Business, 06.08.2021 22:30 kadariusmerchan

Suppose Baldwin invested in plant and equipment last year. The plant investment was funded with bonds at a face value of $8,000,000 at 12.5% interest and equity of $4,200,000. Depreciation is 15 years straight line. For this transaction alone, which of the following statements are true ? a. Cash was pulled from Retained Earnings to cover the $4,200,000 difference between plant purchase and bond issue.
b. Cash went down by the amount of the plant purchase.
c. On the Balance Sheet, Plant & Equipment increased by $12,200,000.
d. Buying the plant had no net effect on the Cash account because the plant was paid for by the bond plus Retained Earnings.
e. Depreciation increased by $813,333.
f. Cash went up when the bond was issued by $8,000,000.
g. On the Balance Sheet, Long Term Debt changed by $8,000,000.
h. Since the new plant was funded with debt and equity, on the Balance Sheet, Retained Earnings decreased by $4,200,000, the difference between the investment and the bond issue.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:30

Consumer surplus is: the difference between the price of a product and what consumers were willing to pay for the product. the difference between the discounted price of a product and its retail price. the difference between the price paid by consumers and the price required of producers. the difference between the price of a product and consumers' valuation of the last unit of the product purchased.

Answers: 2

Answer

Business, 22.06.2019 12:30

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

Answers: 1

Answer

Business, 22.06.2019 22:10

Scoresby co. uses 6 machine hours and 2 direct labor hours to produce product x. it uses 8 machine hours and 16 direct labor hours to produce product y. scoresby's assembly and finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. how much overhead cost will be charged to the two products? a. product x = $1,440; product y = $2,560 b. product x = $1,760; product y = $4,480 c. product x = $3,200; product y = $9,600 d. product x = $800; product y = $800

Answers: 1

Answer

Business, 22.06.2019 23:30

Part 1: interview at least three different people you know that fall within three age ranges (25-35), (36-50), and (51-70) year of age. ask each person you interview if they have life insurance (term, whole life etc.) and health insurance. ask what factors influenced their decision to buy or not the insurance coverage? report your findings to this assignment. specify who the people were that you spoke with.\

Answers: 3

Answer

You know the right answer?

Suppose Baldwin invested in plant and equipment last year. The plant investment was funded with bond...

Questions