You purchase a property with a Market Value of $520,000 in 2005 using 5-year Interest Only 90% Loan-to-Value financing. In 2010, the Market Value of the property drops to $460,000. You are considering refinancing. The Loan-to-Value you can get for refinancing is only 70%. How much Total Cash Out of Pocket would you need to have to go through with the refinancing and pay back the original loan Principal outstanding
Answers
Answer:
$155,660
Explanation:
Note: The table to question is attached below
==> Loan to Value 90% in 2005
==> Loan to Value 70% in 2010
Loan Amount in 2005 = $520,000*0.9 = $468,000
Loan Amount in 2010 = $460,000*0.7 = $322,000
Loan Amount owed = $468,000
Through Refinancing = $322,000
Total cash out of pocket = $322,000*3% + $468,000 - $322,000
Total cash out of pocket = $9,660 + $468,000 - $322,000
Total cash out of pocket = $155,660
Related Questions
In the manufacture of car tires, a particular production process is known to yield 10 tires with defective walls in every batch of 100 tires produced. From a production batch of 100 tires,
a sample of 4 is selected for testing to destruction
Find the probability that the sample contains 1 defective tire.
Answers
Answer:
urkrorllkrkfkkflfllrlrklrlrlrlkrk kdklkkklor
good lost by fire Rs 12000 and Assurance Company not admitted the claim journal entries
Answers
Answer:
Profit and Loss A/c DR 12,000
To Purchase A/c 12,000
Explanation:
Given:
Amount of goods lost = Rs. 12,000
Books of --- Ltd
Journal Entry
Date Particular Debit Credit
Profit and Loss A/c DR 12,000
To Purchase A/c 12,000
(Being goods lost in fire and insurance company accept no claim)
Arif told Bano, his wife, that he would divorce her, if she does not transfer her
personal assets to him. She agreed to transfer her assets to him. Can Bano avoid
the contract?
Answers
Presented below are various account balances of K.D. Lang Inc.
a. Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year.
b. Bank loans payable of a winery, due March 10, 2024. (The product requires aging for 5 years before sale.)
c. Serial bonds payable, $1,000,000, of which $200,000 are due each July 31.
d. Amounts withheld from employees' wages for income taxes.
e. Notes payable due January 15, 2023.
f. Credit balances in customers' accounts arising from returns and allowances after collection in full of account.
g. Bonds payable of $2,000,000 maturing June 30, 2021.
h. Overdraft of $1,000 in a bank account. (No other balances are carried at this bank.)
i. Deposits made by customers who have ordered goods.
Required:
Indicate whether each of the items above should be classified on December 31, 2024, as a current liability, a long-term liability, or under some other classification.
Answers
Answer:
a. Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year.
Indication: Unamortized premium is a contra liability account and amortization is an expense account
b. Bank loans payable of a winery, due March 10, 2024. (The product requires aging for 5 years before sale.)
Indication: Long Term Liability
c. Serial bonds payable, $1,000,000, of which $200,000 are due each July 31.
Indication: 800000, Long term liability and 200000 current liability
d. Amounts withheld from employees' wages for income taxes.
Indication: Current Liability
e. Notes payable due January 15, 2023.
Indication: Long Term Liability
f. Credit balances in customers' accounts arising from returns and allowances after collection in full of account.
Indication: Account Receivable i
g. Bonds payable of $2,000,000 maturing June 30, 2021.
Indication: Current Liability
h. Overdraft of $1,000 in a bank account. (No other balances are carried at this bank.
Indication: Current Liability
i. Deposits made by customers who have ordered goods.
Indication: Current Liability
If the supply of a good increased, what would be the effect on the equilibrium price and quantity?
Answers
Answer:
An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
If supply increases while all other factors remain constant, the equilibrium price will fall. The quantity demanded will rise. A decrease in supply raises the equilibrium price while decreasing the quantity demanded.
What is supply?Supply is a fundamental economic concept that describes the total amount of a specific good or service that consumers have access to.
If displayed on a graph, supply can refer to the amount available at a specific price or the amount available across a range of prices. Changes in the supply curve shift the equilibrium price and quantity. If supply grows, equilibrium price falls and quantity grows.
