These firms do not have perfect market information to know all the price charges by different sellers,the quality the market demand and supply is etc.
Answer:
NPV = $100.4002 rounded off to $100.40
Explanation:
The NPV or net present value is the present value of a project or business's cash flows which are calculated by deducting the cash outflows from the cash inflows. NPV is a tool or criteria used for investment and project appraisal. The NPV can be calculated as follows,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n - Initial Outlay
Where,
- CF1, CF2, ... represents the cash flows in Year 1, Year 2 and so on.
- r represents the discount rate
NPV = 660 / (1+0.075) + [ -85 / (1+0.075)^2] - 440
NPV = $100.4002 rounded off to $100.40
The formula for compounding investments is as follows:
a = end amount
p= principle amount (what is invested)
r= interest rate (as a decimal)
n = number of times the investment is compounded yearly
t = time
For this particular investment the end amount would be $14859.47
Answer:
Debit Credit
Cash 36,000
Land 175,000
Inventory 42,000
Accounts Payable 35,000
Austin Fisher, Capital 218,000
253,000 253,000
Explanation:
It is necessary before making the accounting entry, to determine which entry value will be given to the equity components.
The land and inventory must be valued at their market value
.
It must be taken into account that there is a debt that affects the land and it must be canceled by the partnership. It will be registered on accounts payable.
Answer:
<u>Wilson Trucking Company classified balance sheet as of December 31.</u>
Assets
Non - Current Assets
Trucks 172,000
Accumulated depreciation Trucks (36,000) 136,000
Land 85,000
Total Non - Current Assets 221,000
Current Assets
Office supplies 3,000
Accounts receivable 17,000
Cash 8,000
Total Current Assets 28,500
Total Assets 249,500
Equity and Liabilities
Equity
Common stock 15,000
Retained earnings 155,000
Dividends (20,000)
Total Equity 110,000
Liabilities
Non - Current Liabilities
Long-term notes payable 58,000
Total Non - Current Liabilities 58,000
Current Liabilities
Accounts payable 12,000
Interest payable 4,000
Total Current Liabilities 16,000
Total Equity and Liabilities 249,500
Explanation:
The following appear in the Balance Sheet.
- Assets
- Liabilities
- Equity
When preparing the Balance Sheet remember the Accounting Equation : Assets = Equity + Liabilities.,