Answered: How much is the maximum level of new…

Business

Accounting

How much is the maximum level of new short term loans it can secure without violating the policy?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: ,. Calculate the one-month liquidity index using the previous information

A: total reserves and loans = (20+20+35) = 75 million

Q: A loan is to be repaid with n level payments of X, where n> 5. The amount of interest in the 1st,…

A: Let the principal in payment 1, 3 and 5 be P1, P3 and P5. Since, the principal repaid, X-interest,…

Q: 7 - What is the total amount of money to be repaid at the end of 10 years for a loan of 200 000 lira…

A: In this question we need to compute the Future value of the loan taken today worth 200000 lira

Q: MHM Bank currently has $650 million in transaction deposits on its balance sheet. The current…

A: The federal reserve is the reserve maintained by the central bank and the monetary authority of the…

Q: A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following…

A: Net income = $2,000,000 CET1 = 7% Tier 1 = 7.50% Tier 1+2 = 9%

Q: Your friend borrows PKR 190,000 and promises to repay Rs. 350,000. If you want at least a 12% return…

A: PV = PKR 190,000 FV= PKR 350,000 R= 12%

Q: What is the total interest / dividend amount to be repaid at the end of 1 year for a loan of 200 000…

A: simple interest formula: interest = principal×rate×time

Q: Question A DI has the following assets in its portfolio: $30 million in T-bills, and $50 million in…

A: Liquidity refers to how easily it is possible to convert assets into money. Assets such as stocks…

Q: on five-year loan: Company A Company B Fixed Rate 5.0% 6.4% Floating Rate LIBOR+0.1% LIBOR+0.6% pany…

A: SWAP is an instrument which allows an individual to switch the interest rate applicable with another…

Q: Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates…

A: By rearranging a FV formula, we can determine the implied interest rate. FV formula is as below:…

Q: On January 1, 20X9, Fast Bank made a P2,000,000, 8% loan. The P160,00O interest is receivable at the…

A: Given: Carrying value of Loan=$2,000,000Rate of loan =8%Interest receivable every year =$160,000PV…

Q: 3) Suppose that on January 1, 2019 a bank lends $20,000 to a person. The bank and the individual…

A: The nominal interest rate and the real interest rate are important elements to determine the cost of…

Q: Directions: Review the following scenario and answer the question that follows: Scenario: Date of…

A: Shared Appreciation Due (SAD) is a financial arrangement between borrowers and lenders, commonly…

Q: Q1 (a) OCBC Bank is offering an interest rate of 7% per annum for fixed deposit account holder. The…

A: Many Thanks for the Question “Since you have asked multiple question, we will solve the first…

Q: 17. Moving from a Fixed-Rate loan to an Adjustable Rate loan transfers interest rate exposure from…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: On different dates as listed below, Mr. Bening purchased common stock of ABC Corporation. On May 31,…

A: Total number of shares of stock dividend = (400+300+200+100) x 50% = 500 shares Cost of stock…

Q: Company Z borrows EUR 1 million from the Bank at an annual interest rate of 3,5% for one year. The…

A: Tax shield Interest on the borrowed amount is a tax deductible item. So, it provides savings in the…

Q: What is the total amount of money to be paid back at the end of 3 years for a loan of 200 000 lira…

A: Using excel FV function

Q: Q3: An interest rate equal to 7% compounded annually: (a) If $20,000 is borrowed for 5 years what…

A: Given information: Amount borrowed : $20,000 Time : 5 years Rate of interest : 7%

Q: A tech company has decided that this is the time to retire some of its debt. The company has decided…

A: The question is based on the concept of retirement of debt. A Company reduces its debt burden by the…

Q: 5. A debt of $250,000 is to be repaid after 5 years. If the interest is charged at 5% compounded…

A: Debt repayment involves the process of returning borrowed money, typically with interest, to the…

