Gale Corporation acquires a printing equipment through lease. The terms of the lease require the monthly lease payments to be made at the beginning of every month. This is an example of an annuity due.
Answer the following statement true (T) or false (F)
True
Annuity due is an annuity with payments that occur at the beginning of each period. See 4-1: Cash Flow Patterns
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A machine was purchased for $5,000 on July 1, 2011 . If the salvage value was estimated at $200, the estimated life 5 years, and the declining-balance method of depreciation was used, what was the depreciation for 2011?
a. $100 b. $1,000 c. $1,920 d. $960 e. None of the above
Windy City Kite Company has prepared sales forecasts for the beginning of Year 3 as shown in the top row of the table. Half of Windy City's kite sales are cash and the other half are credit
Windy City collects credit sales the month following the credit sale. What are Windy City's total cash inflows from customers for January? Windy City Kite Company Sales Forecast and Collections Forecast December January February Sales Forecast $1,100 $1,000 $2,000 Cash Collections Collections from Sales last month Total Cash Inflows A) $500 B) $550 C) $1,000 D) $1,050
Which of the following is an advantage of the international model?
A. It facilitates the transfer of skills from the parent company to the subsidiaries. B. It transfers ultimate control of the company to the subsidiaries. C. It provides the opportunity to achieve a low-cost position via scale economies. D. It provides maximum latitude to research and development functions. E. It requires a minimum amount of effort and coordination by the parent company.
Survey literature indicates that separate project costs of capital
A) are used by less than half of major companies. B) are used by more than 75% of major companies. C) are used by nearly all major companies. D) are almost never used by major companies.