On december 31, 2018, burton, inc. leased machinery with a fair value of $1,575,000 from cey rentals co. the agreement is a six-year noncancelable lease requiring annual payments of $300,000 beginning december 31, 2018. the lease is appropriately accounted for by burton as a finance lease. burton's incremental borrowing rate is 11%. burton knows the interest rate implicit in the lease payments is 10%. the present value of an annuity due of 1 for 6 years at 10% is 4.7908. the present value of an annuity due of 1 for 6 years at 11% is 4.6959. in its december 31, 2018 balance sheet, burton should report a lease liability of
a) $1,437,240.
b) $1,408,770.
c) $1,137,240.
d) $1,275,000.

Fanning books buys books and magazines directly from publishers and distributes them to grocery stores. the wholesaler expects to purchase the following inventory: april may june required purchases (on account) $ 111,000 $ 131,000 $ 143,000 fanning books accountant prepared the following schedule of cash payments for inventory purchases. fanning books suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. required complete the schedule of cash payments for inventory purchases by filling in the missing amounts. determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false