James company began the month of october with inventory of $32,000. the following inventory transactions occurred during the month: a. the company purchased merchandise on account for $47,500 on october 12, 2016. terms of the purchase were 1/10, n/30. james uses the net method to record purchases. the merchandise was shipped f. o.b. shipping point and freight charges of $670 were paid in cash. b. on october 31, james paid for the merchandise purchased on october 12.c. during october merchandise costing $20,550 was sold on account for $31,400.d. it was determined that inventory on hand at the end of october cost $59,145.

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.