Answer:
a. Land purchased by Sun Company from a local finance company
1) REAL ASSETS, the land exists as a physical asset regardless of the company's transaction.
b. Sun Company's administration building, which houses the finance department
1) REAL ASSETS, the building exists as a physical asset regardless of the company's transaction.
c. Sun Company's inventories of raw materials
1) REAL ASSETS, the inventories exists as a physical asset regardless of the company's transaction.
d. Accounts receivable: money owed to Sun Company by other companies who have purchased products on credits
2) FINANCIAL ASSETS, accounts receivable is a financial concept, not a physical asset
e. Sun Company's corporate checking accounts
2) FINANCIAL ASSETS, checks is a financial concept that represent money, not a physical asset
Answer:
$894,336
Explanation:
The computation of the present worth of two contracts is shown below:
= (Stable income × PVIFA at 3 years for 10%) + (Signed amount × PVIFA at 2 years for 10%) × PVF at 3 years for 10%
= ($260,000 × 2.4869
) + ($190,000 × 1.7355
) × 0.751314801
= $646,594 + $329,745 × 0.751314801
= $894,336
Refer to the PVIFA table and the discount factor table so that the correct amount could come
Answer:
C) $24,000
Explanation:
Each individual setup cost is equal to the total cost assigned to setups divided by the actual setups completed during the period:
individual setup cost = total costs assigned to setups / setups completed = $120,000 / 100 setups = $1,200 per setup
If each setup costs $1,200 and product X5 required 20 setups, then the total amount assigned to X5 setups = $1,200 x 20 = $24,000