In 2018, Bank Nizwa earned annual profit attributable to mudharabah depositors (mudharabah mutlaqah) after distributing profit to the Bank amounting to OR 6,000,000. Average Balance Deposit Types Weights Year 2018 6 months & less 12000000 0.3 9 months & less 25000000 0.6 12 months & less 33000000 1.3 More than 12 months 47000000 1.6 Calculate the depositor's rate of return (for the third type of deposits only) based on the weighted average balance

In 2018, Bank Nizwa earned annual profit attributable to mudharabah depositors (mudharabah mutlaqah) after distributing profit to the Bank amounting to OR 6,000,000. Average Balance Deposit Types Weights Year 2018 6 months & less 12000000 0.3 9 months & less 25000000 0.6 12 months & less 33000000 1.3 More than 12 months 47000000 1.6 Calculate the depositor's rate of return (for the third type of deposits only) based on the weighted average balance

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 19P

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Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
While reviewing the March 31, 2022, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2022, Business Solutions makes the following investments in trading securities. April 16 Purchases Johnson & Johnson bonds for $10,000. April 30 Purchases Starbucks notes for $4,400. On June 30, 2022, the fair value of the Johnson & Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required:1. Prepare journal entries to record the April purchases of trading securities by Business Solutions.2. On June 30, 2022, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.
Suppose an SEVP tells you that last year a bank had total interest expenses on all borrowings of BDT 12 million and noninterest expenses of BDT 5 million, while interest income from earning assets totaled BDT 16 million and noninterest revenues totaled BDT 2 million. Suppose further that assets amounted to BDT 480 million, of which earning assets represented 85 percent of that total asset while total interest-bearing liabilities amounted to 75 percent of total assets. See if you can determine the bank’s net interest and non-interest margins and its earnings base and earnings spread for the most recent year.
While reviewing the March 31, 2020, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2020, Business Solutions makes the following investments in trading securities. Apr. 16 Purchases Johnson & Johnson bonds for $10,000. Apr. 30 Purchases Starbucks notes for $4,400. On June 30, 2020, the fair value of the Johnson & Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required 1. Prepare journal entries to record the April purchases of trading securities by Business Solutions. 2. On June 30, 2020, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.
Pepper, Inc. had the following receivable financing transactions in 2021:a) At the beginning of November, Pepper, Inc. assigned P2,000,000 out of its P10,000,000 outstanding accounts receivables to Metrobank in consideration of a P1,500,000, 12% loan. Metrobank charged the company 5% of the loan principal as service charge. By the end of November, Pepper collected P600,000 cash from the assigned accounts net of a P50,000 sales discount. Also, by the end of November, Pepper accepted from customers merchandise originally invoiced at P60,000 as returns.By the end of December, Pepper collected another P700,000 from the assigned accounts after P40,000 sales discount. The company wrote-off P80,000 of the assigned accounts as worthless.The agreement with Metrobank calls for monthly remittance of customer collections for the month. The collections will cover both interest and loan principal.b) Also, at the beginning of November, Pepper, Inc. factored another P500,000 of its accounts…
The working capital of BT21 Co. on December 31, 2021 are presented below:· Cash on hand – 200,000· Cash in bank – 108,000· Notes receivable – 250,000· Trade receivable – 600,000· Inventory – 650,000· Prepaid expenses – 45,000· Trade payables – 325,000· Notes payable (due annually at 500,000 payable every March 31) – 1,000,000· Accrued expenses – 40,000How much total current assets should BT21 Co. present in its statement of financial position on December 31, 2021?
