In order to calculate the cost of a long-term asset that is financed with long-term debt, present values concepts would be used.

Which of the following would not be classified as property, plant and equipment on a balance sheet?

Lanier Company recently purchased a truck. The price negotiated with the dealer was $40,000. Lanier also paid sales tax of $2,000 on the purchase, shipping and preparation costs of $3,000, and insurance for the first year of operation of $4,000. At what amount should the truck be recorded on the balance sheet?

Accounts payable and accrued liabilities are interchangeable account titles.

Which of the following is not a reason for the Jones Hardware Store to accept credit cards from customers?

Flyer Company has provided the following information prior to any year-end bad debt adjustment: • Cash sales, $150,000• Credit sales, $450,000• Selling and administrative expenses, $110,000• Sales returns and allowances, $30,000• Gross profit, $290,000• Accounts receivable, $110,000• Sales discounts, $14,000• Allowance for doubtful accounts credit balance, $1,200Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. How much is Flyer’s bad debt expense?

Tenace Corporation uses a periodic inventory system and has provided the following information about one of their laptop computers:   Date Transaction Number of Units Cost per Unit 1/1 Beginning inventory 100 $800 5/5 Purchase 200 $900 8/10 Purchase 300 $1,000 10/15 Purchase 200 $1,050   During the year, 275 laptop computers were sold on 5/8 and 475 laptops were sold on 10/20.   What was cost of goods sold using the LIFO cost flow assumption?

Professor Molloy plans to purchase a custom Maserati in five years in order to stave off a midlife crisis.  He would like to have the sum of $200,000 in his Maserati purchase fund in exactly five years.  Use the factors below or a financial calculator to determine the amount Professor Molloy would have to invest today in order to have his Maserati purchase fund grow to exactly $200,000 in five years if he can earn an 6% annual interest rate, compounded annually. Select the answer that is closest to (within $250 above or below) what you calculated.  If an answer is more than $250 away from what you calculated, you should consider it incorrect. Present value of $1  – number of periods 5, interest rate 6% = 0.74726 Future value of $1 – number of periods 5, interest rate 6% = 0.94340 Present value of an annuity of $1  – number of periods 5, interest rate 6% = 0.55839 Future value of an annuity of $1 – number of periods 5, interest rate 6% = 0.76000

Which of the following transactions would not increase the fixed asset turnover ratio?

Newark Company has provided the following information:· Cash sales, $450,000· Credit sales, $1,350,000· Selling and administrative expenses, $330,000· Sales returns and allowances, $90,000· Depreciation expense, $101,000· Gross profit, $1,360,000· Increase in accounts receivable, $55,000· Bad debt expense, $33,000· Sales discounts, $43,000How much is Newark’s cost of goods sold?