Therefore, an increase in the supply will cause a reduction in equilibrium price and an increase in the quantity of a good.
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Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $72,000 and at the end of the month was $32,000. The cost of goods manufactured for the month was $222,000. The actual manufacturing overhead cost incurred was $61,000 and the manufacturing overhead cost applied to Work in Process was $66,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:
Answers
Answer:
$257,000
Explanation:
Calculation for what The adjusted cost of goods sold that would appear on the income statement for November is:
First step is to calculate Over applied overhead
Over applied overhead = $66,000- $61,000
Over applied overhead= $5,000
Second step is to calculate Unadjusted cost of goods sold
Unadjusted cost of goods sold = $72,000+$222,000+$32,000
Unadjusted cost of goods sold = $262,000
Now let calculate the Adjusted cost of goods sold
Adjusted cost of goods sold = $262,000-$5,000 Adjusted cost of goods sold= $257,000
Therefore The adjusted cost of goods sold that would appear on the income statement for November is:$257,000
When you retire 35 years from now, you want to have $1.25 million. You think you can earn an average of 13.5 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit
Answers
Answer:
$19,144.61
Explanation:
The first step would be to determine the present value of $1.25 million. After, the future value of that amount in 2 years has to be calculated
The formula for calculating future value:
P = FV / (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$1.25 million / (1.135)^35 = $14,861.23
Now we find the future value using this formula :
FV = P (1 + r)^n
$14,861.23 x (1.135)^2 = $19,144.61
The ultimate goal of operations management is to provide high-quality goods and services instantaneously in response to customer demand.
a. True
b. False
Answers
Answer:
a. True
Explanation:
The ultimate goal of operations management is to provide, in a timely and successful manner, goods and/or services to the final customer.
In this sense, operation management is customer-focused, and for this reason, its main task is to ensure the successful production and/or delivery of a good or service, from the moment the inputs enter the firm, to the moment the output exits the firm and reaches the final customer.
Dave M. Company issues 500 shares of $10 par value Common Stock and 100 shares of $40 par value Preferred Stock as a basket for a lump sum of $105,000. Total transaction costs paid to complete the sale was $5,000. Common Stock of the company was selling for $198 per share in the market that day and Preferred Stock was selling for $110 per share in the market that day.
Required:
a. Prepare a table showing how the sale price is allocated between the Common Stock and the Preferred Stock.
b. Prepare the journal entry to record the basket sale of the two stocks.
Answers
Answer:
a.
Allocation
Common Stock $94,500
Preferred Stock $10,500
b.
Journal Entry
Cash _____________________________$105,000
Common stock _____________________ $5000
Paid-in capital in excess of par - Common _$89,500
Preferred stock _____________________$4,000
Paid-in capital in excess of par - Preferred _$6,500
Explanation:
a.
First, we need to calculate the Market value of both stock using the foloowinf formula
Market value = Numbers of shares x Market value per share
Market value of common stock = 500 x $198 = $99,000
Market value of preferred stock = 100 x $110 = $11,000
Total value = $99,000 + $11,000 = $110,000
Now calculate the weight of each sock
Weight of common stock $99,000 / $110,000 = 0.90
Weight of preferred stock = $11,000 / $110,000 = 0.10
Allocation of the sale price is as follow
Allocated sale price = Weight of Stock x Sale price
Allocated sale price of common stock = $105,000 x 0.90 = $94,500
Allocated sale price of common stock = $105,000 x 0.10 = $10,500
b.
Common Sock is recorded separately as par value and paid-in capital excess of par as follow
Common Stock ( Par Value ) = 500 x $10 = $5,000
Common Stock ( Excess of Par ) = $94,500 - $5,000 = $89,500
Preferred Stock ( Par Value ) = 100 x $40 = $4,000
Preferred Stock ( Excess of Par ) = $10,500 - $4,000 = $6,500
Revise the following sentences to eliminate flabby expressions.
a. Despite the fact that we lost the contract, we must at this point in time move forward.
b. In the event that interest rates increase, we will begin investing in the very near future.
