What stock exchange does Netflix trade on?

Tamarisk Corporation purchased a truck by issuing an $118,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rat

lianna [129]

Answer:

Dr. Truck $80,869

CR. Note Payable $80,869

Explanation:

Note issued is a liability instrument. It is a promise of payment f principal amount and interest after a specific period of time. Zero interst interest bearing not does not offer any interest payment but it is issued at a discounted price . Present value of Note payable is the value that should be recognised as a cost of the truck.

Now calculate the present value of the Note.

PV of Zero coupon bond = FV / ( 1 + r )^n

Where

FV = FV maturity value of the note = $118,400

r = Interest rate = 10%

n= numbers of period = 4 years

Placing Values in the formula

PV of Zero coupon bond = $118,400 / ( 1 + 10% )^4

PV of Zero coupon bond = $80,869

5 0

3 years ago

During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the compan

juin [17]

Answer:

1) For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale.

original cost = $9,800
accumulated depreciation = $1,020
cash received = $5,980

2) Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities?

the loss on sale of equipment ($2,800) should be added to the cash flows from operating activities.

3) What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?

the cash received ($5,980) should be added to the cash flow from investing activities

Explanation:

equipment cost = beginning equipment - ending equipment = $20,000 - $10,200 = $9,800

equipment's accumulated depreciation = beginning accumulated depreciation + depreciation expense - ending depreciation = $1,950 + $860 - $1,790 = $1,020

book value = $9,800 - $1,020 = $8,780

cash received = book value - loss = $8,780 - $2,800 = $5,980

3 0

3 years ago

Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves using a machine with a fixed c

photoshop1234 [79]

Answer:

24,000 units

Explanation:

We know,

According to the contribution margin approach,

Operating Income (EBIT) = Sales - Variable cost - Fixed cost

or, EBIT = (Price x Quantity) - (Quantity x VC per unit) - Fixed cost

As there are two methods,

Method 1, Variable cost = $1.00/unit, Fixed cost = $17,000

Method 2, Variable cost = $1.50/unit, Fixed cost = $5,000

According to the Question, as both methods will yield same EBIT at the same output levels,

Method 1 EBIT = Method 2 EBIT

or, (Price x Quantity) - (Quantity x $1.00) - 17,000 = (Price x Quantity) - (Quantity x $1.50) - $5,000

or, (Quantity x $1.50) - (Quantity x $1.00) = $(17,000 - 5,000) [Deducted (price x quantity from both the sides]

or, $0.50 x Quantity = $12,000

or, Quantity = $12,000/$0.50

Hence, Quantity = 24,000 units

At 24,000 output level, the EBIT of both methods will be same.

4 0

2 years ago

1. Harley Davidson has its engine plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported

Serggg [28]

Answer:

Company should load 1,479.9 motorcycles on each truck.

Explanation:

Cost per trip = $1,000

Demand for motorcycles = 300 per day

Cost per engine = $500

Holding cost = 20% of $500

= $100

Assuming that company plant works for 365 days in a year,

Annual demand = 300 motorcycles × 365 days

= 109,500 motorcycles

$Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2DS}{H}}$

where,

D = Annual demand in units

S = Set up cost per order

H = Handling cost per order

$Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2\times109,500\times1,000}{100}}$

$=\sqrt{\frac{219,000,000}{100} }$

$\sqrt{2,190,000}$

= 1,479.9

Thus, the company should load 1,479.9 motorcycles on each truck.

5 0

3 years ago

Which of the following is NOT a useful strategy when making an informed purchase?

kkurt [141]

The answer is 4, purchase a product based on a social media influencer.

this would not be an informed purchase

4 0

3 years ago