I invest $10,000 in a new company. The company then gets a bank loan for $5,000. The company then buys a machine for $3,000 and inventory for $2,000. Create a balance sheet for the company.
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I invest $10,000 in a new company. The company then gets a bank loan for $5,000. The company then buys a machine for $3,000 and inventory for $2,000. Create a
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- How to solve a problem when they give you the liability amount $120000 and the equity $232k and they ask to fund the total assets?AS an accountant at City Bank in Boston, Ken, the Loan Officer called you for some help on a loan application that he is working on. One of his customers is looking for a $50,000 loan for a car. He is offering him a 7% 5 year $50,000 loan and asking you to help him calculate the installment amount. This is the data Ken sent you: Face Amount of Loan $50,000 Contract Rate… 7% Term of the Loan….. 5 yearsA bridge was damaged by an earthquake. Asclepius Inc. was contracted by the government to repair the bridge. Asclepius Inc. needs P1,650,000 for 30 days to pay wages and buy supplies. A bank lends them the funds at an 8% rate. How much cash is needed to repay the bank after 30 days? Use a 360-day уear:
- ENGINEERING ECONOMY UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY. Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND. Begins the solutions by writing the equations/formulas. Use 2 decimal places and Box the final answer. The father of a Junior High School Student wants to make sure that his son will be able to enroll and finish an engineering course after high school. To secure the future of his son, he plans to make deposits of P50,000 in a bank account every quarter for 5 years. The deposits will be made at the start of the periods. How much money can his son withdraw by the end of the 6th year if the money earns an interest of 10% compounded semi-annually?Your personal banker added a clause in the contract. To be entitle for the loan, the business should yield a positive NPV. To set up the business, you will be required to purchase an equipment costing Rs 60,000.00. You expect inventory will increase by Rs 18,000.00 and accounts payable will increase by Rs5000.00. All the other working capital components will stay the same. So the change in net operating working capital is Rs 13,000.00 at t=0. You expect to keep the company for 4 years and you expect to sell 20,000.00 units of peanut butter at a unit price of Rs35.00 and believe that both prices and quantity will remain the same. The fixed cost is Rs 7,000 every year and variable costs will be Rs1.03 per unit. You plan to use the straight- line depreciation and the equipment will be fully depreciated after 4 years. The salvage value is Rs24, 000 and tax rate is 23% 1. What are the incremental cash flows for the 4 years 2. If the WACC is 11%, will you get the loan?You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's clothing. The company needs to borrow $1,500,000 for 90 days in order to purchase a large quantity of material at "closeout" prices. The interest rate for such loans at your bank, Rimrock Bank, is 15% using ordinary interest. (a) What is the amount (in $) of interest on this loan? (b) After making a few "shopping" calls, you find that Southside National Bank will lend at 15% using exact interest. What is the amount (in $) of interest on this offer? (Round your answer to two decimal places.) (c) So that it can keep your business, Rimrock Bank has offered a loan at 14.5% using ordinary interest. What is the amount (in $) of interest on this offer? (d) (Challenge) If Southside National wants to compete with Rimrock's last offer (part c) by charging $1,375 less interest, what rate (as a %), rounded to the nearest hundredths of a percent, must it quote using exact interest?
- You have just been employed as an investment analyst in an investment bank. You took over from someone who left with a number of issues that need answers. The issues are itemized below: a) A client just deposited ¢7,000,000 in one of your investment funds which is currently earning 10% return. The bank has advised the client to deposit an additional ¢4,000,000 at the end of each of the next three years. The client would like to know how much the total amount in this investment will be in three years’ time. b) A client has been offered an investment product which requires that he pays ¢200,000 in one year, ¢400,000 the next year, ¢600,000 the year after, and ¢800,000 at the end of the following year. The client could have earned 12% on similar investments being offered on the market but has decided to take your firm’s offer. How much is this investment worth today assuming the client proceeds to invest? c) Kassim has just been offered a job at ¢600,000 a year. He anticipates his salary…A new company is being established to manufacture and sell an electronic tracking device: the Trackit. The owners are excited about the future profits that the business will generate. They have forecast that sales will grow to 2,600 Trackits per month within five months and will be at that level for the remainder of the first year. The owners will invest a total of $250,000 in cash on the first day of operations (that is the first day of July). They will also transfer non-current assets into the company.Extracts from the company’s business plan are shown below.SalesThe forecast sales for the first five months are: Month Trackits (units) July 1,000 August 1,500 September 2,000 October 2,400 November 2,600 The selling price has been set at $140 per Trackit. Sales receiptsSales will be mainly through large retail outlets. The pattern for the receipt of payment is expected to be as follows: Time of payment % of sales value Immediately 15* One month later 25 Two…Please show all work and explain each step. DO NOT use Excel.
- PLEASE ANSWER IT IMMEDIATELY. I NEED THE ANSWER NOW A businessman invested P50,000 in a company that engages in the manufacture of hollow blocks. In return, he receives 3,000 per year for 5 years. Compute the rate of return on investment.THE INFORMATION FOR PROBLEMS 17-20 ARE THE SAME. HOWEVER, EACH QUESTIONS ASKS YOU TO DO SOMETIHNG ELSE WITH THE INFORMATION. Today is December 31, 2018. Today, we started the Hilo Tourism Company. To start the business, the owners have invested $25,000 into the business from their own pocket. In addition, the company borrowed $15,000 at a 10 percent simple interest rate. Thus, the company has $40,000 to work with. The company will use $10,000 of this money for operating cash. The company will use the remaining money to purchase a tourism van for $30,000 on December 31st. The company will pay interest only on the loan. The Hilo Tourism Company will contract our services to Royal Cruise Line who has agreed to pay us $160,000 in the year 2019 for providing tours to high-class customers from the Hilo dock to the Volcano. All sales are cash sales. Hilo Tourism Company will have the following expenses in the year 2019. The van will wear out by $5,000 per year. Insurance will cost $12,000 per…
