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agasfer [191]
3 years ago
5

One year ago, JK Mfg. deposited $12,000 in an investment account for the purpose of buying new equipment four years from today.

Today, it is adding another $15,000 to this account. The company plans on making a final deposit of $10,000 to the account one year from today. How much cash will be available when the company is ready to buy the equipment assuming an interest rate of 5.5%?
Business
1 answer:
Lyrx [107]3 years ago
4 0

Answer:

Total FV= $46,008.31

Explanation:

Giving the following information:

Deposit 1= $12,000

Deposit 2= $15,000

Deposit 3= $10,000

Interest rate= 0.055

<u>To calculate the future value, we need to use the following formula on each deposit:</u>

FV= PV*(1+i)^n

FV1= 12,000*(1.055^5)= 15,683.53

FV2= 15,000*(1.055^4)= 18,582.37

FV3= 10,000*(1.055^3)= 11,742.41

Total FV= $46,008.31

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3 years ago
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All of the following are required resources for differentiation except: Strong marketing capability. Corporate reputation for qu
zimovet [89]

Answer:

For comprehension purpose, I would attach options to the question:

All of the following are required resources for differentiation except:

A. Strong marketing capability B. Corporate reputation for quality. C. Product engineering. D. Intense supervision of labor.

The correct answer is Option D (Intense supervision of labor)

Explanation:

The differentiation asked in the question above is product differentiation.

Product differentiation, in Economics, talks about the efficient way a producer or seller of a product makes it unique in the market thereby creating an edge between the product and other similar ones or other products.

So, strong marketing capability exposes the strength and uniqueness of the product to prospective buyers which in turn brings sales.

Corporate reputation and product engineering are a strong boost in sales, as reputable companies and the physical appearance of a product tend to get easy acceptance in the market. While Intense supervision of labor may increase the efficiency of production but it is not to be considered as a resource for differentiation.

8 0
3 years ago
Depreciation is a _____, a cost that cannot be affected by any future action.
stiks02 [169]
<span> <span><span>Depreciation is a </span>sunk cost. </span></span>It is the value lost on an asset after consumption. In accounting, depreciation cost qualifies as a sunk cost because it is already lost and cannot be recovered. For that reason, it is correct to ignore depreciation cost when determining the future course of a business.
7 0
3 years ago
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Omni Corporation's accumulated depreciation—equipment account increased by $5,300, while $3,400 of patent amortization was recog
dmitriy555 [2]

Answer:

Cashflow from Operating Activities

Net Income                                                                 $120,400

Adjastment for Non-Cash Items

Depreciation                                                                  $5,300

Amortization                                                                   $3,400

Adjastments of Items appearing elsewhere

Loss from the sale of land                                            $4,000

Net Cash flow from operating activities                    $133,100

Explanation:

Net Income is reconciled in the cashflow statement via the indirect method. Its is adjasted for Non-Cash Items, Items appearing elsewhere in the cashflow statement and Working Capital Movements

8 0
3 years ago
Doyle Company issued $226,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is
Thepotemich [5.8K]

Answer:

Dr cash                $226,000

Cr Bonds payable                    $226,000

31st December year 1

Dr cash                       $74,000

Cr Lease revenue                     $74,000

Dr interest expense               $11,300

Cr Cash                                                $11,300

31st December year 2

Dr cash                       $74,000

Cr Lease revenue                     $74,000

Dr interest expense               $11,300

Cr Cash                                                $11,300

Explanation:

Upon the receipt of $226,000 from bond issue,cash acount would be debited with $226,000 and bonds payable account would be credited with the same amount.

When land purchased,the land account is debited with $226,000 and cash is credited with $226,000.

The receipt of $74,000 from lease rental means that cash is debited and the lease revenue is credited.

The coupon interest on the bonds=$226,000*5%=$11,300

The coupon interest is debited to interest expense and credited to cash in each of the two years.

find attached t accounts.

Download xlsx
7 0
3 years ago
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