1- ROOF Bank has a total interest expense representing 34% of the total interest income. The pretax net operating income is $5,400,000. The ROA is 16% knowing that 62% of the total assets are earning assets and tax rate is 40%. The Net Interest margin of ROOF Bank is 7%. Knowing that ROOF Bank has no extra ordinary losses nor gain. The total interest income equals:* Oa-$1,331,590.91 b- $1,250,229.54 c- $1,285,305.76 d- $1,370,708.59 e-None of the above

1- ROOF Bank has a total interest expense representing 34% of the total interest income. The pretax net operating income is $5,400,000. The ROA is 16% knowing that 62% of the total assets are earning assets and tax rate is 40%. The Net Interest margin of ROOF Bank is 7%. Knowing that ROOF Bank has no extra ordinary losses nor gain. The total interest income equals:* Oa-$1,331,590.91 b- $1,250,229.54 c- $1,285,305.76 d- $1,370,708.59 e-None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject :- Accounting
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47. Company has $1,000,000 debt outstanding at Libor rate + 1% as interest rate in year 1. Total interest expese was $60,000 in year 1. There was no change of interest rate in year 1. At Jan. 1st company paid $100,000 principal debt. At March 31. year 2, LIBOR rate was increased by 0.25% and at Jun 30 year 2, LIBOR rate was decreased by 0.50%. What was the total interest expense in year 2? a. $43,437.50 b. $49,375.00 c. $53,437.50 d. $59,375.00
5: Calculate Interest Coverage Ratio from the following information Net Profit (after taxes) Rs. 1,00,000 Fixed interest charges on long term borrowing = Rs. 20,000 Rate of Income Tax 50%
SLM, Inc., with sales of $1,000, has the following balance sheet:SLM, Incorporated Balance Sheet as of 12/31/X0assetsLiabilities and equityAccounts receivable$200Trade accounts payable$ 200Inventory400Long-term debt600Plant800Equity600$1, 4 0 0$1, 4 0 0It earns 10 percent on sales (after taxes) and pays no dividends.a.Determine the balance sheet entries for sales of $1,500 using the percent of sales method of forecasting
22 The following information is available for three companies. Rope Company $ 364,000 Face value of bonds payable Interest rate Income tax rate 6% 35% Chain Company $ 620,000 5% 20% Line Company $ 538,000 4% 25% Required a. Determine the annual before-tax interest cost for each company in dollars. b. Determine the annual after-tax interest cost for each company in dollars. c. Determine the annual after-tax interest cost for each company as a percentage of the face value of the bonds.
Bank B, on the other hand, makes a $105 loan at 7%, with $100 in deposits at 5% and only $10 in equity. Bank B purchases the rest of Assets as G-Bond at 5% interest rate. Bank B Loan 7% $105 G-Bond 5% ? Deposits 5% $100 Equity $10 Total Assets $? Total Equity and Deposit $110 compute ROE of Bank B= 38% 14% 13% 21% 26% 15% 16% 14%
14. Gingerbread Corp was issued a $220,000 loan at 6%. The amortization schedule created by the company accountant is presented below. How much interest will Gingerbread Corp record in interest expense over a period of 6 years?
Listed below are the current liability section and Note 7 of the Year 7 balance sheet of Joli Roma Corporation (the Company), a major oil company. $ millions Year 7 Year 6 Current Liabilities Current portion of long-term obligations Short-term obligations Accounts payable Accrued liabilities Taxes payable (including income taxes) $175 $89 691 530 2,996 3,196 1,046 1,099 1,289 997 $6,197 $5,911 Note 7 Short-Term Obligations The Company's "short-term obligations" consist of notes payable and commercial paper. Notes payable as of December 31, Year 7, totaled $102 million at an average annual interest rate of 5.7%, compared with $29 million at an average annual interest rate of 5.7% at year-end Year 6. Commercial paper borrowings at December 31, Year 7, were $839 million at an average annual interest rate of 5.7% compared with $260 million at an average annual interest rate of 5.9% as of December 31, Year 6. Bank lines of credit available to support existing commercial paper borrowings of…
104.
Duffern Industnes has total asets of $940.000 and total cumnt liablities (consusting only of accounts payahle and accrual) of S130,000 Dulert finances unng oly king delt ad common quy The nterest ate on its debt is % and its taK te in 40 The fim's banic earmng powe atio 14% and its debt to capital rate is 40% What are Dudiets ROE d ROIC De sot roatul your iatermeduate calculations Oa 13.75 94ON Ob1495N975% Oc9.7229ns Oa 174, 10.82
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