The origination fee is 1.25%. For what amount was the loan signed for Del Llano to receive the $360,000 free of charge?
Q: ing situation applies to ABC Co. The company’s Financial Department asks Barclays bank a $80,000…
A: Cash Budget is the estimated cash inflows and outflows during a particular period of time. It is…
Q: You are the Senior Credit Officer at your bank. Miss James, your Junior Credit Officer, has…
A: Compute the total credit sales for 2019: Sales for the year 2018 $2,400,000 Growth in credit…
Q: Grant Film Productions wishes to expand and has borrowed $100,000. As a condition for making this…
A: 1. Journalize the give transaction and indicate the manner in which the given transaction would…
Q: You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens…
A: Here, Loan Amount is $50,000 Ordinary Interest Rate of the Loan is 9.5% Duration of Loan is as…
Q: You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's clothing.…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Assume you started a new business last year with $50,000 of your own money that was used to purchase…
A: For Loan Disbursement following points that bank or financial institution considers - 1. Capacity to…
Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1000, in response to which…
A: Finance charge Any fees that represent the credit cost, or borrowing cost. It is an interest accrued…
Q: You are a credit analyst of a growing commercial bank and have recently received loan applications…
A: Given, Two companies Company Blue and company Red.
Q: You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens…
A: In the given situation is we opt for the first choice : Spending the all the excess cash $55,000 as…
Q: Assume that you recently accepted a position with Five Star National Bank & Trust as an assistant…
A: 1.
Q: 4. If instead of paying early, John pays in 25 days, what would be the journal entry to record the…
A: Individuals like Kate who start her new business inside the market had numerous challenges with him.…
Q: . negative;
A: The right answer is $250
Q: Assume that your team is in business and you must borrow $6,000 cash for short-term needs. You have…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Answer all the subparts 1,2,3 If answered within 30mins,it would be helpful!! Bamboo Inc. is a…
A: Journal Entries Date Particulars…
Q: PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS PLEASE, PERFORM THE EXERCISE IN EXCEL…
A: In the cash flow analysis, annuity refers to the series of equal cash flows. The annuity can be…
Q: DO IT IN EXCEL, AND SHOW THE FORMULAS The main supplier of Productos Adiós, S.A., offers you the…
A: Working Notes :- In this problem we will find out discount…
Q: Suppose you work in the loan department of Third National Bank. Byron Blakely, the owner of Byron’s…
A: Here discuss about the details of the decision making which are included with the Accounts…
Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1500, in response to which…
A: The interest on the credit card is charged monthly. The amount of payment reduces the outstanding…
Q: Assume that you started a new business last year with RM30,000 of your own money to purchase…
A: Solution:-a The following are five Cs of credit to analyze your loan request from the viewpoint of…
Q: Advanced Packaging accepted a credit card account receivable in exchange for $25,000 of services…
A: The revenues generated increase owner's equity and any expenditure incurred decreases owner's…
Q: A merchant acquires a lot of merchandise with a value of $ 350,000 that he agrees to liquidate by…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: A bank offers a Loyal Saver account to the customers who deposit between £3000 and £4000 at the…
A: The accumulated value of recurring instalments for a specific time period with regular intervals,…
Q: For the best terms on a loan or credit card, you need a credit score above 700. To achieve this,…
A: In add on interest method principal amount and interest amount are calculated separately.
