ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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assume that you are planning to purchase a new laptop for school, work, and home use. go to the website of two computer manufacturers and make a selection. complete the following items and questions. compare the following items for your selections in their financial statements. revenues for products, revenues for services, cost of goods sold, accounts receivable, inventories, accounts payable, and research ad development. what are some factors that can impact the gross profit of a merchandise company? one item that can help investors understand the relationship between net sales and net profits is the gross profit rates. find the financial information needed to calculate the gross profit rate for your two selected companies.
Complete your calculations by filling in the highlighted cells. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.Additional information has come to your attention regarding the equipment purchase. One of the partner's brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.
Cookie Business
As the owner of the Cookie Business, you are considering the following investment:
Purchase of new equipment
$ 250,000.00
Expected annual increase in sales
$ 48,017.50
Time frame
7
years
Acceptable rate needed
9%
Calculate the Internal Rate of Return:
PV of annuity factor
Internal rate of return
Accept or reject
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