Diemia hospital has been considering the purchase of a new x-ray machine. the existing machine is operable for five more years and will have a zero disposal price. if the machine is disposed now, it may be sold for $80,000. the new machine will cost $600,000 and an additional cash investment in working capital of $25,000 will be required. the new machine will reduce the average amount of time required to take the x-rays and will allow an additional amount of business to be done at the hospital. the investment is expected to net $50,000 in additional cash inflows during the year of acquisition and $200,000 each additional year of use. the new machine has a five-year life, and zero disposal value. these cash flows will generally occur throughout the year and are recognized at the end of each year. income taxes are not considered in this problem. the working capital investment will not be recovered at the end of the asset's life. a. what is the net present value of the investment, assuming the required rate of return is 18%? b. would the hospital want to purchase the new machine? a) $33,910b) $(46,650)c) $(46,650)d) $50,800

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. the equivalent units of production (eup) for the period were 9,000 for direct materials and 6,000 for conversion. the costs per eup were:

Location test: question 1 of 54)water is a solvent because itoa. is made of moleculesob. dissolves many substancesc. is a saltd. has a large buffering capacity