Alexander City Consultants started business on January 1, 2016, and immediately purchased $1,000 of supplies to use in the business. At the end of the month, 25 percent of the supplies remains unpaid and 20% are still on hand. What amounts should appear on the financial statements for January, 2016? Income Statement Statement of Cash Flows

a.
($ 1,000) ($ 1,000)

b.
($ 1,000) ($ 750)

c.
($ 800) ($ 25)

d.
($ 800) ($ 750)


d

Business

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Poe Company is considering the purchase of new equipment costing $80,000. The projected net cash flows are $35,000 for the first two years and $30,000 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine.PeriodsPresent Valueof $1 at 10%Present Value of anAnnuity of $1 at 10%1 0.9091  0.9091 2 0.8264  1.7355 3 0.7514  2.4869 4 0.6830  3.1699 

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