Answer:
D. total assets to common stockholders' equity
Explanation:
The financial leverage multiplier (FLM) is defined as the ratio of the firm’s total assets to the shareholders’ equity.
Analyzing the answer choices provided, the one that better fits the description above is alternative D. total assets to common stockholders' equity
a. If the company's cost of equity is 14 percent, what is its pretax cost of debt?
b. If instead you know that the aftertax cost of debt is 6.1 percent, what is the cost of equity?
Answer:
a. 4.94%
b. 11.48%
Explanation:
Here in this question, we are interested in calculating the pretax cost of debt and cost of equity.
We proceed as follows;
a. From the question;
The debt equity ratio = 1.15
since Equity = 1 ; Then
Total debt + Total equity = 1 + 1.15 = 2.15
Mathematically ;
WACC = Cost of equity x Weight of equity + Pretax Cost of debt x Weight of debt x (1-Tax rate)
Where WACC = 8.6%
Cost of equity = 14%
Weight of equity = 1/(total debt + total equity) = 1/(1+1.15) = 1/2.15
Pretax cost of debt = ?
Weight of debt = debt equity ratio/total cost of debt = 1.15/2.15
Tax rate = 21% = 0.21
Substituting these values, we have;
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
Pretax cost debt = (8.6%-6.511628%)/(1.15/2.15 x (1-21%))
Pretax cost of debt = 4.94%
b. WACC = Cost of equity x Weight of equity + After tax Cost of debt x Weight of debt
8.6% = Cost of equity x 1/2.15 + 6.1% x 1.15/2.15
Cost of equity = (8.6%-3.26279%)/(1/2.15)
Cost of equity = 11.48%
The amount of cash should be $315,000 will be needed to payback.
At the time When the note payable is signed, the entries should be
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable should be
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
here,
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019, the Note Payable plus Interest that needs to be paid should be
Note Payable $315,000 (debit)
Cash $315,000 (credit)
learn more about cash here: brainly.com/question/2055753
Answer:
$315,000 will be needed to pay back
Explanation:
When the note payable is signed, the entries would be as follows :
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable is
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019 the Note Payable plus Interest that needs to be paid would be :
Note Payable $315,000 (debit)
Cash $315,000 (credit)
Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________
PART B: ANALYSIS OF RECEIVABLES METHOD
Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________
Problem 3
Use PVH Corp.’s financial statement information to answer the following questions.
Provide the following account balances for PVH:
February 2, 2020
February 3, 2019
Accounts Receivable (gross)
Allowance for Doubtful Accounts
Accounts Receivable, net
Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?
Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?
Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?
Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.
Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
Answer:
Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
Dr Bad debt expense 300,000 (= $30,000,000 x 1%)
Cr Allowance for doubtful accounts 300,000
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,100,000 (= $4,400,000 - $300,000)
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $300,000
Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
Dr Bad debt expense 280,000 (= $360,000 - $80,000)
Cr Allowance for doubtful accounts 280,000
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,120,000
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $280,000
Use PVH Corp.’s financial statement information to answer the following questions.
Provide the following account balances for PVH:
February 2, 2020 February 3, 2019
Accounts Receivable (gross) $762,000,000 $800,000,000
Allowance for Doubtful Accounts $21,000,000 $22,000,000
Accounts Receivable, net $741,000,000 $778,000,000
Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?
$741,000,000
Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?
$21,000,000
Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?
$762,000,000
Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.
Dr Bad debt expense 22,000,000
Cr Allowance for doubtful accounts 22,000,000
Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
Dr Allowance for doubtful accounts 22,000,000
Cr Accounts receivable 22,000,000
Explanation:
Accounts receivable = $4,400,000
beginning balance Allowance for doubtful accounts = $80,000
May's net sales = $30,000,000
1% of net sales are uncollectible
aging of accounts receivable results in a $360,000 estimate for the Allowance for doubtful accounts as of May 31, 2020
Answer: Tell your manager about this offensive behavior.
Explanation:
If I overhear a group of your co-workers laughing at some crude jokes about a few customers, the most likely thing for me to do will be to inform my manager about this offensive behavior.
Customers are vital to every business and should be treated right, without the customers, there isn't any business at all. Therefore, I'll inform my manager so that he'll have an idea of what is going on and then call them to order and explain to them that customers should be treated right and respected.
b. The company paid $6,000 cash in advance for prepaid insurance coverage.
c. The company purchased $800 of supplies on account.
d. The company paid $600 cash for selling expenses.
e. The company received $6,000 cash for services provided.
f. The company paid $800 cash toward accounts payable.
g. The company paid $4,000 cash for equipment.
Here are the general journal entries for each of the transactions:
a. D. Belle invested in the business with cash, equipment, and web servers in exchange for common stock:
b. The company paid in advance for insurance coverage:
c. The company purchased supplies on account:
d. The company paid cash for selling expenses:
e. The company received cash for services provided:
f. The company paid cash to settle accounts payable:
g. The company paid cash to acquire equipment:
Journal entries are the chronological recordings of financial transactions in a company's accounting system. They serve as a detailed record, documenting each transaction's effects on various accounts, such as assets, liabilities, revenues, and expenses.
Journal entries provide a clear audit trail, helping track the flow of money and enabling the creation of financial statements.
They act as the foundation for accurate financial reporting, facilitating transparency, analysis, and decision-making within an organization.
Learn more about journal entries here:
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This question is about preparing general journal entries for various transactions in Belle Co.'s business. The company engages in activities such as investing cash and equipment, purchasing supplies on account, and receiving cash for services provided. The journal entries for each transaction are provided in the response.
Journal Entry a:
Debit: Cash ($5,900) + Equipment ($6,900) + Web servers ($12,900)
Credit: Common stock ($25,700)
Journal Entry b:
Debit: Prepaid Insurance ($6,000)
Credit: Cash ($6,000)
Journal Entry c:
Debit: Supplies ($800)
Credit: Accounts payable ($800)
Journal Entry d:
Debit: Selling expenses ($600)
Credit: Cash ($600)
Journal Entry e:
Debit: Cash ($6,000)
Credit: Service revenue ($6,000)
Journal Entry f:
Debit: Accounts payable ($800)
Credit: Cash ($800)
Journal Entry g:
Debit: Equipment ($4,000)
Credit: Cash ($4,000)
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Answer:
The cash payments for September are $646000
Explanation:
The cash payments for merchandise are divided into to parts. The previous month's 70% payments and this month's 30% payments. Thus, the cash payments for the month of september will be 70% for AAugust purchases and 30% for september's purchases.
Thus the cash payments for merchandise will be,
Cash Payments = 0.7 * 610000 + 0.3 * 730000 = $646000
Answer:
=646000
Explanation:
30% pay in the month of purchase .
Note that th purchase made in September is $730,000 and 30% is due that month.
= 30% × 730,000
= 219,000
70% in the following month
For his category, payment be made in September should relate to purchases made in August, and $610,000 was purchased in August
=70%× $610,000
=427,000
Cash payment f r te September
= 219,000 + 427,000
=$646,000