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Vladimir [108]
3 years ago
13

The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years an

d an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest.
Business
1 answer:
sdas [7]3 years ago
4 0

Answer:

Liability will be $2,030,412

Explanation:

We need to calculate the present value of future cash flows in order to determine the liability value.

Liability to be recored = PV of $200,000 payment for 10 years at 6% + PV of $1,000,000 at the end of year 10 at 6%

As we know the payment of $200,000 for 10 years is the annuity payment.

Liability to be recored = $200,000 x ( 1 - ( 1 + 6% )^-10 /6% + ( $1,000,000 x ( 1 + 6% )^-10

Liability to be recored = $1,472,017.41 + $558,394.78 = $2,030,412.18

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Sweet Stuff Sugar Source ships product all over the world. Since the product it ships has a low value-to-weight ratio, transport
dedylja [7]

Answer:

a large percentage of the total cost

Explanation:

When a product has a high value to weight ratio it means it is expensive and the weight is light. For products with low value to cash ratio they are cheap but have large weight.

Low value to weight ratio goods are more expensive to transport and they do not make up the high transportation cost because they are also cheap.

In this scenario Sweet Stuff Sugar Source ships low value to weight goods all over the world. So their transportation cost will be high and it will make up a large percentage of total cost.

5 0
3 years ago
The substitution effect is the portion of a change in quantity demanded that is due to a change in the relative price of the goo
Serga [27]

Answer:

True

Explanation:

The <em>Substitution Effect</em> is the effect on the demand of a certain product because of variations of the prices of the product or the income of households. The concept illustrates how quantities demanded of a product decrease as the population find other products to substitute it.

6 0
3 years ago
Read 2 more answers
Why does a high percentage of body fat increase the intoxication rate?
vodomira [7]
Answer:

There is less capacity for alcohol to extend out because it does not penetrate body fat. Intoxication is caused when body fat reacts with alcohol. The rate at which alcohol passes through the bloodstream is accelerated by body fat.
3 0
2 years ago
8. Brady Inc. reported FIFO ending inventory of $114,000 and FIFO beginning inventory of $110,000 for 2018. Inventory purchases
atroni [7]

Answer:

$232,825

Explanation:

Step 1: Calculation of cost of goods sold (COGS) under First In First Out (FIFO)

Since we know that;

Ending inventory = Beginning inventory + Purchase - COGS of FIFO

Therefore, we can rearrange to make COGS the subject of the formula and substitute the values as follows:

COGS under FIFO = Beginning inventory + Purchase - Ending inventory

                               = $110,000 + $237,500 - $114,000 =

COGS under FIFO = $233,500

Step 2: Calculation of COGS under Last In First Out (LIFO)

COGS under LIFO = COGS under FIFO - Rise in LIFO reserve

                              = $233,500 - $675

COGS under LIFO = $232,825

Therefore, the value of COGS LIFO for Brady Inc. in 2018 is $232,825.

7 0
3 years ago
Which of the following is an example of a strategic action?
Pavlova-9 [17]

Answer:

Option D. Entry into the European market by Home Depot.

Explanation:

The reason is that the strategic actions are long term actions and are market based moves which bounds the organizational resources for implementation and are also very difficult to reverse.

So here use of coupons, fare increases and two for one offers are easily reversible, requires fewer organizations resources for implementation and short term decisions which means these are tactical actions.

Whereas the decision to enter european market by Home Depot is long term decision, bounds organization resources for implementation and is very difficult to implement or reverse the actions once taken, so it is strategical action of Home Depot.

8 0
3 years ago
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