1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Neporo4naja [7]
3 years ago
15

The following table summarizes Nowman's non-cancelable operating lease payments with remaining terms in excess of one year for t

he years succeeding December 31, 2018:
Year Ending December 31

Payment

2019

$220,000

2020

$180,000

2021

$240,000

2022

$210,000

2023

$190,000

Thereafter (2024-2027)

$832,000



What is the amount of operating lease obligation that needs to be reported on the balance sheet on December 31, 2018? Assuming that the discount rate is 8%. (Hint: for years after 2023, the annual lease payment should be treated as the average of prior years between 2019 to 2023.)
Business
1 answer:
Anna007 [38]3 years ago
8 0

Answer:

$1,872,000

Explanation:

The amount of operating lease obligation that needs to be reported on the balance sheet on December 31, 2018 is the total  lease payment in next following years

= $220,000 + $180,000 + $240,000 + $210,000 + $190,000 + $832,000

= $1,872,000

If you want to know the payment lease in 2024 - 2027, we do as following:

The average of prior years between 2019 to 2023

= ($220,000 + $180,000 + $240,000 + $210,000 + $190,000)/ 5 years

= $208,000

And for years after 2023, the annual lease payment should be treated as the average of prior years between 2019 to 2023, then lease payment in 2024 - 2027 is $208,000 annually. Total $832,000 in 4 years.

You might be interested in
What does an income statement show about a bank over a period of time?
Natali5045456 [20]
Reliability because it shows that you are responsible to pay
6 0
3 years ago
Read 2 more answers
Orlin purchases a refrigerator, on credit, from a door to door salesman. Orlin only has a 5th grade education, and the terms of
mote1985 [20]

Answer: the doctrine of unconscionability

Explanation:

The doctrine of unconscionability is a defense that is against enforcing a contract. From the question, we are informed that Orlin bought a refrigerator, on credit, from a salesman and the salesman want him to pay 10 times the worth of the refrigerator.

In this scenario, the contract is deemed to be unfair and also oppressive to Orlin, thus he a find it unconscionable and therefore he can refuse to enforce it. Therefore, if he wants to challenge the contract’s terms, the doctrine of unconscionability will be used.

6 0
3 years ago
Dell Technologies Inc. Is an integrated IT infrastructure company that brings together hardware, software, and services. Some of
Readme [11.4K]

Answer:

the second sentence read agian

Explanation:

6 0
2 years ago
You want to start your own consulting business and believe it could produce cash flows of $5,600, $48,200, and $125,000 at the e
Inessa05 [86]

Answer:

This business idea worth $430,127 today

Explanation:

Today value of the future cash flows can be calculated by discounting the cash flows on the given discount rate. It is called the present value and sum of present value of all cash flows is called Net present value.

We use following format to calculate NPV for the given business idea

Years                                     1                  2                  3

Cash Flows                      $5,600       $48,200      $125,000

Sale Proceeds                                                         $450,000

Net Cash Flows               $5,600       $48,200      $575,000

Discount Factor    14%    0.8772        0.7695        0.6750

Present values                 $4,912.32   $37,089.9    $388,125

Net present value of business idea = $4,912.32 + $37,089.9 + $388,125

NPV = 430,127.22

3 0
2 years ago
On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on Se
dexar [7]

Answer:

No

Explanation:

Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company

3 0
3 years ago
Other questions:
  • Indicate whether each of the following is a final​ good, an intermediate​ good, or neither.
    5·1 answer
  • Marketers who want to assess what their customers think about their goods and services can collect data from blogs, social media
    15·2 answers
  • InSeason Inc. started a chain of organic supermarkets that had initial success. The managers achieved a mastery of the firm's cu
    8·1 answer
  • Your grandmother has promised to give you $5,000 when you graduate from college. She is expecting you to graduate two years from
    8·1 answer
  • Although Gloria was aggressively recruited by PaperKlip Office Supplies, the treatment of her now that she is in the company has
    14·1 answer
  • Obviously, the lifetime membership isn’t a good deal if you only remain a member for a couple of years, but if you remain a memb
    15·1 answer
  • when demand does not change much after a price change, demand is: a. variable b. static c. elastic d. inelastic
    8·2 answers
  • Susan Orman wants to pay $1,550 semiannually to her granddaughter for 10 years for helping her around the house. If Susan can in
    8·1 answer
  • Why or why not hats and hoods should be allowed in school
    15·1 answer
  • dina and charles are married, under the age of 65, and have two children under the age of 18. charles works full time and earns
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!