Answers
Answer:
. Despite the fact that we lost the contract, we must at this point in time move forward.
Explanation:
Dillon Company incurred the following costs while producing 480 units: direct materials, $9 per unit; direct labor, $22 per unit; variable manufacturing overhead, 12 per unit; total fixed manufacturing overhead costs, $7,680; variable selling and administrative costs, $4 per unit; total fixed selling and administrative costs, $4,320. There are no beginning inventories.
What is the unit product cost using variable costing?
A. $72 per unit
B. $59 per unit
C. $47 per unit
D. $43 per unit
Answers
Answer:
The unit cost is $43 per unit
Explanation:
Required
Determine the unit product cost?
Using variable costing, the unit product cost is:
[tex]Unit = DM+ DL + VMO[/tex]
[tex]DM = Direct\ Materials =\$9[/tex]
[tex]DL = Direct\ Labor =\$22[/tex]
[tex]VMO = Variable\ Manufacturing\ Overhead = \$12[/tex]
So, we have:
[tex]Unit = \$9 + \$22 + \$12[/tex]
[tex]Unit = \$43[/tex]
Hence, the unit cost is $43 per unit
Which of the following is a simple sentence?
a. Because we will be reducing employee health insurance benefits, some employees may be unhappy; however, we must make sure that they understand the reason for the change.
b. HMO and PPO insurance plans offer additional cost savings.
c. Having healthy employees decreases the cost of monthly premiums; therefore, we will be implementing a wellness program.
d. If health insurance costs continue to rise, employee copays may increase.
Answers
The simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.
A simple sentence is a sentence with one independent clause (also called a main clause). It can have a compound subject or predicate. There is only one independent clause in a simple sentence and it expresses a single thought. Among the given sentences, the simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.
Explanation:The sentence "HMO and PPO insurance plans offer additional cost savings" is a simple sentence because it contains only one subject-verb pair, “HMO and PPO insurance plans” (subject), “offer” (verb).
The sentence is clear and straightforward. It contains no dependent clauses or conjunctions that join two independent clauses. Hence, this sentence is a simple sentence.
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Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galleries. The following balance sheet of Zweifel is given in an abbreviated form below.
ZWEIFEL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017
Assets Liabilities and Stockholders' Equity
Cash $100,000 Accounts payable $50,000
Land 70,000 Notes payable (long-term) 300,000
Buildings (net) 200,000 Total liabilities 350,000
Equipment (net) 175,000 Common stock $200,000
Copyrights (net) 30,000 Retained earnings 25,000 225,000
Total assets $575,000 Total liabilities and stockholders' equity $575,000
Moss and Zweifel agree that:
1. Land is undervalued by $30,000.
2. Equipment is overvalued by $5,000.
Zweifel agrees to sell the gallery to Moss for $350,000.
Required:
Prepare the entry to record the purchase of Zweifel Galleries on Moss's books.
Answers
Answer:
Dr Cash 100,000
Dr Land 100,000
Dr Equipment 170,000
Dr Building 200,000
Dr Copyright 30,000
Dr Goodwill 100,000
Cr Accounts payable 50,000
Cr Long-term notes payable 300,000
Cr Cash 350,000
Explanation:
Goodwill = sales price - net assets + fair value adjustments = $350,000 - ($575,000 - $350,000) + ($30,000 - $5,000) = $100,000
composition of my father in French
Answers
Answer:
COMPOSITION OF MY FATHER (In french language)
Il s’appelle …… Il travail dans un bureau. Il a …… ans. Il est grand/petit.
Il est gentil. Il aime les ……….
(His name is ……… He works in an office. He is …years old. He is tall/short. He is kind. He loves.……)
OR YOU CAN CHOOSE TO WRITE THIS!
Mon père est néphrologue. Il est attentioné et est comme un ami pour moi. On parle de tout. Il m’aide avec mes études aussi. Je peux plaisanter sur n’importe quoi avec lui et il ne m’en voudrai pas et ça va avec moi.
Mon rêve est d’etre un très bien médecin et un très bien etre humain et lui faire sentir fier.