Q: Q3: Which one of the following two cases would you prefer as more profitable investment and why?…

Q: Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate…

A: Compensating loan is a provision that the bank asks the loan taker to maintain as a security when…

Q: 1. Equal end-of-year payments of P2,638 each are being made on a P10,000 loan at 10% effective…

A: The solutions for the first four questions are provided. Please post the remaining questions…

Q: What is the total amount of money to be paid back at the end of 3 years for the loan of 175 000 lira…

A: Using excel FV function

Q: Assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for…

A: Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: What is the total interest/profit share amount to be repaid at the end of 7 years for a loan of…

A: In finance, the term loan shows an amount borrowed by one person from another to support the…

Q: NOTES The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man…

A: Using excel PMT function to calculate each payment

Q: Suppose that a capital of £2700 earns £400 of interest in a bank account over 4 years. en that…

A: Simple interest rate is a way to calculate the interest on a loan or investment that doesn't take…

Q: A 1 Rosey's Roses 2 3 4 5 6 7 8 9 B C D E F G H J K L Rosey's Roses is considering several…

A: To compute the loan and bond analysis in Excel:Loan Amortization Schedule:Enter the loan amount in…

Q: Bank A $235,000 20-year fixed 4.375% Bank B $235,000 20-year fixed 4.7% 1.75 discount points 0…

A: Given: Bank A: Loan amount=$2,35,000,period=20 years,interest rate=4.375%,discount…

Q: A bank gives Mr. Aldama the amount $1,255,000.00 for a loan for one year, three months and fifteen…

A: Amount = m = $1,255,000Time = t = 1 year, 3 months and 15 days = 1 + (3 / 12) + (15 / 365) = 1 +…

Q: A company pledged its entire accounts receivable amounting to P2,500,000 to a financing institution…

A: Pledged accounts refer to those accounts or assets against which a business organization borrow a…

Q: DOLLARS (PV) 20000 15000+ 10000+ 5000+ B 0 t + + 0 1 2 3 4 5 6 7 8 9 10 TIME (periods) Line A…

A: Simple Interest: In the simple interest method, interest is calculated solely based on the initial…

Q: loan from Bank B. What is the amount of loan to be paid back to Bank A? Prepare a bank amortization…

A: Simple interest is defined as Interest that is calculated as a simple percentage of the original…

Q: B. Investment. An investor has at most $100,000 to invest in government bonds, mutual funds, and…

A: As per the given information: Amount to be invested - $100,000 Average yield for government bonds -…

Q: A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due…

A: We need to use the concept of time value of money here. We will first have to find the amount at the…

Q: A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following…

A: Dividends:Dividends are a crucial aspect of investing, as they provide shareholders with a steady…

Q: An institutional lender is willing to make a loan for $1 million on an office building at a 6…

A: Future value The value of today's money on a future date at a given interest rate is known as the…

Q: Companies A and B have been offered the following rates per annum on a $50 million five-year loan:…

A: SWAP is an instrument which allows an individual to switch the interest rate applicable with another…

Q: c.) Bank A has three types of assets: Debenture ($90,000), Mortgage ($75,000), and Loan to the…

A: The objective of the question is to calculate the Capital Adequacy Ratio (CAR) for Bank A and…

Q: Assets Reserves Desired Excess Loans Securities Total Assets ($000s) 40,000 11,200 300,000 60,000…

A: The balance sheet refers to the part of the financial statement who is summarizing the assets,…

Q: The employee credit union at State University is planning the allocation of funds for the coming…

A: Loan:A loan serves as a financial arrangement wherein a lender extends a specified amount of money…

Question

It is the policy of the corporation to maintain current ratio of 1.5 to 1.0. Its current liabilities are 400,000 and present current ratio is 2 to 1. How much is the maximum level of new short term loans it can secure without violating the policy?

