The following items were selected from among the transactions completed by aston martin inc. during the current year: apr. 15. borrowed $225,000 from audi company, issuing a 30-day, 6% note for that amount. may 1. purchased equipment by issuing a $320,000, 180-day note to spyder manufacturing co., which discounted the note at the rate of 6%. 15. paid audi company the interest due on the note of april 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (record both the debit and credit to the notes payable account.) july 14. paid audi company the amount due on the note of may 15. aug. 16. purchased merchandise on account from exige co., $90,000, terms, n/30. sept. 15. issued a 45-day, 6% note for $90,000 to exige co., on account. oct. 28. paid spyder manufacturing co. the amount due on the note of may 1. 30. paid exige co. the amount owed on the note of september 15. nov. 16. purchased store equipment from gallardo co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals. dec. 16. paid the amount due gallardo co. on the first note in the series issued on november 16. 28. settled a personal injury lawsuit with a customer for $87,500, to be paid in january. aston martin inc. accrued the loss in a litigation claims payable account.

What is the most important type of decision that the financial manager makes?

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Bayside coatings company purchased waterproofing equipment on january 2, 20y4, for $190,000. the equipment was expected to have a useful life of four years and a residual value of $9,000. instructions: determine the amount of depreciation expense for the years ended december 31, 20y4, 20y5, 20y6, and 20y7, by (a) the straight-line method and (b) the double-declining-balance method. also determine the total depreciation expense for the four years by each method. depreciation expense year straight-line method double-declining-balance method 20y4 $ $ 20y5 20y6 20y7 total $