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