On August 31, the balance sheet of Bramble Veterinary Clinic showed Cash $12,000, Accounts Receivable $4,700, Supplies $600, Equipment $6,000, Accounts Payable $6,600, Common Stock $16,050, and Retained Earnings $650. During September, the following transactions occurred.
1. Paid $3,500 cash for accounts payable due.
2. Collected $2,050 of accounts receivable.
3. Purchased additional equipment for $2,350, paying $900 in cash and the balance on account.
4. Performed services worth $7,900, of which $2,550 is collected in cash and the balance is due in October.
5. Declared and paid a $2,250 cash dividend.
6. Paid salaries $2,100, rent for September $1,150, and advertising expense $100.
7. Incurred utilities expense for month on account $180.
8. Received $12,000 from Capital Bank on a 6-month note payable.
Required:
Prepare a tabular analysis of the September transactions beginning with August 31 balances.
Answers
Answer:
Total Assets = Total Liabilities + Total Owner's Equity = $35,550
Explanation:
Note: See the attached excel file for the tabular analysis of the September transactions beginning with August 31 balances.
In the attached excel file, Evidence that Assets Equal Liabilities Plus Stockholders' Equity is prepared below the tabular analysis to show that the accounting equation holds as follows:
Total Assets = Total Liabilities + Total Owner's Equity = $35,550
In the attached excel file, the following calculations are performed:
1. Under Transaction 3: Accounts Payable ($) = $2,350 - $900 = $1,450
2. Under Transaction 4: Accounts Receivable = $7,900 - $2,550 = $5,350
Giblin Corporation earned $9,700 of service revenue on account during Year 1. The company collected $8,245 cash from accounts receivable during Year 1. Required Based on this information alone, determine the following for Giblin Corporation. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.)
a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet.
b. The amount of net income that would be reported on the Year 1 income statement.
c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows.
d. The amount of retained earnings that would be reported on the Year 1 balance sheet.
Answers
Answer and Explanation:
The computation is shown below:
a. The balance in the account receivable is
= $9,700 - $8,245
= $1,455
b. The amount of the net income is equivalent to the service revenue earned i.e. $9,700
c. The net cash flow from operating activities is
Net income $9,700
Less; increase in account receivable -$1,455
Net cash flow from operating activities $8,245
d. The retained earnings is equivalent to the amount of the net income i.e. $9,700
A man with $20,000 to invest decides to diversify his investments by placing $10,000 in an account that earns 5.2% compounded continuously and $10,000 in an account that earns 6.4% compounded annually. Use graphical approximation methods to determine how long it will take for his total investment in the two accounts to grow to $35,000. It will take approximately nothing years for his
Answers
Answer:
9.749 years
Explanation:
Given that :
Principal, P = 20,000
Total investment A = 35000
Investment 1:
P = $10,000
Compounded continuously at r = 5.2% = 0.052
A = Pe^rt
Investment B:
P = $10,000
Compounded annually at r = 6.4% = 0.064
A = P(1 + r)^t
Hence, final amount, A on both investment = 35000
A = Pe^rt + P(1 + r)^t
35000 = 10000e^0.052t + 10000(1 + 0.064)^t
Divide through by 10000
3.5 = e^0.052t + 1.064^t
t = 9.749123
t = 9.749 years
The following is the information for the Brendan's Bread bakery company: Beginning raw materials inventory $ 53,200 Beginning work in process, inventory 78,400 Ending raw materials inventory 58,100 Ending work in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000 Question: What is the value of Total Manufacturing Costs? Do not include a dollar sign or commas in your answer.
Answers
Answer:
$254,900
Explanation:
Total Manufacturing Costs include all costs involved in manufacturing a Product such as direct materials, direct labor and indirect costs or overheads incurred during the period of production.
Calculation of Total Manufacturing Cost
Raw Materials (53,200 +210,000 -58,100) $205,100
Direct Labor $149,800
Factory Overhead $105,000
Total Manufacturing Cost $254,900
Conclusion
Total Manufacturing Costs will be $254,900
You decide to set aside $120 a month for your future. Assuming an interest rate of 6.35%, how much will you have after 25 years? How much more would you have if you invested for 30 years?
