2. Green Company needed some cash --- fast. So it factored $200,000 of its accounts receivable with Chase Bank (non- recourse basis). Chase Bank assessed a finance charge of 3% of the receivables and also required a reserve deposit in an amount equal to 5% of the receivables to cover probable adjustments from sales discounts, returns, and allowances. How much immediate cash does Green Company record as a result of factoring (selling) its receivables? B. SO C. $200,000 D. $184,000 E. $194,000 $190,000 F. G. None of the above.

2. Green Company needed some cash --- fast. So it factored $200,000 of its accounts receivable with Chase Bank (non- recourse basis). Chase Bank assessed a finance charge of 3% of the receivables and also required a reserve deposit in an amount equal to 5% of the receivables to cover probable adjustments from sales discounts, returns, and allowances. How much immediate cash does Green Company record as a result of factoring (selling) its receivables? B. SO C. $200,000 D. $184,000 E. $194,000 $190,000 F. G. None of the above.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Valorant Company has the following items in its general ledger: Petty cash fund- $5,000; Checking account, Bank of Korea- $290,000; Cash fund legally restricted for short-term borrowings, Bank of Korea- $100,000; Checking account, BPI Bank- $(170,000); Checking account, Metrobank- $49,500. The amount of cash that should be reported in Valorant's balance sheet as a current asset is:
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Question 4 Abacus Bhd has entered into the following transactions after the year end and wish to know how to deal with them in a cash flow statement, as they are unsure of the meaning of the definition of cash and cash equivalents. Abacus Bhd had decided after the year end to deposit the funds with the bank in two term deposit accounts as follows: RM3 million into a 12-month term account, earning 5% interest. The cash can be withdrawn by giving 14 days’ notice but Angel will incur a penalty, being the loss of all interest earned. RM7 million into a 12-month term account earning 3% interest. The cash can be withdrawn by giving 21 days’ Interest will be paid for the period of the deposit but if money is withdrawn, the interest will be at the rate of 2%, which is equivalent to the bank’s stated rate for short-term deposits. Abacus Bhd is confident that it will not need to withdraw the cash from the higher-rate deposit within the term, but wants to keep easy access to the…
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Assume that banks holds no excess reserves and the public holds no currency: A. If a bank receives a deposit inflow of $100,000 explain (using t-accounts) what happens to this bank and one additional round in the deposit creation process assuming the reserve requirement is 8%. B. How much do deposits and loans change for the banking system when the process is completed? Show computation and the entire banking system's final T-account. C. Suppose the Central Bank sells $5 billion to ABC Bank. Determine what happens to checkable deposits of the entire banking system after the sale and completion of the multiple deposit creation process. Determine the change in checkable deposit in the banking system and show the T-account of the banking system.
Fruit Salad Company prepared the following bank reconciliation in November:Balance per bank- P10,000,000Deposit in transit- P500,000Outstanding checks- P1,500,000There were total deposits of P6,000,000 including P1,000,000 of proceeds from loan, and charges for disbursements of P8,800,000 per December bank Statement including bank charges of P30,000 and NSF check of 100,000. All reconciliation items in November 30 cleared the bank on December 31.Check outstanding amounted to P1,500,000 and deposits in transit totaled P1,300,000 on December 31. What is the amount of cash disbursement per book in December?
Some data regarding the financial enterprise are as follows;- The company collects its sales 25% in cash, 40%: 1 month term and the remainder with 2 months maturity.- Purchases are made in advance.- It is required to have 50000 balances in the cash register of the company at all times.- In cases where there is a deficit, credit will be used from the management bank and this deficit will be closed. Likewise, in cases of excess, the loans used from the relevant bank will be closed.- There is 35000 cash in the company account as of 30.04.2021. In addition, the company owes 75000 loans to the management bank as of the same date. When the cash budget of the enterprise for the period of May-August 2021 is prepared, what is the "cumulative loan" balance for August 2021?
The following details are found in the incomplete bank reconciliation statement of Phillip Company for the month ended September 30, 2021: Notes payable charged by the bank- 150,000 Service Charge- 35,000 Deposits in Transit- 250,000 Outstanding Checks- 350,000 Balance per bank statement- 325,000 Deposit erroneously recorded by Phillip as 37,500 instead of 57,800 What is the reconciled cash to be reported by Phillip Company?
Best Exports has noticed their current year net income is only $60,000. In order to get a loan from their bank to assist the business they will need to provide a statement of cash flows. In reviewing the statement of cash flows, you notice a large increase ($80,000) in accounts receivable due to two of your largest customers being behind in payments. Since the bank looks at the operating activities, this increase will create concern. You make a suggestion to reclassify the accounts receivables to long-term, thus removing them from current assets will increase the net cash from operations. Under what circumstances would this reclassification be considered ethical or unethical? Support your selection by finding an article which explains your choice.
Beleaguered State Bank (BSB) holds $200,000,000 in deposits and maintains a reserve ratio of 10%, which also is the reserve requirement. On paper, write the T account for BSB and use it to answer the rest of this question. Now suppose that BSB's largest depositor withdraws $10,000,000 from her account one day. On paper, show the effect of this on the T account. How many dollars of cash reserves does BSB need to raise to be allowed to open for business the next morning?
The cash account in Cake Company's ledger on December 31, 2023 showed a balance of P5,250,000 which included the following: Petty cash fund-P50,000 Undeposited receipts, including a postdated customer check of P100,000-P1,400,000 Cash in bank-P1,300,000 Cash in sinking fund-P500,000 Vouchers paid out of collections, not yet recorded-P250,000 IOUS signed by employees-P150,000 What total amount should be reported as cash in the December 31, 2023 statement of financial position?
Epsilon Corporation has unadjusted cash in bank balances of P1,000,000 and P900,000 at the beginning and end of the month, respectively. Book debits totaled P1,800,000. An analysis with recent bank statements showed deposits in transit of P350,000 at the start of the month, deposits in transit of P220,000 at the end of the month, outstanding checks of P80,000 at the beginning of the month, and outstanding checks of P70,000 at the end of the month. Credit memos were P200,000 last month while it is P50,000 for this month. Bank service charge totaled P30,000 last month. A P120,000 customer check deposited this month was returned by the bank due to insufficient fund. How much is the unadjusted total bank credit for the month?

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