Answered: (a) the cost of the 20 laptops…

Business

Accounting

(a) the cost of the 20 laptops excluding the interest and (b) the cost per laptop.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bird's Eye Treehouses Inc. has determined that a majority of its customers are located in the Winnipeg area. It therefore is considering using a lockbox system offered by a bank in Manitoba. The bank has estimated that use of the system will reduc collection time by 1.5 days. Average number of payments per day 760 Average value of payment $ 770 Variable lockbox fee (per transaction) $ 0.10 Annual interest rate on money market securities 4.0% e-1. What is the NPV of the new lockbox system? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.) NPV $170558.7 a-2. Should the lockbox project be accepted? 13 Yes No b-1. If there were a fixed charge of $7,000 per year in addition to the variable charge, what is the NPV of the new lockbox system? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.) NPV $ b-2.…
A computer retailer offers a payment plan at 6.5% annual interest, compounded monthly. Customers can pay for a gaming system by monthly payments of $156.20 for 1 year. What is the cost of the gaming system for a customer paying cash at the time of purchase? a) $1721.06 Ob) $1931.26 O c) $1810.04 d) $2010.26
Cash collections Miriam Irby is president of MI Corp. Irby has decided to take a month's vaca- tion with her family to South Africa, Zimbabwe, and Angola. Irby has researched the trip and determined that the total cost of the trip for her family will be approximately $50,000. Her travel agent says that a 10 percent discount can be obtained if Irby can write a check for the cost of the trip by the end of November. Irby says she sees no problem in doing that given that the company's expected billings for October, November, and December, respectively, are $100,000, $65,000, and $15,000 (Irby will leave on vacation in December). As of September 30, MI Corp.'s accountant has estimated cash collections from billings to be 15 percent in the month of sale, 55 percent in the month following sale, and 30 percent in the second month following sale. The September 30 Accounts Receivable balance is $11,000; that amount is expected to be collected in October. Average monthly business costs are…
Subject: accounting
Toyota is offering free credit on a new $10,000 car. You pay $1,000 down and then $200 a month for the next 50 months. Nissan Motors next door does not offer free credit but will give you $9000 cash. If the rate of interest is 0.63% a month, which company is offering the better deal? Select one: a. Nissan 9556 Cash b. Nissan- 9000 Cash c. Toyota- 9000 cash d. Toyota- 9556 Cash
Foxtrot Corporation is purchasing a new Ford Transit delivery van for $24,600. Its lender requires a maximum loan to value ratio of 80% on the purchase price of the vehicle. The term of the loan is 5 years. The interest rate is 5% APR. The loan is a closed end credit loan. There is no trade-in. Sales tax is 7%. Documentation fee is $275. a. What is the total cost of the delivery van including purchase price, sales tax, and documentation fee; and how much is classified as an asset on the balance sheet and how much is classified as an expense on the income statement? b. How much cash must Foxtrot Corporation have to make the down payment? c. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest?
A computer retailer offers a payment plan at 6.5% annual interest, compounded monthly. Customers can pay for a gaming system by monthly payments of $156.20 for 1 year. What is the cost of the gaming system for a customer paying cash at the time of purchase? O a) $1721.06 O b) $1931.26 c) $1810.04 O d) $2010.26
With cash flow diagram
Why is 37.23% the answer?