xpand its operation in Mindanao. With a loan amounting to Php5M payable in 12 periods and with interest rat
Q: p. is experlencing financial difficulty and about to liquidate. The following data were available:
A: In liquidation as per rule first we pay secured creditors. First prior...
Q: Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventor...
A: Inventory Turnover ratio = Cost of goods sold / Average Inventory Average inventory = ( Opening in...
Q: cost of Ph 30,000. If the fixtures are ld be sold for Ph 18,000. Alternately, the ,000 to a jobber l...
A: Opportunity cost is the profit or income foregone when one decision is selected over another . Nova ...
Q: wo Company Comparison CONSOLIDATED BALANCE SHEETS Fiscal Year-End -20xx Fiscal Year - 20xx Com...
A: Debt Ratio = Total Liabilities / Total Assets Total Liabilities = Total Current Liabilities + Total ...
Q: s Cash Dividends
A: Cash dividends are declared according to the holding number of shares by each stockholder they are ...
Q: ain company prepared draft financial statements that showed the income before tax for the year ended...
A: solution concept event occurring after balance sheet date The event occurring after balance date can...
Q: Prepare journal entries for the following transactions.
A: Face Value of Bond = $500,000 Price of the Bond = $500,000 x 108 / 100 = $540,000 As the Price of th...
Q: SportsWorld paid $140,000 for a property. The property included land appraised at $67,500, land impr...
A: Lets understand the basics. When any property is purchased for a single amount of consideration then...
Q: Nright Company's cash account shows a $31,300 debit balance and its bank statement shows $29,600 on ...
A: Bank reconciliation is prepared in order to reconcile the bank balance and the company book balance....
Q: ournal Entries (Note Issued, Renewed, and Paid) May 1 Purchased $5,000 worth of equipment from a sup...
A: Solution Concept Journal book is a book where the business transaction are recorded primarily These ...
Q: Margin of Safety Yellow Sticker Company’s variable expenses are 40% of sales. The company has month...
A: The margin of safety is a tool of cost volume profit analysis. It can be calculated by deducting bre...
Q: On December 30, 2015, Ella Thornes Inc has 2,000 8% preference stocks issued w/ USD200 par value and...
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share...
Q: Activity 1 Instructions: ldentify each of the following accounts as an asset, Liability or Equity. A...
A: Solution Types of accounts 1- Personal account : A- Natural personal account = Its represent to nat...
Q: A pharmaceutical company has been able to generate a capital of $5 million from a generous investor....
A: Introduction:- Capital is a wide phrase that can refer to anything that provides value or advantage ...
Q: Every entry should have narration please Problem 1 November 19, 2020, BG Ltd purchased a mini e...
A: Journal Entry for note. BG Ltd purchased mini excavator for $60000. BG Ltd paid cash of $6000 and fo...
Q: due on a loan of $600 at 15.75% interest after 21 m
A: Given Principal Amount = $ 600 Period = 21 Months Interest Rate = 15.75% pa or 1.31% pm FV= Princip...
Q: 9. William desires to purchase a one-fourth capital and profit and loss interest in the partnership ...
A: Solution Partnership consists two or more people combine their resources to form a business and agre...
Q: A time deposit with a bank or a fixed deposit with an original maturity of 4 months would not qualif...
A: Solution Concept Cash and cash equivalent is present in the balance sheet as a current assets Cash a...
Q: Hailstorm Company sells a single product for $22 per unit. Variable costs are $14 per unit and fixed...
A: Break even is the situation at which the company is neither earning profits nor incurring losses.
Q: If a company discovers a mistake in 2021 that was made in 2018, the company records the adjustment i...
A: An accounting error is a mistake in an accounting entry that is unintentional. When an error or mist...
Q: True or False The purpose of adjusting entries is to assign appropriate portion of revenue and profi...
A: The adjustment entries are prepared at year end to adjust the revenue and expenses of the current pe...
Q: If an accounting manager asks you to delay recording an invoice for the purchase of merchandise unti...
A: Income statement is prepared by the business organizations so as to know how much amount of gross pr...
Q: A company is considering investing £46,000 in a machine that will be operated for 4 years, after whi...
A: Annual profit= Cashflow- Depreciation
Q: Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Marilyn Terrill is the senior auditor for the audit of Uden Supply Company for the year ended Decemb...
A: Expected misstatement = Gross profit - Expected gross profit Gross profit = Sales - Cost of goods so...
Q: Required information Use the following information for the Exercises below. [The following informati...
A: Journal entries are required to be passed where the entries are not passed in the books. No journal ...
Q: Which of the following options regarding income earned will not be classified as revenue? Select on...
A: Lets understand the meaning of revenue and gain. Revenue is a income generated from the normal busin...
Q: Changing the method of inventory valuation should be reported in the financial statements under what...
A: Inventory- A manufacturing company's inventory is a critical current asset. Inventory refers to the ...
Q: Calculate the balance of retained earnings each year for each company. Neither company paid dividend...