Answers
Answer:
After 20 years you will have "$87,784.99" and after 30 years you will have "$41,151.55".
Explanation:
The give values are:
After 25 years,
Cash Flow per period,
C = $120
Interest rate per period,
i = [tex]\frac{6.35 \ percent}{12}[/tex]
= [tex]0.52916667 \ percent[/tex]
Number of period,
n = [tex]25\times 12[/tex]
= [tex]300[/tex]
The future value will be:
= [tex]C\times \frac{ [(1+i)^n-1]}{i}[/tex]
On substituting the given values, we get
= [tex]\frac{120[ (1+0.0052916667)^{300} -1]}{0.0052916667}[/tex]
= [tex]120[\frac{(4.8711 -1)}{0.0052916667} ][/tex]
= [tex]87,784.99[/tex] ($)
After 30 years,
Cash Flow per period,
C = $120
Interest rate per period,
i = [tex]\frac{6.35 \ percent}{12}[/tex]
= [tex]0.52916667 \ percent[/tex]
Number of period,
n = [tex]30\times 12[/tex]
= [tex]360[/tex]
The future value will be:
= [tex]C\times \frac{ [(1+i)^n-1]}{i}[/tex]
On substituting the given values, we get
= [tex]\frac{120[ (1+0.0052916667)^{360} -1] }{0.0052916667}[/tex]
= [tex]\frac{120[ (1.0052916667)^{360} -1]}{0.0052916667}[/tex]
= [tex]120[\frac{(6.6857 -1)}{0.0052916667} ][/tex]
= [tex]128,936.54[/tex] ($)
Thus
You will have:
= [tex]128936.54-87784.99[/tex]
= [tex]41151.55[/tex] ($)
How do financial institutions contribute to the development of a market economy?
A.
They collect sales tax on goods and services for local and state governments.
B.
They impose and collect tariffs on products imported from other countries.
C.
They prevent businesses and people from overspending when prices are high.
D.
They provide loans so that businesses and people can buy goods and services.
Answers
Answer:
Option D
Explanation:
I just used this on my test and got it correct
What Characteristics of the Confederate States of American made it a confederal government when compared to the government of the United States?
Answers
Answer:
Explanation:
The Confederate States of America can also be regarded as Confederate States was regarded as unrecognized breakaway state which exist between
year 1861 and 1865 which rose against
United States of America when she was experiencing American Civil War.
Characteristics of the Confederate States of American made it a confederal government when compared to the government of the United States are;
✓The central government of
The Confederate States of America is weaker compare to United States.
✓The sovereignty and power of individual states is more than US States
✓Issues such as national economic as well as foreign issues only are been handled by central government of the Confederate States
Identify which accounts should be closed on May 31.
Cash
Not Closed
Closed
Supplies
Closed
Not Closed
Prepaid Insurance
Not Closed
Closed
Land
Closed
Not Closed
Buildings
Not Closed
Closed
Equipment
Not Closed
Closed
Accounts Payable
Closed
Not Closed
Unearned Rent Revenue
Not Closed
Closed
Mortgage Payable
Closed
Not Closed
Common Stock
Not Closed
Closed
Rent Revenue
Not Closed
Closed
Salaries and Wages Expense
Closed
Not Closed
Utilities Expense
Not Closed
Closed
Advertising Expense
Not Closed
Closed
Interest Expense
Not Closed
Closed
Insurance Expense
Not Closed
Closed
Supplies Expense
Not Closed
Closed
Depreciation Expense
Closed
Not Closed
Answers
Answer:
Cash ___________________ Not Closed
Supplies _________________Not Closed
Prepaid Insurance _________ Not Closed
Land ___________________Not Closed
Buildings ________________Not Closed
Equipment _______________Not Closed
Accounts Payable _________ Not Closed
Unearned Rent Revenue ____Not Closed
Mortgage Payable _________Not Closed
Common Stock ___________Not Closed
Rent Revenue ____________Closed
Salaries and Wages Expense_Closed
Utilities Expense __________ Closed
Advertising Expense _______ Closed
Interest Expense __________ Closed
Insurance Expense _________Closed
Supplies Expense __________Closed
Depreciation Expense _______Closed
Explanation:
In accounting, there are two types of accounts
TemporaryPermanentTemporary
Temporary accounts are closed at the end of each accounting period and new balance are maintained for the new period.
