For the past year, LP Gas, Inc. had cash flow from assets of $38,100 of which $21,500 flowed to the firm's stockholders. The interest paid was $2,300. What is the amount of the net new borrowing? a. -$14,300 b. -$9,700 c. $12,300 d. $14,300 e. $18,900
Q: On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of…
A: When bonds are issued, they are either sold at face value, a premium, or a discount, depending on…
Q: Explain
A: Explanation of Guides Preparation of Financial Statements: The conceptual framework provides a clear…
Q: Please provide answer this accounting question do fast and step by step calculation
A: Step 1: Define High Low MethodThe High-low method is used to break the mixed cost into its…
Q: Provide me answer
A: Explanation of Beginning Inventory: Beginning inventory refers to the units of product that were…
Q: Please Provide Answer
A: The cash flows to creditors represent the net payments to creditors during the years. It is computed…
Q: Dsnfy is a single taxpayer. She has 29,000 student loan, she paid 308 rach month with 121 of that…
A: Steps to calculate the deduction:Total interest paid: Danfy paid $1,452 in student loan interest for…
Q: Alvarado Company had the following common stock balances and transactions during the current year:…
A: Step 1: January 1 to February 28 (59 days):60,000 shares outstandingStep 2: March 1 to April 30 (60…
Q: Accounting Problem 2.5
A: Explanation of Face Value:Face Value, also known as par value, is the principal amount of a bond…
Q: Windsor Corporation recorded a right-of-use asset for $240,300 as a result of a finance lease on…
A: Explanation: In the given case, there was a finance lease of $240,300 on Dec 31, 2024 due to which…
Q: Answer this problem
A: Explanation of Overhead Costs: Overhead costs are all manufacturing costs except direct materials…
Q: 65
A: Explanation of Cost of Goods Manufactured (COGM):COGM refers to the total production costs incurred…
Q: Ivanhoe Corp. sold property in exchange for a six-year note that has a maturity value of $34,615 and…
A: Here's a detailed explanation for each part of the journal entry:Notes Receivable (Debit):Amount:…
Q: Need answer
A: Step 1: Define Accepting Special OrderIn accepting special orders, the company must consider if…
Q: Financial Accounting
A: Step 1: Define InventoryInventory is described as one of the company's current assets. It is a…
Q: Solve this accounting question
A: 1.PV of loan = PMT × [1 - (1 + r)-n]/rWhere:Present value (PV) = ?Periodic payment (PMT) =…
Q: ha.5
A: Step 1:In the periodic Inventory method inventory account is not updated at each purchase or sale…
Q: Balance required in allowance for expected credit losses account
A: Explanation: The balance required in allowance for expected credit losses account can be calculated…
Q: Need answer
A: Step 1: Define Manufacturing CostManufacturing Cost includes all the costs used in making a product.…
Q: ווח M Question 11 - Week 11 - Homework #7 (100 points) - Connect Week 11 - Homework #7 (100 points)…
A: Step 1: Days covered December 27, 2024 to December 31, 2024 = 5 days5 days out of 14 days Step 2:…
Q: Give answer the accounting question
A: Step 1:- Introduction to the P/E RatioThe P/E ratio is one of the most important ratios used for…
Q: nkt
A: Step 1: Calculate Total IncomeThe Comers' income includes salaries and capital gains/losses.Salary…
Q: n
A: The fee charged on the income earned by a business or individual is known as income tax. Net income…
Q: for both answer want
A: Given data, The inventory value at the beginning of 2013 = $110,000.The amount of inventory…
Q: Prblm
A: Explanation of Land Account: The land account in a company's balance sheet represents the cost of…
Q: Crane Sawmill Co. runs rough logs through its cutting facility for the primary purpose of producing…
A: Step 1: Calculate total revenue for each product type at split-offHardwood Lumber = 94,000 board…
Q: Presented below is information from Crane Computers Incorporated. July 1 Sold $14,800 of computers…
A: Step 1: July 1: Sale to Cheyenne CompanyCrane sold $14,800 of computers to Cheyenne Company with…
Q: Sub: Accounting Required: correct answer
A: Explanation of Net Profit Margin: The net profit margin measures a company's profitability relative…
Q: Ash Merchandising Company expects to purchase $86,000 of materials in July and $118,000 of materials…
A: Explanation of Materials Purchases: Materials purchases refer to the acquisition of raw materials or…
Q: Give true answer the accounting question
A: Step 1:- Introduction to the Variable CostingUnder variable costing, the fixed manufacturing…
Q: Need help with this accounting question
A: Step 1: Define Price-Earnings RatioPrice-earnings ratio, commonly known as the P/E ratio, is a…
Q: General
A: Now, calculate the EOQ:EOQ=102×1200×100EOQ=10240000EOQ=24000EOQ≈154.92So, the Economic Order…
