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lora16 [44]
3 years ago
10

1. On June 30, 2018, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $21,000 on t

he purchase date and the balance in six annual installments of $9,000 on each June 30 beginning June 30, 2019. Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment?
Business
1 answer:
Mumz [18]3 years ago
5 0

Answer:

$58,002.60

Explanation:

First, it is clear to include the $21,000 as part of the value of the equipment.

Now, the $9,000 annual payment after every year for six years need to be presented in its present value, meaning what is the value of those future amounts of $9,000 on June 30, 2018.

To calculate the present value of annuity (annuity means constant and equal payments) for those 6 payments of $9,000, we would need the Present Value Factor which is supplied from the Present Value Table.

Looking at 12% for 6 periods ("six annual installments") on the table, it gives the PV factor of 4.1114.

Just multiply $9,000 by 4.1114 and we get 37,002.60

Finally add the downpayment of $21,000 with the present value $37,002.60 and we would get the total value of the equipment of 58,002.60

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trapecia [35]

Answer:

The total cost of quality is $ 313200

Explanation:

First we need to distinguish the costs and allocate them to the correct category for the cost of quality report.

We have verifying credit card information of $52200

Customer service training of $104400

Discounting room rates due to poor service $ 156600

The 4 categories of cost of quality report are Prevention Costs, Appraisal Costs, Internal Failure costs and external failure costs.

Conforming Costs

Customer service training - prevention costs. - $104400       1,53% of total sales

Verifying credit card information - appraisal cost - $52200   0,76% of total

Non-conforming costs

Internal Failure

External Failure costs

Discounting room rates due to poor service $ 156600          2,3% of total sales

Total cost of quality                                          $ 313200         4,6%  of total sales

5 0
3 years ago
Which of these is an important factor in the paid search auction system?
Rama09 [41]

Answer:

DHow relevant your ads are

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You are meeting to discuss the proper categorization of marketing strategy costs in the monthly department budget performance re
Scilla [17]

Answer:

C)

Explanation:

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Geneva needs additional capital to launch her business but does not want to share management responsibility with partners. Neith
Talja [164]

Answer:

The answer is: C) S corporation

Explanation:

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If she chooses a Limited Liability Partnership she would still have to share management responsibility with her partners and C Corporations are heavily taxed. If she had enough money she could start a sole proprietorship business, but she doesn't have enough money.

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KatRina [158]

Answer:

$ 464,120

Explanation:

Calculation to determine what The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

Estimated overhead Rate = ( Estimated Fixed Manufacturing Overhead) / (Estimated Machine Hours )

Estimated overhead Rate = $ 492,000 / 30,000 hours

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Therefore The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:$ 464,120

8 0
2 years ago
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