The working capital of BT21 Co. on December 31, 2021 are presented below:· Cash on hand – 200,000· Cash in bank – 108,000· Notes receivable – 250,000· Trade receivable – 600,000· Inventory – 650,000· Prepaid expenses – 45,000· Trade payables – 325,000· Notes payable (due annually at 500,000 payable every March 31) – 1,000,000· Accrued expenses – 40,000How much total current liabilities should BT21 Co. present in its statement of financial position on December 31, 2021?
Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000’ OMR) PARTICULARS OMR Interest on Savings Account 6,000 Interest on Fixed Deposits 33,000 Interest on Loans 19,200 Rent and Rates 1,500 Interest on Current Account 4,500 Interest on Cash Credits 16,800 Discounts received 21,000 Commission Expenses 600 Commission Received 2,400 Director’s Fees 150 Salaries and Allowances 6,000 Interest on Overdrafts 18,000 Interest on borrowings from other banks 1,500 Legal Charges 90 Transfer Fees paid 1,200 Locker Rent 1,800 Other office expenses 120 Depreciation on Fixed Assets 6,000 Miscellaneous Expenses 1,200 Other Adjustments: Fair value of sale of investments were increased by: OMR 3,600 Loss on exchange difference arising on transactions of foreign operations was: OMR 600 Income tax expenses: OMR 9,000 Impairment for loans: OMR 300 Impairment for investments: OMR 2,700 Rebate on bills…
Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000’ OMR) PARTICULARS OMR Interest on Savings Account 6,000 Interest on Fixed Deposits 33,000 Interest on Loans 19,200 Rent and Rates 1,500 Interest on Current Account 4,500 Interest on Cash Credits 16,800 Discounts received 21,000 Commission Expenses 600 Commission Received 2,400 Director’s Fees 150 Salaries and Allowances 6,000 Interest on Overdrafts 18,000 Interest on borrowings from other banks 1,500 Legal Charges 90 Transfer Fees paid 1,200 Locker Rent 1,800 Other office expenses 120 Depreciation on Fixed Assets 6,000 Miscellaneous Expenses 1,200 Other Adjustments: Fair value of sale of investments were increased by: OMR 3,600 Loss on exchange difference arising on transactions of foreign operations was: OMR 600 Income tax expenses: OMR 9,000 Impairment for loans: OMR 300 Impairment for investments: OMR 2,700 Rebate on bills…
Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000’ OMR) PARTICULARS OMR Interest on Savings Account 6,000 Interest on Fixed Deposits 33,000 Interest on Loans 19,200 Rent and Rates 1,500 Interest on Current Account 4,500 Interest on Cash Credits 16,800 Discounts received 21,000 Commission Expenses 600 Commission Received 2,400 Director’s Fees 150 Salaries and Allowances 6,000 Interest on Overdrafts 18,000 Interest on borrowings from other banks 1,500 Legal Charges 90 Transfer Fees paid 1,200 Locker Rent 1,800 Other office expenses 120 Depreciation on Fixed Assets 6,000 Miscellaneous Expenses 1,200 Other Adjustments: Fair value of sale of investments were increased by: OMR 3,600 Loss on exchange difference arising on transactions of foreign operations was: OMR 600 Income tax expenses: OMR 9,000…
Public Islamic Bank Bhd with excess fund of MYR9,000,000 decided to place Islamic Negotiable Instrument of Deposit (INID) with CIMB under the mudharabah (profit sharing) basis. The following are the details : Issuance date : 31 December 2021 Maturity date : 31 December 2022 Transaction date : 15 October 2022 PSR : 80:20 Expected dividend rate : 10.5% Profit : Quarterly dividend What is the expected amount received by Public Islamic at the end of the INID maturity?
The following summary transactions occurred during 2018 for Bluebonnet Bakers:Cash Received from:Customers $380,000Interest on note receivable 6,000Principal on note receivable 50,000Sale of investments 30,000Proceeds from note payable 100,000Cash Paid for:Purchase of inventory 160,000Interest on note payable 5,000Purchase of equipment 85,000Salaries to employees 90,000Principal on note payable 25,000Payment of dividends to shareholders 20,000The balance of cash and cash equivalents at the beginning of 2018 was $17,000.Required:Prepare a statement of cash flows for 2018 for Bluebonnet Bakers. Use the direct method for reporting operatingactivities