Expense and Income accounts are temporary accounts and these accounts are closed in the retained earning account of the balance share.
In this question following accounts are temporary accounts and these are needed to be closed at the end of the period.
Rent Revenue
Salaries and Wages Expense
Utilities Expense
Advertising Expense
Interest Expense
Insurance Expense
Supplies Expense
Depreciation Expense
Permanent Accounts
Permanent accounts are not closed at the end of each accounting period and they carried their net and accumulated balance in the next period.
Assets, Equity, and Liabilities accounts are permanent accounts.
In this question following accounts are permanent accounts
Cash
Supplies
Prepaid Insurance
Land
Buildings
Equipment
Accounts Payable
Unearned Rent Revenue
Mortgage Payable
Common Stock
Cash ___________________ Not Closed
Supplies _________________Not Closed
Prepaid Insurance _________ Not Closed
Land ___________________Not Closed
Buildings ________________Not Closed
Equipment _______________Not Closed
Accounts Payable _________ Not Closed
Unearned Rent Revenue ____Not Closed
Mortgage Payable _________Not Closed
Common Stock ___________Not Closed
Rent Revenue ____________Closed
Salaries and Wages Expense_Closed
Utilities Expense __________ Closed
Advertising Expense _______ Closed
Interest Expense __________ Closed
Insurance Expense _________Closed
Supplies Expense __________Closed
Depreciation Expense _______Closed
Explanation:
In accounting, there are two types of accounts
Temporary
Permanent
Temporary
Temporary accounts are closed at the end of each accounting period and new balance are maintained for the new period.
Expense and Income accounts are temporary accounts and these accounts are closed in the retained earning account of the balance share.
In this question following accounts are temporary accounts and these are needed to be closed at the end of the period.
Rent Revenue
Salaries and Wages Expense
Utilities Expense
Advertising Expense
Interest Expense
Insurance Expense
Supplies Expense
Depreciation Expense
Permanent Accounts
Permanent accounts are not closed at the end of each accounting period and they carried their net and accumulated balance in the next period.
Assets, Equity, and Liabilities accounts are permanent accounts.
In this question following accounts are permanent accounts
Cash
Supplies
Prepaid Insurance
Land
Buildings
Equipment
Accounts Payable
Unearned Rent Revenue
Mortgage Payable
Common Stock
what is the main difference between regular work hours and overtime
Answers
Answer:
regular work hour- employee are expected to on the basis of their employment contract.
overtime- hours worked exceed normally scheduled working hours.
The 2018 balance sheet of Speith’s Golf Shop, Inc., showed long-term debt of $5 million, and the 2019 balance sheet showed long-term debt of $5.25 million. The 2019 income statement showed an interest expense of $165,000. The 2018 balance sheet showed $510,000 in the common stock account and $4.6 million in the additional paid-in surplus account. The 2019 balance sheet showed $550,000 and $4.8 million in the same two accounts, respectively. The company paid out $410,000 in cash dividends during 2019. Suppose you also know that the firm’s net capital spending for 2019 was $1,370,000, and that the firm reduced its net working capital investment by $69,000. What was the firm's 2019 operating cash flow, or OCF?
