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Problem 1: Weider, Inc. purchased and received 40 baseball gloves into inventory on March 3rd. The terms of the purchase are 2/10 Net 30. Each glove cost $25 and the total cost of shipping the gloves to Weider was $0.50 per glove (discount does not apply to shipping). Which of the following is true with regard to this inventory purchase if paid for on March 30th?
1) Inventory increases by $1,200
2) Expenses increase by $1,020
3) Liabilities increase by $500
4) The cost of each glove is $25.50
Assuming a discount rate of 14%, what is the current (present) value of her winnings? Enter the future lump sum as the FV and enter the payments
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