Answer:
A.(1,500) = NA + (1,500) (1,500) - NA = (1,500) 48,500 OA
Explanation:
Cash discount=$50,000*3%=1,500
Cash from Customer=$50,000-$1,500=$48,500
Collection from customer will be reflected in current assets as whole part of total assets.
Therefore because of cash discount net assets will be reduced by $1,500 as it will no longer be received. Where as Cash of$48,500 will increase net assets.
Answer:
No, you should not purchase the equipment if your interest rate is 10% because you would spent more money on the equipment than what you would save in labor costs.
Explanation:
First, you have to calculate the total amount that you would save in 8 years which is the result of multiplying the amount you save per year for the number of years:
$35,000*8=$280,000
Second, you have to calculate the total amount you would have to pay to purchase the equipment if your interest rate is 10% using the following formula:
A= P(1+rt)
A= accrued amount
P= principal amount: $200,000
r= rate: 0.1
t= time period: 8
A= 200,000*(1+(0.1*8))
A= 200,000*1.8
A= 360.000
According to this, in 8 years you would save $280,000 in labor costs but you would have to pay $360,000 for the equipment which means that you will pay more for the machine than what you would save in costs. Because of this, you should not purchase the equipment if your interest rate is 10%.
<span>c. the retail price of everything that comes with that particular vehicle. </span>
Answer:
There is no market failure in this case, since Candace knew about the Yugonero's multiple mechanical issues and she also knew that it didn't offer any type of warranty, plus she had read several press releases detailing the problems related with the Yugonero. She just decided to take the chance of buying one of the few Yugoneros that were built properly and operated without any problems. She probably paid much less for the Yugonero and that was probably her main motivation.
Explanation:
Answer:
d. $14,747,642
Explanation:
For computing the carrying value of the bonds , first we have to determine the discount amortization for 3 years which are shown below:
= (Issued amount - proceeds from the bonds) ÷ time period × number of years
= ($15,000,000 - $14,703,109) ÷ 20 years × 3 years
= $44,533.80
Now the carrying value would be
= Proceeds from the bonds + discount amortization for 3 years
= $14,703,109 + $44,533.80
= $14,747,642