Answers
Answer:
$1,386,000
Explanation:
The computation of the operating cash flow is shown below:
But before that following calculations must be done
Cash Flow to Creditors
Cash Flow to Creditors = Interest Expenses Paid - Net Increase in Long term debt
= Interest Expenses Paid - [Ending Long term debt - BEginning Long term Debt]
= $165,000 - [$5,250,000 - $5,000,000]
= $165,000 - $250,000
= -$85,000
Cash Flow to Stockholders
Cash Flow to Stockholders = Dividend Paid - Net New Equity
= Dividend Paid - [(Ending Common stock + Ending Additional paid-in surplus account ) - (Opening Common stock + OPening Additional paid-in surplus account )
= $410,000 - [($550,000 + $4,800,000) - ($510,000 + $4,6000,000)]
= $410,000 - [$5,350,000 - $5,110,000]
= $410,000 - $240,000
= $170,000
Cash Flow from assets
Cash Flow from assets = Cash Flow to Creditors + Cash Flow to Stockholders
= -$85,000 + $170,000
= $85,000
Operating Cash Flow
= Operating Cash flows - Change in Net Working capital - Net Capital Spending
$85,000 = Operating cash flow - (-$69,000) - $1,370,000
= $85,000 - $69,000 + $13,70,000
= $1,386,000
Prepare Two Column Cash Book from the following transactions and balance the book on 31st Jan., 2021:-
2021
Jan. 1
Cash in hand 50,000; Bank overdraft 1,90,000.
Jan. 2
Purchased goods from Rajesh Kumar of the list price of 50,000 at 5% trade discount and payment made by cheque.
Jan. 6
Goods sold for 80,000 and payment received by cheque. Cheque deposited into Bank on same day.
Jan. 10
Goods purchased for cash 19,800.
Jan. 15
Furniture sold for 1,77,000 and payment received by cheque & cheque deposited into Bank on same day.
Jan. 18
Salaries paid 4,500.
Jan. 21
Settled the amount due to Ram 2,000 by paying cash 1,910.
Jan. 22
Cash received from Jai 14,780 in full settlement of his account of 15,000.
Jan. 23
Paid Life Insurance premium 1,500.
Jan. 31
Deposited with bank the entire balance after retaining 7,000 cash in hand.
Answers
Answer:
On January 21, Balance c/d are:
Cash = $7,000
Bank = $49,570
Explanation:
Note: See the attached excel file for the Two Column Cash Book.
Also note the following in the attached Two Column Cash Book:
(1) Jan. 1 Bank overdraft 1,90,000 is recorded in the Two Column Cash Book as 190,000 to correct the error in the figure.
(2) Jan. 15 Furniture sold for 1,77,000 is recorded in the Two Column Cash Book as 177,000 to correct the error in the figure.
(3) Jan. 18 Salaries paid 4,500 is assumed to be paid by cheque since no specific form of payment in indicated.
(4) Jan. 23 Paid Life Insurance premium 1,500 is assumed to be paid by cheque since no specific form of payment in indicated.
(5) VN represents Voucher Number.
(5) PR represents Posting Reference.
(6) C represents Contra entry.
(7) The Jan. 31 Bank and Cash (C) of $36,070 which is the entire balance deposited with bank after retaining 7,000 cash in hand is obtained as follows:
Entire balance deposited with bank = Total cash received - Total cash paid - $7,000 retained = $64,780 - ($19,800 + $1,910) - $7,000 = $36,070
(8) Balance c/d represents Balance carried down.
(8) Balance b/d represents Balance brought down.
Yale Corporation issued to Zap Corporation $70,000, 10% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1, 2020. Assume that the company uses the effective interest method for amortization. If the bonds were sold at 97, yielding 10.5%. What is true for journal entries to be made at June 30, 2020, for interest payment if Effective interest method is used?
Answers
Answer:
Journal Entry
June 30, 2020
Dr. Interest expense __$3,564.75
Cr. Discount on bonds_$64.75
Cr. Cash ___________$3,500
[To record interest]
Explanation:
First, we need to calculate the issuance price of the bond
Issuance price of the bond = Face value x Seling rate = $70,000 x 97/100 = $67,900
Now we need to calculate the discount value as follow
Discount = Face value - Isuance vaue = $70,000 - $67,900 = $2,100
Now, need to calculate the discount amortization as follow
Discount amortization = ( Carrying value of bond x Effective interest rate x 6/12 ) - ( Face value x Coupon rate x 6/12 ) = ( $67,900 x 10.5%x 6/12 ) - ( $70,000 x 10% x 6/12 = $3,564.75 - $3,500 = $64.75
Now calculate the interest payment
Interst payment = Face value x Coupon rate x 6/12 = $70,000 x 10% x 6/12 = $3,500
The bonds would expire on the date of maturity, and the issuing company will pay the debt holder the face value of the bond.
