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vfiekz [6]
2 years ago
14

Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several fina

ncing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,160,000 in cash immediately. 2. Pay $461,000 immediately and the remainder in 10 annual installments of $94,000, with the first installment due in one year. 3. Make 10 annual installments of $156,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,730,000 five years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 8% interest rate. (Round your final answers to nearest whole dollar amount.)
Business
1 answer:
sattari [20]2 years ago
6 0

Answer:

Option-2 is best alternative

Explanation:

Option-1

Present value of lumpsum amount -1160000

Option-2

Annual paymentt for 10 yrs -94000

Annuity for 10 yrs at 8% 6.7101

Present value of outflowws -630749

Add: Initial amount paid -461000

Present value of outflowws -1091749

Option-3

Annual paymentt for 9 yrs -156000

Annuity for 10 yrs at 8% 6.24689

Present value of outflowws -974515

Add: Initial amount paid -156000

Present value of outflowws -1130515

Option-4

Amount paid after 5 yrs -1730000

PVF at 5 yrs at 8% 0.680583

Present value -1177409

Option-2 is best alternative

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On January 22, Muir Corporation issued for cash 20,000 shares of no-par common stock at $30. On February 14, Muir issued at par
Juli2301 [7.4K]

Answer:

Jan 22

Dr Cash 600,000

Cr Common stock 600,000

Feb 14

Dr Cash 150,000

Cr Preferred stock 150,000

Aug 30

Dr Cash 1,350,000

Cr Preferred stock 1,250,000

Cr Paid in capital excess of par preferred stock 100,000

Explanation:

Muir Corporation Journal entries

Date Accounts Debit Credit

Jan 22

Dr Cash (20,000*30) 600,000

Cr Common stock 600,000

Feb 14

Dr Cash (3000*50) 150,000

Cr Preferred stock 150,000

Aug 30

Dr Cash (25,000*54) 1,350,000

Cr Preferred stock (25,000*50) 1,250,000

Cr Paid in capital excess of par preferred stock 100,000

8 0
3 years ago
The search for and utilization of the best methods used by competitors and non-competitors that lead to superior performance is
eimsori [14]

Answer:

Bench-marking

Explanation:

Benchmarking is the process that works for comparing the products, services, etc by the other companies who are dealing with the same type of business that refers to the best in the industry or performing superior performance.

It could be done either by the cost, quality, time, quantity, etc

The aim of doing this process is to gain the competitive advantage so that they get to know their strength, weakness, opportunities, and threats

7 0
3 years ago
Which of the following is not a role of accounting in business?
Kipish [7]

Answer:

The correct answer is letter "D": To personally guarantee loans of the business.

Explanation:

Accounting is the recording of financial transactions of a business or organization. It also includes the process of summarizing, analyzing and reporting these transactions -given a method- in financial statements. The financial statements that accountants create provide critical information for many key people such as managers, stakeholders, and the corresponding agencies of the government.

However, <em>securing a loan for a company will rely on the credit history of the institution which directly does not involve one of the functions of corporate accounting.</em>

5 0
3 years ago
the type of selection methods which are used to narrow down a list of finalists to those who will receive job offers is called
spayn [35]

The type of selection methods which are used to narrow down a list of finalists to those who will receive job offers is called Discretionary Method.

Picking from a list of universities one would like to attend is the hardest decision to make. However, it is crucial to take into account a number of criteria while selecting the best decision. When you have a long list of options, the registrars will find it simple to advise you on which is best.

If you chance to acquire numerous admissions from all the choices you had made, it is also up to you to make an easy pick. So always choose the greatest option available.

To know more about the Discretionary visit here :

brainly.com/question/28180292

#SPJ4

6 0
1 year ago
Cooke Company incurs $4 per unit of variable selling and administrative expense and $50,000 per month in fixed selling and admin
Lynna [10]

Answer:

Selling and administrative expense = $242000

so correct option is c. $242,000

Explanation:

given data

variable selling and administrative expense = $4 per unit

fixed selling and administrative expense = $50,000 per month

depreciation = $12,000

Cooke produced = 50,000 units

sold = 48,000 units

to find out

What amount would Cooke include for selling and administrative expense

solution

we get here variable selling and administrative expense will be here as

Variable selling and administrative expense  = variable selling and administrative expense × sold   ...................1

put here value we get

Variable selling and administrative expense  = $48000 × $4

Variable selling and administrative expense = $192000

and Fixed selling and administrative expense is = 50000  

Selling and administrative expense  income statement is

Selling and administrative expense = $192000 + $50000

Selling and administrative expense = $242000

so correct option is c. $242,000

8 0
3 years ago
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