The following present value factors are provided for use in this problem.PeriodsPresent Valueof $1 at 8%Present Value of anAnnuity of $1 at 8%10.92590.925920.85731.783330.79382.577140.73503.3121 Cliff Co. wants to purchase a machine for $40,000, but needs to earn a return of 8%. The expected year-end net cash flows are $12,000 in each of the first three years, and $16,000 in the fourth year. What is the machine's net present value?
A. $2,685.
B. $52,000.
C. $42,685.
D. $(28,240).
E. $(9,075).
Answer: A
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The Lily Company uses the percent of receivables method of accounting for uncollectible accounts receivable, and a perpetual inventory system. As of January 1, its net accounts receivable totaled $192,000 (Accounts Receivable $200,000 less an $8,000 Allowance for Doubtful Accounts). During the current year, the following transactions occurred. 1)Merchandise costing $1,050,000 was sold on account for $1,400,000. 2)The company collected $1,294,000 from customers on account.3)$6,000 of accounts receivable were deemed uncollectible and written off.4)$1,000 of accounts receivable previously written off as uncollectible were recovered.5)At year-end, Lily Company estimates that 4% of its accounts receivable are uncollectible.Prepare journal entries to record these transactions.
What will be an ideal response?
Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?
A) dynamic price B) internal reference price C) suggested retail price D) captive price E) value price
When asking several specific questions in a direct request message, do not
A) number each question. B) cover only one topic in each question. C) arrange the questions in a logical order. D) use the indirect organizational plan. E) word questions clearly and objectively.
On February 15, Jewel Company buys 7,000 shares of Marcelo Corp. at $28.53 per share. The purchase is classified as a stock investment with insignificant influence. This is the company's first and only stock investment. On March 15, Marcelo Corp. declares a dividend of $1.15 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 30 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.30 per share. The fair value of the remaining shares is $29.50 per share at year-end. The amount that Jewel Company should report in the current-year income statement from its investment in Marcelo Corp. is:
A. Unrealized Loss-Income; $3,395. B. Unrealized Loss-Equity; $3,395. C. Unrealized Gain-Income; $10,295. D. Realized Gain-Income; $3,395. E. Unrealized Gain-Income; $3,395.