User Account

All Pages

Which option is economically better for manufacturing firm

Assignment Help Accounting Basics
Reference no: EM133100938

Question - A manufacturing firm purchased a heavy duty drilling machine. They were given two payment options:

Option 1: Make a payment of $31,500 immediately to settle the invoice for the machine.

Option 2: Make a payment of $21,000 immediately and the balance of $23,550 in 3 months to settle the invoice.

If money is worth 4.12% compounded quarterly, answer the following:

a. What is the total present value of Option 2?

b. Which option is economically better for the manufacturing firm?

Reference no: EM133100938

Questions Cloud

Determine the cost of sales for the month of July : Consider the following: Expected sales for July and August are $8,000 and $8,300 respectively. Determine the cost of sales for the month of July
What is their marginal tax rate on this income : If Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income
Compute sample standard deviation of both alternatives : Public transportation and auto are 2 alternatives and employees can use to go to work. Compute sample standard deviation of both alternatives
Determine the cost per equivalent : At the end of the accounting period, 490 sets of skis were estimated to be 60 percent complete. Determine the cost per equivalent
Which option is economically better for manufacturing firm : A manufacturing firm purchased a heavy duty drilling machine. Which option is economically better for the manufacturing firm
What was ford change in book debt-equity ratio : In early 2015, Ford Motor (F) had a book value of equity of $24.8 billion, What was Ford change in book debt-equity ratio
Compute the payback period for both projects : The cost of capital for the project is 9 percent and the tax rate is 30 percent. Compute the payback period for both projects
What would be its net income : AA Trading reported the following accounts during the year 2020: Cash Sales - 700,000. If AA uses accrual basis accounting, what would be its net income
What is the Net Working Capital for WOW : What is the Net Working Capital for WOW both in 2020 and 2021. What type of current asset management strategy is the company pursuing

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assume that naylor company sells the same number of units

naylor company has 210000 of net income in 2013 when the selling price per units was 150 the variable costs per unit

  Which related party relationship parent vs subsidary

Which related party relationship between a parent and a subsidary? should be disclosed only if there have been transactions between them during the period

  Determine the basic earnings per share for Junkyard Arts

Junkyard Arts, Inc., had earnings of $316,000 for the year. Determine the basic earnings per share for Junkyard Arts for the year

  How much revenue will be recognized from the sales

How much revenue will be recognized from the sales of the 100 packages for the fiscal year ending December 31, 2020

  Williams corporation purchased a depreciable asset for

williams corporation purchased a depreciable asset for 400000 on january 1 2010. the estimated salvage value is 40000

  Calculate the amortization deduction of the goodwill

On October 1, 2015, Red Corporation acquired the assets of Blue Corporation. Calculate the amortization deduction of the goodwill for 2015

  Individual assignment system evaluation

how the business requirements drove the system's initial development.Describe the type and basic uses of the system,

  Prepare journal entries that shell corporation would make

Prepare the journal entries that Shell Corporation would make related to the bond issue on the dates indicated January 1, 2021 July 1, 2021 December 31

  Prepare the general journal adjusting entry needed

The loan is to be repaid plus interest of 10% per year, on December 31, 20x2. Prepare the general journal adjusting entry needed for December

  Discuss the development of standard costs

Please help with study guide from accounting II, discuss the development of standard costs, static versus flexible budgets

  What is the company net income

The company's depreciation expense is $200,000. West is 100% equity financed, and it faces a 40% tax rate. What is the company's net income

  Construct a scenario to address those concerns

Transfer pricing is a significant area of concern for the IRS. Assess the concerns the IRS may have and construct a scenario to address those concerns.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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