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3 years ago

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

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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

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3 years ago

A bond represents a contract of indebtedness issued by a corporation that promises payment of a principal amount plus interest a

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3 years ago

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throu

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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

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Cost per equivalent unit:

Materials Conversion

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

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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

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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

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Answer:

1. The bonds are issued at face value:

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Cr Bond payable 300,000

( to record cash receipt from bond issuance at par)

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Dr Interest expenses 15,000

Cr Cash 15,000

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

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

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( 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)

Dr Interest expenses 15,600

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( 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:

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( 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

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( 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)

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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:

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3 years ago

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Answer: Is likely to have greater value

Explanation:

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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.

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3 years ago