ISD loan. pac quote
Q: Why officers and employees of the cooperative development Authority are disqualified from being…
A: In this question, we will explain that Why officers and employees of the cooperative development…
Q: Prepare bank Reconciliation statement
A: Answer:
Q: Cash balance per bank $4,500 Outstanding checks $200 Deposits in transit $1,000 Credit memo for…
A: Introduction: Bank reconciliation statement: To reconcile the difference between cash and pass book…
Q: 1. What is the Income before Taxes and Interest? 2. What is the room expense? 3. What is the Room…
A: In accounting, Earnings before interest and tax (EBIT) is the company's net profit margin that…
Q: 10. The following information is for Grimsley Electrical Supplies Inc. payroll for the week ending…
A: Payroll Payroll is considered to be important in the business which can be timely payment is…
Q: Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales…
A: Cost of good available for sale is equal to cost of beginning inventory and total cost of purchases…
Q: Calculate the goodwill /gain on bargain purchase, show your workings. Prepare the journal entries in…
A: Answer:
Q: Prior to 23 October 2027, the share capital account of Fallout Ltd had a balance of $50,000. This…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: What is the production budgeted for the third quarter? Company policy is to have a finished goods…
A: A budget is a statement prepared by the companies, government, and individuals by making an estimate…
Q: Prepare the journal entry for the following transactions (1) Geysler Company sold some old equipment…
A:
Q: On January 1, 20Y6, the controller of Omicron Inc. is planning capital expenditures for the years…
A: A capital expenditure budget is a written plan that details the costs and timing of a company's…
Q: On June 3, 2022, CV. Do Fashion consigned 80 clothes, costingRp500,000 each, to PT. Matabulan Tbk.…
A: Consignment means where the goods has been sent to other person called as consignee , to be sold on…
Q: QUESTION 1 •COGS = $390,000 *GM = 60% •Store size: 20 ft x 25 ft. •2,500 transactions •5,000 units…
A: The correct answer for the above mentioned questions is given in the following steps for your…
Q: Which is true about using a note with stated interest rate vs. a note without stated interest rate…
A:
Q: Common sized balance sheets the following end of the year balance sheets in millions were adapted
A: The balance sheet is given as,
Q: Shaw Incorporated began this period with a budget for 1,000 units of predicted production. The…
A: Controllable variance = Actual total overhead - Standard overhead Volume variance = Budgeted…
Q: On January 1, 20X1, Wooden Company issued 16,000 shares of $2 par value common stock for $120,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: The Corton Company uses a periodic inventory system. For the month of October, the beginning…
A: The question is based on the concept of Cost Accounting.
Q: Last year, YG had P250,000,000 of sales and P100,000,000 of fixed assets, so its FA/Sales ratio was…
A: Sales Revenue: The amount which a company gets from the sale of disposals of their manufactured…
Q: 5. Ericson bought a new motorcycle worth P1.220 million. What is the estimated scrap value of the…
A: Depreciation is the fall in the value of a tangible asset over time due to normal wear and tear,…
Q: Harry is divorced with net income for tax purposes of $50,000. His 21 year old dependent daughter,…
A: In this question, we will calculate Harry’s medical expenses tax credit for 2021, we have to choose…
Q: Age Interval Est. Percentage Uncollectible Balance Not due $63,000 2% 1-30 days past due 7,100 31-60…
A: Formula: Estimated uncollectible amount = Balance amount x Estimated percentage Uncollectible
Q: Skysong Company established a petty cash fund on May 1 for $100. The company reimbursed the fund on…
A: On establishment of petty cash fund the cash will go to petty cash fund.
Q: Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Method The following…
A: The question is based on the concept of Financial Accounting.
Q: Accounts payable S 1,200 Miscellaneous expense S 480 Accounts receivable 12,340 Office expense 440…
A: Formula: Net income = Revenues - Expenses
Q: April Issued 5,000 share of Common Stock, $2 par for $17 per share. Record the journal entry.
