What could the smith company expect to pay

Assignment Help Financial Accounting
Reference no: EM131005565

Question:

The Smith Hauling Company contracted with construction firms to haul debris away from construction sites.

The company was in the process of buying a new truck in 2010. The last ruck they purchased was in 2007, and they paid $160,000 for the new Peterbuilt truck. He asked the firm''s accountant to see if there was statistics available that would help him decide on how much he should expect to pay for one this yer.

John the accountant, knew of the machinery and Equipment Subindex of the producer price industrial commodities from the Bureau of Labor Statistics. He got he following price index information from that organization said:

Year Machinery and Equipment
2004 96.3
2005 100.5
2006 109.2
2007 106.0
2008 113.6
2009 111.3

Given the above index numbers, what could the Smith Company expect to pay for the new truck of the same type in 2010?

Explain on what basis the answer was arrived

Verified Expert

This paper states calculation of purchase price of truck to be purchased in the year 2007. The company shall be expected to pay an amount of $168,000 towards the purchase of machinery and equipment since that is the amount that has been derived considering the indexes of the year 2007 and 2009 since that is the most recent year for which the index is available.

Reference no: EM131005565

Questions Cloud

Compute the correlation coefficient : Compute the correlation coefficient. What does this statistic mean concerning the relationship between amount of money spent per month on internet provider service and level of customer satisfaction?
Calculate the effective densities of states in conduction : Plot of the Fermi distribution function at two different temperatures. Calculate the Fermi timction at 6.5 eV if EF=6 .25 eV and T=300 K. Repeat for T=950 K assuming that the Fermi energy does not change. Plot the energy dependence of the ele..
Probabilities for successful instruments : Suppose that American investment institutions enter this new market, and that their probabilities for successful instruments are:
Funds are distributed under conditionality : Consider lending institutions such as the World Bank and the IMF, and the case of debt-ridden nations such as Greece. Argue for or against the following two points: Important decisions are made by vote, with the weight of the vote proportional to a n..
What could the smith company expect to pay : Given the above index numbers, what could the Smith Company expect to pay for the new truck of the same type in 2010?
Mean ud of the population paired differences : Construct a 99% confidence interval for mean Ud of the population paired differences where a paired difference is equal to score of an employee before attending course minus the score of the same employee after attending course.
What is the balance of payments : What is the Balance of Payments (BOP), and what does it mean to have a surplus or deficit and can you have a BOP deficit/surplus under fixed exchange rates?
Intermediate appellate court and a high appellate court : Revise the Phase Key Assignment based on instructor feedback and peer review - Great analysis of the entrapment defense.
Describe the positive aspects of collaborative initiative : Respond to the following questions: Describe the positive aspects of the collaborative initiative. What partner do you feel is less essential to the initiative and why? (Note "None" is not an option.) and What criminal justice entity do you feel coul..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd