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The Wildhorse Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do
The Wildhorse Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Wildhorse has decided to locate a new factory in the Panama City area. Wildhorse will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs. Building A: Purchase for a cash price of $616,000, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $70,880 being made at the beginning of the year. Building C: Purchase for $650,600 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $6,110. Rental payments will be received at the end of each year. The Wildhorse Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Wildhorse Inc. locate, assuming 10% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Net Present Value Building A Building B Building C The Wildhorse Inc. should locate itself in On May 10, 2017, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2017. Greig agrees to pay the full contract price of $2,110 on July 15, 2017. The cost of the goods is $1,390. Marin delivers the product to Greig on June 15, 2017, and receives payment on July 15, 2017. Prepare the journal entries for Marin related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit (To record contract entered into) (To record sales) (To record cost of goods sold) (To record payment received)
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