A: Journal entries are used to keep track of the financial transactions. To generate a journal entry,…
Q: Chan Company received a bill totaling $3,700 for machine parts used in maintaining factory…
A: Note: Journal entry means recording of financial transactions in an accounting journal that shows a…
Q: Required c. Calculate the ROI for Bowman. d. Franklin has a desired ROI of 13 percent. Headquarters…
A: In accounting, a ratio is used to determine the company's profitability from their business and help…
Q: Muscat company purchased office supplies costing OMR2,000 and debited Office Supplies for the full…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. It is…
Q: Kenley wants to open a 100-room hotel. twill cost $8.500,000 to open the property. Sh can come up…
A:
Q: Cash balance per bank $4,500 Outstanding checks $200 Deposits in transit $1,000 Credit memo for…
A: Adjusted cash balance = cash balance as per bank statement + Deposit in transit - Outstanding checks…
Q: Inc. has developed a balanced scorecard with the following performance metrics:• Total sales•…
A: A balanced scorecard seems to be a strategic management evaluation statistic that assists businesses…
Q: Christian Company has budgeted sales of its popular boomerang for the next four months as follows:…
A: A production budget seems to be a budgetary plan that specifies the number of units that will be…
Q: John's Tree Service depreciation for the month is $500. The adjusting journal entry is: O A.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Marvel Dental Services is part of an HMO that operates in a large metropolitan area. Currently,…
A: Cost accounting refers to the managerial accounting that primarily focuses on the data regarding the…
Q: Question 15 Companies can set transfer prices to shift profits between the buyer and seller…
A: Transfer Price is the price charged by the transferor department to transferee department. It is…
Q: Ali Mamat Enterprise Trial Balance as at 31 December 2019 Particulars Sales Purchases Salaries Motor…
A: Formula: Net income = Total Revenues - Total Expenses
Q: Quick BQtio lor all Years Yeath As Reported Annual Balance Sheet Report Date Scale 2019 2017…
A: Formula: Quick ratio = Quick Assets / current liabilities.
Q: ILLUSTRATION 2: N Stock of Finished Goods January 1st 12,660 December 31st 17,845 Stock of Raw…
A: The trading and P&L Account is a part of the final account that determines the gross and net…
Q: The following selected transactions were completed by Air Systems Company during January of the…
A: Journal is the book of original entry in which all the transactions of the business are recorded…
Q: Discuss three general provisions of the Sarbanes-Oxley Act.
A: Sarbanes-Oxley Act (SOX) is a legal framework that requires corporate chiefs to ensure the precision…
Q: approve a loan that has a total monthly mortgage payment of principal, intere E Click the icon to…
A: Adjusted income is that which is gross income that gets subtracted from adjusted income.
Q: 6. LABAN LANG Company adds materials at the beginning of the process in the AAA Department, which is…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0%…
A: Installment Notes is an Financial instrument which is used to borrow money from financial…
Q: imited company. What id s downside of incorporation in these circumstances? Perpetual succession. A…
A: A partnership is a legal process for two or more organizations to control and run a business and…
Q: Determine the monthly principal and interest payment for a 20-year mortgage when the amount fr the…
A: In this question we have to calculate the monthly interest and principal payment. Compound interest:…
Q: The responsible use and protection of the natural environment is known as O a) Environmental Rights…
A: Environmental protection seems to be the activity of people, organizations, and governments…
Q: At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three…
A: given Current period labor cost = Total labor cost - Direct labor cost incurred in earlier month
Q: Direction: Use given the ratio compute the Financial Ratio Analysis. The comparative statement of…
A: Financial ratios are the formulas used by the management to make it easy to understand the financial…
Q: How does an investment appraisal technique help companies move in the right direction regarding an…
A: Investment evaluation is significant for brokers since it is a type of principal examination and,…
Hi can you please explain how to get this answer. Thank you.
Step by step
Solved in 2 steps
- Assume that Riverside Corp. from the United States will receive 400,000 pounds in 180 days. The following information is available in current and forward markets: 180‑day U.S. interest rate = 8% 180‑day British interest rate = 9% 180‑day forward rate of British pound = $1.50 Spot rate of British pound = $1.48 How much will Riverside Corp. receive in dollars in 180 days fare if it uses a money market hedge for the 400,000 pounds? Please show your steps, thank you!American X wishes to borrow U.S. dollars at a fixed rate of interest. Corporation Y wishes to borrow Japanese Yen at a fixed rate of interest. The amounts required by the two companies are the same at the current exchange rates. The following interest rates are listed adjusted for taxes: Yen Dollars Company X 6.0% 9.10 % Company Y 5.5% 11.20 % Create a swap that will net a bank 40 basis points per annum. Make sure the swap is equally attractive to both companies and foreign exchange risk is assumed by the bank.One year borrowing and deposit interest rates are 12.5% and 10.5% respectively in the US and 10.5% and 8.5% respectively in Germany. The spot exchange rate for the US dollar is $1.50 to the EURO. The 12-month forward rate is $1.55i) Assuming you do not have any initial investment funds, suggest a way youmight profit from the pricing inconsistency presented above.ii) Will the situation persist forever? Explain your answer.