Q: Give answer to me
A: Working capital is the difference between a company's current assets and current liabilities. It is…
Q: Hello tutor please need answer this accounting question
A: Step 1: Define AssetAn asset is a type of wealth or capital possessed or bought by a person or…
Q: Please correct and fillout what needs to be completed for this problem
A: Step 1:The balance sheet of Carlton Soup Company is prepared as follows: Formula table: Result of…
Q: Need Solution
A: To answer this question, let's go through each option to see which one best describes gains on the…
Q: I need do fast typing clear urjent no chatgpt used i will give 5 upvotes pls full explain with…
A: Step 1: Step 2:Newton's 2nd law of motion states thatM=Iαwhere : I is the moment of inertia of the…
Q: Right Answer only
A: Explanation of Lower of Cost or Net Realizable Value (LCNRV): LCNRV is a fundamental accounting rule…
Q: On July 1, 2023, Shamrock Inc. made two sales:1It sold excess land in exchange for a four-year,…
A: 1. First Sale - Land for 4-year non-interest-bearing note:- Face amount: $1,079,350- Present value…
Q: Ocf
A: Explanation of Net Income: Net income is the total revenue minus the total expenses of a company for…
Q: Solve these general accounting question
A: Step 1: Define Cost, Profit and RevenueThe cost of any product is the money spent in producing the…
Q: Use the high-low method to develop a cost-estimating equation for total manufacturing costs driven…
A: Here's a step-by-step outline to solve for the cost-estimating equation Y=b+mX, where:Y represents…
Q: Concord Company lends Ivanhoe Company $10700 on April 1, accepting a four-month, 12% interest note.…
A: Step 1: Calculate the total interest revenue to be earned for 4 months.= principal x interest rate x…
Q: Business 123 Introduction to InvestmentsMay an expert please find at least 5 domestic stock mutual…
A: I looked for domestic stock mutual funds with a solid track record in large-cap and growth-oriented…
Q: None
A: Given Information:Investment at the beginning (January 1): 44,000 randNet income throughout the…
Q: Surveys of employee satisfaction is a potential measure of the Select one: a.Customer…
A: Explanation of the AnswerEmployee satisfaction surveys are a measure of the Learning and Growth…
Q: solve this problems
A: ExplanationStep 1: Define gross profit rate:The gross profit rate (or gross profit margin) is the…
Q: Financial Accounting 3.7
A: Explanation of Deferred Tax Liability: A deferred tax liability represents future tax payments that…
Q: Question 5 Melissa has $90,000 in salary from her full-time position and $40,000 in net income in…
A: Melissa's self-employment income = $40,000 net income from consulting. full-time salary of $90,000…
Q: Blank
A: Explanation of Accounting Performance: Accounting performance refers to the measurement of a…
Q: unc
A: Approach to solving the question: The following items are the costs applicable to be capitalized in…
For the past year, LP Gas, Inc.
Step by step
Solved in 2 steps
- Bank A has the following balance sheet: A ssets Reserves $50 million Liabilities Deposits $200 million Bank capital 850 million Securities $50 million Loans $150 million Bank B has the following balance sheet: A ssets Liabilities Deposits $225 million Bank capital $25 million Reserves $50 million Securities $50 million Loans $150 million 1. Both banks earn 85 million as an annual after-tax profit. Calculate ROA (return on asset) and ROE (return on equity) for both banks.14. Suppose that you have generated the estimates listed below from a pro forma analysis for a company that had requested a three year loan. The loan is a $1.5 million term loan with the equal annual payments of principals. The P&I payments are due at the end of each year with the annual interest rate = Prime rate + 1.5%. Capital expenditure Cash dividends Cash flow from operations before interest expense a). b). c). Yr.1 250,000 140,000 750,000 Assuming the Prime rate = 7.5% each year. What will be the interest payment at year 3? 25,000 50,000 45,000 53,000 10,000 Yr. 2 125,000 140,000 780,000 Yr. 3 75,000 140,000 800,000The clean Bank has the following assets and liabilities as of year-end.All asset and liability item have face value of $1,000 and are priced at par.And interests and coupons are paid annually for all asset and liability items. Assets Amount($millions) Annual Rate Liabiltiies and Equity Amount($millions) Annual Rate 5-year loans 40 40% 3-year term deposit 20 4% 5-year coupon bonds 60 8% 5-year term deposit 30 8% Equity 50 Total 100 100 Please calulate the Clean Bank's maturity gap.What does the maturity gap imply about the interest risk of the bank?Will you view on the interest risk of the bank be different under duration model?Explain carefully..
