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3 years ago

7

George is considering an investment that will pay $3,250 a year for eight years, starting one year from today. What is the maxim

um amount he should pay for this investment if he desires a rate of return of 8.0 percent

1 answer:

garri49 [273]3 years ago

6 0

$18676.58 is the amount he should pay

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Firms are organizations that A) take advantage of the public. B) transform resources into products. C) transform outputs into in

loris [4]

Answer:

B

Explanation:

A firm is an organisation that is created to make profit. They transform resources into products

They include :

corporations
limited liabilities
partnerships

7 0

3 years ago

ABC purchases inventory for $2,000 and incurs shipping costs of $100 for the goods to be delivered. To record this transaction,

Rus_ich [418]

Answer: 1. D) Assets are understated

2. D) Car dealers

Explanation:

1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.

2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.

6 0

4 years ago

The database of Aster Corp. was hacked and confidential data was leaked to its competitors. This resulted in a huge financial lo

diamong [38]

This business risk is known as the operational risk. The operational risk is a possibility of loss resulting from a failed operational procedures, systems, and policies. Adequate procedures, systems, and policies must have been made to control and monitor the flow of a company's business operation<span>.</span>

6 0

3 years ago

Capstone Corp. reported $150,000 of comprehensive income for 2014. It also reported the following:

babunello [35]

Answer:

Option (D) is correct.

Explanation:

Given that,

Beginning retained earnings = $300,000

Income tax expense = $60,000

Ending retained earnings = $320,000

Cash dividends declared = $80,000

Net income:

= Increase in Retained Earnings + Dividend Declared

= (Ending Retained Earnings - Beginning Retained Earnings) + Dividend Declared

= ($320,000 - $300,000) + $80,000

= $20,000 + $80,000

= $100,000

8 0

3 years ago

DJH Enterprises has 3 departments. Operating results for 2019 are as follows:

konstantin123 [22]

Answer:

DJH Enterprises

The effect of eliminating Department 2 will increase the total operating income to $27,000 from $5,000.

Explanation:

a) Data and Calculations:

Operating Results for 2019 for the three departments:

Department 1 Department 2 Department 3 Total

('000)

Sales $670,000 $322,000 $856,000 $1,848

Variable costs 445,000 287,000 602,000 1,334

Contribution margin $225,000 $35,000 $254,000 $514

Direct fixed expenses $120,000 $27,000 $163,000 $310

Common fixed expenses 75,000 30,000 94,000 199

Total fixed expenses $195,000 $57,000 $257,000 509

Operating income (loss) $30,000 ($22,000) ($3,000) $5

Loss-making departments eliminated:

Department 1 Department 3 Total

Sales $670,000 $856,000 $1,526,000

Variable costs 445,000 602,000 1,047,000

Contribution margin $225,000 $254,000 $479,000

Direct fixed expenses $120,000 $163,000 $283,000

Common fixed expenses 75,000 94,000 169,000

Total fixed expenses $195,000 $257,000 $452,000

Operating income (loss $30,000 ($3,000) 27,000

3 0

3 years ago