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Rus_ich [418]
3 years ago
5

When firms purchase new capital we call this _____

Business
2 answers:
tatuchka [14]3 years ago
6 0

Answer:

Business fixed investment

Explanation:

The <u><em>purchase by firms of new capital goods</em></u> such as machinery, factories, and office buildings. (Remember that for the purposes of calculating GDP, long-lived capital goods are treated as final goods rather than as intermediate goods.) Firms buy capital goods to increase their capacity to produce.

aleksandrvk [35]3 years ago
6 0

When firms purchase new capital we call this <u>Business fixed investment</u>.

Business Fixed investment is the purchase of new capital goods by firms which include building, installations, vehicles, technology, etc. Firms buy capital goods to improve or increase future productions which can be very vital to the growth of the firm.

<h2>Further Explanation</h2>

Capital goods are also classified as tangible assets and are also referred to as intermediate goods or economic capital.

Generally, investment is when a person spends some money to expand or start a new project or to acquire assets to create incomes and increase value over time.

Investment can be used to describe any mechanisms that are put in place to generate income which could include the purchase of bonds, real estate property, and many others. Machines, buildings and other facilities important in the process of production are also classified as an investment.

The productions of goods and services that others can purchase to produce goods and services may also be categorized as an investment.

Firms purchase new capital goods (factories, office building) to grow or expand their businesses, which in turn increases production and brings more profit.

Therefore, when firms purchase new capital we call this Business fixed investment.

LEARN MORE:

  • Which current asset financing policies/approaches asserts that all of a firm's fixed assets brainly.com/question/13916170
  • CAPM is the abbreviation of brainly.com/question/1213208

KEYWORDS:

  • new capital
  • capital goods
  • firms
  • office building
  • machinery
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n its 2016 annual report, Lockheed Martin reports net earnings of $5,302 and dividends paid of $2,048. Your forecast of the net
KiRa [710]

Answer:

$2,126 million

Explanation:

Calculation for the Projected dividends for 2017

Using this formula

Projected dividends for 2017=2107 Forescated net income ×(2016 Dividends/2016 Net Income )

Let plug in the formula

Projected dividends for 2017=$5,504 million × ($2,048 million / $5,302 million)

Projected dividends for 2017=$5,504 million×0.38626933

Projected dividends for 2017 = $2,126

Therefore the Projected dividends for 2017 will be $2,126 million

5 0
3 years ago
A bond represents a contract of indebtedness issued by a corporation that promises payment of a principal amount plus interest a
ohaa [14]

<span>The answer to this question is “TRUE”. A bond is just like a loan. However, the main difference is that with loans, the public is borrowing money from a bank or lending source. With Bonds, the company borrows money from the public. Both have interest rates and payment due based on the terms of agreement.</span>

4 0
3 years ago
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throu
harina [27]

Answer:

Victory Company

                                                       Materials           Conversion    Total

a. Equivalent units of production:  880,000             754,000

b. Cost per equivalent unit                  $3.00             $4.50

c. Total cost transferred out       $2,100,000        $3,150,000  $5,250,000

Ending Work in Process                  540,000             243,000        783,000

Explanation:

a) Data and Calculations:

Units transferred out = 700,000

Ending Work in process = 180,000

Total equivalent units:

                                           Materials           Conversion

Units transferred out      700,000 (100%)   700,000 (100%)

Ending Work-in-Process  180,000 (100%)     54,000 (30%)

Total equivalent units     880,000               754,000

Cost of production:

                                           Materials           Conversion       Total

Beginning Inventory          $420,000          $139,000       $559,000

Added in November         2,220,000        3,254,000       5,474,000

Total production costs   $2,640,000      $3,393,000    $6,033,000

Cost per equivalent unit:

                                           Materials       Conversion

Total production costs   $2,640,000      $3,393,000

Total equivalent units          880,000           754,000

Cost per equivalent unit         $3.00             $4.50

Cost assigned:

                                               Materials           Conversion       Total

Units transferred out             700,000               700,000

Cost per equivalent unit        $3.00                   $4.50

Total cost transferred out $2,100,000        $3,150,000  $5,250,000

Ending Work in Process        540,000             243,000        783,000

Total cost                          $2,640,000        $3,393,000  $6,033,000

6 0
3 years ago
The Colson Company issued $300,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable eac
emmainna [20.7K]

Answer:

1. The bonds are issued at face value:

(a) Jan 1

Dr Cash                    300,000

Cr Bond payable    300,000

( to record cash receipt from bond issuance at par)

(b) Jul 1

Dr Interest expenses           15,000

Cr Cash                                15,000

( to record payment of interest expenses calculated as 300,000 x 10% /2)

(c) Dec 31

Dr Interest expenses           15,000

Cr Interest payable             15,000

( to record incurred of interest expenses calculated as 300,000 x 10% /2)

2. The bonds in question 1 were issued at 98.

(a) Jan 1

Dr Cash                                    294,000

Dr Discount on Bond                  6,000

Cr Bond Payable                    300,000

( to record cash receipt from bond issuance in which Cash receipt = 300,000 * 98%; Bond Payable is recorded at par $300,000; The difference is recorded as Dr Discount on Bond $6,000)

(b) Jul 1

Dr Interest expenses                 15,600

Cr Discount on bond                  6,00

Cr Cash                                     15,000

( to record interest expenses incurred which is consists of $15,000 cash payment and the amortization of Discount on bond account calculated as 6,000/10 interest payment period)

(c) Dec 31

Dr Interest expenses                 15,600

Cr Discount on bond                  6,00

Cr Interest Payable                    15,000

( to record interest expenses incurred which is consists of $15,000 interest payable plus the amortization of Discount on bond account calculated as 6,000/10 interest payment period).

3. Assume the bonds in question 3 were issued at 103:

(a) Jan 1

Dr Cash                                 309,000

Cr Premium on Bond               9,000

Cr Bond payable                  300,000

( to record cash receipt from bond issuance in which Cash receipt = 300,000 * 103%; Bond Payable is recorded at par $300,000; The difference is recorded as Cr Premium on Bond $9,000)

(b) Jul 1

Dr Interest expenses                    14,100

Dr Premium on bond                       900

Cr Cash                                         15,000

( to record interest expenses incurred which is consists of $15,000 cash payment minus the allocation of Premium on bond account calculated as 9,000/10 interest payment period)

(c) Dec 31

Dr Interest expenses                    14,100

Dr Premium on bond                       900

Cr Interest Payable                       15,000

( to record interest expenses incurred which is consists of $15,000 interest payable minus the allocation of Premium on bond account calculated as 9,000/10 interest payment period)

Explanation:

8 0
3 years ago
Many gluten-free food options are found on the store shelves in the United States, but they are scarcely available in internatio
Rudiy27

Answer: Is likely to have greater value

Explanation:

Gluten-free food are food that are safe to eat. Examples are most dairy products, such as cheese, butter and milk, fruit and vegetables, meat and fish (although not breaded or battered)

potatoes, rice and rice noodles. Although they are available at stores in America, they are scarce in the other part of world due to how they are valued. The demand of such food in those region is higher than that of America hence their shortage there.

5 0
3 years ago
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