a• 400,000

b• 533,333

c• 200,000

d• 300,000

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

H1.
Question 4.2: Bank Meethaq had agreed to contribute OR 5,000,000as monetary capital based on a five-year mudharabah financing contract (Mudharabah Mugayaddah) at the profit sharing ratio of 3:1 between the Bank (Rab al-Mal) and Al-Noor Corporation (Mudharib) respectively. Assume the following results of the venture: Year Profit / (Loss) 1 (500,000) (400,000) 350,000 3 4 500,000 620,000 -570,000 to Required: Prepare the necessary journal entries to recognize asset and profit/loss of the above transactions, and show how profit/loss will be allocated between the Bank, and the mudharib will appear in the respective income statements from the first to fifth year, if the profit of mudharabah is determined at the end of: • Each period • The contract 4.5
40 - What is the total amount of interest/profit share that must be paid back at the end of 7 years for a loan of 190 000 TL drawn from the bank for housing needs with a compound interest of 15% per year?A) 316 801B) 314 704C) 315 404D) 313 305E) 317 020
8 - What is the total amount of money to be repaid at the end of 10 years for the loan of 175 000 lira withdrawn from the bank for housing need with an annual compound interest of 15%?A) 708 656B) 708 214C) 706 025D) 705 158E) 707 973
5. A bank deposit of P12,045 two years ago has an actual amount now of P14,049.28 but its calculated real value is onlyP12,136.30. What is the effective interest rate earned by the deposit? Select the correct response: O 7.59% O 8.00% O 0.758% O 0.378%
Use formula to solve this problem (No Excel Please)
16 - What is the total interest / dividend amount to be repaid at the end of 10 years for a loan of 190 000 lira withdrawn from the bank for housing needs with an annual compound interest of 15%?A) 578 656B) 583 025C) 568 656D) 581 214E) 582 158
19 - What is the total interest / dividend amount to be repaid at the end of 6 years for the loan of 160 000 lira withdrawn from the bank for housing needs with an annual 15% simple interest?A) 305 000B) 305 500C) 303 000D) 304 000E) 306 000
Bank 3 Liabilities (millions) 9. 17 Assets (millions) Maturities 1 day +1 day-3mos +3 mos-6 mos +6 mos-12 mos +l year- 5 years 6. 11 10 43 15 52 90 11 Use the Repricing Model. If interest rates rise by 56 basis points for assets and 142 basis points for liabilities over the next year, then how will impact the interest income of Bank 3 over the next year? O Bank 3 will experience a loss of $1,483,000 O Bank 3 will experience a gain of $679,400 Bank 3 will experience a loss of $679,400 Bank 3 will experience a gain of $1,953,400
Number of Loans Principal 50 100 50 100,000 250,000 300,000 Rate 4.25% 5% Maturity 360 180 360 If these 200 loans are pooled to create a MPT, what is the starting pool balance in dollars? Assume the loans are not seasoned before securitization.
Question 1: Part A. The current 10 year treasury note is approaching the important threshold of: a) 2.75% b) 2.95% c) 3.25% d) 2.0% Part B. In a real estate investment, you may want to obtain a mortgage. In so doing, which year would you expect to see the highest amount of principal pay-down (in a payment mix of principal and interest)? a) year 15 b) year 20 c) year 10 d) year 25Part C. In a Fast Market, you would rather sell a stock using a: a) Market Order b) Market On Close Order c) Limit Order d) Market On Open OrderPart D. Given that equity markets are asymmetric in their respective moves, markets are said to take________________________ a) the slow grind higher into perpetuity b) the stairs down and the elevator up c) the stairs up and your mom home d) the stairs up and the elevator down Part E. It is said that traders have come to employ the use of technical analysis potentially for all of the following reasons except:…
33 - What is the total amount of money to be paid back at the end of 10 years for a loan of 175,000 TL drawn from the bank for housing needs with a compound interest of 15% per year?A) 706 025B) 708 214C) 708 656D) 707 973E) 705 158