A: Retained earnings is the accumulated earnings earned by company till date from its business operatio...
Q: Using the attached T-account template or a spreadsheet with proper classifications and account names...
A: Sales Taxes Collection = $10,000,000 Sales Taxes Collection is been transferred to General Fund ( ...
Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 10 un...
A: Introduction: LIFO: LIFO stands for Last in First out. Which means Last received inventory to be sol...
Q: Norfolk Engineering uses the weighted-average method in its process costing system. This month, the ...
A:
Q: Relevant of differential cost analysis takes all variable and fixed costs into account to analyze de...
A: Differential cost analysis is the difference in cost for every alternative which helps in making the...
Q: freight out/transportation out included in the calculation of cost of goods manufactured?
A: Solution Concept Freight out Freight out is the cost that is incurred in selling the goods . it is b...
Q: What were the equivalent units for conversion costs in the Assembly Department for the month?
A: answer Weighted-Average Method:- Given units transferred to Next Department = 65,000Ending work in P...
Q: 1. What is the amount credited to share premium account upon exercise of the options in 2022? 2. Ho...
A:
Q: ntana Rey is considering the purchase of equipment for Business Solutions that would allow the compa...
A: Solution Given Cost of equipment (initial investment) 280000 Life 5 years Net income...
Q: Prepare journal entries for the following transactions.
A: Face Value of Bond = $500,000 Price of the Bond = $500,000 x 108 / 100 = $540,000 Annual Interest Pa...
Q: Ryan Company deposits all cash recelpts on the day they are received and makes all cash payments by ...
A: Bank reconciliation statement shows the reconciliation of bank statement with its cash books.
Q: The income statement of Headland Company is shown below. HEADLAND COMPANY INCOME STATEMENT FOR THE...
A: The statement of cash flows can be prepared using two methods, i.e. Direct Method and Indirect Metho...
Q: anufacturer is: a. factory insurance b. sales office salaries c. sales commissions d. materials hand...
A: Labour cost are of two types : Direct and Indirect Direct labour cost can be directly assigned to th...
Q: What is the total amount that was disclosed as compensation to key management personnel for the pare...
A: Income statement: It is a financial statement that calculates the net income generated by a compan...
Q: Alain company prepared draft financial statements that showed the income before tax for the year end...
A: solution concept as per the relevant accounting standards event occurring after balance sheet date T...
Q: Exercise 7-3 Sales on store credit card LO C1 Z-Mart uses the perpetual inventory system and has its...
A: Journal is the initial step in recording the financial transaction, date wise as per the dual entity...
Q: On 20 December 2021, Africa Traders did an electronic funds transfer payment of R300 000 for the mon...
A: When the payment for the salary is done, the following journal entry is passed. As the salaries is p...
Q: I need the answer as soon as possible
A: Answer: Whenever any amount has been issued to transfer between banks the entry is posted as: Bank o...
Q: The preclosing trial balance for the City of Hudson Golf Course Enterprise Fund is shown below. CITY...
A: Restricted net position represents by restricted assets less liabilities and deferred inflows of res...
Q: Retained earnings (beginning of year) $33,000 Utilities expense 2,000 56,000 Equipment Accounts paya...
A: Total assets are the total number of properties owned by a person or entity. Assets are monetary ite...
Q: December 31, 2021 at P6,000,000. The board of directors authorized the financial statements for issu...
A: Solution Concept Events occurring after balance sheet date As per the provision of the relevant acco...
Q: hpute for Book Value per Share of Greys' Corporation given the ff information: dinary share capital,...
A: Formula: BV per share = Shareholder's equity / No.of common stocks.
