The following were selected from among the transactions completed by caldemeyer co. during the current year. caldemeyer sells and installs home and business security systems.

jan. 3 loaned $18,000 cash to trina gelhaus, receiving a 90-day, 8% note.
feb. 10 sold merchandise on account to bradford & co., $24,000. the cost of the goods sold was $14,400.
13 sold merchandise on account to dry creek co., $60,000. the cost of goods sold was $54,000.
mar. 12 accepted a 60-day, 7% note for $24,000 from bradford & co. on account.
14 accepted a 60-day, 9% note for $60,000 from dry creek co. on account.
apr. 3 received the interest due from trina gelhaus and a new 120-day, 9% note as a renewal of the loan of january 3. (record both the debit and the credit to the notes receivable account.)
may 11 received from bradford & co. the amount due on the note of march 12.
13 dry creek co. dishonored its note dated march 14.
july 12 received from dry creek co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note.
aug. 1 received from trina gelhaus the amount due on her note of april 3.
oct. 5 sold merchandise on account, terms 2/10, n/30, to halloran co., $13,500. record the sale net of the 2% discount. the cost of goods sold was $8,100.
15 received from halloran co. the amount of the invoice of october 5, less 2% discount.
journalize the entries to record the transactions. refer to the chart of accounts for exact wording of account titles. assume a 360-day year. assume this is a year in which february has 28 days.

Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) wacc %

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?