ACCT 556 Week 7 Homework Problem
years using the straight-line method. Assume that any equipment purchases are made on the first day of the January and are operational throughout the entire year.
No new equipment will be needed for the sales and administrative departments.
2006 LONG-TERM DEBT INFORMATION
A long-term debt repayment( principle only) will be made on December 31, 2006 for $ 255,000. The interest rate charged on the debt balance throughout 2006 will be 7.5 % and will be paid on December 31, 2006.
If an additional machine is purchased, $ 5,000 will be paid in cash and the remaining $ 25,000 will be financed at the 7.5 % rate. This same proportion of cash / additional debt will be applied to all additional equipment purchased during 2006. Again, any purchases will be made on January 1, 2006.
DIVIDEND POLICY
Fantastic, Inc.' s policy is to pay dividends on the last day of each quarter. The total anticipated dividends for 2006 are $ 2.50 per share. ===================================================
ACCT 556 Week 7 Homework Problem
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ACCT 556 Week 7 Problem Benefits of Social Programs