 Find the cost, markup, selling price, or percent of markup when the percent of markup is based on the cost.......Page 334
1 Find the cost, markup, selling price, or percent of markup when the percent of markup is based on the selling price.......Page 340
2 Compare the markup based on the cost with the markup based on the selling price.......Page 346
1 Find the amount of markdown, the reduced (new) price, and the percent of markdown.......Page 350
2 Find the final selling price for a series of markups and markdowns.......Page 352
3 Find the selling price for a desired profit on perishable and seasonal goods.......Page 355
Summary......Page 359
Exercises Set A......Page 365
Exercises Set B......Page 367
Practice Test......Page 369
Critical Thinking......Page 371
Case Study: Carolina Crystals......Page 372
Case Study: Deer Valley Organics, LLC......Page 373
CHAPTER 10 PAYROLL......Page 374
1 Find the gross pay per paycheck based on salary.......Page 376
2 Find the gross pay per weekly paycheck based on hourly wage.......Page 377
3 Find the gross pay per paycheck based on piecework wage.......Page 378
4 Find the gross pay per paycheck based on commission.......Page 380
1 Find the federal tax withholding per paycheck using IRS tax tables.......Page 382
2 Find federal tax withholding per paycheck using the IRS percentage method.......Page 387
3 Find Social Security tax and Medicare tax per paycheck.......Page 389
4 Find net earnings per paycheck.......Page 391
1 Find an employer’s total deposit for withholding tax, Social Security tax, and Medicare tax per pay period.......Page 393
2 Find an employer’s SUTA tax and FUTA tax due for a quarter.......Page 395
Summary......Page 399
Exercises Set A......Page 403
Exercises Set B......Page 405
Practice Test......Page 407
Critical Thinking......Page 409
Case Study: Welcome Care......Page 411
Case Study: First Foreign Auto Parts......Page 412
CHAPTER 11 SIMPLE INTEREST AND SIMPLE DISCOUNT......Page 414
1 Find simple interest using the simple interest formula.......Page 416
2 Find the maturity value of a loan.......Page 417
3 Convert months to a fractional or decimal part of a year.......Page 418
4 Find the principal, rate, or time using the simple interest formula.......Page 420
1 Find the exact time.......Page 423
2 Find the due date.......Page 425
3 Find the ordinary interest and the exact interest.......Page 426
4 Make a partial payment before the maturity date.......Page 428
1 Find the bank discount and proceeds for a simple discount note.......Page 430
2 Find the true or effective interest rate of a simple discount note.......Page 431
3 Find the third-party discount and proceeds for a third-party discount note.......Page 432
Summary......Page 437
Exercises Set A......Page 441
Exercises Set B......Page 443
Practice Test......Page 445
Critical Thinking......Page 447
Case Study: The Price of Money......Page 449
Case Study: Quality Photo Printing......Page 450
CHAPTER 12 CONSUMER CREDIT......Page 452
1 Find the amount financed, the installment price, and the finance charge of an installment loan.......Page 454
2 Find the installment payment of an installment loan.......Page 455
3 Find the estimated annual percentage rate (APR) using a table.......Page 456
12-2 Paying a Loan Before It Is Due: The Rule of 78......Page 460
1 Find the interest refund using the rule of 78.......Page 461
1 Find the finance charge and new balance using the average daily balance method.......Page 464
2 Find the finance charge and new balance using the unpaid or previous month’s balance.......Page 467
Summary......Page 470
Exercises Set A......Page 473
Exercises Set B......Page 475
Practice Test......Page 477
Critical Thinking......Page 479
Case Study: Massage Therapy......Page 480
CHAPTER 13 COMPOUND INTEREST, FUTURE VALUE, AND PRESENT VALUE......Page 482
1 Find the future value and compound interest by compounding manually.......Page 484
2 Find the future value and compound interest using a $1.00 future value table.......Page 486
3 Find the future value and compound interest using a formula or calculator application (optional).......Page 489
4 Find the effective interest rate.......Page 492
5 Find the interest compounded daily using a table.......Page 493
13-2 Present Value......Page 498
2 Find the present value using a $1.00 present value table.......Page 499
3 Find the present value using a formula or a calculator application (optional).......Page 501
Summary......Page 505
Exercises Set A......Page 509
Exercises Set B......Page 511
Practice Test......Page 513
Critical Thinking......Page 515
Case Study: Planning: The Key to Wealth......Page 516
Case Study: Future Value/Present Value......Page 517
CHAPTER 14 ANNUITIES AND SINKING FUNDS......Page 518
1 Find the future value of an ordinary annuity using the simple interest formula method.......Page 520
2 Find the future value of an ordinary annuity with periodic payments using a $1.00 ordinary annuity future value table.......Page 522
3 Find the future value of an annuity due with periodic payments using the simple interest formula method.......Page 525
4 Find the future value of an annuity due with periodic payments using a $1.00 ordinary annuity future value table.......Page 526
5 Find the future value of a retirement plan annuity.......Page 528
6 Find the future value of an ordinary annuity or an annuity due using a formula or a calculator application.......Page 530
14-2 Sinking Funds and the Present Value of an Annuity......Page 535
1 Find the sinking fund payment using a $1.00 sinking fund payment table.......Page 536
2 Find the present value of an ordinary annuity using a $1.00 ordinary annuity present value table.......Page 537
3 Find the sinking fund payment or the present value of an annuity using a formula or a calculator application.......Page 539
