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Leona [35]
2 years ago
13

Libby Company purchased equipment by paying $6,700 cash on the purchase date and agreed to pay $6,700 every six months during th

e next four years. The first payment is due six months after the purchase date. Libby's incremental borrowing rate is 6%. The equipment reported on the balance sheet as of the purchase date is closest to _________?
Business
1 answer:
vladimir1956 [14]2 years ago
5 0

Answer:

The answer is $53,732.

Explanation:

The value of the equipment reported on Libby Company's balance sheet is equal to:

Cash payment at purchase + Present value of 8 equal semiannual payment, $6,700 each discounted at 3% ( because semiannual payment is made for 4 years so we have 2 x4 = 8 payments; and annual borrowing rate is 6% so we have discount rate = 6% /2 = 3%).

with:

Cash payment at purchase = $6,700;

Present value of 8 equal semiannual payment, $6,700 each discounted at 3% = (6,700/3%) x ( 1 - 1.03^(-8) ) = $47,032 ( that is, apply the formula to find present value of annuity).

we have:

The value of the equipment reported on Libby Company's balance sheet = 6,700 + 47,032 = $53,732.

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_______ includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and life
dezoksy [38]

Answer:

Sustainable development

Explanation:

Sustainable development is a synthesis between neoclassical economics and enviromentalism. It aims at bringing economic development and enviromental protection togheter, arguing that both things are possible.

Because of climate change, pollution, and public pressure, sustaniable development has become a very important part in political and business culture.

Both governments and firms now try to implement sustainable methods such as recycling, protecting the forests, or using renewable energies. Sometimes these measures become mandatory by law.

8 0
3 years ago
When Disney acquired Marvel Comics on August 31, 2009, for $4.24 billion, management needed to determine whether there were oppo
zhannawk [14.2K]

Answer:

retaining cultural independence of the businesses, individual brands and operating differences encouraging knowledge-sharing and collaborative activity among the businesses.

Explanation:

When Disney purchased Marvel they were probably searching for synergy which means that their combined effort is larger than the addition of their individual efforts. Synergy is achieved through sharing resources and allocating them more effectively, not by separating the companies.

6 0
3 years ago
A stamping machine begins turning out components that are out of tolerance. the manager removes the machine from service to ensu
fredd [130]

In this question, this is an example of immediate corrective action.

 

<span>Immediate corrective action is having a solution to the problem right away. This shows that the manager provides action on the spot in the situation/problem. This type of corrective action lacks sustainability and the duration of the solution is not think through.</span>

6 0
3 years ago
Houseman, Inc. anticipates sales of 43,000 units, 41,000 units, and 44,000 units in July, August, and September, respectively. C
Semenov [28]

Answer:

Total= 42,400 units

Explanation:

Giving the following information:

Houseman, Inc. anticipates sales of 43,000 units, 41,000 units, and 44,000 units in July, August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 30% of the following month's sales.

We will assume that the beginning inventory for July equals the 30% policy.

Production:

Sales for July= 43,000

Ending inventory= (41,000*0.3)= 12,300

Beginning inventory= (43,000*0.3)= (12,900)

Total= 42,400 units

7 0
3 years ago
A flexible-budget variance is $800 favorable for unit-related costs. This indicates that costs were: _____________
Galina-37 [17]

Answer: $800 less than standard for the achieved level of activity

Explanation:

A flexible budget variance refers to the difference that occurs between the results that are gotten by a flexible budget model and the actual results gotten.

Since the flexible-budget variance is $800 favorable for unit-related costs, this indicates that costs were $800 less than standard for the achieved level of activity.

Therefore, the correct option is D.

6 0
3 years ago
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