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SCORPION-xisa [38]
3 years ago
13

Blondie Corporation purchased a precision tool machine with computer controls that had a purchase price of $600,000. Blondie pai

d %40 of the purchase price in cash at the purchase date and agreed to pay %30 of the price 1 year later, and the remaining %30 of the price 2 years later, with no interest. Assuming that the prevailing interest rate for such a transaction is 6%, compounding annually, what is the capitalized cost of the machine?
Business
1 answer:
MAXImum [283]3 years ago
8 0

Answer:

The capitalized cost fo the machine is 570,010.68‬

Explanation:

We will calculate the present value of the machine under these payment and calcualte the implicit interest.

<u>We will use the formula for present value of a lump sum:</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity 180,000

time 1

rate 0.06

\frac{180000}{(1 + 0.06)^{1} } = PV  

PV  $169,811.3208  

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity 180,000

time 2

rate 0.06

\frac{180000}{(1 + 0.06)^{2} } = PV  

PV  $160,199.3592  

240,000 + 169,811.32 + 160,199.36 = 570,010.68‬

And there are 600,000 - 570,011 = 29,989‬ interest

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Dividends paid to a company's own stockholders of $80,000 would be shown on the company's statement of cash flows prepared under
7nadin3 [17]

Answer: d. a deduction of $80,000 under financing activities.

Explanation:

Under the indirect method of showing cashflows, there are 3 sections being the Operating section, the investing section and the financing section.

The relevant section is the financing section. Financing activities are those transactions that relate to the business raising capital to fund their operations. They do this through long term debt and equity.

Dividends is a payment to shareholders and so falls under equity so by extension falls under the financing section. As dividends reduce the amount of money the company has, it is also a deduction.

6 0
3 years ago
Caruso, inc. has an inventory turnover rate of 8 times. if its cost of goods sold is $150,000, then
Blababa [14]
Inventory turnover rate = 8 times
Cost of goods sold = $150,000
Then the average inventory of company is $18,750.
This is how we calculate this;
Cost of goods sold / inventory turnover rate =
$150,000 / 8 = $18,750.
5 0
3 years ago
"One of the key factors a plaintiff (employee) must prove in a wrongful discharge lawsuit based on the public policy tort except
Cerrena [4.2K]

Answer:

Clarity

Explanation:

Employment-at-will is the situation whereby an organization enters into a contractual relationship with an employee stating that they can be dismissed by the organization for any reason even without warning on the condition that the dismissal is not Illegal. Thus, to prove a wrongful dismissal based on public tort exception to employment at will is clarity.

7 0
3 years ago
______ is the process managers use to continually monitor all phases of the production process to ensure that quality is being b
LenaWriter [7]

Answer:

Statistical quality control

Explanation:

Statistical quality control is the process managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning and that quality is not being inspected into the product at the end of the production process.

7 0
4 years ago
After finishing college, Nathan joined his uncle's company in Miami, FL, a(n) _______ of bauxite, copper, and other minerals fro
kiruha [24]

Answer:

importer

Explanation:

Importer -

It refers to the person or an organization , which is responsible to get the goods and services from one country to another for the sale purpose , is referred to as an importer .

The process of importing enables to use the goods produced by some other country , which can not be manufactured in that country .

Hence , from the given scenario of the question ,

The correct answer is importer .

7 0
3 years ago
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