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Anvisha [2.4K]
3 years ago
14

Martinez Corp. has the following transactions during August of the current year.

Business
1 answer:
Vinvika [58]3 years ago
6 0

Answer:

Aug 1

Cash                                      $10930 Dr

     Common Stock                      $10930 Cr

Aug 4

Prepaid Insurance                  $1760 Dr

      Cash                                       $1760 Cr

Aug 16

Cash                                 $810 Dr              

    Service Revenue               $810 Cr

Aug 27

Salary Expense                     $570 Dr

       Cash                                     $570 Cr

Explanation:

Aug 1

The receipt of cash in exchange of common stock is recorded as a debit to cash which is an asset and a credit to common stock which is capital

Aug 4

Prepayment of any expense is recorded as a current asset. Thus, prepaid insurance is debited as asset increases and cash is credited as cash decreases.

Aug 16

The receipt of cash in exchange of service provision is recorded as a credit to service revenue and a debit to cash

Aug 27

Payment of salary is an expense and is recorded as a debit to salary expense and a credit to cash.

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ABC Company is considering the acquisition of a new piece of equipment to replace an old, outdated machine currently used in its
Paraphin [41]

Answer:

NPV is -$12,960

Explanation:

Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.

In this question all the expenses are cash outflows and The cost saving is the cash inflow from the new machine investment.  

Working for the NPV is attached with the answer please find it.

7 0
3 years ago
Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up t
Sunny_sXe [5.5K]

Answer:

People respond to economic incentives                        

Explanation:

Economic incentives is what encourages you to act in some way, while expectations are your needs your interests and your preferences. Economic incentives offer you the drive to follow your interests. These can be grouped further as extrinsic and intrinsic incentives.

Extrinsic incentives arise from the outside of the human being. These are the usual economic incentives you're likely to think of all along. Extrinsic rewards include cash, bonuses, sales, and earnings.  Intrinsic incentives are inherent inducements, and are inner to the individual. It is an intrinsic motivation to get satisfaction from jobs.

3 0
4 years ago
Baxter desires to purchase an annuity on January 1, 2014, that yields him five annual cash flows of $10,000 each, with the first
EleoNora [17]

Answer:

$313,288.16

Explanation:

Present value is the sum of discounted cash flows

present value can be calculated using a financial calculator

Cash flow in year 1 and 2 = 0

Cash flow in year 3 to 7 = $10,000

I = 10%

Present value = $313,288.16

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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3 years ago
Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called _________
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Answer:

c

Explanation:

Multinational market regions are groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.

Types of multinational market regions

  1. Regional Cooperation Groups.
  2. Free Trade Area  
  3. Customs Union.
  4. Common Market  
  5. Political Union
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3 years ago
Which of the following statements make the best argument for why firms should NOT hedge exchange rate risks? Exchange rate risk
nirvana33 [79]

The statement that gives the best argument for the concern of exchange rate risks is that Exchange rate risk is irrelevant because investors can hedge exchange rate risk on their own, which means that option C should be the right answer.

Exchange rate risk refers to the risk of financial impact that occurs due to exchange rate fluctuations. The minor changes in exchange rates also have a substantial influence on the operations and profitability of the firms. It is because if a company operates on others countries denomination, any changes may risk its financial transactions in another currency. The exchange rate risk generally protects its profits from the market volatility. Businesses involved in overseas trade are the most affected by such fluctuations. The market forces of supply and demand affects foreign exchange.

Learn more about exchange rate risk at:

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6 0
1 year ago
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