Q: Durafabric was a very successful company. Banner was a new customer of Durafabric, who wants to…
A: As per authoring guidelines. I am answering first three sub-parts of the question. Please repost the…
Q: Assume that a relatively new company you and you group members are involved wilth has presented you…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 1.- Simple interest on a loan. A Financiera…
A: Interest is a value which is earned on a deposited amount on time basis. It is an income for the…
Q: You are a Corporate Credit Analyst for your bank. A new corporate customer in the manufacturing…
A: We look at the assets that a company has, its past performance and future expectation to take…
Q: Assume that a relatively new company you and you group members are involved wilth has presented you…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: QUESTION ONECarson Company is a large manufacturing firm in Accra that was created 20 years ago by…
A: Hey, since there are multiple sub-part questions posted, we will answer the first three questions.…
Q: You have received $1,000,000 from an insurance policy that matured. You would like to invest some of…
A: Ratio analysis helps investors to analyze the financial performance of a company in detailed, it…
Q: ssume that you started a new business last year with RM30,000 of your own money to purchase…
A: Answer - Collateral Security - Collateral security is any other security offered and lender…
Q: The management has decided to go for upfront payments for 1-year instances. AWS has tie-up with…
A: Given:
Q: BUSINESS DECISION: COMPETING BANKS You are the accounting manager for Kool Ragz, Inc., a…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 3.-DO IT IN EXCEL, AND SHOW THE FORMULASThe main supplier of Productos Adiós, S.A., offers you the…
A: Amount of bill $ 450,000 Discount Rate 1.5%…
Q: You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens…
A: Loan: It is the amount that the lender lends to the borrower & in return charges interest on it.
Q: BMC has successfully built a practice that services small businesses by providing accounting related…
A: The five steps of revenue recognition are the following a) Identification of the contract with the…
Q: Santana Rey has consulted with her local banker and is considering financing an expansion of her…
A: The debt-to-equity ratio is used by the financial management and external factors for loan-related…
Q: Durafabric was a very successful company. Banner was a new customer of Durafabric, who wants to…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A landscaping company buys a new bulldozer for $61,000.00. The company makes a down payment of…
A: The loans are paid by the monthly payments that are equal monthly payments these carry the payment…
Q: Durafabric was a very successful company. Banner was a new customer of Durafabric, who wants to…
A:
Q: ASTRA Film Production (ASTRA) wishes to expand and has borrowed RM100,000. As a condition for making…
A: We have the following information: ASTRA Film Production (ASTRA) wishes to expand and has borrowed…
Q: if you make the partial payment and don't purchase the additional serving supplies? (Round your…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: The main supplier of Productos Adiós, S.A., offers you the option of a Cash Discount of 1.5% if you…
A: The question is related to the direct lending facility that charges interest in advance. Cash…
DO IT IN EXCEL AND SHOW FORMULAS
DO IT IN EXCEL AND SHOW FORMULAS
Jorge Del Llano, a start-up merchant, needs $360,000.00 liquid to invest in inventory and pay certain start-up expenses for his business. The Bank has investigated him and considers him eligible for credit. The Bank authorizes an unsecured credit facility, subject to the provision of a line of credit appropriate to your needs, charging 18% interest for a term of 60 days. The origination fee is 1.25%. For what amount was the loan signed for Del Llano to receive the $360,000 free of charge?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and the dealership finances the remaining 90% in-house. How much will the car dealership record in Accounts Receivable for this customer? A. $31,500 B. $19,250 C. $8,750 D. $7,000Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.
- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Uptons balance sheet as of December 31, 2019, is shown here (millions of dollars): Sales for 2019 were 350 million, and net income for the year was 10.5 million, so the firms profit margin was 3.0%. Upton paid dividends of 4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2020. a. If sales are projected to increase by 70 million, or 20%, during 2020, use the AFN equation to determine Uptons projected external capital requirements. b. Using the AFN equation, determine Uptons self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? c. Use the forecasted financial statement method to forecast Uptons balance sheet for December 31, 2020. Assume that all additional external capital is raised as a line of credit at the end of the year. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Assume Uptons profit margin and dividend payout ratio will be the same in 2020 as they were in 2019. What is the amount of the line of credit reported on the 2020 forecasted balance sheets? (Hint: You dont need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2020 addition to retained earnings for the balance sheet without actually constructing a full income statement.)