Summary......Page 542
Exercises Set A......Page 547
Exercises Set B......Page 549
Practice Test......Page 551
Critical Thinking......Page 553
Case Study: Annuities for Retirement......Page 555
Case Study: Certified Financial Planner......Page 556
CHAPTER 15 BUILDING WEALTH THROUGH INVESTMENTS......Page 558
1 Read stock listings.......Page 560
2 Calculate and distribute dividends.......Page 564
1 Read bond listings.......Page 567
2 Calculate the price of bonds.......Page 569
3 Calculate the current bond yield.......Page 570
1 Read mutual fund listings.......Page 571
2 Calculate return on investment.......Page 575
Summary......Page 577
Exercises Set A......Page 581
Exercises Set B......Page 583
Practice Test......Page 585
Critical Thinking......Page 587
Case Study: Corporate Dividends and Investments......Page 588
CHAPTER 16 MORTGAGES......Page 590
1 Find the monthly mortgage payment.......Page 592
2 Find the total interest on a mortgage and the PITI.......Page 595
1 Prepare a partial amortization schedule of a mortgage.......Page 599
2 Calculate qualifying ratios.......Page 601
Summary......Page 605
Exercises Set A......Page 609
Exercises Set B......Page 611
Practice Test......Page 613
Critical Thinking......Page 615
Case Study: Investing in Real Estate......Page 616
CHAPTER 17 DEPRECIATION......Page 618
1 Depreciate an asset and prepare a depreciation schedule using the straight-line method.......Page 620
2 Depreciate an asset and prepare a depreciation schedule using the units-of-production method.......Page 622
3 Depreciate an asset and prepare a depreciation schedule using the sum-of-the-years’ -digits method.......Page 624
4 Depreciate an asset and prepare a depreciation schedule using the declining-balance method.......Page 626
1 Depreciate an asset and prepare a depreciation schedule using the modified accelerated cost-recovery system (MACRS).......Page 632
2 Depreciate an asset after taking a section 179 deduction.......Page 635
Summary......Page 638
Exercises Set A......Page 641
Exercises Set B......Page 643
Practice Test......Page 645
Critical Thinking......Page 647
Case Study: O’Brien Nursery......Page 648
Case Study: The Life of a Mower......Page 649
CHAPTER 18 INVENTORY......Page 650
18-1 Inventory......Page 652
1 Use the specific identification inventory method to find the ending inventory and the cost of goods sold.......Page 653
2 Use the weighted-average inventory method to find the ending inventory and the cost of goods sold.......Page 654
3 Use the first-in, first-out (FIFO) inventory method to find the ending inventory and the cost of goods sold.......Page 656
4 Use the last-in, first-out (LIFO) inventory method to find the ending inventory and the cost of goods sold.......Page 657
5 Use the retail inventory method to estimate the ending inventory and the cost of goods sold.......Page 659
6 Use the gross profit inventory method to estimate the ending inventory and the cost of goods sold.......Page 660
1 Find the inventory turnover rate.......Page 666
2 Find the department overhead based on sales or floor space.......Page 668
Summary......Page 674
Exercises Set A......Page 679
Exercises Set B......Page 681
Practice Test......Page 683
Critical Thinking......Page 685
Case Study: Decorah Custom Canoes......Page 686
Case Study: PBC Office Supplies......Page 687
CHAPTER 19 INSURANCE......Page 688
19-1 Life Insurance......Page 690
1 Estimate life insurance premiums using a rate table.......Page 691
2 Apply the extended term nonforfeiture option to a cancelled whole-life policy.......Page 693
19-2 Property Insurance......Page 695
1 Estimate renters insurance premiums using a rate table.......Page 696
2 Estimate homeowners insurance premiums using a rate table.
......Page 697
3 Find the compensation with a coinsurance clause.......Page 699
1 Find automobile insurance premiums using rate tables.......Page 702
Summary......Page 707
Exercises Set A......Page 711
Exercises Set B......Page 713
Practice Test......Page 715
Critical Thinking......Page 717
Case Study: How Much is Enough?......Page 718
Case Study: Soul Food Catering......Page 719
CHAPTER 20 TAXES......Page 720
1 Use the percent method to find the sales tax and excise tax.......Page 722
2 Find the marked price and the sales tax from the total price.......Page 723
2 Calculate property tax.......Page 726
3 Determine the property tax rate.......Page 728
20-3 Income Taxes......Page 731
1 Find taxable income.......Page 732
2 Use the tax tables to calculate income tax.......Page 733
3 Use the tax computation worksheet to calculate income tax.......Page 736
Summary......Page 740
Exercises Set A......Page 743
Exercises Set B......Page 745
Practice Test......Page 747
Critical Thinking......Page 749
Case Study: A Tax Dilemma......Page 750
CHAPTER 21 FINANCIAL STATEMENTS......Page 752
1 Prepare a balance sheet.......Page 754
2 Prepare a vertical analysis of a balance sheet.......Page 757
3 Prepare a horizontal analysis of a balance sheet.......Page 760
1 Prepare an income statement.......Page 765
2 Prepare a vertical analysis of an income statement.......Page 767
3 Prepare a horizontal analysis of an income statement.......Page 769
1 Find and use financial ratios.......Page 773
Summary......Page 780
Exercises Set A......Page 785
Exercises Set B......Page 789
Practice Test......Page 793
Critical Thinking......Page 795
Case Study: Contemporary Wood Furniture......Page 796
Case Study: Balanced Books Bookkeeping......Page 797
APPENDIX A: THE REAL WORLD! VIDEO CASE STUDIES......Page 798
APPENDIX B: STOP AND CHECK SOLUTIONS......Page 799
APPENDIX C: ANSWERS TO ODD-NUMBERED EXERCISES......Page 843
B......Page 865
C......Page 866
E......Page 867
H......Page 868
M......Page 869
P......Page 870
R......Page 871
S......Page 872
W......Page 873
Y......Page 874