rovident Manufacturing recently began paying all of its invoices within 20 days of receipt, rather than its usual 30 days. How would this adjustment likely affect Provident’s chances of receiving a ba
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Provident Manufacturing recently began paying all of its invoices within 20 days of receipt, rather than its usual 30 days. How would this adjustment likely affect Provident’s chances of receiving a bank loan in the near future?
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- A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?AMRO Financials is quite certain that interest rates are going to decrease next month. How should the bank manager adjust the bank’s one-month repricing gap to increase the net interest income when interest rates decrease The bank should set its repricing gap to a positive position. In this case, as rates decrease, interest income will decrease by less than the decrease in interest expense. The bank should set its repricing gap to a negative position. In this case, as rates decrease, interest expense will decrease by more than the decrease in interest income. The bank should set its repricing gap to a positive position. In this case, as rates decrease, market value of assets will increase by more than the increase in market value of liabilities. The bank should set its repricing gap to a negative position. In this case, as rates decrease, market value of assets will increase by more than the increase in market value of liabilities.On December 31, 2016, Rocky Bank has a loan receivable of P4,000,000 from a borrower that it's carrying is at face value and is due on December 31, 2022. Interest on the loan is payable at 9% each December 31. The borrower paid the interest due on December 31, 2016 but informed the bank that it would probably miss the next two years' interest payments. After that, the borrower is expected to resume the annual interest payment but it would make the principal payment one year late, with interest paid for that additional year at the time of principal payment. Round off present value factors up to three decimal points. What is the impairment loss for 2016?
- Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.Ali Coffee Bean assumes that due to Corona, at the end of September 2020 there will be bad debts of $5,000,000 from accounts receivable belonging to Budi's Coffee Shop amounting to $20,000,000. It turned out that on October 21, 2020, Budi's Coffee Shop stated that they were unable to pay their receivables amounting to $1,000,000, so the CEO of Ali Coffee Bean allowed to write-off the receivables. As Ali Coffee Bean's financial staff, make:a. Journal Entry for write-off of Budi's Coffee Shop.b. What was the cash realizable value of Ali Coffee Shop's receivables prior to the write-off of Budi's Coffee Shop receivables in September?c. What is the cash realized value of Ali Coffee Shop's receivables after the write-off of Budi's Coffee Shop receivables?The cash balance on March 31 will be $146000, but waterways has decided it would like to maintain a cash balance of at least $400,000 beginning on April 30. The company has an open line of credit with its bank. the terms of the agreement require borrowing to be in $1000 increments at 4% interest. Borrowing is considered to be on the first day of the month and repayments and interest payments are on the last day of the month. What do i have to borrow? and what is the repayments? and then what are the repayments with interest?
- Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $1,000,000. Lonergan needs approximately $610,000 to capitalize on a unique investment opportunity. On July 1, 2021, a local bank offers Lonergan the following two alternatives: Borrow $610,000, sign a note payable, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 12% interest on the unpaid balance of the note at the beginning of the period. Transfer $660,000 of specific receivables to the bank without recourse. The bank will charge a 3% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met. Required:1. Prepare the journal entries that would be recorded on July 1 for: a. alternative a. b. alternative b. 2. Assuming that…Z Corporation has a cash balance of P500,000 at the beginning of the month. Based on its forecast for the month, cash collections will be P2,110,000 while cash disbursements will be P2,480,000. If Z Corporation is contractually obligated to maintain a cash balance of P600,000 by the end of the month, how much should Z borrow?Today is July 1 and Hilda Company will need a fixed interest rate loan of P1,200,000 for 6 months starting on October 1. The bank quotes an FRA rate of 8% for the loan. If the actual rate on October 1 is 10%, how much interest in pesos, should Hilda Company pay the bank (actual cash outflow)?
- Today is July 1 and Barow Company will need a fixed interest rate loan of P1,200,000 for 6 months starting on October 1. The bank quotes an FRA rate of 8% for the loan. If the actual rate on October 1 is 10%, how much interest in pesos, should Barow pay the bank (actual cash outflow)?How much is the remittance of MedLab Inc. to the bank by the end of September?Yolo Corporation experienced financial difficulty in 2020. It decided to go into note receivable discounting to be able to ease some of its financing problems. During 2020, the following transactions relating to it transpired: May 1 Discounted at the bank a 4-month, 10% interest bearing note receivable from a customer dated February 1, 2020, P400,000. Discount rate was 12%. June 1 Bank informed Yolo that the 4-month note was honored and paid by its issuer. June 30 Discounted at the bank an 8-month, non-interest bearing note receivable from a customer dated January 1, 2020, P200,000. Discount rate was 15% August 1 Discounted at the bank a 180-day, 12% interest bearing note receivable dated June 15, 2020, P300,000. Discount rate was 15%. September 5 The bank informed Yolo that the 8-month note was in default. The full maturity value and protest fee of P5,000 was paid by Yolo the next day. December 1 The customer paid the maturity value of the 8-month note, protest fee, and 10% interest…