- Stillwater Designs is a private company and outsources production of its Kicker speaker lines. Suppose that Stillwater Designs provided you the following transactions: a. Sold a warehouse for 750,000. b. Reported a profit of 100,000. c. Retired long-term bonds. d. Paid cash dividends of 350,000. e. Obtained a mortgage for a new building from a local bank. f. Purchased a new robotic system. g. Issued a long-term note payable. h. Purchased a 40% interest in a company. i. Reported a loss for the year. j. Negotiated a long-term loan. Required: Classify each of these transactions as an operating activity, an investing activity, or a financing activity. Also, indicate whether the activity is a source of cash or a use of cash.You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's clothing. The company needs to borrow $1,500,000 for 90 days in order to purchase a large quantity of material at "closeout" prices. The interest rate for such loans at your bank, Rimrock Bank, is 15% using ordinary interest. (a) What is the amount (in $) of interest on this loan? (b) After making a few "shopping" calls, you find that Southside National Bank will lend at 15% using exact interest. What is the amount (in $) of interest on this offer? (Round your answer to two decimal places.) (c) So that it can keep your business, Rimrock Bank has offered a loan at 14.5% using ordinary interest. What is the amount (in $) of interest on this offer? (d) (Challenge) If Southside National wants to compete with Rimrock's last offer (part c) by charging $1,375 less interest, what rate (as a %), rounded to the nearest hundredths of a percent, must it quote using exact interest?You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's clothing. The company needs to borrow $1,500,000 for 90 days in order to purchase a large quantity of material at "closeout" prices. The interest rate for such loans at your bank, Rimrock Bank, is 15% using ordinary interest. What is the amount (in $) of interest on this loan? After making a few "shopping" calls, you find that Southside National Bank will lend at 15% using exact interest. What is the amount (in $) of interest on this offer? (Round your answer to two decimal places.) So that it can keep your business, Rimrock Bank has offered a loan at 14.5% using ordinary interest. What is the amount (in $) of interest on this offer? (Challenge) If Southside National wants to compete with Rimrock's last offer (part c) by charging $1,375 less interest, what rate (as a %), rounded to the nearest hundredths of a percent, must it quote using exact interest?
- Knowing that you have some accounting experience, your friend David has sought your adviceregarding a business that he intends purchasing. The balance sheet for the business shows total assetsof $170 000 and total liabilities of $100 000, out of which $40 000 is a bank loan. A review of thebusiness operations show that a considerable portion of the inventory is obsolete stock for which thereis limited demand. Further, many of the accounts receivable are overdue by more than 60 days. Theaccounts receivable and inventory are carried at their gross amount and cost value respectively on thebalance sheet.As you are an Accounting student, you have been asked to advise the following:a. Explain to David the form of organisation he can adopt for the business? Briefly discuss theadvantages and disadvantages of each form of organisation.b. David has a very limited understanding of the terms Assets and Liabilities. Explain to David thethree essential characteristics necessary to consider an item…Knowing that you have some accounting experience, your friend David has sought your adviceregarding a business that he intends purchasing. The balance sheet for the business shows total assetsof $170 000 and total liabilities of $100 000, out of which $40 000 is a bank loan. A review of thebusiness operations show that a considerable portion of the inventory is obsolete stock for which thereis limited demand. Further, many of the accounts receivable are overdue by more than 60 days. Theaccounts receivable and inventory are carried at their gross amount and cost value respectively on thebalance sheet.As you are an Accounting student, you have been asked to advise the following:a. Explain to David the form of organisation he can adopt for the business? Briefly discuss theadvantages and disadvantages of each form of organisation.b. David has a very limited understanding of the terms Assets and Liabilities. Explain to David thethree essential characteristics necessary to consider an item…Bob Jacobs wishes to expand his business and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been good but not great. The expansion costs have brought the current ratio down to 1.20 in the middle of December. Bob, as the owner of the business, is considering what might happen if he reports a current ratio of 1.4 to the bank. One possible action for Bob is to record in December $10,000 of revenue that the business will earn in January of next year. He thinks this is doable because the contract for this job has been signed. Journalize the revenue transaction and indicate how recording this revenue in December would affect the current ratio. Discuss whether it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation. and give the reasons underlying your conclusion. Propose an ethical action for Bob Jacobs.
