Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. johnstone company is facing several decisions rega

Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently....

50.1K

Verified Solution

Question

Accounting

image
image
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2016, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $22,000 on the purchase date and the balance in five annual installments of $5,000 on each June 30 beginning June 30, 2017, Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? Table values are based on: Cash Flow Installments Down Payment Amount Present Value Value of the equipment 2. Johnstone needs to accumulate sufficient funds to pay a $520,000 debt that comes due on December 31, 2021. The company will accumulate the funds by making five equal annual deposits to an account paying 7% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2016. Table or calculator function: Future Value: Deposit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Bogelheads believe in market timing provided an advisor is carefully chosen. a) Do you agree with the...

Finance
Q

Universal Leasing leases electronic equipment to a variety of businesses. The company’s primary service is providing...

Accounting
Q

Dioxin is a deadly toxin. In animal tests, however, hamsters are unaffected by doses that would...

Biology
Q

Design an original psychological experiment. Identify the following: (5) Hypothesis: Experimental design: Independent variable and how it’ll be manipulated/introduced: Dependent variable...

Psychology
Q

Matheson Electronics has just developed a new electronic device that it believes will have broad market...

Accounting
Q

How normal p53 gene help in inhibiting the development of cancerA) Cause cell with much...

Biology
Q

IP3 receptors are associated with O endosome membranes O Golgi apparatus membranes O ER membranes...

Biology
Q

6 www ed out of V Choose the equation s which have the following resultar...

Geometry
Q

Spring An object suspended from a spring is oscillating up and down The distance from...

Algebra
Q

JUST TELL ME THE ANSWER A and B together can complete a piece...

Accounting
Q

Please full calculation and explanation. lem 6-2A Alternative cost flows-perpetual L02- Company has...

Accounting
Q

Madison's gross tax liability is $13,000. Madison had $5,280 of tax credits available and she...

Accounting