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olga_2 [115]
3 years ago
8

ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.

(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $10,000 on the purchase date and the balance in five annual installments of $8,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment
Business
1 answer:
Vesnalui [34]3 years ago
7 0

Answer:

Johnstone should value the equipment at <u>$40,326.29</u>.

Explanation:

To determine this, the present value of the five annual installments of $8,000 is first calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the five annual installments =?

P = Annual payment = $8,000

r = interest rate = 10%, or 0.10

n = number of years = 5

Substitute the values into equation (1) to have:

PV = $8,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)

PV = $8,000 * 3.79078676940845

PV = $30,326.29

Therefore, the present value of the five annual installments of $8,000 is approximately $30,326.29.

As result of this:

Value the equipment = Payment on the purchase day + present value of the five annual installments = $10,000 + $30,326.29 = $40,326.29

Therefore, Johnstone should value the equipment at <u>$40,326.29</u>.

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Answer:

$1,568,498

Explanation:

First calculate the Amont of discount

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The Bond Amortization schedule is attached with this answer, please find it.

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Interest Expense 2017 = $784,165.80  + $784,332.43

Interest Expense 2017 = $1,568,498.23

Interest Expense 2017 = $1,568,498

3 0
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Answer:

Option (A) is correct.

Explanation:

Given that,

Units sold = 6,000 units

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Selling and administrative expenses  = $67,000

Operating income:

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= $565,000 - ($305,000 + $14,000 + $43,000 - $42,000) - $67,000

= $565,000 - $320,000 - $67,000

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5 0
3 years ago
Loree manages the service desk and makes routine decisions related to customer refunds and merchandise returns. Loree also overs
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Answer:

First-line manager.

Explanation:

A first-line manager is a person within a company who is directly above all other personnel who are not managers. They have various obligations, such as the aforementioned routine decisions, service desk, feedback, work satisfaction, etc. When it comes to some more serious decisions, this type of a manager is not allowed to make them but rather only advise higher ups.

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Answer:

Please find the detailed answer as follows:

Explanation:

After reviewing Digby's current strategy, top five sources of competitive advantage for digby are as follows:

  • Increase demand through TQM initiatives .
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Related concepts to understand the problem.

Competitive advantage. A competitive advantage is an improvement over competitors gained by contribuiting consumers greater value.

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Answer and Explanation:

The financial statement effects template to reflect the following events is shown below:-

Balance Sheet

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a.                      $400,000                           $400,000

b.                       -$18,000                                                

-$18,000

c.                      -$202,000                        -$202,000  

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Transaction     Revenue     -   Expense    =     Net income

b.                       $18,000            -$18,000

c.                                                  $2,000           -$2,000

8 0
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