- BK Inc. has $100,000 that can be used for arbitrage in the forex market. The interest rate is US is 4% and in Europe is 5%. The current exchange rate USD to EUR is 0.87. The company expects that after a year, the exchange rate may not be favourable and executes a forward contract at EUR to USD 1.23. Calculate the net profit or loss of this covered interest arbitrage if the investment is made in Europe. Answer Choices: a. The net profit is $8,360.50 The net loss is $4,000.00 b. c. The net profit is $5,360.50 d. The net loss is $1,000.00Stampede Capital Management has entered into a currency swap with Polar Investments inwhich Stampede pays 3.5% per annum in euros and receives 2.8% per annum in dollars.Stampede pays a principal amount of $130 million to Polar, while Polar pays €100 million toStampede at inception of the swap. The yield curve in both Germany and the United States isupward-sloping with the following interest rates: 1-year2-year Germany 4.00% 4.50% United States 2.00% 2.25% The swap will last for another two years and the current exchange rate is EUR/USD=1.33. What is the value of the currency swap to StampedeA company borrows $220M for 5-years at 3%, but wants a Euro liability since its revenue comes mostly from Germany. The exchange rate is $1.10. The curren 5-year swap rate is $3.2% versus E3.1%. What is the net result for the company What would happen to the company if the swap counterparty fails at maturity, there is no collateral and the $/E FX rate moves to $1.15?
- The spot foreign exchange rate for the US dollar is 0.69056 Euros. Yourcompany agrees to pay a bank 63,694 Euros in 3 months in exchange for 100,000US dollars. This is a foreign currency forward contract. No cash is exchanged upfront. Give the underlying asset, the maturity date, and the forward rate (for theUS dollar). Compare to the spot forward rate. ConcludeA U.S. firm, sells merchandise today to a British company for £100,000. The current exchange rate is $1.38/£, the account is payable in three months, and the firm chooses to hedge by borrowing £98,765.43 today and exchanging the proceeds today for dollars; the loan will be paid back with the £100,000 accounts receivable (money market hedge). If Husky converted the borrowed pounds into dollars today and invested that amount at its WACC of 6% (1.5% for 90 days), how much much money in U.S. dollars will Husky Sporting Goods Company have in 90 days?AMD needs $50 million for 1 year to finance its working capital. The company has two borrowing alternatives:(i) to borrow the full amount in Eurodollars in London at 3.20 % per annum(ii) to borrow HK$ 390 million in Hong Kong at 1.01 % per annum and exchange these HK$ at the then present exchange rate of HK$ 7.8000 per I USD.Calculate the ending exchange rate where AMD would be indifferent between borrowing in USD and HK$.
- Busco has a foreign-currency denominated payable, itcan hedge by buying the foreign currency payableforward. The company can expect to eliminate theexposure without incurring costs as long as the forwardexchange rate is an unbiased predictor of the future spotrate. Busco exported an A380 to a UK company, and wasbilled the sum of £ 12,000,000 payable in three months.Currently the spot rate is $1.40/£ and the three-monthforward rate is $1.36/£.The three-month money marketinterest rate is 12% per annum in US and 8% per annumin UK.So the management of Busco decided to managethis transaction exposure and use the money markethedge to deal with this pound account payable. 1)Conduct a cash flow analysis of the money market hedge. Answer: Transaction Current cash flow (3-month) Cash flow at maturity 1 Borrow £ =£11,764,705.88 - £12,000,000 2 Buy $ spot with £ = $16, 470,588.24 - £11,764,705.88 0 3 Invest in US - $16, 470,588.24…One year borrowing and deposit interest rates are 12.5% and 10.5% respectively in the US and 10.5% and 8.5% respectively in Germany. The spot exchange rate for the US dollar is $1.50 to the EURO. The 12-month forward rate is $1.55.i) Assuming you do not have any initial investment funds, suggest a way you might profit from the pricing inconsistency presented above. Start with a borrowing amount and then explain and calculate the gain/loss with the rates that you will borrow and deposit.ii) Will the situation persist forever? Explain your answer.Suppose that California Co., a U.S. based MNC, seeks to capitalize a difference in interest rates between euros and British pounds via the use of a carry trade. In particular, after 1 month, funds invested in euros will yield a 0.50% percent return, while funds invested in pounds will yield a return of 2.00% percent. Currently the spot rate of the British pound is $1.00 while the spot rate of the euro is $0.80. In other words, the pound is worth 1.25 euros. California Co. expects these spot rates to remain constant over the next month. After 1 month, California Co. now has 693,600 pounds after investing their converted pounds. However, it is now time for California Co. to repay the 600,000 euro loan. If California Co. borrowed these euros at the prevailing rate of 0.50% percent, they must repay a total of rate of 1.25, this repayment is equivalent to pounds. euros. At the cross pounds. Thus, after repaying the loan, California Co. will have