Answer:
Land 373,500
Building 1,100,000
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land improvements 67,000
Fence 55,000
Sign 12,000
Explanation:
Land cost:
cash 160,000
note payable 145,000
delinquent property tax 4,000
insurance costing 1,500
level the land 3,000
soil <u> 60,000</u>
Total land: 373,500
The land will be recorded for all the cost necessary to get it ready for use.
The soil, once added can't be differentiate from the original land. It is added to the land is not an improvement.
The office building will be for 1,100,000
land improvements will be the fence and signs:
fence 55,000
sign <u> 12,000 </u>
total 67,000
B. Raising or lowering interest rates and controlling the money supply.
Answer:
Net Cash Increase of $115
Explanation:
Receivable Increases by $150 means a cash outflow in receivable by $150 because Increase in Receivable indicates that there are more sale on credit is made than cash received from the customers. So, the outflow in the receivable section is more than the inflow.
Inventory Decreases by $95 means the inventory sold during the period is more than purchases / manufactured. It result in cash inflow as cash is not being held in the form of inventory.
Accounts Payable increases by $225 means that company is making less payment to its suppliers, so that its balance has been increase. Company made more purchases than payment made to suppliers. Net cash Inflow is observed from this.
Common dividend payment of $55 means a direct cash outflow because actual cash has been paid during the year.
Net Effect on Cash = Cash inflows - Cash outflows
Net Effect on Cash = ( Inventory decrease + Accounts Payable increase ) - ( Accounts Receivables increase + Common dividend payment )
Net Effect on Cash = ( $95 + $225 ) - ( $150 + 55 )
Net Effect on Cash = $320 - $205
Net Effect on Cash = $115
Net Cash Increase of $115
Answer:
C.eight-year bond with 5.5% annual interest rate
Explanation:
The computation of the total options under each option is as follows:
As we assume the par value be $1,000
For Option A
Total interest
= 9.5% × $1,000 × 3 years
= $285
For Option B
Total interest is
= 7.25% × $1,000 × 4 years
= $290
For Option C
Total interest is
= 5.5% × $1,000 × 8 years
= $440
For Option D
Total interest is
= 6% × $1,000 × 6 years
= $360
As we can see that the option C contains high value of the total interest. So the same is to be selected
Answer:
Radar's additional income for accepting the order is calculated as follows:
Sales - 320 x $460 = $147,200
less Cost of Sales = 320 x $180 + $48,000 = $105,600
Additional Income = $41,600
Explanation:
The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.
The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.
To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs. The resulting additional income is what is available to offset the fixed costs.
