Exercise A3-18 (Algorithmic)
Present Values

Use Present Value Tables or your calculator to complete the requirements below.

Ramon Company signed notes to make the following two purchases on January 1, 2020:

a new truck for $59,000, with payment deferred until December 31, 2021. The appropriate interest rate is 9% compounded annually.
a small building from Wandrow Builders. The terms of the purchase require a $75,000 payment at the end of each quarter, beginning March 31, 2020, and ending June 30, 2022. The appropriate interest rate is 2% per quarter.
Required:

Round your answers to the nearest cent, if rounding is required.

1. Complete the information needed to prepare a cash flow diagrams for these two purchases.

a. n = years
i = % per year
Amount of Payment or Deposit 1/1/20 12/31/21
$
b. n = quarters
i = % per quarter
Amount of Payment or Deposit
1/1/20 3/31/20 6/30/20 9/30/20 6/30/22
$ $ $ . . . $
2. Prepare the entries to record these purchases in Ramon's journal.

a.
b.
3. Prepare the cash payment and interest expense entries for purchase b at March 31, 2020, and June 30, 2020. If an amount box does not require an entry, leave it blank.

March 31, 2020
June 30, 2020
4. Prepare the adjusting entry for purchase a at December 31, 2020.

Dec. 31, 2020

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Uknow what i love about i ask a dumb question it is immediately answered but when i ask a real question it take like an hour to get answered

To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b.the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.