Bally Manufacturing sent Intel Corporation an invoice for machinery with a $13,800 list price. Bally dated the invoice August 01 with 5/10 EOM terms. Intel receives a 40% trade discount. Intel pays the invoice on August 14. What does Intel pay Bally? Payable amount
Q: how much interest will he pay in his 36th payment?
A: To determine the interest, he would pay on his 36th payment, we need to determine the loan balance…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: The line of credit is the maximum limit of credit that a customer can avail from the financial…
Q: A company is developing a special vehicle for Arctic exploration. The development requires an…
A: The analysis and evaluation of any investment's feasibility and profitability is recognized as…
Q: Annuity due. Reginald is about to lease an apartment for 12 months. The landlord wants him to make…
A: The discount rate refers to the interest rate that is used for discounting the values of future…
Q: Stephanie's portfolio consists of $24,000 in Berkshire Hathaway stock and $7,000 in US Treasurys.…
A: Portfolio beta, also known as systematic risk or market risk, is a measure of the sensitivity of a…
Q: Things Get Messi Enterprises is issuing new bonds for a capital budgeting project. The bonds will…
A: Bond pricing refers to the process of determining the fair value of a bond based on various factors…
Q: Rosa has a flow-through of net income from a general partnership of $160,000 for 2020. What is the…
A: The self-employment tax is the tax you need to pay on your net income if you are a self-employed…
Q: Give typing answer with explanation and conclusion Purchasers of which of the following are…
A: When a company declares a dividend, it sets a record date, which is the date on which the company…
Q: Challenge problem. Each holiday season, Michael received a U.S. savings bond from his grandmother.…
A: A bond is a type of debt security that is issued by corporate firms and business enterprises to…
Q: The budgeted monthly statement of profit or loss is drawn up on the basis of cash received and cash…
A: A budget is a financial plan that outlines an organization's projected income and expenses over a…
Q: For a standard corporate bond, when are the following characteristics of the bond determined?
A: The question is asking about the timing of when various characteristics of a standard corporate bond…
Q: answers above are incorrect, i need the aftertax cost of debt and the aftertax cost of preferred…
A: In order to calculate the after tax cost of debt we consider before tax cost of that and then the…
Q: an adjustable rate mortgage (ARM) of $190,000 with a maturity of 30 years and monthly payments. At…
A: In this question Adjustable Rate Mortgage ( ARM) $190,000 with 30 Years maturity and monthly…
Q: A company has completed the operating budget and the cash budget. It is now preparing the budgeted…
A: A budget is a financial plan that outlines an organization's or individual's expected income and…
Q: Calculate the aftertax cost of debt under each of the following conditions. (Do not round…
A: The effective rate that a business spends on its debt, such as bonds and loans, is known as the cost…
Q: Theodora received an 8-year PLUS Loan of $17,000 to attend law school for her last 2 years. If the…
A: Step 1 The amount paid each month to repay the loan over the course of the loan is known as the…
Q: has big travel plans. She wants to save and take 3 the world. currently has $1500 saved for the trip…
A: Investment savings refer to an amount that is invested in the bank or financial institution for the…
Q: A stock is expected to pay a dividend of $0.50 at the end of the year, and it should continute to…
A: To calculate the stock price in 2 years from now we will use the below formula Stock price 2 years…
Q: An individual invests a series of level payments at the end of each quarter into a sinking fund,…
A: £1511 is the annual payment. Quarterly payment for first 8 years or 8*4 quarters is £1511/4 =…
Q: If a credit card you are interested in has an APR of 16%, what would the Daily Periodic Rate (DPR)…
A: APR = APR stands for Annual Percentage rate. It is a interest rate you pay for borrowing money on…
Q: new Vigour Pharmaceuticals Ltd. is considering investing in a production line for its pain-reliever…
A: WACC: It represents the company's average cost of capital and is estimated by taking the sum of all…
Q: A debt of $8866 509 is repaid by payments of $1211.36 in 3 months, $1326 43 in 14 months, and a…
A: The future value of a present amounts shows the compounded worth of the present amount. It can be…
Q: You expect to receive a payout from a trust fund in 4 years. The payout will be for $13,600. You…
A: Number of years it will take for the account to be worth $22900 is calculated in excel below
Q: Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making equal…
A: The total cost of the loan = Monthly Payments (Using PMT function (a)) * {Loan Period in months *…
Q: Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into…
A: Maturity value refers to the total amount that is repaid to an investor up to the end of the loan…
Q: * The 1-year spot rate is 8%p.a. effective. The term structure of 1-year effective forward rates is…
A: Immediate one year spot rate and the term structure of forward rates, have been provided. The term…
Q: A loan of $4200 is due in 7 years. If money is worth 3.7% compounded annually, find the equivalent…
A: Note : As per the guidelines, only first question will be answered. Given information : Amount…
Q: Business has been good for Keystone Control Systems, as indicated by the eleven-year growth in…
A: Therefore, the compounded annual rate of return is 16.03%.
