Which of the following purchases would be considered capital investments?
a. The plant manager wants to purchase twelve new forklifts for use in materials management for a total of $660,000.
b. The company purchases $368,000 of a raw material to be used in the construction of its most popular product.
c. A company purchased a parcel of land for $550,000; the company’s new manufacturing facility will be built on this land next year.
d. The company has $125,000 in a money market account.
e. The payroll for the administrative and sales staff is projected to be $580,000 for the upcoming year.
f. Salespeople for the company are provided with new cars for business use; the cost of these new vehicles is $512,000.
g. New clothing racks and display shelves are installed in four of the company’s retail locations; the total cost of these new displays and their installation is $325,000.
h. A clothing retailer purchases clothing merchandise for $8,200,000 to be resold in its 20 retail locations.
i. The company’s utility costs for the year are projected to be $800,000.
j. A merchandiser adds 80,000 square feet of floor space to its flagship store for a total cost of $3,300,000.

  • CreatedApril 30, 2015
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