- Assume the following facts about a firm that borrows by pledging its receivables Average balance of accounts receivable. Annual receivables turnover. Administrative fee charged on all new receivables. Interest rate on outstanding loans Percent of receivables accepted $60,000 6x 1.25% 15% 80% What is the effective cost of financing stated as an annual rate? Batangas Company estimates its total cash outlays at $160 million during the coming year. The company normally spends $30 to transfer cash from marketable securities to cash in bank and vice versa. The marketable securities portfolio currently earns 4% annual rate of return. Requirements: 1. Optimal transaction size. 2. Average cash balance. 3. Total annual cost of cash if the company adopts the optimal transaction size. 4. Minimum and maximum cash balances. 5. Assume that the company has to keep $100,000 balance in the bank as safety cash. Repeat your solution for the first four requirements.Suppose that you have generated the estimates listed below from a pro forma analysis for a company that had requested a three year loan. The loan is a $1.5 million term loan with the equal annual payments of principals. The P&I payments are due at the end of each year with the annual interest rate = Prime rate + 1.5%. Yr.1 Yr. 2 Yr. 3 Capital expenditure 250,000 125,000 75,000 Cash dividends 140,000 140,000 140,000 Cash flow from operations before interest expense 750,000 780,000 800,000 Assuming the Prime rate = 7.5% each year. What will be the interest payment at year 3? a). 25,000 b). 50,000 c). 45,000 d). 53,000 e). 10,000A firm paid interest of $40 this year. Last year, they had $500 in debt. This year, they had $300 in debt. What was their CF to creditors? Hint: CF to creditors = interest paid - net borrowing Net borrowing = debt this year - debt last year
- A corporation deposits $20 million in a money market account for 1 year. What will be the difference in the total amount accumulated at the end of the year at 18% per year compounded monthly versus 18% per year simple interest?Suppose the Schoof Company has this book value balance sheet: $30,000,000 Current assets Fixed assets Total assets Short-term debt Long-term debt Common equity Total capital $ 70,000,000 $ $100,000,000 Current liabilities Notes payable The notes payable are to banks, and the interest rate on this debt is 9%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon nterest rate of 7%, and a 25-year maturity. The going rate of interest on new long-term debt, rd, is 12%, and this s the present yield to maturity on the bonds. The common stock sells at a price of $60 per share. Calculate the firm's market value capital structure. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Long-term debt Common stock (1…A bank has DA = 2.4 years and DL= 0.9 years. The bank has total equity of $82 million and total assets of $850 million. Interest rates are at 6 percent. If interest rates increase 1%, the predicted dollar change in equity value will equal $10,171,698 -$10,171,698 O $12,724,528 -$12,724,528 $4,928,756
- A company takes a loan of $ 1,200,000 to a bank amortizable in 4 with an interest of 15% per year under the following conditions; The years and company will amortize the debt in constant values in all periods, with a three-year grace period. Determine the benefits that the company must pay for its debt. Build the cash flow diagram.A series of cash flows are established on an account as listed below. Payment of P5,854 at the end of the 3rd, 5th, 7th and 8th year at an interest rate of 8.95%compounded monthly . Withdrawal of P4,736 at the end of 5th, and 8th year at an interest rate of 8.36% compounded semi-annually. What is the net present worth of all the obligations) A bank loaned out $61,000, part of it at the rate of 11% per far and the rest at a rate of 5% per year. If the interest received was $4790, how much was loaned at 11%?
