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3 years ago

Rhone-Metro Industries manufacturers equipment that is sold or leased.

Business

1 answer:

nikklg [1K]3 years ago

7 0

Answer:

Check the explanation

Explanation:

Show how Rhone-Metro calculated the $104,000 lease payments.

Let X = Amount of each annual payment, excluding executory costs

PV of annual payments: Table 6, 4 payments at 10% = 3.48685 x X

PV of unguaranteed residual value: Table 2, 4 periods at 10% = .68301x $25,000 = $17,075

3.48685X + $17,075 = $365,760

3.48685X = $348,685

X = $348,685

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Sheridan Company applied FIFO to its inventory and got the following results for its ending inventory. Cameras 113 units at a co

ICE Princess25 [194]

Answer:

Ending inventory is $24,917.

Explanation:

Lower-of-cost-or-net realizable value method implies that whichever is lower between the cost per unit and the net realizable value per unit is used to value the ending inventory of an item.

The ending inventory can therefore be determined as follows:

For Cameras:

Units = 113

Cost per unit = $61

net realizable value per unit = $74

We choose cost per unit since it is lower and we have:

Cameras ending inventory = 113 * $61 = $6,893

For Blu-ray players:

Units = 153

Cost per unit = $77

net realizable value per unit = $50

We choose net realizable value per unit since it is lower and we have:

Blu-ray players ending inventory = 153 * $50 = $7,650

For iPods:

Units = 133

Cost per unit = $86

net realizable value per unit = $78

We choose net realizable value per unit since it is lower and we have:

iPods ending inventory = 133 * $78 = $10,374

Calculation of ending inventory:

Ending inventory = Cameras ending inventory + Blu-ray players ending inventory + iPods ending inventory = $6,893 + $7,650 + $10,374 = $24,917

8 0

2 years ago

The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before li

ICE Princess25 [194]

The answers are the following:
a.
Brandon:
$7,000 + [($10,000/4)×3¿= $8,500
Ryan:
$7,000 + [($10,000/4)×1¿= $7,500

b.
Brandon $7,000
Ryan $7,000

6 0

3 years ago

Read 2 more answers

When a company pays a dividend, it isn't as simple as getting a paycheck from one's employer. There are several critical dates i

PtichkaEL [24]

Answer:

Flagon Transcontinental Corp.'s board of directors announced that it will pay a $1 million dividend in three months on this date - Declaration Date On the declaration date, the firm announces that it will pay dividends. If the company is large, it pays for a press release on a newspaper, or even, on TV.

Transcontinental Corp. actually sent the dividend checks to stockholders on this date - Payment Date.

Self-explanatory, this is the date on which checks are sent to shareholders who were recorded eligible for payment on the record-date.

Flagon Transcontinental Corp.'s board of directors declared that whoever is listed as the owner of the stock on this date will receive the dividend for this year - Holder-of-Record date.

Also known as the record date, on this date, the firm determines which shareholders will receive the dividend.

Transcontinental Corp.'s board of directors set this date as the date on which the right to the current dividend no longer accompanies the stock - Ex-Dividend Date.

On this date, the value of the next dividend payment is substracted from the stock price. The Ex-Dividend Date is usually the day before the Record-Date, because shareholders that were found uneligible for dividend payment are now the holders of ex-dividend stocks.

7 0

2 years ago

"Rico's Grill, Inc. is solely owned by Rico Vito. Rico's Grill borrows $10,000 from a local bank to finance the purchase of a ne

Aneli [31]

Answer:

Need not make any special disclosure

Explanation:

The reason is that it is not a parent-subsidiary transaction which means if the group as a whole trade with each other then they must add a special disclosure in the financial statement otherwise it must be neglected. The company must not specially disclose small borrowings from the lenders when it is presenting that figure in the financial statement borrowing figures. If the transaction is between the group or the borrowings are prominent it must be disclosed separately in the note to financial statement.

8 0

2 years ago

The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years,

Lorico [155]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Initial investment= $270,000

Cash flow= $60,000

Number of years= 5

Discount rate= 12%

To calculate the net present value (NPV), we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

∑[Cf/(1+i)^n]:

Cf1= 60,000/1.12= 53,571.43

Cf2= 60,000/1.12^2= 47,831.63

.....

Cf5= 60,000/1.12^5= 34,045.61

∑[Cf/(1+i)^n]= 216,286.57

Now, the NPV:

NPV= -270,000 + 216,286.57

NPV= -53,713.43

5 0

2 years ago