oo, Inc., has arranged a line of credit that allows it to borrow up to $55 million at any time. The interest rate is .631 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. If the company needs $31 million for 8 months, how much will it pay in interest
Answers
Answer:
$1,684,084.19
Explanation:
If the company needs $31 million, and it must deposit 5% of what it borrows in a non-interest bearing account, then to have a net borrowing of $31 million, the amount it must borrow, B, is
B * (1 - 5%) = 31 million
= 0.95B = 31 million
and B = $32,631,578.95.
At 0.631% interest rate per month, for 8 months, the amount to be repaid after 8 months
=
Therefore, the amount paid in interest = 34,315,663.14 - 32,631,578.95
= $1,684,084.19.
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A plant asset cost $96,000 and is estimated to have a $12,000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be a. $8,040. b. $13,500. c. $11,812. d. $9,190.
Nash Co. sells $435,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Nash buys back $130,500 worth of bonds for $136,500 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.
Blue Spruce Corp. reported net income of $377000 for the year. During the year, accounts receivable increased by $27000, accounts payable decreased by $12000 and depreciation expense of $59000 was recorded. Net cash provided by operating activities for the year is
Answers
Answer:
the stock price is $45.44
Explanation:
The computation of the stock price is shown below:
Sales per share is
= Total sales ÷ stock outstanding shares
= $3,010,000 ÷ 106,000 shares
= $28.40
Now
Benchmark PS = Stock price ÷ Sales per share
Stock price = $28.40 × 1.6
= $45.44
hence, the stock price is $45.44
We simply applied the above formula so that the correct value could come
And, the same is to be considered
(B) The accounts receivable balance at the beginning of Quarter 4 will be $1,150.
(C) The firm will collect a total of $2,000 in Quarter 3.
(D) The firm will have an accounts receivable balance of $2,300 at the end of the year.
(E) The firm will collect a total of $2,400 in Quarter 4.
Answers
Answer:
(E) The firm will collect a total of $2,400 in Quarter 4.
Explanation:
We will calcualte under two assumptions:
- the sales are done uniformly over the quarter
- and the collection period is the same over the entire year
With this we conclude the following:
each quarter has 90 days
the sales from day 1 to 45 will be collected within the quearter while the sales from 46 to 90 will be collected on the next quarter.
so half the sales will be collected during the quarter as sales are done uniformly.
Collection on Q1
2,100 / 2 = 1,050
collection on Q2
1,050 + 1,600/2 = 1,850
collection on Q3
800 + 2,500/2 =2,050
collection on Q4
1,250 + 2,300/2 = 2,400
b. Employee referral fees
c. Preemployment medical expenses
d. Accrued vacation expenditures
Answers
Answer:
Missed project deadlines
Explanation:
From the question, we are informed about Carlos, who is the HR Director of a large paper manufacturing company, is studying the company's turnover costs. He has accounted for most of the easily calculable costs, but he is concerned about the hidden costs of turnover. Given this information, the most likely a cause of concern for Carlos is Missed project deadlines.
Project deadlines can be regarded as
final time point which is needed for a given project to be done as well as the submission of handing over. It is been
characterized as desired time-frame set for a project as well as links initial time expectations for the project to be
produced in a timely manner.
Answers
Explanation:
While preparing the post closing trial balance, we record the permanent account while the temporary accounts are not records. So, the permanents accounts that are recorded are given below:
a. Accounts Receivable
b. Cash
c. Doug Woods, Capital
d. Equipment
e. Land
f. Salaries Payable
g. Unearned Rent
All other account balances reflects that they are temporary accounts. Hence, ignored it
The post-closing trial balance will typically include Accounts Receivable, Cash, Doug Woods, Capital, Equipment, Land, and Salaries Payable. It doesn't include temporary accounts which are closed at the end of the period.
The post-closing trial balance includes only the permanent or real accounts that have balances after the closing process. In the case of the accounts provided, the post-closing trial balance will usually include a. Accounts Receivable, b. Cash, e. Doug Woods, Capital, g. Equipment, h. Land, and i. Salaries Payable. Temporary or nominal accounts such as c. Depreciation Expense, d. Fees Earned, f. Doug Woods, Drawing, j. Unearned Rent, k. Wages Expense are closed at the end of the period and therefore, don't usually appear in the post-closing trial balance.
Learn more about post-closing trial balance here:
#SPJ3
Answers
Answer:
Garnishment
Explanation:
Garnishment refers to an order in which a person directs a third party with respect to seize assets i.e salary earned from employment or money in a bank account so that the unpaid debt amount could be settled out
In the given case, the same situation occurs so this is a case of garnishment and the same is to be considered
Answers
Answer:
Record the adjusting entry on December 31, 2021. Calculate the 2021 year end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2021 is $0).
1
Db Salaries expenses____________________ 690
Cr Salaries payable_______________________ 690
Explanation:
Pays 3220 Two Weeks
Pays 230 Daily
Dates Expense Payable
December 29 230
December 30 230
December 31 230
Janaury 1 230
Janaury 2 230
Janaury 3 230
Janaury 4 230
Janaury 5 230
Janaury 6 230
Janaury 7 230
Janaury 8 230
Janaury 9 230
Janaury 10 230
Janaury 11 230
690 2530
1
Db Salaries expenses____________________ 690
Cr Salaries payable_______________________ 690