The issue price is termed as the price at which the issuer of the bond sells the bonds for the first time.
The Journal entry has been attached below.
The calculation of the issuance price of the bond:
Issuance price of the bond = [tex]\text{Face value} \times \text{Seling rate} = \$70,000 \times \frac{97}{100}[/tex] = $67,900
Calculation of the discount value:
Discount = Face value - Isuance vaue = $70,000 - $67,900 = $2,100
Calculation of the discount amortization:
Discount amortization = [tex]( \text{Carrying value of bond} \times \text{Effective interest rate} \itimes \frac{6}{12} ) - ( \text{Face value} \times \text{Coupon rate} \times \frac{6}{12})[/tex]
= [tex]( \$67,900 \times 10.5\%\times \frac{6}{12}) - ( \$70,000 \times 10\% \times \frac{6}{12})[/tex]
= $3,564.75 - $3,500 = $64.75
Calculation of the interest payment:
Interst payment =[tex]\text{ Face value} \times \text{Coupon rate} \times \frac{6}{12} = \$70,000 \times 10\% \times \frac{6}{12}[/tex]= $3,500
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The level of analysis for the Industry environment is the _____ level:
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Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.7× Return on assets (ROA) 5.0% Return on equity (ROE) 13.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Debt-to-capital ratio: %
Answers
Answer:
Profit margin=3%
Debt-to-capital ratio: = 3.8%
Explanation:
Calculations for Profit margin % and Debt-to-capital ratio: %
Calculation for profit margin
Profit margin =.05/1.7
profit margin=0.03*100
profit margin=3%
Calculation for Debt-to-capital ratio using this formula
Debt-to-capital ratio= ROA * (1 / ROE)
Let plug in the formula
Debt-to-capital ratio = .05 * (1 / .013)
Debt-to-capital ratio = .05 *76.92
Debt-to-capital ratio= 3.8%
Therefore: Profit margin=3%
Debt-to-capital ratio = 3.8%
On December 31, 2021, Fighting Okra Cooking Services reports the following revenues and expenses.
Service revenue $75,500 Rent expense 18,800
Postage expense 1,550 Salaries expense 23,000
Legal fees expense 2,500 Supplies expense 18,000
In addition, the balance of common stock at the beginning of the year was $170,000, and the balance of retained earnings was $34,000. During the year, the company issued additional shares of common stock for $28,000 and paid dividends of $18,000.
Required:
a. Prepare an income statement.
b. Prepare a statement of stockholders' equity.
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Answer and Explanation:
The preparation is presented below:
a. Income statement
Service revenue $75,500
Less expenses
Rent expense $18,800
Postage expense $1,550
Salaries expense $23,000
Legal fees expense $2,500
Supplies expense $18,000
Net income $11,650
b. statement of stockholders' equity
Common stock ($170,000 + $28,000) $198,000
Add: retained earnings ($34,000 + $11,650 - $18,000) $27,650
Stockholder equity $225,650
A Herfindahl-Hirschman Index is calculated by
A. summing the advertising expenditures of the firms that want to merge by total industry advertising expenditures.
B. summing the amount of sales by the four largest firms and dividing by total industry sales.
C. dividing the number of firms wanting to merge by the total number in the industry.
D. summing the squares of the market shares of each firm in the industry.
Answers
Answer:
Option D: Summing the squares of the market shares of each firm in the industry.
Explanation:
The Herfindahl-Hirschman index (HHI) is a use worldwide as measure of market concentration. It's calculation is based on squaring the market share of each firm competing in a market, and thereafter the resulting numbers are summed up. It commonly range known is simply from zero to 10,000. It is used by U.S. Department of Justice uses for potential mergers issues evaluation. It is a measure of industry concentration by the sum of the squares of the market shares held by each of the firms in the industry.
The Herfindahl index shows a decrease in competition and an increase of market power, when there is an increase and decreases is the opposite.