Credit purchases

The accounts payable turnover ratio is computed by taking the total purchases from suppliers made on credit and then dividing them by the average accounts payable during the same period. This number shows how many times per period the company pays its average payables amount. For example, if a company has 45,500 in credit purchases from suppliers in a year and has an average accounts... 

Since there is no single place to find credit purchases within financial statements, it is necessary to use the following formula to calculate purchases made ... 

The level of benefits from tax credits and favorable power purchase terms that helped give these installations their start has diminished in recent years. Nevertheless, with the remaining tax credits available and given current (ca 1995) natural gas prices, solar-thermal technology can deUver power at 8—12 /kW-h and an installed cost of 2500— 3000/kW. 

Let us consider the purchase of 50,000 worth of plant equipment by company A, paid for by check. The accounting entries are debit the plant-equipment account 50,000, and credit the bank account 50,000. The plant-equipment account is then said to have a debit balance of 50,000, and the bank account a credit balance of 50,000, if these happen to be the only entries. 

Let us consider plant eqmpment costing I million and purchased on Jan. I, 1988. T le 9-18 ows the provision for the depreciation account for 1988, 1989, and 1990 for straight-line depreciation, assuming a service hfe of 10 years and zero scrap value. The credit entries of 100,000 for the depreciation in each year are balanced by the depreciation charge of 100,000 debited to the income statement (or trading and profit-and-loss account) in each year. Table 9-19 shows the corre-... 

Purchasing will execute all work agreements. Purchasing will also obtain the financial background or credit reports of unknown contrac-tors/subcontractors and perform reviews of contractors/subcontractors from time to time. 

The Tax Code contains various provisions that may affect the demand for energy from specific sources. In the transportation area, purchasers of electric vehicles may claim a credit against their income tax liability for a portion of the purchase price. Taxpayers who pur-... 

Emissions in excess of allotted levels are taxed. As an incentive to clean up emissions, companies that emit less than their allotted amounts are allowed to sell their unsued portions (so-called emission credits) to other companies. Several years ago, the Tennessee Valley Authority (TVA), which operates 11 coal-fired electricity plants, purchased emission credits from Wisconsin Power and Light. The TVA bought pollution rights for the emission of 1.00 X 10 tons of sulfur dioxide per year at a price of 275 per ton. How much will it cost to emit 1 mol of SO2 How many molecules can be emitted for 1.00 ... 

Fundamental to the support for nuclear energy is the new attitude in the industry itself. Nuclear electricity producers are adapting well to the onset of competition in the marketplace. We are seeing consolidation, nuclear plant purchases, and the pursuit of license renewals. In this new environment, the U.S. nuclear industry is entertaining something of a renaissance and beginning to take credit for its accomplishments. 

If Linda purchases an item that costs 70 or greater, she will use a credit card. 

The financial commitment I d just made to purchase a building obviously compounded my stress. But in the beginning, not knowing what I was faced with, I assumed my condition would improve soon, and I could make the payments on the property. My credit was excellent, and I used credit cards to pay for medical bills and living expenses. I kept thinking surely by next week I m going to feel better and I can get back to work and work my way out of this financial mess. But that day didn t come for years. I quickly ran up thirty thousand dollars in debt, and had to sell the building and close the business. 

Suppose you are asked to evaluate the purchase of the multicone cyclone referred to in Example 3.4. The capital investment is 35,000 (see Example 3.4), and the equipment has a class life of 5 years, after which it will be sold for the salvage value of 4000. The income stream generated by the machine is on line A in Tables EB.5A and EB.5B. As the equipment ages, its operating and maintenance costs increase, and line B lists the expense profile. Assume a tax rate of 35 percent with no investment tax credit. Evaluate two possible scenarios (a) 100 percent use of equity and (b) 100 percent debt financing. Use straight-line depreciation for debt financing, for simplicity assume equal annual payments (principal plus interest) to the lender for the 5 years at a rate of 10.5%. 

Something went wrong recently for me. Someone obtained my Social Security number, address, work number and address, and a few other vital pieces of data. That person then applied for a credit account in my name. The application was approved, and I soon received a bill (50) for nearly 5,000 worth of computer-related purchases. 

Clean development mechanisms-, non-Annex I parties can create certified emissions reductions (CERs) by developing projects that reduce net emissions of greenhouse gases. Annex-I parties (both governments and private entities) can help to finance these projects and purchase the resulting credits as a means of meeting their own reduction commitments. 

The Brady Act was challenged in court, but only the part requiring state officials to carry out the back ound checks was overturned by the Supreme Court in 1997 in Printz v. U.S., on the grounds that Congress lacked the power to commandeer the services of local officials. This decision would have little impact because the Brady Act already had a provision that after five years (in 1998) the waiting period would be replaced by a computerized national instant check system that would verify a gun purchaser in much the same way that stores validate credit cards. 

Many people use credit cards to pay for large purchases, but some stores still offer convenient short-term payment plans on their merchandise. If you want to buy an item, the store figures out the total cost of the item plus the interest over a period of time, divides the total into equal payments, and then lets you purchase the item paying back the same amount for a certain number of months or years. 

---