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Question - Edmonton Ice Rink purchased a Zamboni ice-resurfacing machine for $25,000, terms 2/10, n/60, FOB shipping point. Edmonton Ice received a freight invoice from On-time Delivery for $420. Edmonton Ice took advantage of the discount. The Zamboni required a special steel mounting and power connections costing $955, and another $615 was paid to paint the home team colours on the Zamboni and get it into operation. In moving the Zamboni onto its steel mounting, it was banged and damaged. The repairs cost $350. Also, $280 of labour costs were incurred in calibrating (adjusting) the machine so that it would be at the right height on the ice. These adjustments were normal and were not a result of the damage. Special insurance was needed for the new ice cleaning machine, which will cost $200 per month for the next year. Prepare a calculation to show the cost of this machine for accounting purposes.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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