Obj. Fees
Dividends + Earned - Expenses
EX 1-13 Nature of transactions
Teri West operates her own catering service. Summary financial data for July are presented in
tion on the equation. Each increase and decrease in stockholders' equity, except transaction
equation form as follows. Each line designated by a number indicates the effect of a transac-
(5), affects net income.
Assets
Liabilities +
Stockholders' Equity
Accounts
Cash + Supplies + Land
Common Retained
Payable + Stock Earnings
Bal. 40,000
3,000 82,000 7,500 50,000
67,500
1. +71,800
2. -15,000
+15,000
-47,500
3. -47,500
4.
+1,100
+1,100
5. -5,000
-5,000
6. -4,000
-4,000
-1,500
7.
-1,500
Bal. 40,300 2,600 97,000
71,800 -49,000
4,600 50,000 67,500 -5,000
+71,800

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above

In myanmar, six laborers, each making the equivalent of $ 2.50 per day, can produce 40 units per day. in china, ten laborers, each making the equivalent of $ 2.25 per day, can produce 48 units. in billings comma montana, two laborers, each making $ 60.00 per day, can make 102 units. based on labor cost per unit only, the most economical location to produce the item is china , with a labor cost per unit of $ . 05. (enter your response rounded to two decimal places.)

Which of the following best explains why large companies pay less for goods from wholesalers? a. large companies are able to pay for the goods they purchase in cash. b. large companies are able to increase the efficiency of wholesale production. c. large companies can buy all or most of a wholesaler's stock. d. large companies have better-paid employees who are better negotiators.