A medium-sized manufacturing firm seeks to expand its operation in Mindanao. With a loan amounting to Php5M payable in 12 periods and with interest rate of 12 percent, what would be the average amortization for the said loan?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A medium-sized manufacturing firm seeks to expand its operation in Mindanao. With a loan amounting to Php5M payable in 12 periods and with interest rate of 12 percent, what would be the average amortization for the said loan? Php 1,250,000 1,194,559 Php 1,182,731 1,218,590An FI is planning the purchase of a $4 million loan to raise the existing average duration of its assets from 4.8 years to 6.3 years. It currently has total assets worth $20 million, $4 million in cash (0 duration), and $16 million in loans. All the loans are fairly priced. a-1. Assuming it uses the cash to purchase the loan, calculate the duration of the existing loan. a-2. Assuming the FI uses the cash to purchase the loan and that the loan has a 8.3 year duration, calculate the resulting duration of the asset portfolio. a-3. Should it purchase the loan if its duration is 8.3 years?b. What asset duration loans should it purchase in order to raise its average duration to 6.3 years?Compañía CSB, S.A., requires short-term financing and requests a loan from Banco del Comercio, and proposes to guarantee it with inventories, for an amount of US$ 500,000.00. The bank accepts the proposal, with the following credit conditions: Credit conditions: a) Term 1 year b) He receives the inventories for a value of 90% of the value c) Charges you a 3% disbursement fee d) the interest rate is 20% per year e) The costs related to the mobilization of inventories are borne by Meyer Co., which are 3% of 100% of the value of the inventories. All costs involved must be covered in advance and will be deducted at the time of disbursement. It is requested: 1.- Determine the amount of the credit 2.- Calculate each cost involved in the transaction 3.- Determine the total amount of costs 4.- Determine the net amount you will receive after deducting the total costs 5.- Calculate the real rate of financial cost (TEA)
- SALAMAT Bank offers you two investment plans. The first investment requires you to invest Php 12,000 which pays a simple interest of i1 per annum. On the other hand, the second investment requires you to invest Php 20,000 which pays an effective interest rate of 2.5% per annum. SALAMAT Bank promises that the total amount of the two investment plans after 3 years is Php 35,000. Find an expression for i1 and use the expression to approximate i1Visa Inc. asked your company for a 5-year loan of $50,000. The repayment of the loan will be as follows: Visa Inc. will pay $5,000 at the end of Year 1, $10,000 at the end of Year 2, and $15,000 at the end of Year 3, and fixed unspecified cash flow (assume X) at the end of each of the following years (Year 4 and Year 5). Assuming 8% as an appropriate rate of return on low risk but an illiquid 5-year loan. Find out the cash flow that this investment must provide at the end of each of the final 2 years (year 4 and year 5), that is, find out the X?a) A commercial bank is planning to give a loan of $3,000,000 to a firm. The bank expects to charge an up-front fee of 0.15% and a service fee of 0.04%. The loan has a maturity of 10 years. The cost of funds (and the RAROC benchmark) for the commercial bank is 12%. The commercial bank has estimated the risk premium on the loan to be approximately 0.20%, based on three years of historical data. The current market interest rate for loans in this sector is 12.15%. The 99th (extreme case) loss rate for borrowers of this type has historically run at 4%, and the dollar proportion of loans of this type that cannot be recaptured on default has historically been 85%. The 'bank's Return on Equity (ROE) ratio is 13%. Using the risk-adjusted return on capital (RAROC) model, should the commercial bank make the loan? Please show each step of your calculation.
- An institutional lender is willing to make a loan for $1 million on an office building at a 6 percent interest (accrual) rate with payments calculated using an 4 percent pay rate and a 30-year loan term. (That is, payments are calculated as if the interest rate were 4% with monthly payments over 30 years.) After the first five years the payments are to be adjusted so that the loan can be amortized over the remaining 25-year term. Required: a. What is the initial payment? b. How much interest will accrue during the first year? c. What will the balance be after five years? d. What will the monthly payments be starting in year 6?The Kangal Enterprise needs to increase its working capital by Rs 3.5 million for which it will borrow from the Banque de Fraude at 18% per year, for one year. Banque de Fraude is generously extending Kangal Enterprise a revolving credit of Rs 4.5 million, with a compensating balance of only 15.5% and commitment fees rate of 3.5%. Required [a] Calculate the interest on discount & collection basis [b] Calculate the overall cost of the annual revolving credit agreement [c] Approximately how much should Kangal Enterprise utilize of the precious 4.5 million revolving credit agreement, to fulfill its requirement of raising working capital by about 3.5 million and at what overall cost?1. AXN Sdn Bhd needs to raise RM1, 000,000 in short-term loan for five months. loan from OCBC bank at discounted interest rate of 12% per annum and a 20% compensating balance. The present account balance in the company is RM 100,000. Compute the effective cost of financing.
- Suppose that you have generated the estimates listed below from a pro forma analysis for a company that had requested a three year loan. The loan is a $1.5 million term loan with the equal annual payments of principals. The P&I payments are due at the end of each year with the annual interest rate = Prime rate + 1.5%. Yr.1 Yr. 2 Yr. 3 Capital expenditure 250,000 125,000 75,000 Cash dividends 140,000 140,000 140,000 Cash flow from operations before interest expense 750,000 780,000 800,000 Assuming the Prime rate = 7.5% each year. What will be the interest payment at year 3? a). 25,000 b). 50,000 c). 45,000 d). 53,000 e). 10,000DEF Corporation will be needing P1,000,000 additional cash inflow. It is looking to finance this through either Bank One or Bank Zero for a period of 6 months. Bank One offers a 10% loan but requires a P20,000 bank charge. On the other hand, Bank Zero is willing to offer an 8% loan but requires P100,000 compensating balance. Which bank should DEF approach? In the space below, provide the preferred bank's simple annual cost of loan. (format: 6.67 for 6.6666%)Please teach me how to solve this, thanks! ABC would like to hire two loan collectors to speed up its collection process. Each of the loan collectors will be given total annual benefits of P150,000 per year. The entity earns P30,000,000 in sales, 10% of which are cash. The entity has a 365-day year and a minimum required rate of return of 10%. The current average age of receivables is 70 days but with the loan collectors, it is forecasted to decrease by 30 days. How much is the net benefit or (cost) of this option?