Your company borrows $25,000 from the bank at 12 percent compounded annually to purchase some new machinery. this loan is to be repaid in equal installments at the end of each year over the next 5 years. how much will each annual payment be? what ratios would be impacted by the additional debt? how would you justify this purchase to management?

your company is considering depositing money in one of three banks, all of which pay 5% interest; bank a compounds annually, bank b compounds semi-annually, and bank c compounds daily. which bank would you choose? why?

the process of discounting and compounding are related. explain the relationship and the significance of understanding this to management or stockholders.

Transactions that affect earnings do not necessarily affect cash. identify the effect, if any, that each of the following transactions would have upon cash and net income. the first transaction has been completed as an example. (if an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15, cash net income (a) purchased $120 of supplies for cash. –$120 $0 (b) recorded an adjustment to record use of $35 of the above supplies. (c) made sales of $1,370, all on account. (d) received $700 from customers in payment of their accounts. (e) purchased equipment for cash, $2,450. (f) recorded depreciation of building for period used, $740. click if you would like to show work for this question: open show work