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Sav [38]
3 years ago
14

On July 1, Goblette Company sold some machinery to another company. The two companies entered into an installment sales contract

at a predetermined interest rate. The contract required 5 equal annual payments with the first payment due on July 1, the date of sale. What present value concept is appropriate for this situation
Business
2 answers:
malfutka [58]3 years ago
7 0

Answer:

The value of all future payments discounted by the interest rate

Explanation:

Since the purchase of the asset is by installments to be paid in the future. The present value to be recognized is the sum of the future payments discounted at the predetermined interest rate.

The first payment due now will not have to be discounted but future payments will have to be discounted to ascertain the present value of the asset to be recognized in the balance sheet.

Nuetrik [128]3 years ago
5 0

Answer: Present Value of an annuity due of $1 for 5 periods

Explanation: Annuity could be described as a sort of investment which entitles the investor to receive a certain sum of money annually. Secondly, the present value of annuity refers to the current value of the payments to be paid from an annuity or future value payments paid from an annuity. It means "how much money would be needed today to fund a series of future annuity payments".

From the question above, the contract requires 5 equal annual amount, which is the period.

Therefore, the most appropriate present value concept will be:

Present Value of an annuity due of $1 for 5 periods

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In Mexico each unit of resource can produce either one professional computer or 3 computer games. Mexico has 30 units of this re
Anvisha [2.4K]

Answer:

Explanation:

From the information given:

(a)

The total production available for the professional computers at the time Mexico uses all resources for production = 30

The total production of computer games at this time = 3 × 30 = 90

Thus, from above, the production possibility curve can be seen in the image attached below.

(b)

The opportunity cost of one professional computer is three computer games. This because, for them to produce one more computer, it is required that they give up three computer games.

(c)

Yes, it is subject to Increasing.

This because the opportunity cost of 1 computer = 3 games

For two computers = 2 ×  3 games = 6 games

For three computers = 3 ×  3 games = 9 games  ... and so on.

(d)

Professional computer production is considered a Capital good.

(e)

Mexico should increase the production of professional computers because they help in more rapid economic growth.

4 0
3 years ago
Creating a chant that rhymes to remember information is a memorization technique.
jolli1 [7]

Answer:

OT

Explanation:

BECAUSE I AM SMART AND BECAUSE I TOOK THAT SAME CLASS

6 0
2 years ago
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 30,000 units follow
AnnyKZ [126]

Answer:

1. Variable cost per unit   = $150

2. Markup percentage     = 34.89%

3. Selling price                 = $202.33

Explanation:

Variable cost per unit = 70+40+25+15= $150

Fixed cost   =  670,000+ 305,000 +285,000= $1,260,000

Fixed cost per unit  =    1,260,000/30,000= $42

Profit per unit   =        <u>Targeted profit</u>

                               Targeted production unit

                          = <u>$310,000 </u>   =$10.33

                                30,000

Markup percenge =     <u>Fixed cost per unit + profit per unit</u>

                                          Variable cost per unit

                                =<u>$42+ $10.33</u>    =    <u>52.33 </u>* <u>100</u>   = 34.89%

                                       $150                   $150      1

Selling Price        =  Variable cost per unit + markup

                            =  $150+$42+$10.33

                             = $202.33

Variable cost-plus pricing is calculated by  determining variable costs per unit and adding mark-up which will cover fixed costs per unit and generate a targeted profit margin.

3 0
3 years ago
Read 2 more answers
What role can the private sector play in poverty alleviation?
cupoosta [38]

Through employment and engaging communities thru comprehensive business models, the private sector can play a significant role in poverty alleviation.

 

As it brings community members into the value chain thus making it a more sustainable relationship, this approach is makes it different from just social corporate responsibility.

4 0
3 years ago
Read 2 more answers
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per
Arturiano [62]

Answer:

$150,000

Explanation:

The computation of value of ending inventory under absorption costing is shown below:-

Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit

= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)

= $5 + $4 + $3 + $8

= $20

Ending Inventory in units = Units produced - Units sold

= 25,000 - 17,500

= 7,500

Cost of Ending Inventory = Total Cost per unit × Ending Inventory units

= $20 × 7,500

= $150,000

So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.

8 0
3 years ago
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