Q: Cynthia wants to accumulate at least $40,000 by depositing $1,200 at the end of each month into a…
A: The concept of TVM states that the money received earlier can earn interest which makes it more…
Q: The Hentys are considering buying a house and are researching the potential costs. Their adjusted…
A: Front end ratio, also known as the front-end debt-to-income ratio (DTI), is a financial ratio that…
Q: Calculate the missing information on the revolving credit account. Interest is calculated on the…
A: Revolving credit refers to a line of credit that is used for borrowing amounts up to a certain…
Q: you bought one great white shark repellent company's 10 percent coupon bonds one year ago for $810.…
A: A bond is a debt instrument that allows the issuer to raise funds and obligates him to repay an…
Q: In relation to a convertible arbitrage trade in general, carefully explain what is meant by the…
A: Convertible arbitrage is a popular trading strategy that involves buying a convertible bond and…
Q: Compute the payback statistic for Project X and recommend whether the firm should accept or reject…
A: Payback period - It represents the time period required for recovery of the initial investment in…
Q: Select all that are takeaways with respect to risk and return in financial markets that we gleaned…
A: The answer to the question is given below
Q: Final Finishing is considering 3 mutually exclusive alternatives for a new polisher. Each…
A: Polisher 1 Initial investment = $20,000 Annual benefits = $4,370 Expected life, n = 8 years MARR,…
Q: As a recent graduate of the UWIOC, The General Manager of the company has hired you to work…
A: WACC: It represents the company's average cost of capital and is estimated by taking the sum of all…
Q: What is the EAR of an account that has a 6% APR if it compounds quarterly?
A: To calculate the EAR we will use the below formula EAR = (1+APR/M)M-1 Where APR - Annual…
Q: A project requires an increase in inventories, accounts payable, and accounts receivable of…
A: Net Present Value: It is a profitability measure used in capital budgeting by financial managers to…
Q: A stock has a beta of 1.06, the expected return on the market is 10 percent, and the risk- free rate…
A: Expected return refers to the gain or loss that is earned over an investment by the investors. It is…
Q: A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned…
A: The Present Value (PV) of an annuity is the current value of a series of equal payments made at…
Q: Question 1 Which of the follow are examples of Cash Management Products? O Account management O Cash…
A: Cash management is very important because it is associated with concept of capital structure…
Q: Tammy Jackson purchased 152 shares of All-American Manufacturing Company stock at $33.30 a share.…
A: Given the following: Number of shares = 152 Purchase price = $33.30 per share Commission on…
Q: Question 5: An annuity contract will make 8 annual payments and the first payment occurs exactly a…
A: The question is based on the concept of Financial Management. Annuity refers to the series of equal…
Q: (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common…
A: Expected rate of return is the rate of return that the investors expect on their investment…
Q: A currency dealer quotes the following rates on the Swiss franc-U.S. dollar exchange rate in the…
A: The bid price is the price that the individual is willing to pay for securities, goods, and…
Q: Every year for 10 years starting year 3, you deposit $1000 in a savings account that earns 7%…
A: NPV is also known as Net Present Value techniques It is a capital budgeting techniques which help in…
Q: 15. If a project has an initial investment of $20,000, for 9 years a monthly interest rate equal to…
A: The magnitude and timing of cash flows of a project are known. The IRR has to be determined. IRR is…
Q: You've observed the following returns on Yamauchi Corporation's stock over the past five years:…
A: An investor or analyst can learn about historical returns for a company, security, or collection of…
Q: Bond IP A Bond Value Coupon Rate P10,000 15% 25,000 18% 00.000 100% Interest Maturity Due Period…
A: Bonds are debt securities that are issued by governments, corporations, and other entities to raise…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Airplanes Unlimited purchases airplane parts from a supplier on March 19 at a quantity of 4,800 parts at $12.50 per part. Terms of the purchase are 3/10, n/30. Airplanes pays one-third of the amount due in cash on March 30 but cannot pay the remaining balance due. The supplier renegotiates the terms on April 18 and allows Airplanes to convert its purchase payment into a short-term note, with an annual interest rate of 9%, payable in six months. Show the entries for the initial purchase, the partial payment, and the conversion.Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 6,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6%, payable in 9 months. Show the entries for the initial purchase, the partial payment, and the conversion.CustomTee Inc. contracts with various customers to sell T-shirts. In the case of sales, CustomTees normal accounting policy requires a written and signed sales agreement. On July 1, in response to a special last-minute phone call from a regular customer, CustomTee delivered 500 T-shirts for 5,000. Does CustomTee have an enforceable contract?
- Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
- Record the journal entry for each of the following transactions. Glow Industries purchases 750 strobe lights at $23 per light from a manufacturer on April 20. The terms of purchase are 10/15, n/40, invoice dated April 20. On April 22, Glow discovers 100 of the lights are the wrong model and is granted an allowance of $8 per light for the error. On April 30, Glow pays for the lights, less the allowance.Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $250 per machine. Terms of the purchase are 4/10, n/20 with an invoice date of April 7. Marx Corp pays in full for the fax machines on April 17. Create the journal entries for Marx Corp. to record: A. the initial purchase B. the subsequent payment on April 17Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.
- On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of $400 per board. The cost to Bates is $140 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries for Bates to recognize the following transactions. A. the initial sale B. the subsequent customer payment on March 10Pianos Unlimited sells pianos to customers. The company contracts with a supplier who provides it with replacement piano keys. There is an agreement that Pianos Unlimited is not required to provide cash payment immediately, and instead will provide payment within thirty days of the invoice date. Additional information: Pianos Unlimited purchases 400 piano keys for $7 each on September 1, invoice date September 1, with discount terms 2/10, n/30. Pianos Unlimited returns 150 piano keys (receiving a credit amount for the total purchase price per key of $7 each) on September 8. The company purchases an additional 230 keys for $5 each on September 15, invoice date September 15, with no discount terms. The company pays 50% of the total amount due to the supplier on September 24. What amount does Pianos Unlimited still owe to the supplier on September 30? What account is used to recognize this outstanding amount?Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.