All categories

2 years ago

Consider each of the transactions below. All of the expenditures were made in cash.

Business

1 answer:

love history [14]2 years ago

8 0

Answer:

of the expenditures were made in cash.

a. The Edison Company spent $12,000 during the year for experimental purposes in connection with the development of a new product.

b. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $7,500.

c. In March, the Cleanway Laundromat bought equipment. Cleanway paid $6,000 down and signed a noninterest-bearing note requiring the payment of $18,000 in nine months. The cash price for this equipment was $23,000.

d. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $28,000.

e. The Mayer Company, plaintiff, paid $12,000 in legal fees in November, in connection with a successful infringement suit on its patent.

f. The Johnson Company traded its old equipment for new equipment. The new

You might be interested in

an important component of planning your career goal is to complete a(n) , which can be used to help measure your current strengt

valina [46]

The career planning process has four components: (1) Self Assessment, (2) Career Exploration, (3) Career Identification, and (4) Action Plan. If you're driven, you can easily go through these steps on your own.

The active management of your career and the organized planning of its future are referred to as career planning. Your personality, your skill set, and the role you want to play in your career should all be taken into account, along with the shifting demands of the labour market.

Taking the time to determine your career goals and the path you'll take to them is a crucial step in the career planning process. This approach can be done independently or in collaboration with a career or guidance advisor. The process of career planning can also be started at any stage of your professional life.

Learn more about career planning here:

brainly.com/question/28275628

#SPJ4

6 0

1 year ago

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 15 yea

aksik [14]

Answer:

Price of L bond at 5 percent required rate of return = $1,415.16

Price of L bond at 7 percent required rate of return = $1,182.16

Price of L bond at 10 percent required rate of return = $923.94

The price of the long term bonds change more with a change in interest rate because the long term bonds have a greater interest rate risk as compared to the short term bonds

Explanation:

L bond has a coupon rate of 9 percent, a face value of $1,000 and matures in 15 years. The coupon payments are made on annual basis. At the time of maturity the bondholder gets the face value.

We can find the present value of the coupon payments using the present value of annuity formula and the present value of the face value to be received after fifteen years using the present value formula. Sum of the present value of annuity of coupon payments and present value of the face value should equal the fair value (price) of the bond.

If the required rate of return is 5 percent, the price of the bond can be computed as under

Price = PMT [[(1+i)^n] -1]/[ix(1+i)^n] + FV/(1+i)^n

where PMT = 1,000 x 9% = $90

n = 15 years, i = 5% and FV = $1,000

Plugging the values in the formula we get

Price = 90[{(1+0.05)^15} - 1]/ [0.05 x (1+0.05)^15] + 1,000/(1+0.05)^15

Price = 90[{(1.05)^15} - 1]/ [0.05 x (1.05)^15] + 1,000/(1.05)^15

Price = 90[2.07893 - 1]/ [0.05 x 2.07893] + 1,000/2.07893

Price = 90[1.07893]/ [0.10395] + 1,000/2.07893

Price = 934.14 + 481.02 = 1,415.16

If the required rate of return increases to 7 percent, the price is computed as under

Price = 90[{(1+0.07)^15} - 1]/ [0.07 x (1+0.07)^15] + 1,000/(1+0.07)^15

Price = 90[{(1.07)^15} - 1]/ [0.07 x (1.07)^15] + 1,000/(1.07)^15

Price = 90[2.759 - 1]/ [0.07 x 2.759] + 1,000/2.759

Price = 90[1.759]/ [0.19313] + 1,000/2.759

Price = 819.71+ 362.45 = 1,182.16

If the required rate of return increases to 10 percent, the price is computed as under

Price = 90[{(1+0.1)^15} - 1]/ [0.1 x (1+0.1)^15] + 1,000/(1+0.1)^15

Price = 90[{(1.1)^15} - 1]/ [0.1 x (1.1)^15] + 1,000/(1.1)^15

Price = 90[4.1772 - 1]/ [0.1 x 4.1772] + 1,000/4.1772

Price = 90[3.1772]/ [0.41772] + 1,000/4.1772

Price = 684.55+ 239.39 = 923.94

The price of the long term bonds change more with a change in interest rate because the long term bonds have a greater interest rate risk as compared to the short term bonds

3 0

3 years ago

The economic term for the want-satisfying ability, or value, that organizations add to goods or services is

Lana71 [14]

The economic term for the want-satisfying ability, or value, that organizations add to goods or services is utility.

<h3>What is utility?</h3>

Utility refers to the amount of satisfaction a consumer derive from the consumption of certain commodities.

It is the importance or value added to a product or service that helps gives the consumer useful information about all products and services.

Hence, the economic term for the want-satisfying ability, or value, that organizations add to goods or services is utility.

Learn more about utility here : brainly.com/question/24848038

4 0

2 years ago

If Ming wants a tertiary color, she should combine

Dimas [21]

red and orange because tertiary colors are combinations with primary and secondary colours.

4 0

2 years ago

Read 2 more answers

As Vince described his firm's landscape maintenance program to the buyer for Allentown Medical Center, Alex (the buyer) interrup

sasho [114]

Answer:

Direct denial

Explanation:

In responding to obejections one can use various methods that suits the particular situation. A person can provide a logical argument when the objection is valid in a bid to convince the other party that their product is suitable for their needs.

In this instance Vince's firm has been in operation for over 15 years. The objection that start-up landscaping firms go in and out of business in just a few months can be answered with a direct denial.

Vince told them the business is not a startup but has been in business for 15 years.

8 0

3 years ago

Read 2 more answers